PHILIPPINES: Reducing Inequality Key to Becoming a Middle-Class Society Free of Poverty
MANILA, November 24, 2022 – Policies that support employment and workers, raise education quality and improve access, boost rural development, and strengthen social protection can reduce inequality, thus enhancing Filipino peoples’ chances for improving their well-being.
In a report titled “Overcoming Poverty and Inequality in the Philippines: Past, Present, and Prospects for the Future” released today, the World Bank said that the Philippines has made important gains in poverty reduction. Driven by high growth rates and the expansion of jobs outside agriculture, poverty fell by two-thirds—from 49.2 percent in 1985 to 16.7 percent in 2018. By 2018, the middle class had expanded to nearly 12 million people and the economically secure population had risen to 44 million.
Yet inequality remains high: the top 1 percent of earners together capture 17 percent of national income, with only 14 percent being shared by the bottom 50 percent. With an income Gini coefficient of 42.3 percent in 2018, the Philippines had one of the highest rates of income inequality in East Asia.
“The Philippines aims to become a middle-class society free of poverty by 2040, but we know from global experience that no country has managed to make this transition while maintaining high levels of inequality,” said Ndiamé Diop, World Bank Country Director for Brunei, Malaysia, Philippines, and Thailand . “Inequality of opportunity and low mobility across generations wastes human potential and slowdown innovation, which is crucial for building a competitive and prosperous economy that will in turn improve the well-being and quality of life of all Filipinos.”
The report highlights that the expansion of secondary education, mobility to better-paying jobs, access to basic services, and government social assistance have started to reduce inequality since the mid-2000s. However, unequal opportunities, slow access to tertiary education among low-income households, inequality in returns to college education, and social norms putting the heavier burden of childcare on women has slowed down the narrowing of inequality in the Philippines.
Despite the strong recovery of growth and the labor market, COVID-19 pandemic has partly reversed decades-long gains in reducing poverty and inequality in the Philippines. It halted economic growth momentum in 2020, and unemployment shot up in industries that require in-person work. In 2021, the national poverty rate rose to 18.1 percent despite government assistance.
Recovery in the Philippines is uneven across the income distribution and the poorest who suffered the most from COVID have yet to fully recover their incomes. With food prices going up, many families coped by reducing their consumption, including eating less. These coping strategies can have serious consequences on the health and nutrition of children in these vulnerable households.
The report says that inequality starts even before birth and is perpetuated over the life cycle. It starts with maternal nutrition and health during pregnancy. Differences continue into childhood, where disparities in access to health care, proper nutrition, safe drinking water, sanitation, and quality education determine the extent to which a child’s human capital develops.
“Inequality shapes outcomes later in life, such as employment opportunities and income, which in turn influence how much support adult Filipinos are able to provide for their children to help maximize their potential,” said Nadia Belhaj Hassine Belghith, Senior Economist with the East Asia Poverty Global Practice covering Thailand and the Philippines who led the study.
The report says that policy priorities to reduce inequality in the Philippines can be structured around three themes, including healing the pandemic’s scars and building resilience, setting the stage for a vibrant and inclusive recovery, and promoting greater equality of opportunity.
Healing pandemic’s scars will require promoting greater vaccine booster uptake, overcoming the learning loss due to COVID-19, strengthening social assistance, unemployment insurance programs for the informal sector, and taming inflation.
Setting the stage for vibrant recovery entails reskilling of workers, promoting entrepreneurship, increasing the participation of women in the labor force, and raising the productivity of agriculture.
Promoting greater equality of opportunity entails increasing access to quality health care, increasing equality of opportunity in education, and improving access to quality housing, among others. Equality of opportunity needs to target the lagging regions and other people disadvantaged in accessing these because of the circumstances of their birth.
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Ambitious Vision to End Poverty in the Philippines by 2040
The Philippine Government has adopted a 25-year long-term vision aiming to end poverty by 2040.
Article | 16 November 2016 Read time: 3 mins
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The Philippine Government has adopted a 25-year long-term vision as a guide for development planning. The Asian Development Bank (ADB) supported the visioning exercise, which aims to ensure a prosperous Philippines where no one is poor by 2040.
The Government of the Philippines has adopted a 25-year long term vision to end poverty in the country by 2040. The Ambisyon Natin 2040 (Our Ambition 2040) vision states that by 2040 the Philippines will be a prosperous, predominantly middle-class society where no one is poor. President Rodrigo Duterte signed an executive order on 11 October 2016 adopting the 25-year long-term vision for the country.
All future Philippine development plans to be crafted and implemented until 2040 will be anchored on Ambisyon Natin 2040. This will ensure the sustainability and consistency of government strategies, policies, programs and projects across political administrations.
Supporting an ambitious plan
"All future Philippine development plans to be crafted and implemented until 2040 will be anchored on Ambisyon Natin 2040."
Ambisyon Natin 2040, which reflects the long-term vision and aspirations of the Filipino people for themselves and for the country, was supported by ADB through technical assistance to the National Economic and Development Authority (NEDA). ADB supported the formulation of thematic and technical papers covering topics such as education, health, environment, governance, infrastructure, and energy. These papers helped set the framework, goals and milestones each administration should work for to realize the long-term vision.
Government agencies, representatives of academe and private sector were brought together to brainstorm for Ambisyon Natin. In 2016, ADB supported a technical assembly for NEDA officials across the country, a youth forum, and a high-level roundtable discussion on linking the long-term vision to the country’s development plans.
Comfortable and simple life for all
A national survey conducted by NEDA as part of the visioning exercise showed that 79 percent of Filipinos want a ‘comfortable and simple life’ by 2040. It also revealed that the most important economic goal is the eradication of poverty and hunger, and creating adequate jobs for all. In the survey, Filipinos also defined a comfortable life as owning a car and medium-sized house, enough money and savings to send their children to school, and affording leisure like travel once in a while – basically a middle-class lifestyle. The survey also revealed the strong desire of Filipinos to work in their home country rather than overseas, and the importance of family togetherness in their futures.
At present, a series of communication and advocacy activities are being conducted, involving local governments and sectors like academe, civil society and private institutions to establish ground and gather support and commitment.
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The outreach blog : from the field, the state of poverty in the philippines: what are the causes.
The Philippines and its roughly 117,000,000 people have struggled with income inequality for generations. Even as infrastructure and opportunity has improved in highly populated areas in recent decades, poverty in the Philippines, particularly for people living in remote areas, remains a serious issue.
In this blog post, you’ll learn about the complex issue of chronic poverty in the Philippines, its causes, and its impact on families. Additionally, you’ll see how Outreach International is working to alleviate poverty in this Southeast Asian nation.
Decoding Poverty: A Deep Dive into the Statistics
According to the World Bank , between 1985 and 2018, the poverty rate in the Philippines declined by two-thirds, thanks to economic growth initiatives and investment in infrastructure, including education. However, the improvements were largely focused in the most populated areas, where the most opportunities already existed. According to the Asian Development Bank , the top one percent of earners have benefitted the most, capturing 17 percent of the national income, while only 14 percent of national income is obtained by the lowest-earning 50 percent of the population.
The Philippines’ income inequality stems from several structural factors. Higher education and job skills development remain out of reach for many. Unequal access to college, and social norms that leave women at a disadvantage, also contribute to persistent inequality. And the geography of this archipelago nation makes the issue even more difficult to solve, as opportunities and natural resources are unevenly distributed.
Understanding the Impact of Family Poverty
Family poverty is not just about financial struggle. It affects every aspect of a household’s well-being. Children who live in poverty are less likely to enroll in school and reach age-appropriate grade levels because their time is needed to help the family strive to meet their basic daily subsistence needs. This stifles their access to higher education and the future opportunities it would bring, limiting earning potential, the potential economic growth of families, and the possibility of community development.
Managing Resources: Addressing Poverty in High Population Areas
Population density has a significant impact on poverty in the Philippines. High-population areas often struggle to manage limited natural and government resources, which negatively impacts quality of life. And a lack of job opportunities in densely populated areas contributes to poverty rates. These challenges trickle into remote areas, making it even more difficult for rural communities and marginalized people to break their own unending cycle of poverty .
Living Conditions and Resource Challenges
Living conditions in densely populated areas of the Philippines are affected by resource scarcity and inadequate government support systems. Access to basic necessities like electricity, safe drinking water, and quality education remains uneven. This scarcity not only limits the potential for development across the nation but also perpetuates inequality. As a result, impoverished communities face daily struggles, making it all the more challenging to break free from the cycle of poverty.
The Pandemic’s Impact: A Crisis Amplifying Poverty
The COVID-19 pandemic had a profound impact on poverty in the Philippines. In 2020, the pandemic halted economic growth, leading to even higher unemployment rates. As this trend continued into 2021, poverty rates rose to 18.1 percent (World Bank). This amounts to just under 20 million people. And though the economy continues to recover, this recovery is uneven, with the poorest households benefiting the least. As improvements are bringing many areas back to normal, communities in many remote areas still struggle to bring their economies back to even just the already challenging pre-pandemic levels.
One constant struggle for families living in poverty is food insecurity. And according to sources such as the National Library of Medicine , this became even more significant during the pandemic. Almost two-thirds (61.2%) of households experienced moderate to severe food insecurity during the many months of quarantine. And with rising food prices and limited natural resources, vulnerable households often had to limit their food intake. This caused a lack of proper nutrition, particularly for children. Outreach International has implemented an effective method of combating food insecurity for even the most impoverished families. Our partners in OPI have helped community-led organizations develop rice loans . These are low-interest loans of rice or the funds to buy it. And because the communities manage these loans themselves, borrowers can avoid predatory outside lending institutions and can deal with people they know and trust.
Initiatives That Changed the Reality
In response to the challenges posed by the pandemic, both the Philippine government and organizations like Outreach International have implemented various initiatives to alleviate poverty and its effects. Some organizations have provided health services and relief assistance to affected communities. Such initiatives are essential in mitigating the immediate impact of the crisis and helping vulnerable populations in the short term.
But Outreach International also focuses on more long-term and sustainable initiatives that can forever break the cycle of poverty . Our methodology of community-led development allows people who live in chronic poverty to learn that they have the power within themselves to improve their lives permanently. Our partners in the Philippines, Outreach Philippines Incorporated (OPI), work with leaders in communities to identify their own unique poverty-related issues, and then mobilize to solve them. They learn how to develop networks with government agencies and NGOs that are able to provide resources. And they learn how to set ever-increasing goals of improvement, leading to continuous development that is sustainable for generations.
Join the Cause: How You Can Help
You can choose to play a role in alleviating poverty in the Philippines. And there are so many ways to help , from donating to Outreach International to fundraising to volunteering . By working together, we can collectively make a difference in the lives of those affected by poverty in the Philippines.
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Essay on Poverty In Philippines
Students are often asked to write an essay on Poverty In Philippines in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.
Let’s take a look…
100 Words Essay on Poverty In Philippines
What is poverty.
Poverty means not having enough money for basic needs like food, water, and a house. Many people in the Philippines live in poverty. They struggle every day to eat and have a safe place to sleep.
Why is Poverty a Problem?
When people are poor, children might not go to school, and sick people can’t get medicine. This makes it hard for the country to grow stronger because its people are not healthy or educated.
Causes of Poverty in the Philippines
In the Philippines, poverty comes from not enough jobs, natural disasters like typhoons, and sometimes, government leaders not helping enough.
Fighting Poverty
To fight poverty, the Philippines needs more jobs, better schools, and help from the government. Everyone must work together to make sure no one is too poor to live a good life.
250 Words Essay on Poverty In Philippines
Why are people poor in the philippines.
There are many reasons why people are poor. In the Philippines, jobs that pay well are hard to find. Farmers might not have enough land to grow food. Natural disasters like typhoons and earthquakes destroy homes and farms, making things worse.
Life of Poor People
Poor people in the Philippines often live in small houses with many family members. They might not have clean water or enough food. Children might not go to school because they have to work to help their families.
What is Being Done?
The government and other groups are trying to help. They give food, help people learn skills for jobs, and build houses. They also work on making sure everyone can go to school.
How Can We Help?
Even if we are young, we can help by understanding and sharing what we know about poverty. We can also join in activities that raise money or collect things to give to those in need.
In conclusion, poverty in the Philippines is a big problem that affects many people’s lives. By learning about it and taking action, we can help make things better for those who are struggling.
500 Words Essay on Poverty In Philippines
Understanding poverty in the philippines, why are people poor.
There are many reasons why people in the Philippines are poor. A big reason is that there are not enough jobs that pay well. Many people work in farming or fishing, but these jobs don’t always make enough money to support a family. Also, natural disasters like typhoons and earthquakes happen often and can destroy homes and crops, making it hard for people to earn money.
Life for the Poor
Life can be very hard for poor people in the Philippines. They might live in homes that are not safe or clean. It’s also hard for them to get good food, which means kids may not grow as they should. Going to the doctor can be too expensive, so many stay sick longer than they need to. Education is another problem. Even though school is supposed to be free, there are still costs like uniforms and books, which can be too much for poor families.
What Can Others Do?
People from other countries can help too. They can give money or things that poor families need, like clothes or school supplies. They can also teach skills to adults so they can get better jobs. Even kids can help by learning about poverty and sharing what they know with friends and family.
Hope for the Future
Even with poverty, many Filipinos are hopeful. They work hard and believe that life can get better. With help from their own country and people around the world, there is a chance that poverty in the Philippines can be reduced. This means more Filipino kids could grow up healthy, get a good education, and have a better chance at a bright future.
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The Causes and Effects of Poverty in Philippines
Table of contents, some major causes of poverty in the philippines, lack of education, effects of poverty in the philippines, the lack of education in the philippines quality of education, malnutrition, poor economic growth, child labor, bad living conditions, crime/ theft.
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Home / Essay Samples / Social Issues / Homelessness / The Root Causes of Poverty in the Philippines
The Root Causes of Poverty in the Philippines
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- Topic: Homelessness , Income Inequality , Unemployment
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