While the Duterte administration has been “proactive” in responding to the pandemic, much needs to be done to expand testing and address gaps in social assistance, according to the Asian Development Bank (ADB).
In a project report titled “Covid-19 Active Response and Expenditure Support (CARES) Program Monitoring Report,” ADB said more needs to be done in addressing the impact of the lockdowns on the economy.
Under the CARES program, ADB has approved $1.5 billion in countercyclical support for the Philippines to mitigate the impact of the pandemic. The Asian Infrastructure Investment Bank (AIIB) has also provided $750 million through its Covid-19 Crisis Recovery Facility while the Japan International Cooperation Agency (JICA) has set aside $459 million under its Covid-19 Crisis Response Emergency Support Loan.
“A greater focus is needed on large-scale testing for Covid-19, tracing, and treatment as the economy further reopens. Proven strategies to deliver measures effectively and efficiently should be prioritized,” ADB said.
“Successful programs need to be scaled up, corrective actions deployed swiftly, and outreach to the vulnerable, including workers and businesses in the informal economy, expanded.”
In terms of testing, ADB recommended that efforts must be exerted to facilitate the access of laboratories to equipment and supplies. Some laboratories lacked extraction kits and reagents, among others.
As of January, ADB said 49 laboratories still have pending license applications. The Manila-based multilateral development bank said the licensing of Covid-19 testing laboratories must be accelerated.
ADB said around 170 laboratories using RT-PCR technology and 50 laboratories used GeneXpert. This has enabled the government to identify hotspots and implement targeted quarantines or lockdowns.
The report stated that the average number of daily tests conducted for the week of January 24-30, 2021 was 35,535, with a positivity rate of 5.51 percent.
“Despite the increased number of licensed laboratories capable of conducting over 40,000 tests a day, the actual number of tests being processed is lower. Problems encountered by the laboratories include lack of testing equipment and supplies (e.g., extraction kits, reagents) and procurement issues,” ADB said.
Further, ADB said priority should be given to the National ID and to efforts that digitize processes to simplify the distribution of subsidies. These will help address gaps in social assistance.
Closing gaps in social assistance will also help millions of Filipinos who were rendered jobless by the lockdowns implemented to prevent the spread of Covid-19.
ADB noted that unemployment rate rose to a record high of 17.6 percent in April 2020 before slowing to 10 percent in July and 8.7 percent in October 2020.
This meant that 3.8 million people were jobless and another 5.7 million people were underemployed or were looking for additional work in October.
Further, the labor force participation rate has fallen sharply, suggesting that some laid-off workers may have become discouraged and have given up looking for jobs.
“Vulnerable workers, especially women engaged in precarious employment, are experiencing income declines, which in time may lead to increasing child labor,” ADB said.
Efforts to fast-track the Philippine Identification System (PhilSys), ADB said would facilitate the opening of bank accounts by the “unbanked” segment of the population. This could bring financial relief to jobless Filipinos, including those looking for higher and better sources of income.
Turning to digital platforms, ADB said, would also allow the government to improve social amelioration assistance as well as subsidies for micro, small, and medium enterprises (MSMEs).
The report stated that documentation requirements, face-to-face loan applications and fees worth 4 percent to 8 percent of loan amounts slowed the access of MSMEs to financial support.
Going digital would also allow the government to address education and learning programs. This includes establishing internet hubs in barangays, leasing digital devices to students, and/or providing temporary free internet data packages.
ADB expressed concern that low enrollment and high dropout rates became prevalent due to the pandemic. Citing government data, ADB said total enrollment in kindergarten-to-grade-12 (K-12) schools declined by 3.8 million or 14 percent to 23.2 million in the school year (SY) 2020–2021 from 27 million in SY2019–2020.
The report also indicated that drop-off cuts were seen in elementary enrollment to 11.5 million from 13.3 million and junior high school enrollment to 7.5 million from 8.5 million.
ADB said the CARES program aims to mitigate the adverse impacts of Covid-19 on the population’s health, incomes, and economic opportunities. The objective of the project is to manage the spread of Covid-19 and contain poverty by implementing measures to combat the pandemic.