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Studies on the Philippine Poverty-Free Zones Program (PFZP)
Year Completed: 2003

This report contains four papers on the Philippine Poverty-Free Zones Program, as well as selected poverty alleviation and employment generation programs in China, Thailand, and Indonesia.

The country papers document and assess program implementation experiences in selected localities under the PFZP, and employment generation programs in the three selected Asian countries. The report concludes with policy and program prescriptions to improve the PFZP, based on the lessons unearthed by the four country papers.

-    The Philippine Poverty-Free Zones Program

The study observes, among others, that the convergence of services in visited PFZP project sites has been achieved though on a limited scale.  This finding somehow dispels the notion that DOLE is incapable of integrating poverty alleviation efforts at the ground level.  The study shows that the DOLE Regional Offices tapped the regional offices of other national government agencies, local government units, and non-governmental organizations to provide technical, manpower, and in some cases, financial support to established core enterprises and support activities.

The paper also points out that the products identified for production were well selected and had big market potentials.  It was also observed that PFZ managers and community facilitators had a strong desire and keen interest in implementing the program.

The study however concludes that the expected program outcomes were not fully realized for the following reasons: First, the nine-month timeframe given is unrealistic as it takes considerable time to select and prepare target communities for intervention, more so to build up capabilities to become self-reliant; Second, most projects were hampered by operational issues such as high overhead costs, lack of market, poor/ unmarketable product quality, and inadequate equipment.

To improve the PFZ program, the study puts forward the following policy perceptions:

1.  Redefine the program concept and strategies – from poverty alleviation program to employment generation measure.  Limiting the scope of PFZP would enable DOLE to devote its limited financial, manpower, and other resources to ensure the success and sustainability of employment generation projects.

2.  Establish a national Committee on Convergence, akin to that of Indonesia’s and Thailand’s, to elevate the issue of convergence to higher authorities.

3.  Integrate PFZP into the poverty alleviation efforts of LGUs to ensure support of local government executives.

4.  Promote volunteerism in the PFZP so as to increase the number of dedicated program implementers.

5.  Develop a system of information exchange among program implementers and beneficiaries so they can draw lessons from each other’s experiences.

6.  Provide a realistic timeframe and full-time program manager.

-       Poverty Alleviation and Employment Generation Programs in China: Experiences and Lessons

The paper on China’s experiences in poverty alleviation and employment generation programs presents the following four-fold lessons:

(1) poverty alleviation programs would have better chances of succeeding if backed by strong local government support;

(2) it is crucial to get private sector involvement in government programs;

(3) poverty investments need not be injected in grand scale, and elaborate programs to ensure high rates of returns; and

(4) it takes only practical approaches for employment generation programs to be successful.

-       Poverty Alleviation and Employment Generation Programs in Indonesia: Experiences and Lessons

Foremost among the positive lessons gathered from the study on Indonesia’s experiences in making a more comprehensive and effective attack on poverty is the integration of national agencies and ministries in one poverty-alleviation committee that pools resources to create programs and craft policies while devolving the implementation of the programs to the local government. This does not only ensure a holistic approach to the problem but also spawns programs that are more attuned with the needs of the community.

The study on Indonesia also features a novel approach in employment generation – the Graduate Volunteer Utilization and Community Empowerment Program.    Under this program, graduate volunteers first undergo trainings on project planning and development, on motivation of beneficiaries, on improvement of development programs, and on appropriate technology.

After the trainings, the graduate volunteers are tasked to organize communities, implement community development programs, and guide the beneficiaries in the implementation of livelihood projects.

The study observes that the dedication of the graduate volunteers helped ensure the success of community mobilization and poverty alleviation projects.

-       Poverty Alleviation and Employment Generation Programs in Thailand: Experiences and Lessons

This paper suggests that Thailand’s positive experience in instituting poverty alleviation programs was brought about in part by the availability of productive resources such as credit, skills trainings, common-service facilities, and social infrastructures.

For instance, there is a holistic approach to training and provision of support and assistance.  Hence, a Training Center does not only provide adequate skills training but also the necessities of the trainees such as board and lodging, uniforms, training materials, basic health care services, counseling, and recreational facilities.

On the other hand, post-training services include job placement, monitoring of graduates’ employment status, access to loans and financial support to sustain them while looking for job or to enable them to venture into self-employment.  Credit, on the other hand is available from various government financial institutions such as the People’s Bank.

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