PRE-ELECTION ANALYSIS: ATTACKING POVERTY
MANILA, NOVEMBER 4, 2010 (BUSINESS WORLD RESEARCH) POSTED FEBRUARY 19, 2010 Popular Economics BY DANIEL ANNE B. NEPOMUCENO, Researcher - Equipped with a vast database of economic and financial information, the BusinessWorld Research provides BusinessWorld readers and prospective clients essential and timely industry analyses and reports. Through government and non-government facts and figures, the team generates comprehensive reports that help policy makers, industry observers, planners, and students get a clearer view of the performance of various industries and the domestic economy as a whole.
(Photo courtesy of Flickr Hive Mind) POVERTY in the Philippines has been a persistent constraint to attaining economic development.
According to an Asian Development Bank paper entitled "Poverty in the Philippines: Causes, Constraints and Opportunities," poverty incidence in the country among households increased to 26.9% in 2006 from 24.4% in 2003 while the number of poor families increased to 4.7 million in 2006 from four million in 2003.
"The headcount index increased from 30.0% in 2003 to 32.9% in 2006 and the number of poor people increased from 23.8 million in 2003 to 27.6 million in 2006," the paper read.
The country's slow transition to a higher level of growth has been blamed to the sustained decline in domestic investments, weakness in institutions and social infrastructure, and a history and culture that have impedes growth.
"However, it is also possible that poverty itself is constraining economic expansion," the ADB paper read.
The channels through which poverty may impact on economic growth include investment constraint or the lack of access to credit aggravated by the underdevelopment of financial markets, human constraints due to lack of education, health care and nutrition, regular doses of risks and shocks causing poverty traps and conflicts and disorder resulting from inequality which hampers investments and destroy social capital.
The causes of poverty in the country, according to the paper, are low to moderate economic growth for the past 40 years, low growth elasticity of poverty reduction, weakness in employment generation and the quality of jobs generated, failure to fully develop the agriculture sector, high inflation during crisis periods, high levels of population growth, high and persistent levels of inequality which dampen the positive impacts of economic expansion and recurrent shocks and exposure to risks such as economic crisis, conflicts, natural disasters, and "environmental poverty."
Those vying for election this May have made poverty reduction a key component of their platforms, knowing full well its importance on economic development.
Presidentiables' stand on Philippine poverty
Liberal Party's (LP) bet for president, Senator Benigno Simeon "Noynoy" C. Aquino III, for instance, has been very transparent in his intention to destroy corruption which he believes results to poverty.
"Ganyan ang epekto ng korapsyon, dumadami ang mahirap, marami ang naapi dahil sa korapsyon [That's really the impact of corruption; the ranks of the poor and oppressed increase due to corruption]," Mr. Aquino said in his recent political advertisement.
"Korapsyon ang problema, kahirapan ang resulta [Corruption is the root problem, poverty is the result]," the front-runner in presidential surveys added.
Among the political platforms of Mr. Aquino, three focus on corruption and poverty reduction to ensure economic development.
* From a President who tolerate corruption to a President who is the nation's first and most determined fighter of corruption.
* From relegating education to just one of many concerns to making education the central strategy for investing in our people, reducing poverty and building national competitiveness.
* From government anti-poverty programs that instil a dole-out mentality to well-considered programs that build capacity and create opportunity among the poor and the marginalized in the country.
Second frontrunner in the elections race, Senator Manuel B. Villar, Jr., has made poverty eradication his top goal early on in the game.
His platform says economic development shall be coupled with reforms that ensure social equity and respect for human rights.
He will primarily implement an agrarian reform program and at the same time improve agricultural productivity in the attempt to raise the standard of living of those in the rural areas where majority of the poor resides.
Senator Richard "Dick" J. Gordon of the Bagumbayan-Volunteers for a New Philippines Party, focuses as well on poverty reduction by providing education for Filipinos.
Dubbing his tandem with former Metro Manila Development Authority Chairman, Bayani F. Fernando, "The Transformers", Mr. Gordon aims to produce a globally competitive Filipino through education.
"The Filipino people should be fully-geared with systems of education and defense, methods of production, plus the principle of meritocracy that rewards efficiency," he said.
In addition, he also aspires to see Filipinos work together, bring out the best of their abilities, which will therefore promote the greatest measure of independence.
Meanwhile, independent candidate Nicanor Jesus P. Perlas III, aside from his advocacies in preserving the natural resources of the country, intends to eradicate poverty through education. This, he said, would translate to economic development.
Aside from focusing on education, Mr. Perlas wants to eliminate poverty and enhance the quality of life of Filipinos through a vibrant broad-based economy, social justice and peace.
Ang Kapatiran Party bet John Carlos "JC" G. de los Reyes believes that addressing population growth problems would help reduce poverty.
Evangelist Eduardo C. Villanueva, Bangon Pilipinas' bet likewise placed addressing poverty problems among his priority.
Of Mr. Villanueva's "seven E's" platform, one pertains to poverty, promising to provide feeding programs in depressed areas throughout the country to ensure proper nourishment for Filipinos.
Mr. Villanueva also envisions a government that would provide job and business opportunities to elevate the living standards of the people.
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