MANILA, Philippines--The Asian Development Bank and a unit of the United Nations have stressed the need for the Philippines to have a more equitable distribution of wealth, saying that a growing economy without a reduction in poverty incidence would be meaningless.
The two institutions said that the Philippines has to make economic growth trickle down to the poor if it is to meet by 2015 its Millennium Development Goal (MDGs) on poverty reduction which UN member-countries have committed to. They also said progress must be felt not only in urban areas but also in the countryside.
?Growth without attention to equal distribution is nothing. Currently, there is an uneven progress,? UN undersecretary general Noellen Heyzer said Wednesday during the launch of the publication entitled ?Achieving the Millennium Development Goals in an Era of Global Uncertainty.? The report was jointly published by the ADB and United Nations Economic and Social Commission for Asia and the Pacific (Unescap).
Heyzer said that while there has been a noticeable development in infrastructure in the Philippines, the progress is seen mostly in the national capital region. Rural areas of the country still lack the infrastructure needed to achieve a level of growth that will help reduce poverty.
The Philippines has consistently posted growth over the years, including last year when it was one of the few countries that managed to grow despite the global economic crisis. The Philippines grew by 0.9 percent in 2009, avoiding a recession.
Despite sustained growth over the years, the Philippines has failed to reduce the poverty incidence rate. Latest data from the National Statistics Office showed that the proportion of poor people to the country?s total population stood at 33 percent as of 2006, up from 30 percent in 2003.
Some economists projected that poverty incidence further increased in 2009, at the height of the global economic crisis. Although the country grew last year, the growth was much slower than the 3.8 percent it registered in 2008.
Heyzer also said that besides making growth trickle down to the poor, the Philippines should also focus on investing in the improvement of human capital.
Through this, Filipinos leaving to work abroad will find it easier to be employed in higher-quality jobs.
?Migration is not controllable. It is all right to support migration, but there has to be investments in skills development,? Heyzer said. She expressed regret over the fact that some Filipino doctors work as nurses abroad and some college graduates work as domestic helpers.
She noted that the Millennium Development Goals do not only focus on achieving faster economic growth, but improving social conditions.
ADB and Unescap acknowledged that the Philippines was one of the better performers last year because of its ability to avoid a recession. This was largely buoyed by remittances, which grew by 5.6 percent to over $17 billion.
Remittances fuel household consumption, which is a key driver of the economy.
Heyzer said, however, that the government should spend more on developing skills of overseas-based Filipinos and those who plan to work abroad. It also has to provide programs for families of overseas-based Filipinos, particularly programs that will teach them about savings and investments.
The government should also have a mechanism that will help ensure that contracts of Filipinos to work offshore are fair and properly observed.
Ajay Chibber, UNDP regional director for Asia and Pacific and UN Assistant Secretary General, said in the same briefing that Asia on average, is on track to meet the MDGs by 2015. However, he said that the region is not spending enough on social services.
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