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How can the Philippines achieve its ambitious vision of becoming a country free of poverty?

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PHILIPPINES: Reducing Inequality Key to Becoming a Middle-Class Society Free of Poverty

MANILA, November 24, 2022 – Policies that support employment and workers, raise education quality and improve access, boost rural development, and strengthen social protection can reduce inequality, thus enhancing Filipino peoples’ chances for improving their well-being.

In a report titled “Overcoming Poverty and Inequality in the Philippines: Past, Present, and Prospects for the Future” released today, the World Bank said that the Philippines has made important gains in poverty reduction. Driven by high growth rates and the expansion of jobs outside agriculture, poverty fell by two-thirds—from 49.2 percent in 1985 to 16.7 percent in 2018. By 2018, the middle class had expanded to nearly 12 million people and the economically secure population had risen to 44 million.

Yet inequality remains high: the top 1 percent of earners together capture 17 percent of national income, with only 14 percent being shared by the bottom 50 percent. With an income Gini coefficient of 42.3 percent in 2018, the Philippines had one of the highest rates of income inequality in East Asia.

“The Philippines aims to become a middle-class society free of poverty by 2040, but we know from global experience that no country has managed to make this transition while maintaining high levels of inequality,” said Ndiamé Diop, World Bank Country Director for Brunei, Malaysia, Philippines, and Thailand . “Inequality of opportunity and low mobility across generations wastes human potential and slowdown innovation, which is crucial for building a competitive and prosperous economy that will in turn improve the well-being and quality of life of all Filipinos.”

The report highlights that the expansion of secondary education, mobility to better-paying jobs, access to basic services, and government social assistance have started to reduce inequality since the mid-2000s. However, unequal opportunities, slow access to tertiary education among low-income households, inequality in returns to college education, and social norms putting the heavier burden of childcare on women has slowed down the narrowing of inequality in the Philippines.

Despite the strong recovery of growth and the labor market, COVID-19 pandemic has partly reversed decades-long gains in reducing poverty and inequality in the Philippines. It halted economic growth momentum in 2020, and unemployment shot up in industries that require in-person work. In 2021, the national poverty rate rose to 18.1 percent despite government assistance.

Recovery in the Philippines is uneven across the income distribution and the poorest who suffered the most from COVID have yet to fully recover their incomes. With food prices going up, many families coped by reducing their consumption, including eating less. These coping strategies can have serious consequences on the health and nutrition of children in these vulnerable households.

The report says that inequality starts even before birth and is perpetuated over the life cycle. It starts with maternal nutrition and health during pregnancy. Differences continue into childhood, where disparities in access to health care, proper nutrition, safe drinking water, sanitation, and quality education determine the extent to which a child’s human capital develops.

“Inequality shapes outcomes later in life, such as employment opportunities and income, which in turn influence how much support adult Filipinos are able to provide for their children to help maximize their potential,” said Nadia Belhaj Hassine Belghith, Senior Economist with the East Asia Poverty Global Practice covering Thailand and the Philippines who led the study.

The report says that policy priorities to reduce inequality in the Philippines can be structured around three themes, including healing the pandemic’s scars and building resilience, setting the stage for a vibrant and inclusive recovery, and promoting greater equality of opportunity.

Healing pandemic’s scars will require promoting greater vaccine booster uptake, overcoming the learning loss due to COVID-19, strengthening social assistance, unemployment insurance programs for the informal sector, and taming inflation.

Setting the stage for vibrant recovery entails reskilling of workers, promoting entrepreneurship, increasing the participation of women in the labor force, and raising the productivity of agriculture.

Promoting greater equality of opportunity entails increasing access to quality health care, increasing equality of opportunity in education, and improving access to quality housing, among others. Equality of opportunity needs to target the lagging regions and other people disadvantaged in accessing these because of the circumstances of their birth.

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Essay on Poverty In Philippines

Students are often asked to write an essay on Poverty In Philippines in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.

Let’s take a look…

100 Words Essay on Poverty In Philippines

What is poverty.

Poverty means not having enough money for basic needs like food, water, and a house. Many people in the Philippines live in poverty. They struggle every day to eat and have a safe place to sleep.

Why is Poverty a Problem?

When people are poor, children might not go to school, and sick people can’t get medicine. This makes it hard for the country to grow stronger because its people are not healthy or educated.

Causes of Poverty in the Philippines

In the Philippines, poverty comes from not enough jobs, natural disasters like typhoons, and sometimes, government leaders not helping enough.

Fighting Poverty

To fight poverty, the Philippines needs more jobs, better schools, and help from the government. Everyone must work together to make sure no one is too poor to live a good life.

250 Words Essay on Poverty In Philippines

Poverty means not having enough money to meet basic needs like food, clothing, and a place to live. In the Philippines, many people face this problem. It is a big challenge for the country.

Why are People Poor in the Philippines?

There are many reasons why people are poor. In the Philippines, jobs that pay well are hard to find. Farmers might not have enough land to grow food. Natural disasters like typhoons and earthquakes destroy homes and farms, making things worse.

Life of Poor People

Poor people in the Philippines often live in small houses with many family members. They might not have clean water or enough food. Children might not go to school because they have to work to help their families.

What is Being Done?

The government and other groups are trying to help. They give food, help people learn skills for jobs, and build houses. They also work on making sure everyone can go to school.

How Can We Help?

Even if we are young, we can help by understanding and sharing what we know about poverty. We can also join in activities that raise money or collect things to give to those in need.

In conclusion, poverty in the Philippines is a big problem that affects many people’s lives. By learning about it and taking action, we can help make things better for those who are struggling.

500 Words Essay on Poverty In Philippines

Understanding poverty in the philippines.

The Philippines, a country with over 7,000 islands in Southeast Asia, is known for its stunning beaches and friendly people. But behind the beautiful scenery, many Filipinos face a tough challenge: poverty. Poverty means not having enough money to meet basic needs like food, clothing, and a safe place to live.

Why Are People Poor?

There are many reasons why people in the Philippines are poor. A big reason is that there are not enough jobs that pay well. Many people work in farming or fishing, but these jobs don’t always make enough money to support a family. Also, natural disasters like typhoons and earthquakes happen often and can destroy homes and crops, making it hard for people to earn money.

Life for the Poor

Life can be very hard for poor people in the Philippines. They might live in homes that are not safe or clean. It’s also hard for them to get good food, which means kids may not grow as they should. Going to the doctor can be too expensive, so many stay sick longer than they need to. Education is another problem. Even though school is supposed to be free, there are still costs like uniforms and books, which can be too much for poor families.

The government and other groups are trying to help. They have programs that give money to poor families if their kids go to school and get health check-ups. There are also projects to create more jobs and to help farmers grow more food. But these efforts need to reach more people and work better to really solve the problem.

What Can Others Do?

People from other countries can help too. They can give money or things that poor families need, like clothes or school supplies. They can also teach skills to adults so they can get better jobs. Even kids can help by learning about poverty and sharing what they know with friends and family.

Hope for the Future

Even with poverty, many Filipinos are hopeful. They work hard and believe that life can get better. With help from their own country and people around the world, there is a chance that poverty in the Philippines can be reduced. This means more Filipino kids could grow up healthy, get a good education, and have a better chance at a bright future.

In conclusion, poverty in the Philippines is a big problem, but it’s not impossible to fix. By understanding the issue, seeing how it affects people’s lives, and working together to help, we can make a difference. It’s important for everyone, including students, to know about these challenges and think about how they can help make the world a better place for all.

That’s it! I hope the essay helped you.

If you’re looking for more, here are essays on other interesting topics:

  • Essay on Poverty In Education
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  • COVID PULSE PH: Urban Poverty in the Time of the Pandemic pdf (0.8 MB)

COVID PULSE PH: Urban Poverty in the Time of the Pandemic

November 24, 2020.

All over the world, poverty rates continue to rise for the first time since 1988, due to the #COVID19 pandemic. In the Philippines, a sobering fact indicates that several households have joined the ranks of the poor, thus reversing the gains made in the past decade in significantly reducing poverty. In the past nine (9) months of the pandemic, the Zero Extreme Poverty Philippines 2030 (ZEP 2030)— a coalition of non-government entities (NGEs) and networks—and the United Nations Development Programme Philippines (UNDP PH) have been working hard to take a pulse on how the urban poor in the Philippines has been affected by the Coronavirus Disease 2019 (COVID-19) pandemic. COVID PULSE PH: Urban Poor in the Time of the Pandemic  - is a summary off findings from the second phase of the a survey, conducted from August 21 to October 11, that aimed to tell a more detailed story of how the pandemic has affected the lives of low-income households.

Document Type

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SDG Investor Maps are market intelligence tools that help the private sector identify investment themes in emerging markets which have significant potential to ...

From Informality to Inclusion: Exploring the Informal Eco...

With support from UNDP’s Informal Economy Facility, Accelerator Lab Philippines (ALab PH) developed this study to dive deep into the BARMM informal economy, und...

UNDP-DOTr Bike Lane Master Plan

The Bike Lane Master Plan provides local government units (LGUs) in Metro Manila, Metro Cebu, and Metro Davao with a guide towards a more comprehensive, inclusi...

2022 Development Finance Assessment Report

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SDG Budget Tagging Report

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Home / Essay Samples / Social Issues / Homelessness / The Root Causes of Poverty in the Philippines

The Root Causes of Poverty in the Philippines

  • Category: Social Issues , Economics , Government
  • Topic: Homelessness , Income Inequality , Unemployment

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