The Effectiveness of Conditional Cash Transfers:
A Case Study of the Philippines
Nathalie van Baren
Bachelor of science in Economics, KU Leuven, Belgium
Introduction
The Philippines anno 2014: recovering from their recent typhoons, economic growth of an estimated seven percent and less than one year left to reach the Millennium Development Goals (MDGs). The wanted progress on the second goal ‘Achieve Universal Primary Education’ is most likely not going to be achieved. How is that possible since they implemented a Conditional Cash Transfers (or simply CCT) program? Should they have changed the schooling system earlier instead of trying CCT, did in fact prevent CCT further decrease of inaccessible education or is it perhaps the combination of both? The reaching of goal four ‘Reduce Child Mortality’ has a more positive perspective, because of CCT or not? The following goal ‘Improve Maternal Health’ on the other hand, does not have positive expectations.
This paper will research what the impact of conditional cash transfers has been and still is in the Philippines. Is the outcome positive enough to continue the program or should other solutions be investigated to improve living in this less developed country?
Micro-level data are coming from a research done by, among others, the World Bank and AusAID. Macro-level data on the other hand, are all coming from the databank of the United Nations, specifically oriented on the indicators of the Millennium Development Goals.
1. A SUMMARY OF CONDITIONAL CASH TRANSFERS IN THE PHILIPPINES
The meaning of CCT is not that difficult, it is hidden in its name. People will receive cash if they meet the conditions. Those conditions differ in each country, some are specifically oriented on educatio...
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... N. and Okamura Y. (2012). Conditional Cash Transfers and School Enrollment: Impact of the Conditional Cash Transfer Program in the Philippines
• Op de Beeck T. and van Baren N. (2012). “Health and Education in the Philippines”
• Reyes C.M. and Tabuga A.D. (December 2012). “Conditional Cash Transfer Program in the Philippines: Is it reaching the extremely poor?”
• The Economist (July 29th, 2010). “Give the poor money: Conditional Cash transfers are good, but they could be even better.”
• The National Statistical Information Center (2010). MDG Watch: Philippine Progress based on the MDG Indicators
• The World Bank (June 9, 2013). News: “Conditional Cash Transfers pay off in the Philippines”
• The World Bank (November 2013). “Philippines Conditional Cash Transfer Program: Impact Evaluation 2012”
• United Nations (2013). “The Millennium Development Goals Report 2013”
In other words, Singer believes that unless you can find something wrong with the following argument, you will have to drastically change your lifestyle and how you spend your money. Although some people might believe that his conclusion is too radical, Singer insists that it is the logical result of his argument. In sum, his view is that all affluent people should give much more to famine relief. While I agree with Singer’s argument in principle, I have a problem with his conclusion. In my view, the conclusion that Singer espouses is underdeveloped.
Shi L. & Singh D.A. (2011). The Nation’s Health. Sudbury, MA: Jones & Bartlett Learning.
Rust, M. (1998, August 3). "Public Welfare for Billionaires." Insight on the News. v14 n28.
Many people who read such statement wonder about our obligation towards famine relief, and ask, whether we are morally obliged to spend one dollar in order to prevent such a crisis or not. Forty years ago, Peter Singer answered this question in his article
“Reducing poverty is important for those affected, for society and the economy” (Sutherland). So then the question of what to do about it comes up. “Understanding the relationship between policy, power and agency is a vital part of working to prevent poverty at all levels” (Sutherland). There are so many factors that play into poverty that it is important to have a better understanding of each of these complex and layered issues. Once this is done, we must strive to improve systems such as the cash net as well as others designed for aiding those who are
Education is a very important factor in a person’s life and there is different parts of education whether that may be primary, secondary or further education like college or university. These skills and knowledge that is taught develop us into the person we become later in life. Learning just doesn’t stop after school or further education, each individual develops and continues to learn through life for example jobs and new experiences. Therefore, education is an important social determinant of health which can affect not only individuals but families and communities too as well as having a large impact on our physical and mental
Singer’s argument may have swayed many people to donate their dispensable income to children in need despite the fact that it has many fundamental flaws. He argues that we should give away the majority of our earnings to charity. Since Singer wants the reader to donate such a large amount of money, the readers are given no choice but to contribute nothing whatsoever. His solution is not realistic and does not take into account the long-term financial impact this type of donation contribution system would have on a country’s economy.
"Letter to the Editors Why Are Many People in Developing Countries Poor?" Poverty. N.p., n.d. Web. 22 May 2014.
Harold A. Crouch. 1985. Economic change social structure and political systems in Southeast Asia: Philippine development compared with the other Asian countries. Institute of southeast Asian studies
Remittance has now become a commonly used term, however rarely defined; its concept has been linked with the concept of migration. When we see the definition it’s linked to its motives, effects, uses, kind of transfer and the channel of funds transfer. According to Ratha (2003) remittance are defined as migrants’ capital transfers, which are assets that a migrant brings into or takes out of the country. Remittances are also stated as a
Paid participants were 30% more likely to register for a second semester than students who were not offered the supplemental financial aid. These students also earned more credits and were more likely to maintain an above C average. This result shows that cash incentives help students. In order for this system to work, the best students with A’s will need to receive sixty percent of the total money spent by students with bad grades and students with B’s will need to receive forty percent of the total money spent by students with bad grades.... ...
Apart from Manila, several other areas, more specifically provinces, were also affected by the developments. These provinces which experienced the massive conversion from agricultural lands into “residential, commercial a...
Therefore, there are pros and cons in obtaining education both in the United States and in the Philippines. Both have strong and weak points. But since education is the key toward a successful and a prosperous country, and both countries want to be successful and prosperous anyway, I think it would be a better idea that these two countries should adapt the positive aspects of education of each. I wonder what education would be like if all countries in the whole world will acclimatize to what is beneficial and become more flexible and open minded enough to support education with all their best and at the same time providing all the resources the students need for a better education toward a better future?
Thompson, Derek. Your Brain on Poverty: Why Poor People Seem to Make Bad Decisions. 22 Nov 2013. Web. 19 Feb 2014.
Some of the goals are doing well, such as primary schooling. However the “reducing hunger by half” goal is not. The chart shows that two regions of the world, Sub-Saharan Africa and Southern Asia, have high hunger with only fair progress. The rest of the regions they included have moderate hunger with very little progress. This proves that the methods used to accomplish the MDGs were ineffective and insufficient (in text citation- progress chart). The fact that the Sustainable Development Goal pertaining to hunger includes food security, nutrition, and agriculture is an achievement in itself because “it acknowledges the crucial role played by food-based approaches to nutrition” (in text citation- Goal 2). Improvements in agriculture can ultimately lead to ending hunger because people will have access to more nutritious foods and farmers will be able to produce more food. The UN said the purpose of the Millennium Development Goals was “to shape a broad vision to fight poverty and combat numerous issues hampering development progress” (in text citation- chart). This claim is contradicting because the only goal regarding hunger was to reduce it by half. Perhaps one of the reasons this goal wasn’t fully accomplished was because the UN didn’t incorporate other components such as nutrition and agriculture into the Millennium