Welfarism 22: CCT, 4Ps and Central Planning

More government central planning, more wastes and inefficiencies. This is once more exhibited in the Conditional Cash Transfer (CCT) or Pantawid Pamilyang Pilipino Program (4Ps) program of the government.

My economist friend from UP, Jhiedon Florentino, rode a taxi and engaged the taxi driver to a fruitful conversation. Well, it’s more of probing the mind of one of the average persons in this country on what they think of certain government policies like the CCT. Jhie is down to earth enough to listen to the man’s frank ideas and witty remarks. Then he posted their conversation in his facebook wall last October 12-13, 2012. One more reason why fb is both an entertaining and educational platform in the planet today – at zero politics, zero taxes involved.

“Me” here refers to Jhiedon. The taxi driver is from Malinta, Valenzuela City, Metro Manila. Jhie posted this in a 4-parts installment in his fb wall. There are comments after each part. I put all the comments and exchanges after part 4. I also made short English translation to some points, for the non-Filipino readers of this blog. Thanks to Jhie for allowing me to post this in my blog. Six pages pages long, enjoy!

Part 1:

Manong Tx driver: ...d naman namin hinihingi maging 4Ps, pero binigyan kami...

Me: lahat sa sitio ninyo 4Ps manong?
Manong: Di ko nga maintindihan, yung mga taong dapat makaavail, hindi nakakakuha, yung mga nagbabasura...

Me: sa tingin ninyo manong, bakit....
Manong: sa katamaran na pumunta, di nila alam, at iyong iba mga wala namang mga IDs. Tapos aatend ka ng mga meeting, malayo...

Me: nakaatend na kayo manong ng mga meeting
Manong: oo, nung minsan nagkasakit si misis

Me: anong pinagusapan ninyo nung FDS manong
Manong: naku, FAMILY PLANNING ang pinaguusapan nung pumunta ako....

(Translation: Driver said they did not ask for the 4Ps but government gave them the money. He did not understand why the less poor got the money but the very poor like garbage scavengers got nothing, they are lazy to walk long and attend meetings, or they do not have any ID. He attended one meeting, the topic was about family planning) 

Part 2 of my "interview" and "navigation" activities
Me: Ah manong, FDS po iyon...Kumusta naman ang meeting?
Manong: naku, nakatayo ako ng mga dalawang oras!

Me: Ha? bakit ho?
Manong: naku, kami pa ang pinagdadala ng bangko. sa basketball court sa sitio. Ni walang blackboard. ano bang klaseng meeting iyon....

Me: May nagesplika po ng family planning sa inyo?
Manong: oo, tawa nga ako ng tawa:

Me: Bakit naman ho? naesplika ba ang mga methods? si misis ba ninyo nabisita para duon?
Manong: ah hindi na. menopausal na kasi si misis. Naipaliwanag naman ng malinaw ng mga nagorient galing DOH at DSWD ang mga methods. kaya lang...parang DALAGA pa yung nagorient. tapos, FP ang sinasabi niya?

Me: ahahahahah. sa tingin ba ninyo manong parang alam naman niya ang sinasabi niya?
Manong: ah oo. nakakatuwa lang na parang dalaga pa siya. pero magaling magexplain. at hindi nahiya ng biruin ko na "sinusukat pa ba iyang condon"!...

Me: hahhahahahaa

(Translation: Driver said he stood for two hours in the meeting, they were asked to bring their own chairs, in a basketball court, no blackboard. The women from DOH and DSWD explained well the various family planning methods but they look like unmarried ladies. They were not shy  when I asked if condom sizes are measured.)

PArt 3:
Me: kumusta naman ang philhealth ninyo manong, nabigyan ba kayo ng id cards?
Manong: ah nun pa kami member ng philheallth.

Me: nagamit na ho ba ninyo pagkatapos ninyo maging CCT
Manong: ah oo. at saka, may record na yung mga apo ko sa center. kahit ubo ubo lang, dinadala na namin sa center

Me: alam nila na CCT kayo manong?
Manong: ah oo. mahaba iyong listahan nila eh. kailangan magpunta a sa center kasi pag hindi ka nagpunta, baka matanggal ka sa CCT.

Me: sa pagkakaalam ba ninyo, ano ano ba ang mga kondisoyon para maging CCT kayo?
Manong: naku, dapat pumupunta ka sa mga meetings. kasi pag lampas tatlong meetings hindi mo mapuntahan, tatanggalin ka

Me: pero ang problema lang ninyo, walang bangko kada meeting?
Manong: oo at ang daming pamilyang kinakausap?

Me: ha? sa isang meeting? mga ilan po?
Manong: naku lampas 100 daan, 

Me: isang meeting lang ho iyon, walang grupo grupo.?
Manong: ay oo. ang mga 200 daan pa ata....sana nga lang may blackboard. sabi ko nga sa misis ko "ano bang klaseng meeting iyan, ni walang eraser at blackboard". dapag naman may blackboard man lang kahit nakaupo na lang ang mga tao sa court..

(Translation: We were PhilHealth members a long time ago. We have used it, my grandchildren have records already at the health center. If they have cough, we bring them to the center. We must go to the center otherwise they will remove us from the CCT. You must also attend meetings, if you miss more than three meetings, they will remove you from the program. They talk to many families, around 200. No blackboard and eraser.)

Jhie added, “What was interesting to hear was nung tinanung ko kung kailan nila nagamit ang phic nila. Nung daw time ng ondoy. Kaya daw talagang pumila sila nung renewal daw ng cards sa munisipyo. Nakita ni manong na malaking tulong yung phic card nila nung may sakuna”

(Philhealth cards are useful during calamities, like typhoon Ondoy. They really queued at the city hall for the renewal of their cards.)

PART 4: INTERVIEW WITH MANONG DRIVER ON FDS FOR FAMILY PLANNING: (funny ito, pero may lesson)--> hello again area coordinators

Me: teka manong, bakit naman inupuan ninyo ang FP eh menopausa na pala si misis....
Manong: oo nga, menopausal nga si misis, hindi na magkakaanak iyon....pero ako, HINDI NAMAN MENOPAUSAL. kayang kaya pa. 

Me: ano manong?!!!!!!
Manong: aba ser, sa trabaho naman namin...alam mo na....dapat alam namin ang family planning. tsaka andun na din naman ako, nakinig na din ako.

the manong mentioned na they drive young couples to motels. So possible dispatchers of fp commodities like condoms.

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My exchanges with Jhie on his  fb wall:

Jhie: pumila daw siya nung una sir, ang sabi sa kanya, "ay pangbabae po itong pila na ito" nung first time na pilahan daw sa munisipyo for the cct

Nonoy: Jhie, sa barrio na pinupuntahan ko sa bugallon, pangasinan, those who receive the CCT are generally the not so poor: hubby has a stable job in the formal sector, or working as OFW. The really poor ones, widow with 3 kids or more, don't get. Palakasan din sa DSWD or barangay officials.

Jhie: nonoy, that was pointed out by manong, yung dapat daw na makaavail (his own words ha), hindi daw makaavail, dahil ni postal ID nga wala sila.

Nonoy: Endless racket yan Jhie. Dati, educ & books for the poor, healthcare & medicines for the poor, housing & relocation for the poor, AR & tractors for the poor, MRT subsidy & e-trikes for the poor, etc. Now cash transfer for the poor, because past programs to "fight poverty" were ineffective or failure, Soon, condoms and pills for the poor as CCT and previous programs are not working. After that, iPad for the poor na siguro. More poverty, more racket kasi yan 

Jhie: ang sabi nga niya..."hindi naman namin hiningi maging 4Ps, binigyan kami..."

Nonoy: Jhie, pwede ko bang i blog itong 4-parts story mo? useful and down to earth eh. Syempre dadagdagan ko ng sarili kong observations.

Doon sa barrio ulit sa pangasinan, isang widow, 4 or 5 yata anak, namatay ang mister dahil sa sobrang inom. Nahihilo na daw after uminom, pinagbawalan na ni misis, naaaya pa rin ng barkada. Minsan, umuwi 9pm after sa inom, natulog dahil nahihilo na raw sya. Around 11pm, tumayo dahil nahihilo pa rin, bigla nag collapse, di umabot ng hospital. Yan ang sinasabi ko, the personal responsibility aspect of healthcare, hindi yan lahat DOH/WB/government responsibility.

Anyway, the widow is hard pressed to feed the younger kids, buti may binatilyo nang anak, nakakatulong maghanap ng pera. Pero sila hindi nakaktanggap ng CCT, yong neighbor nila just a few meters away na OFW ang asawa, nakaka receive ng CCT. Ang galing ano.

(Translation: in the barrio in Pangasinan that I visit, a widow, with 4 or 5 kids, the husband died due to frequent drinking. He gets dizzy after drinking, the wife told him to stop drinking, but his friends would invite him for a drink. One time, he came home 9pm feeling dizzy and slept. Around 11pm he got up and still feeling dizzy, suddenly collapsed, did not reach the hospital. Personal responsibility of healthcare, not all are government responsibility.  The family became poorer, but they don't get CCT money, their neighbor with an OFW hubby gets the money.)

Jhie: sure nonoy , go ahead. during my conversation with manong, i "took away" everything i know, heard about the CCT. as if first time ko nadinig ang mga sinasabi niya. nagprobe lang ako ang hinayaan siya to reveal his insights

Nonoy: Thanks Jhie. May I share with you my earlier blog psot about this CCT racket, http://funwithgovernment.blogspot.com/2010/11/endless-program-for-poor.html

Jhie: May mga natulungan naman. Pero siempre may leakage and undercoverage din. What is interesting though is my names and faces. ..on the article....for the life of me, di ko din maintindihan bakit sinusubsidize pa din ang mrt. Sobrang layo na ng gap sa bus fares. Shouldnt those using the mrt payba high price din for the positive externality the mrt brings? Bec its like an additional "highway" that unclogs the streets? Similar to the argument that rates of using skyway should be almost the same with the ordinary toll roads?

Nonoy: Right, it's not a 100 percent waste of taxpayers' money, but it's expanding cronyism at the barangay levels. Only those less poor but know the guys at DSWD and barangay officials will have higher chance of getting the CCT money. About the MRT subsidy, it is simply wrong. If the purpose of the government is to help the poor, then government should also put up MRT in Davao, Baguio, Cebu, Bacolod, Iloilo, CdO, Tacloban, etc. and subsidize the poor passengers there too. Why only in Metro Manila?

Very very often, when government introduces a welfare program, it is inefficient and distortionary. Government and its foreign aid money bags do not ask hard reasons why some people are poor. Could they be poor because they simply are lazy and do not want to work? Or they work 4-5 days a week but they also party 6-7 nights a week and have zero savings?

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Jhie added that the driver was emphatic that they did not ask for the CCT money but government gave them. Then driver later linked the impending tax hike on cigarettes to partly finance such CCT money, that they buy cigarettes properly, why raise its price.

I find the discussions by Jhie and the taxi driver very entertaining and educational. It shows how some ordinary people’s perception of social problems are much different with the perception by the central planners including PhD holders in government. The problem with many economists and other central planners is that they are they think they have a macro solution to every micro and household problems. They see poverty persisting despite the various programs for the poor that they have centrally planned and implemented many decades ago. So they invented the CCT, without asking that some poor people have indirectly chosen the path of poverty by being lazy or irresponsible. Or government itself can be the main creator of poverty by heavily bureaucratizing entrepreneurship, by looking at entrepreneurs as potential criminals and requiring them to get various permits from barangay to city to national government agencies and pay various fees and taxes to them, before they can formally start a business, micro or small or medium size business.

The reason why Manong Driver and other people did not ask for CCT money is because he/they can earn money on his/their own. But when government would give them money for free, they will accept it. But we know that such CCT money is not “free”, more taxes will be coming our way to pay for those multi-billion pesos CCT annually and other programs. The bleeding heart WB and ADB which chipped in about $450 million each for this huge loan will be earning big from this project.

Now many CCT money goes to the less poor, the very poor don't, and the problem is not solved once again. And for those who receive the CCT money, they also have to take a half day or whole day off from work so that can attend DSWD and DOH meetings, otherwise frequent absences would mean discontinuation of CCT money.

Endless central planning by the government to “fight poverty” did not work and will not work. Once the current CCT funding will run out, the nearly $1 billion of WB-ADB loan plus local counterpart funding. I am 100 percent sure that they will say, “Poverty remains high, it is time to invent a new fight-poverty program.” Like what, CCT part 2, then CCT part 3, then iPad and Samsung Tab for the poor, endless racket and robbery of taxpayers.

The central planners – in government, in academe including UP, the foreign aid – and their supporters among the NGOs and media, will not admit that central planning and BIG government is wrong. They will persist that their great macro ideas will solve micro issues and problems, and continue their endless ways of spend-spend-spend, tax-tax-tax, borrow-borrow-borrow. And this could be the biggest malady of humanity in this planet.

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See also:
Welfarism 9: Conditional Cash Transfer (CCT), November 12, 2010
Welfarism 16: Bailing Out Lazy and Irresponsible People, February 27, 2012
Welfarism 17: Personal Irresponsibility and Government, March 15, 2012
Welfarism 19: Consumption-led Growth and Direct Welfare, March 31, 2012
Welfarism 20: Hollande and Socialism in France, May 07, 2012
Welfarism 21: Is Malaysia a Welfare State? July 18, 2012