Result Briefs December 20, 2017

The Social Welfare Development and Reform Project

World Bank Group


The project has enabled the government to accelerate the pace of the government’s social protection reform agenda, through the expansion of the conditional cash transfer (CCT) program and the updating of a unified targeting system. A total of 20 million Filipinos representing 4.4 million households with children under 18 years old have been enrolled in the CCT program that provides incentives for parents to invest in the health and education of their children. The program is currently the fourth-largest CCT in the world. Beneficiaries have been objectively selected through the targeting system called Listahanan, recognized by the World Bank as a leading example for other countries to emulate. This social registry for the poor has covered 75 percent of the country’s population.

The Challenge

The Philippines has been one of the fastest-growing economies in the East Asia and Pacific Region. However, poverty has been slow to decline and remains high at 21.6 percent of the population. The high number of poor families represents a major challenge for the country. Poverty in the Philippines is concentrated in rural areas. Similarly, vulnerability to poverty, due to factors like disaster risks remain a major concern. Perennial typhoons and flooding are the most devastating in terms of their economic and social impact. Violent conflict in some parts of the country including in Mindanao has also disrupted the delivery of basic services and resulted in low human capital investment. Before the project was implemented in 2009, low health and education outcomes among poor children were largely a result of: (a) low spending on human development and social services and particular health and social assistance programs; (b) a fragmented approach to protect the poor and vulnerable; and (c) the absence of an effective and objective system to target or identify poor and vulnerable households.

Approach

To support the government’s social welfare reform initiatives, the Bank tapped its institutional knowledge and expertise in designing and implementing large-scale CCTs and targeting systems around the world. The project uses a programmatic approach that also leverages technical assistance in building up the targeting system and the CCT into what it is today – a strong social protection system that has become the centerpiece of the government’s social protection strategy. In particular, the project supported the development of an objective, rigorous national household targeting system called Listahanan to better direct the social programs implemented by the Department of Social Welfare and Development (DSWD) and other government agencies. Listahanan was used to identify poor households for the CCT program and for other government programs. By taking a system approach, other national agencies, local governments and legislators and even civil society can draw from the Listahanan to provide assistance where is it needed the most in a transparent and fair manner. 

The project also supported the roll-out and scale up of the country’s CCT program, Pantawid Pamilya Pilipino Program, or 4Ps, which provides cash grants to poor households as incentives for parents to keep their children healthy and in school.  There are two requirements: children aged 14 and under and pregnant women should have regular health checks; and school-aged children (between 6 and 18 years old) should attend school classes at least 85 percent of the time. Overall the project is a long-term investment that contributes to breaking the cycle of inter-generational poverty by helping today’s children become productive members of society. 

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Results

From 2007 to December 2016, the project has achieved important results:

  • The DSWD has collected information from more than 15 million households for the Listahanan 2015, of which 5.1 million households are identified as poor and have been targeted for government assistance.
  • The database has become the backbone of the government’s anti-poverty programs and is now being used by 25 national programs targeting poor households including the Universal Health Care Program and the CCT. The database also helped to identify beneficiary families for various rehabilitation programs in the wake of Typhoon Haiyan (Yolanda) in 2013 and to develop various anti-child labor programs and services with the Department of Labor and Employment.
  • The CCT covers 4.4 million households and 90 percent of grantees are women (usually the mother in the family). In all, 10.18 million children are currently benefiting from the program including 1.9 million in high school. Elementary schools have reached near-universal enrollment among children in participating households. 333,673 graduated from high-school in 2015, including 13,400 honors graduates.
  • An evaluation study estimates that the program leads to a poverty reduction of 1.4 percentage points per year. Without the program, there would be nearly 1.5 million more Filipinos in poverty, pushing the poverty rate to 23 percent from the current 21.6 percent. This is partly because social protection programs such as 4Ps help protect the poor from the adverse impacts of various shocks the country has experienced over the past six years.
  • The CCT program is delivering on its education and health objectives:
    • Enrollment among poor elementary school children increased by 5 percentage points while secondary education enrollment increased by 7 percentage points.
    • The program increased prenatal and postnatal care by 10 percentage points and increased the delivery of babies in health facilities by skilled health professionals by 20 percentage points.
    • The number of children receiving a higher intake of vitamin A and iron supplements increased by around 12 percentage points and the number attending weight monitoring visits at health facilities increased by 18 percentage points.

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20 million

20 million Filipinos representing 4.4 million households with children under 18 years old have been enrolled in the CCT program that provides incentives for parents to invest in the health and education of their children.


Bank Group Contribution

The World Bank provided US$505 million in financing with the SWDR Project to help strengthen the DSWD’s performance as a social protection agency, to setup the database for the national household targeting system and to implement the CCT. The project also helped strengthen the DSWD’s capacity to undertake policy analysis and strategic planning related to social protection. The project was complemented with more than US$5 million in technical assistance grants from both the World Bank and the Australian Department of Foreign Affairs and Trade (DFAT). Under SWDRP2 the World Bank provided additional financing of US$450 million to continue support for the CCT program.

Partners

DSWD is a government agency responsible for the implementation of the CCT program as well as for operating the national household targeting system, Listahanan. In addition to World Bank financing, the Asian Development Bank has supported the CCT program with parallel funding. The Australian Government has also supported efforts to develop the capacity of DSWD to implement the CCT program and the targeting system through a World Bank-managed trust fund.

Moving Forward

DSWD will continue to implement the CCT program. A number of steps are planned to continue to enhance the CCT implementation systems as well as staff capacity. Listahanan 2015 was completed and transition from Listahanan 2011 to 2015 to select beneficiaries of the government programs is planned. The Government plans to continue to use Listahanan to select beneficiaries of its programs. On February 19, 2016, the World Bank approved a new $450 million financing package to support the continued implementation of the CCT program effective June 28, 2016. This new funding will help finance health and education grants for CCT beneficiaries nationwide from 2016 to 2019, covering about seven percent of the total cost of the program

Beneficiaries

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