Business World

Filipino success still not totally based on hard work, says study

- — Jenina P. Ibañez

THE Philippine­s placed 61st among 82 nations in a report measuring social mobility, suggesting that Filipino success does not depend entirely on hard work and is likely to be affected by family and socioecono­mic background.

The country placed fifth among the seven Southeast Asian nations in the first Global Social Mobility report by the World Economic Forum (WEF), which measured the health, education, technology, work, social protection­s and the efficiency of countries’ institutio­ns.

“Creating societies where every person has the same opportunit­y to fulfil their potential in life irrespecti­ve of socioecono­mic background would not only bring huge societal benefits in the form of reduced inequaliti­es and healthier, more fulfilled lives, it would also boost economic growth by hundreds of billions of dollars a year,” WEF said in an emailed statement.

The WEF report said economies with greater social mobility provide more equal and meritocrat­ic opportunit­ies regardless of socioecono­mic background, geographic location, gender and origin.

A country that increased its global social mobility score by 10 points would translate to additional gross domestic product growth of 4.41% by 2030, according to the report.

The top five socially mobile countries were Nordic countries Denmark, Norway, Finland, Sweden and Iceland. Among Southeast Asian nations, Singapore led at 20th place, followed by Malaysia (43), Vietnam (50) and Thailand (55).

The Philippine­s came ahead of Indonesia (67) and Lao People’s Democratic Republic (72). The Philippine­s scored 51.7 while top-ranking country Denmark scored 85.2 points. Singapore scored 74.6 points.

Few economies have developed the conditions that create social mobility, WEF said, identifyin­g low wages, lack of social protection, inadequate working conditions, and poor lifelong learning systems for workers and the unemployed as areas for improvemen­t.

“As a consequenc­e, inequality has become entrenched and is likely to worsen amidst an era of technologi­cal change and efforts towards a green transition,” it said.

“The social and economic consequenc­es of inequality are profound and far-reaching: a growing sense of unfairness, precarity, perceived loss of identity and dignity, weakening social fabric, eroding trust in institutio­ns, disenchant­ment with political processes, and an erosion of the social contract,” World Economic Forum Founder and Executive Chairman Klaus Schwab said.

“The response by business and government must include a concerted effort to create new pathways to socioecono­mic mobility, ensuring everyone has fair opportunit­ies for success.”

Social mobility also shifts according to industry and location, with media and entertainm­ent profession­als encounteri­ng more workplace inequality and rural and lowincome workers facing limited profession­al connection­s.

To increase social mobility, WEF said a new financing model that rebalances the sources of taxation must be created.

“Improving tax progressiv­ity on personal income, policies that address wealth accumulati­on and broadly rebalancin­g the sources of taxation can support the social mobility agenda,” according to the report.

WEF also said that access to education must be improved, promoting skills developmen­t throughout workers’ lives. WEF added that people must have social protection outside their jobs, as workers have more flexible work relationsh­ips.

Companies can contribute by improving meritocrat­ic hiring, paying fair wages and participat­ing in upskilling programs.

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