Whilst overall poverty rates in the Southeast Asian region have been declining. However, the Philippines still struggles with reducing its poverty rates, more specifically chronic poverty rates....Show moreWhilst overall poverty rates in the Southeast Asian region have been declining. However, the Philippines still struggles with reducing its poverty rates, more specifically chronic poverty rates. This occurs parallel to high economic growth rates, which should, according to liberal economist discourse, eradicate poverty in the long run. As this is not happening, cash transfer programmes have been widely discussed as a solution to poverty in the last twenty years. By utilizing the case study method, this thesis seeks to analyze, the effects of conditional (CCTs) and unconditional cash transfers (UCTs) on the underlying political, economic processes and sociodemographic factors reinforcing chronic poverty in rural areas in the Philippines. This thesis argues that whilst CCTs have a more positive effect on school enrollment rates for young children, UCTs, are more effective for developing countries to implement and have the same effect as CCTs on the poorest beneficiaries, regarding school enrollment and health expenditure, which disputes the argument of poor people misusing the transfers. The poor can know what is essential, and with UCTs could break the chronic poverty cycle. This paper concludes that as the poor can efficiently utilize their cash transfers, UCTs are the best option to break the chronic poverty cycle in the Philippines.Show less
