Sunday, March 07, 2010

Philippines May Triple Assistance to Poor Families

Recently the World Bank has urged the Filipino government to triple its spending on subsidies for poor families. The subsidies come through the Conditional Cash Transfer program (CCT) within the social welfare department. The program, similar to many family assistance strategies, provides monthly food allowances to families that meet basic requirements such as keeping their children in school.

The World Bank contends that one of the most effective approaches to reduce poverty is through direct investment in human capital, and therefore the Filipino government should extend the CCT program to 3 million more families.

Although the Philippines currently suffer a large budget deficit, the World Bank suggests a re-appropriation of subsidy funds into the welfare department, but also states that the World Bank is willing to augment their own funds to expand the CCT Program.

-Michelle Leung

Source: Inquirer Business