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Action for Economic Reforms

BRIEFING PAPER: SOCIAL PROTECTION IN THE PHILIPPINES

This paper was presented at the United Nations Development Programme

inter-regional workshop titled "Social Protection in an Insecure Era: A

South-South Exchange on Alternative Policy Responses to Globalization,"

Santiago de Chile, 14-16 May 2002.


This paper identifies the most critical problems and issues regarding

Philippine social protection. It begins with a definition of social

protection, its objectives and a list of Philippine social protection

programs and their features. It also presents a background of the

underlying development problems for a better appreciation of the prime

issues relating to social protection in the Philippines before

proceeding to a discussion of the main social protection issues.


Social protection has secured an important place in the Philippine

development plan, especially in light of the devastating social and

economic impact of a succession of crises that pounded the country in

the last two decades. Nevertheless, the gaps and problems remain big.


This paper has a modest objective: Pinpoint the most critical problems

and issues (at least from the author's point of view) regarding

Philippine social protection. As a starting point, we need a good

handle to discuss social protection. One can be overwhelmed by the

comprehensiveness of the subject matter. For instance, one has to

grapple with the wide scope of social protection programs and the

numerous sets of policy responses that must meet different, if not

competing, social and economic objectives.


As a point of reference, then, it is worthwhile to return to the basic

definition of social protection. The definition provided by Isabel

Ortiz (2001), the chair of the Asian Development Bank's

Interdepartmental Working Group on Social Protection, is useful for

this discussion. That is: "the set of policies designed to promote

efficient and labor markets, protect individuals from the risks

inherent in earning a living either from small-scale agriculture or the

labor market, and provide a floor of support to individuals when

market-based approaches for supporting themselves fail."


In the same vein, we can cluster social protection objectives to include the following:


  1. Reduction of the poor people's vulnerability to basic consumption and services;

  2. Enhancement of funds, including private or personal savings and fiscal resources, that can be immediately and flexibly tapped at any time to finance consumption; and

  3. Strengthening of safety nets as well as the judicious design of poverty-sensitive and equity-oriented measures to respond to macro shocks (man-made or natural calamities).


The strategies and programs towards accomplishing the above objectives

are broad and diversified. The Philippines, compared to other

Asian countries, has a wide scope of programs for social protection

(see Ortiz 2001).


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