(CCT, among PNoy's biggest failures in his first year in office) Urban poor group belies dole-out scheme behind decline in hunger and poverty

PRESS RELEASE I June 11, 2011

As government officials attribute the significant decrease of hunger incidence to the short-term effect of Aquino's Conditional Cash Transfers (CCT), Kalipunan ng Damayang Mahihirap, a militant urban poor group holds a protest action at DSWD Main Office in Batasan and describes the dole-out program “futile in the nation's fight against poverty.”

Members of Kadamay burn dummy CCT ATM cards to show the scheme's fultility.

Gloria Arellano, Kadamay national secretary-general, says, “CCT is one of Aquino's biggest failures in his first year in office, part of his ineffective poverty-alleviation and hunger mitigation programs.”

Albay governor Joey Salceda, an economist, believed that the expansion of the CCT program is the reason why, as shown by a recent Social Weather Station (SWS) survey, the overall hunger incidence in the country has dropped by 6 percent, from 3.9 million familes in the second half of 2010 to 3 million families in the second quarter of this year. The number of Filipino families considering themselves as food-poor likewise have decreased from 10.4 million im March to 9.8 million in June.

CCT, the largest part of the popular Pantawid Pamilyang Pilipino Program (4Ps), is the flagship poverty alleviation effort of the Aquino administration that rewads the poorest of Filipino households a maximum of P1,400 every month for following certain conditions.

The urban poor group claims that the decline in the hunger incidence are part of a conditioning effort to support his achievements come his second State of the Nation Address later this month. She says, “the unabated hikes in prices and fuel, meager increase in wage and the consistent lack of job opportunities and land to till for the farmers during this period should instead increase the incidence of hunger.”

CCT has no effect in Mindanao

Arellano further explains, “considering the survey results were good, and sampling used was scientific, Pnoy's cash transfer program is even more doubtful to have relevant effect to the decline in self-rated hunger.”

The group cites that Luzon (Metro Manila excluded), where the hunger incidence plummets to single digit 9.5% from 25.0% during the first quarter, is not the priority area of implementation of the cash transfer program. While the CCT priority areas of Visayas and Mindanao recorded a significant increase in self-rated hunger, with +6.3% and +5% respectively. In terms of food-poverty, Mindanao registered a 13-point increase in the second quarter despite the fact that Mindanao has the lion's share of CCT beneficiary familes at about 48 percent.

CCT's negative effect

Many CCT beneficiaries complain of the delayed monthly allowance. Estrelieta Bagasbas, a benificiary from the contested North Triangle area in Quezon City, tells that “many of the beneficiaries in our community who expect to receive CCT cash allowance for the month of March to June resorted to 5-6 (credit business) to replace their delayed allowance. Until now since March, the beneficiaries have never received any of the monthly cash dole-out and now are burndened by a long list of debt.”

Many believed that CCT will never work out in a country like the Philippines where corruption is deeply rooted in its bureaucracy.

According to Ibon Foundation, an independent economic think tank, “while CCTs at first glance seem unobjectionable, looking at them from a progressive social development perspective and in the concrete conditions of the Philippines raises some serious concerns. They may well provide welcome relief to beneciary families but if the economy does not get the radical reforms it so badly needed, then the root causes of poverty will remain—and Filipinos will remain as poor as ever.”

The rate remains high

“Whether hunger incidence has increased or decreased in the first year of the Aquino administration, what the survey nor PNoy himself seemingly cannot fix is the very high number of Filipinos experiencing hunger and considering themselves poor,” Arellano remarks. “PNoy's anti-poverty programs remain futile.”

Reference: Gloria Arellano, KADAMAY National Sec-Gen (09213927457)