246
APPENDIX 1
POLICY WORKSHOP ON SOCIAL SAFETY NET PROGRAMS
AND THE ECONOMIC CRISIS IN SOUTHEAST ASIA
Ambassador Hotel, Bangkok, July 23–24, 2000
Commentators on Country Chapters
INDONESIA:
Max Pohan
Bapenas, Indonesia
MALAYSIA:
Shamsul A.B.
Professor of Social Anthropology and Director, Institute of the Malay World and
Civilization, Universiti Kebangsaan Malaysia
PHILIPPINES:
Eduardo C. Tadem
Associate Professor of Asian Studies, University of the Philippines
and Chief Policy Consultant, Office of the Secretary, Department of Agrarian
Reform, Philippines
THAILAND:
Kirasak Chanchraswat
Deputy Permanent Secretary, Ministry of Labour and Social Welfare, Royal Thai
Government, Bangkok, Thailand
Jinanggoon Rojananan [on behalf of Wanlaya Oralratmanee, Deputy Director,
Urban Development Coordination Division]
National Economic and Social Development Board, Royal Thai Government,
Thailand
Apichai Puntasen
Faculty of Economics, Thammasat University, Bangkok, Thailand
VIETNAM:
Nguyen Manh Cuong
247
Policy Advisor, Ministry of Labour, Invalids and Social Affairs, Vietnam
Canadian Participants (in addition to Project members)
Tracey Fyfe
International Relations Division, International Affairs Branch, Human Resources
Development Canada
Megan Foster
Executive Director, Thai-Canadian Chamber of Commerce, Bangkok, Thailand
Other Participants
Maria Victoria Maple Gaverza
Foreign Service Officer for APEC HRD, SMEs, Gender Issues, Office of the APEC SOM
Leader – Philippines
Teresa Encarnacion Tadem
Assistant Professor, University of the Philippines and Visiting Scholar, Chulalongkorn
University Social Research Institute
Borris Smirnov
Minister-Councellor and Deputy Permanent Representative to UN ESCAP, Embassy of
Russia, Thailand
Yaroslav Mozdakov
Attache, Embassy of Russia, Thailand
248
APPENDIX 2. GOVERNMENT PROGRAMS/ RESPONSES TO THE CRISIS IN THE PHILIPPINES
A. BASIC
AGENCY
NEEDS
1. Enhanced
National Food
Retail Access for Authority
the Poor (ERAP)
Sari-sari Rolling
Store
2. Rice Subsidy
Program
DESCRIPTION
OBJECTIVES: The ERAP sari-sari store is a take-off from rice rolling store originally pilottested in the rural areas of South and Central Mindanao in July 1988. Because the rolling store
gained wide public acceptance, the NFA reformatted and extended the program into the ERAP
sari-sari stores which accredits existing barangay stores to sell other basic food commodities,
aside from rice—like sugar, coffee, cooking oil, milk, sardines, noodles-- at a lower market
price. This is to benefit the marginalized sectors of society that, more often than not, fall prey to
the rising prices of commodities. Another objective of the ERAP Sari-sari Store, albeit less
comprehensive than the delivery of the people’s dietary needs, is to develop entrepreneurial
capabilities and generate employment in the depressed and/or remote areas of the country.
Owners of sari-sari store are encouraged to have their businesses accredited as ERAP
DELIVERY SYSTEM: The NFA under the Estrada Administration launched the ERAP Sarisari stores as a pro-poor program in a three pronged approach: availability, accessibility and
affordability. NFA targets to establish Erap sari-sari stores in barangays all over the country. As
of 27 January 1999, there are already 1,231 Erap stores nationwide. The location of the stores
considers easy access of the consumers, specifically in the depressed and remote barangays.
(Source: Reyes, C et al. 1999. Social Impacts of the Crisis. Manila: ADB)
OBJECTIVES: The main objective of the program is to provide affordable and quality rice to
the subsistence poor otherwise defines as families living below the food threshold. Priority is
also given to those families with at least five members and with moderately severely
malnourished children. Target areas are the identified CIDSS areas that are also highly
vulnerable to El Niño.
DELIVERY SYSTEM: The Rice Subsidy Program was one of the initial steps taken by
government as early as January 1998 to combat the combined effects of the economic crisis and
249
the then upcoming El Niño phenomenon. The recipient provinces are Sorosgon, Antique, Iloilo
and Surigao del Norte. Three municipalities for each of these provinces were identified.
Existing rice retailer stores such as Tindahang bigay Buhay SEAK Association, NFA retailer
stores and other cooperative stores were identified by CIDSS workers as retailers for the RSP.
Beneficiaries are given rice discount cards, which was used for purchasing rice. The cards are
non-transferable to other families and can be used only by immediate members of the family.
The government subsidizes P2.50 of the rice bought by cardholders.
3. Health
Insurance
Department of
Health;
Philippine
Health Insurance
Corporation
The second phase of the program focused on the distribution of iron-fortified rice. The
mechanics used in Phase I was also employed. Government subsidy was P2.54 – P1.50 for the
rice and P1.06 for the iron fortification subsidy. Unfortunately, phase 2 was only implemented
in the provinces of Surigao and Sorsogon due to budgetary constraints.
(Source: Reyes, C et al. 1999. Social Impacts of the Crisis. Manila: ADB)
OBJECTIVES: The program targets to provide health care to indigent sectors of society.
Beneficiaries will be provided with PHIC (Philippine Health Insurance Health Corp) Health
Cards which provides for in-patient care including room and board, drugs and medicines, x-ray
and laboratory expenses, doctors fees, operating room/surgical operations and also special
programs or out-patient services for specific illnesses.
(Source: Lingap sa Mahihirap Program Summary)
DELIVERY SYSTEM: So far, P10 M has been allocated for the project mandating the PHIC to
implement the National Health Insurance Program; however, it has only played a minor role in
financing health care. In 1997, it only managed to cover 7% of the country’s total health care
bill. PhilHealth is now initiating cooperative agreements with LGUs for financing indigent care
programs. These initiatives can become the basis of financing reforms that target needy
communities. This recommendation is preferred for provinces like Kalinga and Apayao where
the lack of financial resources present a constant threat to the sustainability of health care
facilities in the area. PhilHealth may consider identifying sole community health care providers
as partner institutions and establishing a cost-recovery mechanism that can ensure the
sustainability of these facilities.
250
AGENCY
(Source: Leyco, Emmanuel. 1999. Options for financing health care. Business World. 21-22
January).
Depending on the urgent priority needs the P133.5 M fund allocated for this program shall be
utilized for the enrollment of additional indigents in the National Health Insurance Program
(NHIP); purchase of drugs, medicines and medical supplies by the hospitals under the list of the
Philippine National Drug Formulary (PNDF); and the reimbursement of expenses by the
recipient hospital of Lingap funds for the use of special equipment, special ambulance service,
ancillary and other services not available in government hospitals. Another P133.5 M had also
been allocated for the provision of drugs, medicines and medical supplies to RHUs and BHCs.
(Source: Lingap Sa Mahihirap Program Summary)
A pre-determined volume of reserve stocks shall be maintained by the NFA to be used for relief
operations and ensure immediate response to the rice needs of beneficiaries in times of
calamities and man-made or natural emergencies. The budget allotted for this is P80M.
(Source: Lingap Sa Mahihirap Program Summary)
DESCRIPTION
Department of
Labor and
Employment
OBJECTIVES: PESOs was set up to address the plight of the enormous number of workers
adversely affected by company closures, labor retrenchment and shorter working hours. PESOs
integrate job offerings of the DOLE as well as public and private firms.
4. Medical
Assistance and
Assistance to
Rural Health
Units and
Barangay Health
Centers
Department of
Health; Local
Government
Units
5. Emergency
Relief
Assistance
Project
B. EMPLOYMENT
GENERATION
1. Philippine
Employment
Services Offices
National Food
Authority
SUSTAINABILITY: The Senate has approved a bill that seeks to institutionalize job
facilitation services through the establishment of the PESO in every province and key city
nationwide. It will not only serve to facilitate the exchange of labor market information
between job seekers and employers but will also give entrepreneurs access to livelihood and
self-employment programs of the government and NGOs. A national manpower registry of
skills will also be set up to facilitate the packaging of employment assistance to clients. The
registry will serve as an intra- and interregional job clearance system as part of the overall
employment network. (Business World 15 November 1999)
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2. Rural Works
Program
Department of
Labor and
Employment;
Local
Government
Units
DELIVERY SYSTEM: The DOLE, through stronger networking of their Regional Offices with
Public Employment Service Offices (PESOs) based at the LGUs, the Philippine Economic
Zone Authority, and other local placement entities, accommodated more active employment
facilitation or placement assistance to job seekers to ease the effects of the displacement of
workers. Some 342,868 placement of job applicants had been recorded in 1998
This placement assistance had been extended to overseas labor markets as well
(Source: Reyes, C et al. 1999. Social Impacts of the Crisis. Manila: ADB; Business World.
1999. 15 November.)
OBJECTIVES: To provide temporary employment for displaced workers in government
infrastructure projects. The projects include rehabilitation or maintenance of farm roads,
improvement of drainage systems, bridge and solar dryer construction, and the repair and
repainting of public buildings.
DELIVERY SYSTEM: The DOLE had allotted the amount of P7.4 M for the Mindanao
regions financing the Rural Works program for displaced workers in coordination with the
LGUs. The project will fund small infrastructure projects in order to induce employment
opportunities in selected depressed, rural communities of Mindanao, particularly for workers
displaced by company closures and retrenchments and the weather disturbances that hit the
region. A total of 3,364 unemployed workers in Mindanao were able to find temporary jobs in
various government infrastructure projects for which P4.4 million of the total budget had
already been disbursed. Among them, 1,549 were employed in P2 million worth of various
infrastructure projects in the CARAGA region, particularly in Agusan del Norte and Surigao
del Sur. Another 665 workers were given work in North Cotabato, Sultan Kudarat and Lanao
del Norte. 602 workers were also given infrastructure jobs in Davao del Sur. The government
is set to release another P2.8 million under the Rural Works Program that will benefit some
2,500 workers in Mindanao and it will be expanded to cover Luzon and the Visayas regions.
A similar program set up in the CARAGA region is the ‘Program to Address the Displacement
of Employees in the Region’ (PADER) to obstruct job loss among those workers who are under
threat of displacement and to provide work opportunities among the displaced workers. To
252
date, 20 rural projects were implemented benefiting 957 displaced workers. (Source: Reyes, C
et al. 1999. Social Impacts of the Crisis. Manila: ADB)
4. Phil JobNet
C.
ENTERPRISE
CIDSS SelfEmployment
AssistanceKaunlaran
(SEA-K)
Integrated
Program
DOLE; LGUs;
Office of the
President
OBJECTIVE: The Phil JobNet, launched by President Estrada on 6 November 1998, is a
computerized system which facilitates job vacancy and applicant-matching, aiming to help job
seekers’ search for employment.
AGENCY
DELIVERY SYSTEM: Employment information posted is either local or international. To
date, Phil JobNet is being operationalized in 5 regions including NCR, IV, III, VI and XI, 17
PESOs, 20 Employers Confederation of the Philippines groups, 3 labor federations, PEZA and
Malacañang.. Accurate information regarding employment opportunities are available and can
be easily accessed by employers’ groups, different workers’ organizations and the public.
(Source: Reyes, C et al. 1999. Social Impacts of the Crisis. Manila: ADB)
DESCRIPTION
Department of
Social Welfare
and
Development
OBJECTIVE: CIDSS is a pro-poor program that seeks to empower targeted families and
communities to enable them to meet their minimum basic needs. It uses the four pronged
approach of community organizing, total family development, convergence and focusedtargeting. Under the CIDSS is the SEA-Kaunlaran (SEA-K) Integrated Program, a communitybased micro-financing project which builds capabilities of people’s organizations to selfadminister a socialized credit preparation scheme. Components include social preparation;
capital assistance, savings mobilization and access to other social services.
DELIVERY SYSTEM: There are 2 levels to the SEA-K Program. SEA Level I is a capability
building program for micro-enterprise and micro-finance development for the marginalized
sector of the poor population. It involves the organization of 25-30 members into a selfmanaged community based credit organizations, called SEA Kaunlaran Associations (SKA), as
conduits of various services.
As an example, CIDSS provided financial assistance to housewives in Dulong, Libertad,
253
Misamis Oriental, for their livelihood programs. A seed capital of P200,000 was given to the
community. The community was divided into 2 groups called Strugglers and Strivers. Each
group has 25 members. Each member was given a capital of P4,000 which could be used for
any livelihood project—selling fish or vegetables, putting up a sari-sari store, assisting their
husbands in the farm operations, etc. The money was to be paid back in installment without
interest for 2 years. To increase the repayment rate, both groups required their members to
make daily repayments of P84. Half of the amount is credited as the member’s forced savings.
The money is deposited in the bank and the group expects to return the seed capital to the
DSWD after 2 years. The program hopes to instill the value of paying and saving for only then
would the community be able to sustain the program when the DSWD pulls out. DSWD reports
that 19,575 member beneficiaries were provided a total of P53.38 M for livelihood projects to
generate/supplement their family income under the SEA Level I.
SEA Level II, in the mean time, is a strategy of institutionalizing the gains of the SEA-K Level
I through the formation of the SEA Kabayans comprising 2-5 SKAs which have paid their
capital assistance in full and have adequate savings. With the combined capital base and an
augmentation of funds for serving the credit need of its members and the community, it is
anticipated that the goal of establishing sustainable self-managed community based microcredit facility can be achieved. SEA-Kabayan beneficiaries can also avail of three loan
components, namely: micro-enterprise expansion, home improvement and basic shelter. A total
of P12.57 M was provided to 16 SEA-Kabayan composing of 40 SKAs and 785 member
beneficiaries.
In its 1998 Annual Report, DSWD reports that a total of 268, 861 families in 1,296 barangays
in 432 5th and 6th class municipalities in 78 provinces had been reached for that year and that
275 local government units are now fully prepared to manage the CIDSS poverty alleviation
strategy using their own budget and resources enabling the poor families to meet their MBNs.
(Source: Reyes, C et al. 1999. Social Impacts of the Crisis. Manila: ADB.
1998 Annual Report Department of Social Welfare and Development)
P1-billion Credit
for Women
Development
Bank of the
OBJECTIVE: A P1 billion loan window to Filipino women, particularly those in the rural
areas, was opened in an effort to alleviate poverty in the countryside. It is meant to help women
254
Philippines;
National
Commission on
the Role of
Filipino Women
(NCRFW)
Social Security
Benefits
Social Security
System (SSS)
who are interested to go into business ventures but do not have the resources to do so.
DELIVERY SYSTEM: The credit facility will come from the Development Bank of the
Philippines, which signed a Memorandum of Agreement with the National Commission on the
Role of Filipino Women (NCRFW). The NCRWF is expected to help identify specific
programs for women entrepreneurs in the rural areas and establish linkages with other
organizations doing related work. Credit will be available to all Filipino women entrepreneurs,
both in rural an urban areas. Projects or business ventures can include food and herbal medicine
production and small and medium enterprises. The loan will be coursed through NGOs,
cooperatives ad people’s organizations. These groups can avail themselves of up to P2 million
in credit. The money can then, in turn, be lent to their women members which could range from
P25-50,000.
(Source: Philippine Daily Inquirer. 1999. 15 October.)
The present system does not provide unemployment benefits. Nevertheless, several measures
were adopted by the Social Security System (SSS) to enable members to secure as well as to
ease the burden of repayment of loans.
Relaxation of qualifying conditions for salary loans. A more relaxed term in availing of salary
loans enables SSS members to have easy access to the loan programs. Effective 1 September
1998, members who have paid at least 36 monthly contributions will qualify for a one-month
salary loan. Moreover, the interest rate was reduced from 10% to 6% with interest charge
incorporated in amortization payments and not deducted in advance.
Employee’s Compensation Emergency Loan Program for separated members. To
compensate the number of unemployed persons in the private sector due to the financial crisis,
SSS also designed an emergency loan program for separated members. Under this loan facility,
the members may avail of emergency loans of up to P12,500 at 6% annual interest rate, free of
service charge. The budget allocation for this loan facility has been increased from P200
million to P300 million due to the influx of loan applications. A total of 21,219 workers have
been assisted, with over P230 million incurred as loan grants. The present system does not
255
provide unemployment benefits. Nevertheless, several measures were adopted by the Social
Security System (SSS) to enable members to secure as well as to ease the burden of repayment
of loans.
Relaxation of qualifying conditions for salary loans. A more relaxed term in availing of salary
loans enables SSS members to have easy access to the loan programs. Effective 1 September
1998, members who have paid at least 36 monthly contributions will qualify for a one-month
salary loan. Moreover, the interest rate was reduced from 10% to 6% with interest charge
incorporated in amortization payments and not deducted in advance.
Employee’s Compensation Emergency Loan Program for separated members. To
compensate the number of unemployed persons in the private sector due to the financial crisis,
SSS also designed an emergency loan program for separated members. Under this loan facility,
the members may avail of emergency loans of up to P12,500 at 6% annual interest rate, free of
service charge. The budget allocation for this loan facility has been increased from P200
million to P300 million due to the influx of loan applications. A total of 21,219 workers have
been assisted, with over P230 million incurred as loan grants.
(Source: Reyes, C et al. 1999. Social Impacts of the Crisis. Manila: ADB)
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APPENDIX 3. LIST OF SAMPLE NGO-INITIATED PROGRAMS REFLECTING
RANGE OF SOCIAL SAFETY NETS IN THE PHILIPPINES
PROJECT TITLE/DESCRIPTION
Sustainable Agriculture Program for
Household Food Security-food security
for poor rural households using
environment-friendly technology
Soup Kitchen and Relief food for
indigent families in crisis/disasters
Project Bahay-funding window for
People’s Organization for housing
related initiatives and capacity building
for urban poor partner organizations
Ecoshelter on container vans as viable
housing model
Alternative Community Development
Planning as viable low cost housing for
the poor
Assistance to poor families for proper
and adequate relocation and resettlement
when displaced
Community-based Health programs;
mobilizes health missions for organized
groups in poor communities
TYPE OF
SOCIAL
SAFETY NET
BASIC NEEDS
Food
PROJECT
IMPLEMENTATION
AGENCY
Assissi Development
Foundation
Shelter
Catholic Charities;
church-based
organizations;
Partnership of Philippine
Support Services
Agency (PHILSSA)
Shelter
HASIK
Shelter
Alternative Planning
Initiatives (Alterplan)
Shelter
Kristong Hari
Foundation
Council For Health and
DevelopmentPhilippines (national
organization of
community-based health
programs)
Assisi Development
Foundation
Food
Health
John Paul Program for Children in
difficult circumstances
Treatment and Rehabilitation of
Children in Crisis Situations
Children’s needs
Relief and Rehabilitation for Street
Children
Relief and Rehabilitation in Disaster
Areas
Relief and Rehabilitation Coordination
of Corporate Response
Children’s Needs
Children’s Needs
Child Rehabilitation
Center
Stairway Foundation
Disaster Response
Citizen’s Disaster
Response Network
Disaster Response
Corporate Network for
Disaster Response
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Bulawen Resettlement Project
Disaster Response
NORFOOD
Disaster Response
Sauge River Watershed Land and
Resources Development
Bicol National Park Rattan Project
FIRMED Program in Surigao del Sur;
integrated coastal resource management
with livelihood for poor
Integrated Crop and Livestock Project
Community Seedbanks-people-oriented
science and technology
Livelihood Enterprises; Sustainable
Agriculture and Fisheries
Integrated support to families of
overseas workers (includes support to
those displaced from employment)
EMPLOYMENT
GENRATION
Livelihood
Livelihood
Livelihood
Livelihood
Philippine Peasant
Institute
Production of ready-toeat recipes for disaster
communities
Panay Rural
Development Center
Bicol Upland Resources
Development
Foundation
Center for
Empowerment and
Resource Development
Sibol Para sa Agham at
Lipunan
Livelihood
PAKISAMA
Various Support
KAKAMMPI
(organization for
families of migrant
workers)
ENTERPRISE
DEVELPMENT
Microfinance and Enterprise
Development Project
Operation Sugarland Project
Social Development Fund for networks
of NGOs and partner people’s
organizations
Fisherfold Initiative for Self-Help
(FISH))
Integrated Peasant Credit Cooperative
Program
Integrated Area Development Projectincludes Grameen bank replication, offfarm jobs for landless
Credit for poor
households
Credit for
development
projects including
short-term SSNs
Assists in
conceptualizing
and sourcing funds
for projects
Credit for poor
farmers
Livelihood and
short-term social
safety net
Merciphil Development
Foundation
Philippine Development
of Human Resources in
Rural Areas
(PhilDDRA)
Tambuyog Development
Center
Development Agency of
Tribes in the Cordilleras
Antique Integrated Area
Development