Publication: Boosting Human Capital in the Philippines through Conditional Cash Transfers
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2020-05
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2020-07-27
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Human capital is the Philippines’ most important resource. By the late 2000s, remittances from skilled and semi-skilled Filipinos working abroad were increasingly vital for many families, even as the country became one of the preferred destinations for foreign enterprises looking for educated workers in countries where their business processes could be outsourced. There were concerns, however, that the Philippines was beginning to lose its human capital edge because of critical gaps in access to social services and in the quality of those services. The Philippines responded to this by adopting an ambitious national social agenda aimed at putting it on a more robust development path. This agenda included lengthening the secondary education cycle and creating a social health insurance program for all citizens, a population management program, and a conditional cash transfer program (King 2020). This delivery note focuses on the conditional cash transfer program. Called the Pantawid Pamilyang Pilipino Program, which roughly translates into “building bridges for Filipino families” (Schelzig 2015), the initiative, first implemented in 2007, was designed to assist the poor by directly providing them with money. Unlike conventional social assistance programs, however, the beneficiaries received the grants only if they fulfilled certain conditions. Those conditions include enrolling their children in school and ensuring that they maintain attendance rates of at least 85 percent, taking their children on regular clinic visits for basic health services (such as immunization and growth monitoring), and regularly attending sessions where the beneficiaries learned about topics such as family planning, good citizenship, and financial literacy (Kandpal et al. 2016).
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“Global Delivery Initiative. 2020. Boosting Human Capital in the Philippines through Conditional Cash Transfers. © World Bank. http://hdl.handle.net/10986/34211 License: CC BY 3.0 IGO.”
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Publication Evaluating the Impact of Conditional Cash Transfer Programs(Oxford University Press on behalf of the World Bank, 2005-03-01)Several developing economies have recently introduced conditional cash transfer programs, which provide money to poor families contingent on certain behavior, usually investments in human capital, such as sending children to school or bringing them to health centers. The approach is both an alternative to more traditional social assistance programs and a demand-side complement to the supply of health and education services. Unlike most development initiatives, conditional cash transfer programs have been subject to rigorous evaluations of their effectiveness using experimental or quasi-experimental methods. Evaluation results for programs launched in Colombia, Honduras, Jamaica, Mexico, Nicaragua, and Turkey reveal successes in addressing many of the failures in delivering social assistance, such as weak poverty targeting, disincentive effects, and limited welfare impacts. There is clear evidence of success from the first generation of programs in Colombia, Mexico, and Nicaragua in increasing enrollment rates, improving preventive health care, and raising household consumption. Many questions remain unanswered, however, including the potential of conditional cash transfer programs to function well under different conditions, to address a broader range of challenges among poor and vulnerable populations, and to prevent the intergenerational transmission of poverty.Publication North-South Knowledge Sharing on Incentive-based Conditional Cash Transfer Programs(World Bank, Washington, DC, 2011-01)Over the last decade, Conditional Cash Transfer (CCT) programs have become one of the most widely adopted anti-poverty initiatives in the developing world. Inspired particularly by Mexico's successful program, CCTs are viewed as an effective way to provide basic income support while building children's human capital. These programs have had a remarkable global expansion, from a handful programs in the late 1990s to programs in close to 30 countries today, including a demonstration program in the United States. In contrast to many other safety net programs in developing countries, CCTs have been closely studied and well evaluated, creating both a strong evidence base from which to inform policy decisions and an active global community of practice. This paper first reviews the emergence of CCTs in the context of a key theme in welfare reform, notably using incentives to promote human capital development, going beyond the traditional focus on income support. The paper then examines what has been learned to date from the experience with CCTs in the South and raises a series of questions concerning the relevance and replicability of these lessons in other contexts. The paper concludes with a call for further knowledge sharing in two areas: between the North and South as the experience with welfare reform and CCTs in particular expands, and between behavioral science and welfare policy.Publication Examining Conditional Cash Transfer Programs : A Role for Increased Social Inclusion?(World Bank, Washington, DC, 2006-06)Conditional Cash Transfer programs (CCTs) provide money to poor families contingent upon certain verifiable actions, generally minimum investments in children s human capital such as regular school attendance or basic preventative health care. They therefore hold promise for addressing the inter-generational transmission of poverty and fostering social inclusion by explicitly targeting the poor, focusing on children, delivering transfers to women, and changing social accountability relationships between beneficiaries, service providers and governments. CCT programs are at the forefront of applying new social policy theories and program administration practices. They address demand-side barriers, have a synergistic focus on investments in health, education and nutrition, and combine short-term transfers for income support with incentives for long-run investments in human capital. They also are public sector leaders in program administration, using modern targeting, registering, and monitoring systems along with strategic evaluations. Their impact depends on the supply of quality, accessible health and education services and may increase with strengthened links to the labor market, and a greater focus on early childhood and transient support to households facing shocks. CCT programs are facing a number of challenges as they evolve, from reaching vulnerable groups to fostering transparency and accountability, especially at the community level. Centralized programs have been criticized for limiting the engagement of local governments and civil society and it is clear that in limited capacity environments, a greater reliance on communities is warranted. In sum, though promising, these programs are not a panacea against social exclusion and should form part of comprehensive social and economic policy strategies and be applied carefully in different policy contexts.Publication Philippines Conditional Cash Transfer Program : Impact Evaluation 2012(Washington, DC, 2013-11)The specific objectives of the program are to: a) keep children in school, b) keep children healthy, and c) invest in the future of children. It reflects the Government's commitment to promoting inclusive growth by investing in human capital to improve education and health outcomes for poor children and pregnant women. The program is based on the premise that poverty is not about income alone but is multi-dimensional, and factors such as access to basic social services and social environments matter. This report presents the findings from an analysis that assessed program impact by comparing outcomes in areas that received Pantawid Pamilya with outcomes in areas that did not receive the program. The impact evaluation applied two analytical methods: 1) Randomized Control Trial (RCT), which compared randomly assigned program areas and non-program areas to assess program impact, and 2) regression discontinuity design, which compared the outcomes of poor households who received the program with similar poor households just above the poverty line. This report presents the findings from the RCT component only. It should be noted that although 2.5 years of program implementation is generally considered enough time to observe impacts on short-term outcomes, it is not long enough to assess impacts on long-term outcome measures. The program is also achieving its objective of enabling poor households to increase their investments in meeting the health and education needs of their children. Although the study found that the cash grants were reaching beneficiaries, the study did not find an overall increase in per capita consumption among the poor benefiting from the program, although there was some evidence that poor households are saving more in certain provinces.Publication Conditional Cash Transfers : Reducing Present and Future Poverty(Washington, DC: World Bank, 2009)The report shows that there is good evidence that conditional cash transfers (CCTs) have improved the lives of poor people. Transfers generally have been well targeted to poor households, have raised consumption levels, and have reduced poverty, by a substantial amount in some countries. Offsetting adjustments that could have blunted the impact of transfers, such as reductions in the labor market participation of beneficiaries, have been relatively modest. Moreover, CCT programs often have provided an entry point to reforming badly targeted subsidies and upgrading the quality of safety nets. The report thus argues that CCTs have been an effective way to redistribute income to the poor, while recognizing that even the best-designed and best-managed program cannot fulfill all of the needs of a comprehensive social protection system. CCTs therefore need to be complemented with other interventions, such as workfare or employment programs and social pensions. The report also considers the rationale for conditioning the transfers on the use of specific health and education services by program beneficiaries. Conditions can be justified if households are under investing in the human capital of their children, for example, if they hold incorrect beliefs about the returns to these investments; if there is "incomplete altruism" between parents and their children; or if there are large externalities to investments in health and education. Political economy considerations also may favor conditional over unconditional transfers: taxpayers may be more likely to support transfers to the poor if they are linked to efforts to overcome poverty in the long term, particularly when the efforts involve actions to improve the welfare of children.
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