4Ps as Poverty Reduction Tool: A Macroeconomic Level Analysis

Abstract

Poverty is still the major development problem in the Philippines and has been largely a rural phenomenon. Development in the country, according to the 1996 Strategy to Fight Poverty in the Philippines by World Bank, requires greater opportunities provided by higher overall economic growth, combined with increased emphasis on human capital development. The aim of this study is to assess the development of the Philippines in accordance with the 1996 Strategy to Fight Poverty prescribed by the World Bank for the past decade (2006-2015). Using the techniques in quantitative economics i.e. Time Series Regression Analysis, the assessment was empirically tested by correlating the level of poverty in the Philippines with the aftermath of implementing Pantawid Pamilyang Pilipino Program (4Ps) which has the purposes of directly targeting the rural poor. This study also employed descriptive statistics by using graphical analysis. The key findings of this study were the following: First, there is a significant decrease of poor population in the Philippines which was brought by economic growth and government policies during this time; second, the Pantawid Pamilyang Pilipino Program has succeeded in its aim of reducing rural poverty in the country.Rural poverty reduction in the Philippines therefore requires continuity of developing human capital through the Pantawid Pamilyang Pilipino Program. This study therefore provides an updated Strategy to Fight Poverty in the Philippines.