The administrative efficiency of conditional cash transfer programmes: evidence from the Pantawid Pamilyang Pilipino Program

The present paper examines the administrative efficiency of implementing the Pantawid Pamilyang Pilipino Program (4Ps) in the Philippines. Using data collected at a municipal level for four provinces in the Davao Region, administrative efficiency scores were computed, employing cost transfer ratios (CTR) and data envelopment analysis (DEA) for the individual municipal operations offices (MOOs) implementing the programme. CTR estimates showed that the greatest proportion of total expenditure in cash transfer programmes was direct cash transfers, which implied an efficient use of programme funding. The DEA results showed an average technical efficiency score of 0.905, which implied that there was significant potential to further improve the performance of delivery of 4Ps. The results revealed that relatively high technical efficiency scores of MOOs did not necessarily translate into a more cost-efficient implementation of the programme. Nevertheless, a positive correlation was found between CTR and the high technical efficiency scores of the MOOs implementing the programme.