PH needs to sustain programs promoting inclusive economic growth

The World Bank said yesterday that the Philippines should sustain its programs promoting inclusive economic growth that benefits various income groups.

Mara K. Warwick, World Bank country director said that programs aimed at improving the quality of jobs and addressing disparities in education through early childhood development will help to achieve the nation's inclusive growth.

“The various income groups clearly have different needs and aspirations,” Warwick said. “For the Philippines, the best strategy is to meet those different needs by fostering economic mobility – which in layman’s terms is essentially the ability to improve one’s lot in life."

The goal for the Philippines, Warwick said is to build economic security for those still vulnerable to slipping back into poverty as well as addressing the remaining challenges of the middle class.

Warwick said the government should maintain its social assistance programs for the poor and social insurance should be extended to cover all workers, not only those in the formal sector.

Resilience to shocks, including natural disasters, should also be a priority, she said. This requires a broad range of interventions, including resilient infrastructure, social safety nets, and insurance to deal with these shocks.

“Providing opportunities for the poor to access jobs by supporting formal market participation is critical. Also, greater access to financial services can boost livelihoods that people create for themselves,” the World Bank official said.

“Not surprisingly, there also needs to be stronger revenue mobilization so that the tax system can raise more resources to support these measures,” she added. “We believe it is possible for the Philippines to continue to ride the wave of prosperity despite challenges ahead.”

Warwick said the key is understanding the needs and aspirations of the different segments of the population and to put in place measures to eliminate poverty and foster economic mobility and security for all.

In the Philippines, about 13.3 percent of the population was extremely poor about two decades again, living below the international poverty line. Today the group accounts for less than seven percent of the population.

In addition, the percentage of economically secure and middle class has grown in the last 20 years with almost 35 percent of the population now economically secure, and a middle class that has grown from seven percent in 2002 to almost 10 percent today.