ECONOMIC DEVELOPMENT PROPOSAL

BREAKING THE CYCLE: A PROPOSAL TO ADDRESS EXCESSIVE

RELIANCE ON SOCIAL WELFARE PROGRAMS THROUGH STRATEGIC
INTERVENTIONS

A Research
Presented to the Faculty of
Limay Polytechnic College

In Partial Fulfillment of the Requirements

for the Course Subject Requirements in
CORE 119 – Economic development

by:

AUBREY GAIL I. BULDA

MIKAELA ELAINE B. MISTAL
MA ISAH IAH E. NALDO
AIRA S. VIBAR

June 2024

1
 TABLE OF CONTENTS

Page

TITLE PAGE ………………………………………………………………..…………..1

WHAT IS SOCIAL WELFARE………………………………………………………...2

SOCIAL WELFARE PROGRAMS IN THE PHILIPPPINES……………………….2

BENEFITS OF SOCIAL WELFARE PROGRAMS………………………………….5

CHALLENGES IN SOCIAL WELFARE PROGRAM……………………………….6

RELATED LITERATURES ON THE ROOT CAUSES OF EXCESSIVE

SOCIAL.WELFARE.DEPENDENCY…………………………………………….…9

PROPOSED STRATEGIES AND INTERVENTION……………………………….12

SUMMARY……………………………………………………………………………..17

REFERENCES………………………………………………………………………….19

2
 WHAT IS SOCIAL WELFARE

Social welfare can be defined as programs that help individuals maintain or

achieve their well-being by providing some help to meet the basic needs, health care,

education, and other social services that aim to achieve the well-being of everyone. Some

kinds of social welfare include: cash assistance for the elderly and disabled; free or

reduced-cost school lunches; help with a home loan; and the provision of physical goods

like groceries, medical devices, and health insurance. Social welfare is important for

communities and people to survive. Often, the cycle of poverty is broken due to social

welfare assistance programs. People have access to food, shelter, and medical care that

they could not otherwise afford.

SOCIAL WELFARE PROGRAMS IN THE PHILIPPPINES

Social welfare in the Philippines is how the government helps people and supports

growth. The country has problems like poverty, health issues, uneven education, and

natural disasters. One of the latest government social welfare programs is 4PS or

Pantawid Pamilya Pilipino Program. This program has evolved into a mainstay of social

protection reforms in the Philippines by enhancing the countries poor families to keep

their children healthier and in school through a Conditional Cash Transfer (CCT)

program (Schelzig, 2015).The Department of Social Welfare and Development (DSWD)

is the primary government agency mandated to develop, implement, and coordinate social

protection and poverty reduction solutions for and with the poor, vulnerable, and

disadvantaged. In 1991, the passage of Republic Act No. 7160 otherwise known as the

Local Government Code of 1991 affected the devolution of DSWD basic aids to local

3
government unit . Here are some of the social welfare programs that are implemented by

the government that aim to lift poverty:

The conditional cash transfer (CCT) program locally known as Pantawid Pamilya

Pilipino Program, or 4Ps, is a government program that provides conditional cash grants

to the poorest of the poor in the Philippines. It also serves as a social assistance program

that provides and helps low-income families assess their immediate needs. Moreover, it

acts as a social development initiative aimed at eradicating poverty by investing in human

capital. Sustainable Livelihood Program The Sustainable Livelihood Program helps

people in communities improve their lives by teaching them new skills. It supports small

businesses to grow and connects people with job opportunities. The program believes that

just giving resources isn't enough to ensure access to healthcare and education for the

poor; starting a business or finding a job is essential to getting out of poverty. DSWD’s

Kapit-Bisig Laban sa Kahirapan Comprehensive and Integrated Delivery of Social

Services (Kalahi CIDSS) employs a community-driven development (CDD) strategy to

reduce poverty. The program encourages citizen participation in governance while

providing resources to underdeveloped rural municipalities to purchase public goods. It

also allows these families to communicate their problems, suggest solutions to their

problems and implement those suggestions.

Poverty has multiple dimensions, and many people in the region face not only income

poverty but also poor health, a lack of education, food insecurity, and inadequate living

conditions. Social welfare programs are important because they help people who have

low income fulfill their immediate needs. The 4Ps are one of the programs that the

Philippines implemented, and data shows this, according to the World Bank organization.

4
These grants help families invest in their children's future and well-being. Since starting

in 2007, the program has grown quickly. A World Bank team's review shows it targets

well, is fair, and doesn't cost too much. The program helps close the income gap for

families by up to 7.4 percentage points, making it easier for them to afford basic needs. It

also reduces food poverty and overall poverty among recipients by up to 6.7 percentage

points. To keep reducing poverty effectively, the report recommends changing the

number of benefits and expanding the program's reach.

BENEFITS OF SOCIAL WELFARE PROGRAMS

Social welfare programs provide a lot of benefits that can help in enhancing the

welfare of everybody or of our society in general. These programs play an important role

in eradicating poverty because they offer a safety net that ensures individuals are

financially able to make basic needs. One of the benefit is Health improvement as

Medicaid and Children’s Health Insurance Program (CHIP) afford low income families

accessible health care and improve their health status and reduce future health care cost.

Thus, programs such as unemployment benefits, as well as food assistance such as

SNAP, are necessary to maintain the economic stability of the country. They support

consumers’ expenses during the economic downturns and enhance the economy. Other

social welfare activities that also enhance the access to education include free feeding in

schools, free textbooks, free tuition among others. These help poor children access

education for a better future for them. Also, they bring about social justice by giving out

money and food, eradicating inequality thus having a society that lacks prejudice. While

finding the root of criminal behaviors like poverty or lack of jobs leads to more crime, it

is stated that these programs foster crime prevention. This will allow more individuals to

5
seek or rejoin the workforce through child care support and job-training activities. This

results to better of employment and increased output in the economy. Social welfare

services are important in ensuring that the vulnerable groups in society includes the

elderly persons, disabled persons and children are catered for. These programs help them

to make sure that they have all the things they need to live peacefully and comfortably.

Social services are very important and the more we invest in them the healthier a society

will become. These support structures have the effect of improving the quality of life of

all the parties concerned. In times of crisis, like when there's a natural disaster or a

pandemic, social welfare programs are really important. They give critical help and

support to people and families who have been affected. This aid helps them recover and

rebuild their lives. Social welfare programs are essential for promoting the well-being of

individuals and making sure society stays stable and prosperous. They act as a safety net

and provide assistance when people need it the most. This helps communities stay strong

and bounce back from tough times.

CHALLENGES IN SOCIAL WELFARE PROGRAM

Based on the article entitled '' Dispelling the Myth of Welfare Dependency'',

social safety nets worldwide routinely come under attack by critics wielding an argument

that is as misleading as it is familiar. Measures such as subsidized health insurance, food

and nutrition programs, and targeted cash payments to the poor, it is said, incentivize

idleness, encourage freeloading, and create a culture of dependency. In response,

policymakers cut funding, allow inflation to erode benefits, and make social programs

harder for people to access. These programs of social welfare should be temporary and

6
help other people face their challenges at the moment or when they need them, but not

rely on them too much.

In the United States a generation ago, President Bill Clinton’s promise to “end welfare as

we know it” assumed that income support to the needy generates indigence. Accordingly,

his administration drastically reduced transfers and benefit durations, and introduced

stiffer eligibility requirements. At the same time, social programs began to include

mechanisms to compel labor-market participation, by cutting benefits for able-bodied

adults who proved unable or unwilling to find work. The very name of one key new

program, Temporary Assistance for Needy Families (TANF), emphasized the expectation

that support would not be indefinite.

But the idea that government assistance drives dependency is not unique to any country,

even if all countries face unique challenges in providing safety nets for the poor.

Moreover, beliefs about dependency are not just common among the rich; one often hears

similar complaints from the very people whom social programs are meant to help. It is

thus little wonder that such beliefs would translate into policy.

Beliefs about dependency can have real and tangible implications for the poor and the

protections they need. But what if those beliefs are wrong? For example, far from

creating dependency, it is possible that welfare programs actually give people the

necessary tools to achieve financial independence, provided that the assistance is

dependable rather than sporadic and temporary. In that case, the provision of government

assistance over an extended period of time could yield high social and economic returns,

7
not least by allowing low-income families to make longer-term investments for the

future.

To be sure, some social programs might well reduce work. Obviously, policymakers

should consider the downstream effects of public benefits on labor markets and other

areas of the economy. At the same time, the way we think and talk about “dependency”

needs to change. The claim that transfers necessarily reduce work may hold true in

Economics 101; in the real world, much depends on context and how policies are

designed and implemented in practice. It’s time to bring our beliefs about dependency

into line with the data. There is an extensive and growing body of evidence from around

the world showing that even very simple cash-transfer programs need not have adverse

effects on work.

More broadly, we should focus less on policing “freeloaders,” and more on giving poor

families the type of dependable financial assistance that will allow them to make

substantial long-run investments in the health and education of their children. As we have

seen, the returns on such investments are real, and will accumulate over time.

If we are willing to cast aside the prevailing beliefs about poor people’s “dependency”

and “laziness,” we can start to make the social safety net a springboard of upward social

mobility.

8
RELATED LITERATURES ON THE ROOT CAUSES OF EXCESSIVE SOCIAL

WELFARE DEPENDENCY

Hayley McKenzie, Rebeca Lindberg, and Fiona H. McKenzie (2023) report that

over 10% of Australians are impoverished and rely on government assistance to pay for

their essential living needs. Nevertheless, many of them are forced to rely on emergency

food aid from charity because the help they receive is insufficient. The experiences of

people who are receiving welfare payments from the government but still need help from

charities for food. In the study mentioned in interviews were conducted with seventy-

eight individuals to understand the challenges they face while trying to navigate the

government welfare system and charity systems. The main finding was that people on

very low incomes struggle to make ends meet because the welfare payments are not

enough to cover their basic living costs. In this study they highlight the struggles of

Australians living in poverty who rely on government support but still need help from

charities to afford food.

Drawing on data from the 2017 and 2019 China Household Finance Survey

(CHFS), the study explores the pivotal role of financial literacy in mitigating relative

household poverty. Key findings indicate that enhanced financial literacy correlates

positively with reduced relative poverty through several mechanisms: increased

household engagement in entrepreneurial activities, participation in commercial

insurance, and informed selection of lending channels. Moreover, the study highlights

that households benefiting most from improved financial literacy are those engaged in

continuous operations, thereby reducing the likelihood of economic exit. The study

underscores that the poverty-alleviating impact of financial literacy is particularly

9
pronounced among households characterized by higher levels of financial literacy,

younger age groups (under sixty years old), lower levels of indebtedness, and those

situated in the eastern region of China. These insights offer empirical evidence

advocating for the encouragement of market participation and the promotion of financial

literacy. Such initiatives are pivotal for policymakers aiming to enhance poverty

reduction efforts in developing countries. By fostering a deeper understanding of

financial concepts and practices, policymakers can effectively target interventions that

empower households economically and contribute to broader socioeconomic

development.

Stack R. and Meredith, A (2017) investigated the profound challenges faced by

single-parent families, emphasizing how financial hardship directly impacts their

psychological well-being. Conducted through semi-structured interviews and analyzed

via constructivist thematic analysis, the research captured the experiences of 15 single

parents. Key findings underscored that financial difficulties among single parents often

led to severe consequences such as food and fuel poverty. Participants expressed the

necessity of making sacrifices, sometimes going without food themselves to prioritize

their children's basic needs. Many struggled to meet essential bills, highlighting the acute

economic strain they faced. Psychologically, the study revealed a range of distressing

outcomes including feelings of isolation, anxiety, depression, paranoia, and even suicidal

thoughts among the participants. Importantly, participants noted that existing

psychological services often failed to adequately address the unique challenges faced by

single-parent households. The study advocates for a more nuanced approach to

supporting single parents, one that acknowledges the profound impact of their social

10
circumstances and economic challenges on their psychological well-being. It calls for

psychological services and support systems to be more attuned to the economic drivers of

distress among single parents, ensuring that interventions are tailored to meet their

specific needs effectively. By addressing both the economic and psychological

dimensions of hardship, policymakers and service providers can better support single-

parent families in achieving improved well-being outcomes.

According to Wang, S. (2019), the detailed analysis of the related literature

underscores the crucial role of aiding employment as a fundamental strategy in poverty

reduction frameworks across diverse nations. In the specific context of urban China, the

endeavor to uplift low-income groups by enhancing their living standards, fostering

development prospects, and ensuring social inclusion accentuates the importance of

discerning the significant individual and systematic variables that impact their

employment status. Moreover, the study illuminates the pressing necessity for a tailored

poverty alleviation approach, drawing attention to the prevalent issue of "welfare

dependence" among low-income segments in urban China. The resultant policy

recommendations advocate for the promotion of family-friendly initiatives, the

deployment of an intelligent healthcare system, the establishment of a mechanism to

adjust the Basic Living Allowance, and the provision of pertinent social services.

Furthermore, the research underscores the critical need to comprehend and address the

intricate array of factors influencing the employment status of low-income groups in

urban China. By deepening the exploration of these determinants, the study enriches the

dialogue on poverty mitigation and the enhancement of social welfare, offering tangible

guidance for the formulation and execution of effective policies. This comprehensive

11
review of related literature accentuates the significance of employment support as a

linchpin in poverty alleviation efforts and underscores the importance of tailored

strategies to empower low-income groups in urban China, advocating for policy

interventions that can positively impact their economic well-being and overall quality of

life.

PROPOSED STRATEGIES AND INTERVENTION

We implemented innovative strategies focusing career counseling to promote self-

sufficiency and reduce dependency on social welfare programs. This interventions

targeted one of the specific contributing factors identified in the relate literature.

Engaging stakeholders and utilizing resources are crucial for successful implementation.

A robust monitoring and evaluation framework with clear KPIs will track progress and

effectiveness, providing insights for decision-making and ensuring accountability. This

framework will enhance existing social programs, promote economic self-sufficiency,

and drive continuous improvement in program delivery.

Promote Education and Training: Career Counseling

Example: Providing one-on-one career counseling sessions for vulnerable populations to

explore different job opportunities.

 Actor: Career counselors, social workers, psychologists

 Resources: Counseling materials, career assessment tools, appointment scheduling

system, training for counselors

12
 Implementation steps:

1. Identify Target Population: Reach out to vulnerable individuals in the

community who may benefit from career counseling.

2. Offer Counseling Sessions: Provide personalized career guidance, resume

building tips, and job search strategies.

3. Explore Job Opportunities: Assist individuals in exploring various career paths

and job openings based on their skills and interests.

4. Follow-Up Support: Provide ongoing support and resources to help individuals

navigate their career paths effectively.

 Key Performance Indicators (KPIs):

1. Number of vulnerable individuals who receive career counseling sessions.

2. Percentage of individuals who demonstrate improved job search skills and career

readiness.

3. Number of individuals who secure employment opportunities after counseling

sessions.

 Evaluation Metrics:

1. Pre and post-assessment of career readiness and job search skills.

2. Feedback from participants on the effectiveness of counseling sessions.

3. Job placement rates and retention in employment for individuals who received

counseling.

 Monitoring and Evaluation Plan:

1. Regular tracking of the number of counseling sessions conducted and participants

served.

13
 2. Surveys and feedback forms to assess participant satisfaction and perceived

impact.

3. Periodic reviews of job placement outcomes and career progression for

individuals who received counseling.

4. Quarterly assessments to measure the effectiveness of the career counseling

program and identify areas for improvement.

Enhance Support Services: Childcare Assistance

Example: Offering subsidies for daycare services to single parents in need of support. -

 Actor: Childcare providers, social workers, community outreach coordinators

 Resources: Funding for subsidies, partnership with daycare centers, monitoring

system for utilization, feedback mechanisms

 Implementation steps:

1. Assess Need: Identify single parents in need of childcare support through

community outreach and partnerships.

2. Provide Subsidies: Offer financial assistance for daycare services to alleviate the

burden on single parents.

3. Quality Assurance: Ensure that subsidized daycare centers maintain quality

standards and provide a safe environment for children.

4. Feedback and Improvement: Gather feedback from parents and childcare

providers to continuously improve the assistance program.

14
 Key Performance Indicators (KPIs):

1. Number of single parents receiving childcare subsidies.

2. Utilization rate of subsidized daycare services by single parents.

3. Quality rating of daycare centers providing subsidized services.

 Evaluation Metrics:

1. Number of children benefiting from subsidized daycare services.

2. Feedback from single parents on the affordability and quality of childcare

services.

3. Compliance with safety and quality standards in subsidized daycare centers.

 Monitoring and Evaluation Plan:

1. Monthly tracking of the number of single parents receiving childcare subsidies.

2. Regular audits and inspections of subsidized daycare centers to ensure quality

standards are met.

3. Feedback mechanisms for parents to provide input on the effectiveness of

childcare assistance.

4. Quarterly reviews of utilization rates and feedback to make adjustments as

needed.

Introduce Financial Literacy Programs: Partnership with Banks

Example: Collaborating with a local bank to provide financial literacy classes and access

to savings accounts for program participants.

 Actor: Financial advisors, bank representatives, educators

15
 Resources: Financial literacy materials, workshop materials, access to banking

services, collaboration agreements with banks.

 Implementation Steps:

1. Educational Workshops: Conduct financial literacy workshops covering topics

like budgeting, saving, and investment.

2. Access to Banking Services: Facilitate the opening of savings accounts and

educate participants on basic banking services.

3. Partnership with Banks: Collaborate with local banks to provide additional

financial resources and support.

4. Evaluation and Feedback: Assess the impact of the financial literacy program and

gather feedback for future enhancements.

 Key Performance Indicators (KPIs):

1. Number of participants attending financial literacy workshops.

2. Percentage of participants opening savings accounts after the program.

3. Increase in financial knowledge and confidence among program participants.

 Evaluation Metrics:

1. Pre and post-assessment of financial literacy knowledge and skills.

2. Participation rates in follow-up financial education sessions.

3. Feedback from participants on the usefulness and impact of the program.

 Monitoring and Evaluation Plan:

1. Tracking attendance and participation rates in financial literacy workshops.

2. Monitoring the number of savings accounts opened through the program.

16
 2. Surveys and focus groups to gather participant feedback on the relevance and

effectiveness of the financial literacy program.

3. Ongoing assessment of financial behaviors and practices among participants to

measure the program's impact on financial well-being.

SUMMARY

From the previous texts, we identified a concerning trend of excessive dependency on

social welfare programs. While these programs provide essential support to vulnerable

populations, we observed that prolonged reliance on such assistance could lead to a cycle

of dependency rather than empowerment. Through our analysis, we identified some

factors contributing to the excessive dependence on social welfare programs. These

include struggles of low-income individuals, financial literacy, single parent’s financial

struggles, and employment. Our review of related literature highlighted the negative

consequences of long-term dependency on social welfare. Data analysis revealed

patterns of dependency and highlighted the need for targeted interventions to break the

cycle of reliance on social welfare.

Research insights emphasized the importance of addressing underlying barriers to self-

sufficiency. Through collaborative brainstorming sessions, we generated ideas for

strategies and interventions aimed at reducing dependency on social welfare. We

considered innovative approaches that focused on skill development, job creation, and

financial literacy to empower individuals to become self-reliant. Our strategies were

aligned with the overarching goal of promoting self-sufficiency and reducing dependency

17
on social welfare programs. Each intervention was designed to address specific

contributing factors identified in our research. By following this process, we were able to

develop strategies and interventions that were well-informed, targeted, and tailored to

address the challenges of excessive dependence on social welfare programs in the

Philippines.

18
 REFERENCES

Vaughn. (2023, January 20). LIST: 7 Government Assistance Programs in the

Philippines. WhatALife!. Retrieved from: https://whatalife.ph/list-7-government-
assistance-programs-in-the-philippines/
Hanna, R. (2019, August 9). Dispelling the Myth of Welfare Dependency. Retrieved
from:..https://epod.cid.harvard.edu/article/dispelling-myth-welfare-
dependency?fbclid=IwAR0JhTlVmeDEtHr5p24bp3950OeoYRRl3PP6Hlq2AS6Kc
5FOTrJUxqSPIxc
Stack, R., & Meredith, A. (2017, October 17). The Impact of Financial Hardship on
Single Parents: An Exploration of the Journey from Social Distress to Seeking
Help..Retrieved.from:..https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5932102/?
fbclid=IwAR1Ph8ry3QcX_mUBexMsspeW72xil_wmfJRVhKFbXJS_NWZuZxBq_
THjAN8
McKenzie, H., Lindberg, R., & Mckay, F. (2023, January 30). Navigating the Australian
Welfare System for Those Relying on Emergency and Community Food
Assistance..Retrieved.from:.https://www.cambridge.org/core/journals/social-
policy-and-society/article/navigating-the-australian-welfare-system-for-those-
relying-on-emergency-and-community-food-
assistance/97987C4D003DD3A8E87CB8CBE5FCF742?fbclid=IwAR3cZ3JC7a
M7l6p0vAicHWFKRpWEu2qwdG8mRbIXzbkl108tmnqnabBWf1w
Childhope Philippines. (2024, May 14). Understanding Social Welfare and Its Impact in
Changing.Lives..Retrieved.from:.https://childhope.org.ph/what-is-social-
welfare/?fbclid=IwAR1TpPT9HdmZISAC8GumI2xzFt5meyJAnnH1bQkRMXyNP
MswpUZjKoDcczg
Wang, S, Chan, K, & Han, K. (2019, Novenmber 19). Impacts of social welfare system
on the employment status of low-income groups in urban China.
Retrieved.from:.https://www.emerald.com/insight/content/doi/10.1108/PAP-09-
2019-0020/full/html?fbclid=IwAR2_fITFxz4aEcFVuH-
tm1Q4uvvUmA5xi_BqjD8g_Q5P0VqibRO8yw6Yncw

19