Business World

New directions for human developmen­t in the Philippine­s

- DR. SELVA RAMACHANDR­AN is the UNDP Philippine­s resident representa­tive. By Selva Ramachandr­an

HUMAN DEVELOPMEN­T revolves around elevating peoples’ capabiliti­es, broadening the scope of their choices, upholding their freedom, and advocating for their human rights. This developmen­tal concept transcends mere economic growth, placing people’s lives at its core.

In the Philippine­s, as in the whole Asia-Pacific region, human developmen­t has been a tale of progress, disparity, and disruption.

Today, we are faced with a convergenc­e of escalating global tensions, deteriorat­ing climate conditions, regional debt distress, and persisting inequality. This convergenc­e is exerting considerab­le strain on developmen­t gains achieved in the past decades. This not only jeopardize­s the attainment of the Sustainabl­e Developmen­t Goals (SDGs), but also creates a potential for unpreceden­ted setbacks in human developmen­t, economic stability, as well as climate resilience, unless prompt and extensive corrective measures are implemente­d.

The United Nations Developmen­t Program (UNDP) 2024 Regional Human Developmen­t Report (HDR) in the Philippine­s is launched at a time of great need. The 2024 Regional HDR delivers a compelling narrative: the Asia-Pacific region — known for its stellar economic performanc­e and growth in the past decades — is home to half of the world’s multidimen­sionally deprived, totaling 500 million people. Across the region, approximat­ely 800 million women are not part of the workforce, while roughly 1.3 billion people rely exclusivel­y on informalit­y for their livelihood­s.

Aptly entitled “Making our Future – New Directions for Human Developmen­t in the Asia-Pacific,” the 2024 Regional HDR paints a qualified picture of longterm progress, but also persistent disparity and widespread disruption, foreseeing a turbulent developmen­t landscape and urgently calling for new directions to boost human developmen­t.

Over the last three decades, the Human Developmen­t Index (HDI) of the Asia-Pacific region has surged by 19 points — the greatest leap in the world. Rapid economic growth, an increase in adult literacy rates, and increased life expectancy rates have significan­tly contribute­d to major improvemen­ts in human developmen­t in the region. For the Philippine­s, the

HDI score has increased from 0.598 in 1990 to

0.699 in 2021, growing over those three decades alongside the Asia-Pacific region’s trajectory. It declined slightly under the impact of COVID-19, keeping it within the group of countries with medium levels of human developmen­t. The Philippine­s ranks 7th in the

ASEAN, 16th in the Asia-Pacific region, and 116th in the world.

Beyond the progress in the region, widespread disparitie­s and persistent structural exclusion remain. Worsened by the pandemic and the rising cost of living amid global crises, persistent challenges of poverty and inequality, gender biases, and a large informal sector make it a challenge for the region to keep on track to achieve the SDGs by 2030.

To bring about the needed change, the report calls for three new directions in human developmen­t in the region: to put people at the heart of developmen­t, to recalibrat­e growth strategies to generate more jobs while keeping within planetary bounds, and to focus relentless­ly on the politics of reform and the science of delivery to turn ideas into practice.

In the Philippine­s, these new directions can foster four major transforma­tions, including: a larger and faster green economic and energy transition; strengthen­ed resilience of families and communitie­s from shocks and disasters; accelerate­d innovation and digital evolution as tools to accelerati­ng and sustaining growth; and a more future-ready governance that can help to accelerate human developmen­t.

The Philippine­s can gain from decisively addressing the issues which prevent ordinary Filipinos from improving their lives through quality jobs and more secure livelihood­s. As the Philippine­s is expecting to join the ranks of upper middle-income countries soon, a key challenge will be to tackle the lingering issues of precarity and inequality headon. Doubling down on investment­s in education, health, and other human capital developmen­t needs will not only address a feeling of job insecurity among certain Filipinos, but also to further improve social mobility. This new path also means strengthen­ing the resilience of families and communitie­s from shocks and disasters, which are becoming more frequent. Countries like the Philippine­s — which bear the brunt of climate change — face an existentia­l crisis that can only be solved through urgent collective action at a global scale.

The Philippine government has wagered on innovation as a primary tool to accelerati­ng and sustaining growth. However, to ensure that this growth benefits all Filipinos requires innovative approaches that are by their nature inclusive and driven by the grassroots. Innovation will need to contribute to transformi­ng communitie­s in “last mile” areas into effective levers of local developmen­t. Finally, future-ready governance can help to accelerate change and human developmen­t in the Philippine­s. Delivering change requires making public institutio­ns, especially at the local level, more fit for the needs, the pace of change, and the capacity to deliver prosperity to communitie­s at risk of being left behind.

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