Before the pandemic, the Philippine poverty rate was only 19 percent, but scaled up to 23 percent in 2021, at the height of Covid-19. President Marcos was able to reduce it to 15.5 percent percent by 2023.
Stop celebrating, though, because the Philippines has a population of 119 million, and if there is a 15.5 percent poverty rate, then, then,18.4 million Filipinos today are still poor. That's a lot of hot heads, grumbling stomachs, and mental challenges. President Marcos himself admits that one in four Filipinos consider themselves poor.
BBM, under his 2023-2028 Philippine Development plan, said that at the end of his term in 2028, he promised to cut that poverty rate to just a single-digit nine percent and raise the per capita gross domestic product (GDP) of the Filipinos to $4,046 per Filipino.
But postpone that rejoicing because if we all have the same trajectory in the ASEAN region, we will still be one of the poorest. Because as of 2023, per the World Bank, the Philippines ranks a poor 7th among 10 ASEAN nations at $3,859 per capita- behind (1) Singapore ($87,859), (2) Brunei ($33,359), (3) Malaysia ($13,034), (4) Thailand ($7,298), (5) Indonesia ($5,108) and Vietnam ($4,816).
Therefore, the Philippines’ targeted 2028 GDP per capita of $4,046 will still place us behind Vietnam - this is even assuming the improbable that all the better-than-Philippine ASEAN nations will not improve their GDP per capita from 2023 levels. That is frustrating.
Former National Economic and Development (NEDA) Secretary Ernesto Pernia, even in his earlier days at the Asian Development Bank and at the University of the Philippines, had advocated strongly for a tough population control policy because this is the other way to improve per capita income besides revving up incomes.
Recall that we are the second-most populated ASEAN nation (that’s why), after Indonesia, which, luckily for them, produces its own oil.
Current NEDA head Arsenio Balicasan says that even if the Philippine unemployment rate today is at its lowest for years today, only 62 percent are in the formal sector- the others- probably need better quality jobs and adequate social protection from natural disasters like storms, flooding, and earthquakes- of which RP has more than its fair share of misery.
The Philippine human capital also suffers from both an inferior educational system and inadequate nutrition, so one in four babies under five years old here is stunted in growth- physically and mentally.
On the other hand, to attract capital from both domestic and foreign investors, the Philippines must first build a vibrant local market through better quality jobs and entrepreneurship.
Our infrastructure likewise needs a shot in the arm but in his recent paper "Accelerated Demographic and Economic Transition Calls for Resolute Socio-Economic Policies", Pernia who is Professor Emeritus at the University of the Philippines School of Economics" - wrote that the projects should largely be Public Private Partnerships (PPP)- inspired to fiscally save the country cash to be used for vital socio-economic programs and projects directly benefitting the people.
Poverty is real. In Payatas area, for instance, the slum district in the metropolis, 120,000 people are packed in cardboard homes of five there- vulnerable at the first cough of heavy rains and rushing floodwaters. The Makati Rotary Club estimates that there are actually 500,000 impoverished people inside Payatas- a bigger number managed down to show less poverty incidence. We are just fooling ourselves, of course.
Then there is that multi-headed monster called corruption that made the Philippines the 6th most corrupt country in the Asia Pacific. Former deputy Ombudsman Cyril Ramos once decried that at least 20 percent of the total national budget goes into corrupt pockets of government officials and their private sector collaborators.
Using that Ombudsman statistics, it means that of the P5.768 trillion national 2024 budget- about P1.153 trillion will disappear from slimy hands into the deep pockets of crooks. Imagine that loss of projects and income opportunities for the common folks?
People complain about corruption but allow themselves to be bought during the election. Then as Sherisa Nuesa, an Ayala executive once wrote, people have been numbed by corruption due to fatalism (we cannot do anything about it) and justification (many are doing it anyway).
We have allowed the vile and corrupt to rule us - and elevated them to the Hall of Fame (making them our godfathers and sponsors) instead of into the Cage of Shame- and even relish entering their palatial homes built from dishonest means.
With so many "defenders" and hangers-on/beneficiaries of their ill-gotten wealth, why would those darned vote buyers and grafters feel any shame when one can enjoy this societal reality as a common, though disgusting heritage?
In March 2018, in one of his famous lamentations, Pope Francis in the Vatican said publicly: "Humanity should feel shame that it has lost its sense of shame."
Unless we as a people really mitigate this horrible state of graft and corruption in our midst, we might always wallow in this living nightmare of poverty for generations to come. Forget that 9 percent poverty rate.
Bingo Dejaresco, a former banker is a financial consultant, media practitioner, and author. He is a Life and Media member of Finex. His views here, however, are personal and do not necessarily reflect those of Finex. [email protected])