July 11, 2013

Conditional Cash Transfer

"What will keep the Philippines from growing until it reaches its stable stage - rest on the proper distribution of income and resources." - Philippine Economist

There are doubts in the past the Conditional Cash Transfer (CCT), a project of the government that aims to aid the poorest of the poor through fund (money) transfer, will result to dependency. The argument is that CCT will not improve the lives of the poor and will result to dependence to the government; and that the money used in CCT should be allocated to other productive projects.

For a family to qualify on the CCT program, they must meet the government requirements and conditions. One of the main conditions is that the children should continue to attend the primary school; else, the CCT fund will be cut. This is a good condition since it encourages the beneficiaries to educate their children.

The statement that CCT results to dependency is somewhat true, yet, the positives are greater than the negatives. The amount that the beneficiary receives from the CCT program is not so big and not really
meant to be used as source of livelihood. In reality, there is still a need or pushing urge for the family to look for other source of income since CCT fund will not be enough to sustain their needs.

Despite the amount, the impact of CCT cannot be underestimated. Education is a great equalizer in terms of income; and going to school is one of the conditions for receiving a CCT fund. Somehow, the poorest of the poor are given hope.

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