Teaching how to fish

There is enough evidence, anecdotal or formal research-based, that people who have obtained higher formal educational levels are likely to earn more than their less-educated counterparts. Yet there has been recent hue and cry over implementation issues on the Conditional Cash Transfer Program or Pantawid Pamilyang Pilipino Program (also known as 4Ps) that have caused some legislators in both houses to question the wisdom of funding the 4Ps program. Even the hardworking and highly competent Sen. Cynthia A. Villar has wondered whether rice or milk should be given in lieu of cash which is probably even more difficult to manage, and full of holes.

NEDA has been citing in our national development plans the strategic goal of reducing poverty, “bringing the greater number of Filipinos above the poverty line” or inclusive growth. And yet, administration after administration, we cannot seem to meet our strategic goals. Some highly respected economists say that this is due to the unjust economic “structures” that cause the impressive GNP growth to just make the few rich, even more obscenely rich. In fact, some of our top richest families have ended up on the Forbes list of the wealthiest in the world. Meanwhile, we have a significant percentage of our people experiencing “involuntary hunger.”

A few months ago, I learned from my housekeeper and her similarly employed friends who have not gone to high school that in their home towns, their families have not received their 4Ps allowances since the end of March, or the last school year. These women are solo parents who work as maids in the city because their take home pay, which they send home to their parents or siblings who care for their children, is higher than if they worked in factories and had to maintain personal overhead. Therefore, the opening of the current school year has been a real burden, since they are unable to supply all of their children’s school needs (notebooks, uniforms, shoes, etc.) in addition to the transportation and baon that they now had to shoulder themselves. It seems they have been told that the 4Ps is being “reviewed” and there might be changes in the future.

It seems to me that withal, the 4Ps is one of the best things the government has come up with in terms of investment in human capital, which is good for the country, not only its direct beneficiaries. It is certainly not a dole out since the participation is conditional. The children must attend classes for a minimum of 85% of school days. Mothers must visit the health care center regularly for health checkups and family planning services. The kids must obtain the basic immunization services. And there are monitoring systems in place. So, a healthier populace in addition to educational assistance improves the quality of our human capital. Therefore, the 4Ps are also a developmental investment because they enable our children to learn better how to fish; and encourage their mothers to stay healthy and strong.

An old study I came across covering 2013 indicated that indeed, with the 4Ps, the school drop-out rate had been reduced by at least 30%. Hopefully, through the years, with more experience, the 4Ps’ performance in keeping children in school should be increasing, especially since additional benefits such as PhilHealth coverage are added to the service package. It is good to know that the 4Ps benefits are to be extended all the way to the end of K-12.

The global economy is becoming increasingly a knowledge economy; and if we do not enable our people to catch up with technology and basic literacy, reducing poverty will just be a dream, and not a realistic goal.

Of course, not everyone is meant to become a knowledge worker. I honestly do not agree that the free college tuition in state-owned colleges and universities should be available to all, as long as they get passing grades, which the Senate has proposed. Perhaps an average of 80% should be required for free access to college. We also need vocational technical workers; and as in the case of welding skills, such technical workers should be paid more. When the South Korean shipbuilders set up shop in Subic, they pirated welders from the shipbuilding companies in Cebu, thus causing the Balamban shipyards to raise the starting pay of welders, who are mostly women (they do finer detailed work). Today, the demand for construction workers is growing by leaps and bounds, with the government’s stated intention to “build, build, build.” It is incredible that the government has even expressed openness to bringing in construction workers from other countries to meet the threat of shortages in skilled workers. Also, our carpenters, masons, plumbers and electricians are being drawn to jobs in other countries. Competition is good. The way to go is to raise salaries of technical and vocational workers and thus raise their families above the poverty line.

Give them milk and rice instead of conditional cash for education and health of the family? That is a proposal to give them fish instead of enabling them to fish for themselves. Besides, milk and rice distribution is a logistical nightmare and likely to be open to graft. If there are problems in implementation, what we need to do is fix those problems, not give up on this laudable conditional cash transfer program.

Teresa S. Abesamis is a former professor at the Asian Institute of Management and an independent development management consultant.

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