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Thursday, November 12, 2009

Providing for the poor


Providing for the poor

ROMEO Y. LIM

‘Recovery does not happen equally down the line.’
 
WITH the 2010 elections coming in and candidates mouthing promises that may or may not be kept, perhaps it would be best to know what strategies and programs for the poor will ensure that they are getting what is due them. Conversely, such information would be vital in ensuring that the intended beneficiaries are the ones who benefit and not the "pseudo-indigent. "
For instance, a World Bank (WB) report states that as much as 41% of the subsidized rice being distributed by the National Food Authority (NFA) "goes to non-poor households." It was estimated that the poorest 20% of all households consume just 31% of all NFA rice, while 16% actually go to the top 40% of households in income. This indicates that almost P25 billion in rice subsidies are not reaching the poor, their intended beneficiaries.
Another particular area of concern is socialized housing for the poor. Access to quality housing is a very high priority, and consumes a substantial portion of incomes, especially among the poor and the middle classes. Thus, it has become one of the key areas where public subsidies are being provided.
But the effectivity of some of our public or subsidized low-cost housing projects is highly questionable, with amenities such as airconditioning units becoming frequent signs that we are giving it to the wrong beneficiaries.
There are also other targeting glitches in other basic social services meant for the poor, such as in health and public education. These represent a big waste in public funds allocated for the poor. The national government has had to allocate an additional P67.6 billion just to help poor Filipinos get by with the impact of increased food and fuel prices in 2008 alone.
In time, most households will eventually recover from the effects of the prevailing globalfinancial meltdown. That applies to even the poorest of the poor. The experts’ consensus is we will start to experience a global economic recovery by the last quarter of this year. Signs are pointing to that direction but it could still stand some improvement.
The problem, however, is that recovery does not happen equally down the line. It is the poor who suffer the most in times of crises, and they are also the ones who are slowest to recover. Often times, they lose not just their meager possessions, but also their means of subsistence, such as small farmlands, draft animals, and work implements. Every economic crisis drives them deeper into poverty and worsens the gap between the poor and the rich.
The percentage of Filipinos considered poor was already on the rise even when our economic performance was the best in the region. Now that we are in the midst of a global economic crisis, their numbers are expected to further increase.
We have to rethink not just the way we are helping the poor get by, but also how to better ensure that the funds allocated to improve their lives reach the intended beneficiaries.

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