| Photo via National Cancer Institute on Unsplash
Cash transfer programs have become a cornerstone of social welfare policies worldwide in recent years. These programs aim to alleviate poverty, improve health outcomes, and promote economic stability. Let’s examine how the Philippines, the United States, the European Union, and Southeast Asia approach cash transfers and social programs.
The Philippines has implemented several cash transfer programs to support its vulnerable populations. The Pantawid Pamilyang Pilipino Program (4Ps), managed by the Department of Social Welfare and Development (DSWD), provides conditional cash grants to the poorest households to improve health, nutrition, and education. Additionally, the Ayuda para sa Kapos ang Kita Program (AKAP) offers financial assistance to near-poor Filipinos. These programs are part of the broader General Appropriations Act (GAA), which allocates significant funds to social welfare initiatives.
Cash transfer programs, particularly guaranteed income initiatives, have gained traction in the United States. These programs provide a predictable amount of money to impoverished individuals, aiming to reduce poverty and improve health outcomes. Cities like Stockton, California, have piloted guaranteed income programs with promising results. However, these programs are still experimental and are not yet widely implemented at the federal level.
The European Union (EU) has a robust framework of social programs promoting economic and social cohesion. The European Social Fund Plus (ESF+) is the EU’s main instrument for investing in people, with a budget of €142.7 billion for 2021-2027. The ESF+ focuses on employment, education, skills, and social inclusion, supporting initiatives that help individuals transition to a green and digital economy. Additionally, the EU funds various other programs, such as the Fund for European Aid to the Most Deprived (FEAD) and the Youth Employment Initiative.
Southeast Asia has increasingly emphasized cash transfer programs and social welfare initiatives. Countries like Indonesia, Thailand, and Vietnam have implemented various programs to support their populations. For example, Indonesia’s Program Keluarga Harapan (PKH) provides conditional cash transfers to poor and vulnerable households, focusing on health, education, and nutrition. Thailand’s Social Security Fund offers cash benefits to workers in the informal sector, while Vietnam has implemented social assistance programs to support low-income families.
When comparing these regions, it’s evident that the Philippines allocates a significant portion of its budget to cash transfer programs, reflecting a strong commitment to social welfare. The U.S., while still in the early stages of implementing guaranteed income programs, shows a growing interest in addressing poverty through direct financial support. With its comprehensive social programs, the EU invests heavily in initiatives promoting social inclusion and economic stability. With its diverse approaches, Southeast Asia highlights the region’s efforts to address social welfare through various cash transfer programs.
“Cash transfer programs are crucial in addressing poverty and promoting social welfare. While each region has its unique approach, the common goal remains to improve the lives of the most vulnerable populations. As these programs evolve, seeing how they adapt to society’s changing needs will be interesting.”
Cash transfer programs are crucial in addressing poverty and promoting social welfare. While each region has its unique approach, the common goal remains to improve the lives of the most vulnerable populations. As these programs evolve, seeing how they adapt to society’s changing needs will be interesting.
In the Philippines setting, however, there appears to be a connection between cash transfer programs and political patronage. Health programs are so fragmented that beneficiaries often have to navigate the whole gamut of politicians to maximize benefits. Instead of a central payor, beneficiaries have to bend a knee to their local government officials, who often equate available funds with voter commitments subtly. Congressional representatives of the Senate and the House of Representatives dole out assistance through their recommendations to implementing agencies such as the Department of Social Welfare and Development.
Another aid tier is available through government-owned and controlled corporations such as the Philippine Gaming Corporation and the Philippine Charity Sweepstakes Office. Universal health insurance, PhilHealth, constantly adjusts its case rates, covered medical conditions, and pharmacy formulary, accumulating reserves while slowly broadening coverage.
PhilHealth reserves would be non-existent if it provided a minimum non-selective all-encompassing coverage, regardless of diagnosis, for any hospital stay, say P100,000 to start. Then, the government would not have to debate whether to provide the subsidy originally earmarked from ‘sin taxes.’ PhilHealth case rates are not nearly enough to cover private hospital costs, which becomes challenging when the nearest government hospital is five hours away by land transport.
Then there’s Medical Assistance for Indigent Patients, which allocates about P6M per LGU and is managed by the Department of Health based on endorsement from the district Congressman. This requires the LGU officials to make appearances at events where the district congressman is to be the guest of honor.
To access health care, Juan de la Cruz must waste time and transportation costs. The same story applies to disaster relief, burial benefits, tuition assistance, and so on. Why this process is endearing and wins votes is a quandary. This process should elicit frustration, if not outright anger. Backlash instead of votes. Those most in need are those most exploited – such is life for the ‘laylayan.’
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ABOUT THE AUTHOR: Dr. Crispin Fernandez advocates for overseas Filipinos, public health, transformative political change, and patriotic economics. He is also a community organizer, leader, and freelance writer.
