WB approves loan for RP's conditional cash transfer

Washington-headquartered World Bank on Wednesday announced that it approved a new loan for the Philippines to partly fund the country's conditional cash transfer (CCT) program, among others. In a statement, WB said it would be granting a $405-million financing to support the Philippine's Social Welfare Reform Agenda Project to reduce poverty and improve health and education outcomes in 376,000 households in poorest provinces and municipalities. "The project will strengthen the capacity of the Department of Social Welfare and Development (DSWD) as a social protection agency, finance part of the new conditional cash transfer program, and establish a national household targeting system to identify the poor and improve targeting in social protection programs," WB said. Called Pantawid Pamilyang Pilipino Program (4Ps), the CCT program seeks to reduce poverty and improve children's health and schooling as well as maternal health in poor households in the poorest provinces and municipalities in the country. It also provides cash grants to poor households to keep their children in school and give them health care, as well as promoting adequate care for pregnant women. The Department of Social Welfare and Development (DSWD) said the technical and financial support would help the government's effort to alleviate poverty in the country. "An effective household targeting system and the CCT program will serve as the main pillars of a coherent and well-targeted social protection system in the Philippines," said Esperanza Cabral, DSWD Secretary. In early 2008, the government launched a pilot CCT program focused on supplementing the income of about 6,000 poorest household in selected municipalities while supporting the development of their human capital. In response to the global food crisis in the succeeding months, the government rapidly expanded the program to cover 1 million household beneficiaries by the end of the year. Transfers to some 376,000 households are covered by the WB and the rest is financed from the government's own budget resources. "We envision the CCT program to become the backbone of the country's social protection," said Cabral. Bert Hofman, WB country director for the Philippines, said the CCT will augment incomes of beneficiary households by about 20 percent, providing them cushion against income shocks such as the food and fuel crisis in 2008 and the global financial crisis. The program also acts as strong incentives for the poor to invest in health and education of their children. "Reducing the vulnerability of poor households to sudden economic difficulties and improving their access to education and health services are among the most tangible ways to make growth work for the poor," said Hofman. He added that other Development Partners have been key in supporting the CCT program as well. "Technical assistance financed by AusAID [Australian Agency for International Development] has been crucial for the rapid development of such a large program. AusAID along with Korea and Japan will support proper monitoring and evaluation of the program," Hofman said. -GMANews.TV