The 4Ps-COVID-19 Outbreak

In the midst of COVID-19 - it seems that a "new strain" of COVID-19 that was discovered which I'd call as 4Ps-COVID-19. 4Ps refers to the DSWD program that supposedly aims to bridge the gap between well-to-do Filipinos and the poor. Recently, we've got the COVID-19 outbreak and how 4Ps may not even address it - hence the name 4Ps-COVID-19. Note that like Noy-COVID-19 it's not an actual disease but showing a recent problem going on during the outbreak.

The ongoing 4Ps-COVID-19 outbreak and its symptoms

The Manila Standard reveals in its article "Reinventing the 4Ps" revealed the following:

However, from the very start, there obviously was no intention from the Aquino administration to uplift the lives of beneficiaries through the 4Ps as from a few hundred thousand households during Arroyo’s time, the number of beneficiaries ballooned to 4.5 million before Aquino stepped down in 2016.  

If the CCT’s intention was to reduce poverty, Aquino’s pursued the contrary, promoting a culture of mendicancy among the Filipinos through his 4Ps.

The debate on the correctness of the 4Ps program has again been raised following the billions of pesos the government had allotted to the program’s beneficiaries in order for them to cope up with crisis triggered by COVID-19. This was after some of the beneficiaries complained that the additional monthly P5,000 to P8,000 doles would not be enough their monthly expenses. At the most, some said, it could only last a week.

And while the middle class were left fuming mad at the supposed ungratefulness of the 4Ps beneficiaries, a video showing a program beneficiary gambling went viral on the social media, eliciting more angry reactions from netizens, even calling for the program’s termination. 

Actually, the viral video showing a beneficiary gambling even as the President had placed the entire Luzon Island under community quarantine is not an isolated case. There are even cases when beneficiaries would pawn their ATM cards just to raise gambling money.  

In fact, former Department of Agriculture Secretary Emmanuel Piñol questioned the viability of the 4Ps, saying the beneficiaries are simply waiting for money from the government rather than making them productive.

Maybe, I was wrong about the intention of 4Ps or conditional cash transfer programs in part. However, it has become a program where people are waiting for a shower of gold coins. The word "conditional" has been ignored where people are supposed to follow certain conditions before their allowances are given. That's why I supported Pinol's idea of turning 4Ps into a livelihood program as it should be. Pinol's concerns that people have become complacent. Though there are some 4Ps success stories but can the numbers actually be that huge? Instead, we've got the 4Ps-COVID-19 epidemic more than 4Ps success stories.

Most people in the Philippines tend to spend money the moment they get it. A good example is the payday palibre (give for free) problem where people ask for a blowout from someone just because it's payday. It wouldn't be so wrong if everyone in the blowout was employed and took turns. How many Filipinos ever learn to manage their money? A big case is that 2015 reveals that 69% of Filipinos don't even have a bank account. Whatever economic boom happened during Noynoy Aquino's term wouldn't change lives if most Filipinos don't even manage a bank account. What's needed to be emphasized is that bank accounts do help the economy to spin aside from just simple spending. That's just the start of the symptoms of 4Ps-COVID-19.

Then you can consider the 4Ps-COVID-19 epidemic that is spread by Kadamay. Symptoms also include complaining about supposedly not receiving "enough" extra money for overspending. What were they using it for? Gambling? Drinking? How's that supposed to even help the economy or the poor? So much for assuming that 4Ps beneficiaries will automatically buy it for their needs. How can we even be certain that a certain amount is used to buy for this and that? Are there drones monitoring the 4Ps recipients? How can they expect the money to last even for a week if they're caught using the money received from 4Ps for drinking and gambling? Some 4Ps success story people even address where they want such people O-U-T of the 4Ps program. However, are those people with a 4Ps success story a majority of the 4Ps recipients or not? If so, shouldn't such people address alternatives to 4Ps instead?

Then there's the issue addressing economic ignorance in order to counter 4Ps-COVID-19

The same article also reveals that former Candaba Mayor Jerry Pelayo. From the same article from Manila Standard also mentions the following:

The Department of Trade and Industry, Pelayo said, should focus on teaching financial literacy and management to said beneficiaries with the help of the barangay and private sector. 

According to Pelayo, expanding micro, small, and medium enterprises is the only real and sustainable long-term solution in feeding the poorest of the poor, and not through a program which promotes mendicancy.

The proposal to reinvent the program is actually only a part of a series of programs Pelayo has proposed to President Rodrigo Duterte through a letter via a letter he sent through Senator Bong Go.
The former Candaba mayor is also proposing for local government units, members of the House of Representatives and the Senate to postpone all their infrastructure projects and realign savings to these most affected sectors. 

The singular focus, Pelayo said, should be food on the table for the poorest of the poor while maintaining peace and order in the country. 

Another novel idea is to introduce an Adopt-a-Family program wherein those who are able to sponsor the needs of cash-strapped families could do so during this most crucial time. 

This scheme, according to Pelayo, can also be applied to big businesses helping micro enterprises which do not have the liquidity and capacity to reopen after the lockdown. 

Lastly, Pelayo wants the Buy Lokal campaign be promoted as this would increase the competitiveness of local enterprises, he says.

While Pelayo is indeed right to say that expanding micro, small, and medium enterprise is a better long-term solution - his final statement raised my eyebrows. I have nothing against having a buy local campaign. However, I'd like to ask does Pelayo knows that the Buy Lokal campaign needs customers and what drives competition? Does Pelayo even know that competition is needed in the economy for the local enterprise to be competitive? If so, if he doesn't support free trade market economics then Buy Lokal campaign will not work. Just think that are there enough Filipinos to buy from the local? Why not invite foreign investors to buy local too? I mean, some foreign investors will need local products too such as their basic commodities or raw materials. If he wants to focus on expanding the businesses then he should see how foreign investors can help expand the local enterprise. He should address the removal of 60-40 completely if he wants Buy Lokal to work. After all, would you rent a space if your landlord would only let you own 40% of your business? The local industry will have to be competitive if they expect to convince all types of buyers to avail of their goods and services. But how can they be competitive if they've been pampered all their lives? It's all about competition and not pampering that brings forth new innovative ideas, get it?

The invitation of foreign investors worked wonders in countries that embrace them into the local business atmosphere. Consider how the small state of Taiwan overtook China during the reign of Mao Zedong. You can think that South Korea is much better than North Korea because of foreign investment. Just consider that China itself didn't progress under Mao Zedong but under Deng Xiaoping. Singapore was also once poorer than the Philippines then it progressed through foreign investors. Whoever believes that only foreigners will get rich if you let them invest here need to tell that to countries that are friendly to foreign investors. They're probably spending too much time believing the lies of people from Bayad Muna. Bayad Muna is nationalistic? Please, people like them only care about power evidenced by them enjoying imported products. Even funnier is that they use IMPORTED PRODUCTS to promote protectionism. If the Philippines expects to beat China now then open up the economy. Firms leaving China will only invest in the Philippines if 60-40 were removed completely.

Sadly, 4Ps if used right, only focuses until graduation. Most of the time, people today end up wasting 4Ps. What's needed are job opportunities and remember private businesses usually work better than government investments. 4Ps itself should be addressed as a policy to get more Filipinos employed so they can cross the bridge - not give them extra allowances where only a few beneficiaries learn to use it well.