A WORLD Bank study, conducted by the Strategic Impact Evaluation Fund (SIEF), examined the effects of cash transfer programs on beneficiaries. The study revealed that the impact of these programs can vary significantly depending on the program’s specific design, the context of its implementation, and the target population.
What exactly is a cash transfer, and why do programs like 4Ps and TUPAD appear to be enduring? The World Bank defines cash transfers as a strategy to reduce poverty and improve health and education outcomes in impoverished communities. The Pantawid Pamilyang Pilipino Program (4Ps), launched in 2008 and institutionalized in 2019 through Republic Act No. 11310 (the 4Ps Act), exemplifies this approach. As the national poverty reduction strategy and human capital investment program, 4Ps provides conditional cash transfers to poor households. These households are required to ensure regular health check-ups for their children and maintain their children’s enrollment in school as conditions for receiving assistance.
Another prominent program is the Tulong Pang-hanapbuhay sa Ating Disadvantaged/Displaced Workers (TUPAD). According to the Department of Labor and Employment, TUPAD is a community-based safety net initiative that offers temporary employment to workers in the informal sector. The program specifically targets underemployed workers (those earning insufficient wages), self-employed individuals, and displaced marginalized workers (those who have lost jobs or experienced income reduction, particularly due to the pandemic).
Despite their potential benefits, cash transfer programs often face criticism. Concerns exist about the possibility of creating dependency among beneficiaries and diminishing their motivation to improve their economic standing. There are also concerns that some families may misuse the cash assistance, spending it on non-essential items like vices. Therefore, robust safeguards and monitoring mechanisms are crucial to ensure that funds reach the intended recipients and are used effectively.
This issue is further complicated by the surge in cash assistance events, which have become increasingly prevalent as the midterm elections approach. How this is beneficial to disadvantaged households in the long term is something to think about. Seriously.
