Effectiveness of Public Spending: The Case of Rice Subsidies in the Philippines
Jha, Shikha; Mehta, Aashish | December 2008
Abstract
In response to the spike in rice prices in 2008, the rice subsidy program budget
for the Philippines’s National Food Authority (NFA) was expanded five-fold to
2.5% of gross domestic product. The NFA is the largest recipient of government
subsidy, but also the largest loss-making government corporation. The latest
household expenditure data show that the program fares well on some design
elements. However, despite all citizens being eligible, only 16% of them avail
of the program. Significant exclusion of the poor and leakage to the nonpoor
reduce its targeting effectiveness. The gap between the estimated national
consumption of NFA rice and the amount of rice officially supplied by the NFA is
large. Transferring $1 of subsidy costs the NFA $2.2. The program attracts lower
participation from farmers than those with higher incomes or fewer rice-eating
members. For those who do not use the program, nonparticipation appears to
be involuntary, arising from physical limitations. Households in better-governed
regions have a higher propensity to use the program. Those buying NFA rice
in cities buy more than their rural counterparts. The program does not act as a
safety net against unemployment, as much as for consumption support. It can
better reach the poor if its inclusion and exclusion errors are reduced; its access
and availability to the poor improved; and the quality of governance bolstered.
Citation
Jha, Shikha; Mehta, Aashish. 2008. Effectiveness of Public Spending: The Case of Rice Subsidies in the Philippines. © Asian Development Bank. http://hdl.handle.net/11540/1516.ISSN
1655-5252
Keywords
Sustainable agriculture
Agriculture
Commercial agriculture
Fight Against Poverty
Poverty In Developing Countries
Rural Poverty Alleviation
Urban Poverty
Rural Poverty
Agricultural education
Sustainable development
Environmental management
Agricultural investment
Disadvantaged Groups
Poverty Elimination
Economic and Social Development
Social Conditions
Agribusiness
Agricultural diversification
Agricultural resource
Farm produce
Land capability for agriculture
Food Supply
Rural land use
Technological innovations
Agricultural innovations
Farm supply industry
Natural resource
Adaptive natural resource management
Produce trade
Poor
Price Indexes
Intergrated rural development
Cost and standard of living
Population
Show allCollapse
Citable URI
http://hdl.handle.net/11540/1516Metadata
Show full item recordUsers also downloaded
-
CAREC Transport and Trade Facilitation Strategy 2020
Asian Development Bank (Asian Development Bank, 2013-10-24)The Central Asia Regional Economic Cooperation (CAREC) Transport and Trade Facilitation Strategy (TTFS) was refined to account for changes in the CAREC Program since 2008, particularly expanded membership and the new strategic framework (CAREC 2020). The refined strategy also reflects lessons learned during the initial phase of implementation, aiming to more efficiently and comprehensively achieve ...The Central Asia Regional Economic Cooperation (CAREC) Transport and Trade Facilitation Strategy (TTFS) was refined to account for changes in the CAREC Program since 2008, particularly expanded membership and the new strategic framework (CAREC 2020). ... -
Annual Report 2014: Operational Data
Asian Development Bank (Asian Development Bank, 2015-01-01)The page has additional information for the ADB Annual Report 2014. In 2014, the Asian Development Bank (ADB) approved $22.93 billion in development assistance, including $13.69 billion financed by ADB’s ordinary capital resources and special funds, and a record $9.24 billion by cofinancing partners. Disbursements totaled $10.01 billion, an increase of $1.47 billion (17%) from 2013, and the first ...The page has additional information for the ADB Annual Report 2014. In 2014, the Asian Development Bank (ADB) approved $22.93 billion in development assistance, including $13.69 billion financed by ADB’s ordinary capital resources and special funds, ... -
Annual Report 2014: Organizational Information
Asian Development Bank (Asian Development Bank, 2015-01-01)The page has additional information for the ADB Annual Report 2014. In 2014, the Asian Development Bank (ADB) approved $22.93 billion in development assistance, including $13.69 billion financed by ADB’s ordinary capital resources and special funds, and a record $9.24 billion by cofinancing partners. Disbursements totaled $10.01 billion, an increase of $1.47 billion (17%) from 2013, and the ...The page has additional information for the ADB Annual Report 2014. In 2014, the Asian Development Bank (ADB) approved $22.93 billion in development assistance, including $13.69 billion financed by ADB’s ordinary capital resources and special ...