Poverty in the Philippines

Introduction

Poverty and injustice in the Philippines had been recurring since the early years of the

Marcos government. According to the study conducted by Asian Development Bank (ADB),

“Philippines fared in earlier years, when its reduction in poverty incidence started to lag behind.

These were the years when most countries had sustained high levels of economic growth.

Philippines had 0.7% annual poverty reduction rate from the 1970s to the 1990s was higher than

its more recent rate of 0.5%.”1

Poverty reduction in the Philippines which continue to be low can be attributed to lack of

employment opportunities for most Filipinos. This is the reason why many Filipinos continue to

work abroad because of the failure of the Philippine government to generate quality employment

in many areas in the country with large number of poor Filipinos. Many Filipinos work abroad

because of economic reasons and their dream to provide a quality living to their families.

According to Ramon Tulfo of Philippine Daily Inquirer, “The negative disposition of the Filipino

shows in the words that come out of his mouth. Such statements like “mahirap ang buhay (life is

hard),” “mahal ng Diyos ang mahihirap (God loves the poor),” “nakakatamad ang araw na ito (this

is a lazy day)” are self-fulfilling prophecies. Filipinos who have negative disposition remain

suffering from poverty because their minds dictate the situation.”.2

__________________________
1
Fernando Aldaba, “Poverty in the Philippines: Causes, Constraints and Opportunities” in Asian
Development Bank Book Report. (Mandaluyong City, Philippines: ADB, 2009) p.40.
https://www.adb.org/sites/default/files/publication/27529/poverty-philippines-causes-
constraints-opportunities.pdf (accessed July 1, 2018) [henceforth, ADB]
2
Ramon Tulfo, “Why is the Philippines Poor” in Philippine Daily Inquirer (Inquirer.net) p.1.
http://newsinfo.inquirer.net/345939/why-is-the-philippines-poor (accessed July 1, 2018)

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 This statement of Ramon Tulfo can only be heard from Filipinos with no dream at all. Many

poor Filipinos especially the students work hard in finishing their education in order to get closer to

opportunities. They believe that achieving a college degree is their stepping stone to getting a job

and finally provide an opportunity for the family to have access to quality life. Since poor families

usually cannot provide college education, this prompts them to avail scholarships given by the

government and private companies to deserving students. To elevate the quality of living, a mother

of a poor family applies for a job outside the country as a domestic helper or a father applies for a

construction job.

Although, many Filipinos continue to search for employment opportunities, still, Philippines

remain to have a low poverty reduction rate.

This writer aims to provide an analysis of the causes of poverty in the Philippines and give

recommendations for improving poverty reduction. The impact of slow economic growth will be

inspected. The study will provide an overview of what the Philippine government is doing to

address the issue of poverty in the country and for the writer to recommend means on how to solve

the issue.

Recent Poverty Situation in the Philippines

Asian Development Bank’s Book Report says that “Poverty incidence among households

increased from 24.4% in 2003 to 26.9% in 2006 and the number of poor families increased from

4.0 million in 2003 to 4.7 million in 2006. 3

__________________________
3
Ibid, ADB p. 1

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 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. ”.4

Why does Philippines continue to be poor in spite of its rich natural resources?

Forests constitute one of the rich natural resources of the country. They are
found in all provinces and in all islands. There are 3,000 species of trees in
Philippine forests. In great demand for construction purposes are apitong, almo,
white and red lawan, guijo, ipil tangili, narra, nipa palms, and various medical
plants. However, in recent years, senseless and indiscriminate cutting of timber
has resulted in deforestation, denudation and flooding. The government has
adopted measures to save the forests by enacting a law on either selective or total
ban on logging. Likewise, everyone is encouraged to plant more trees to replace
denuded forests. Metallic and non-metallic minerals are found in the Philippines.
The metallic minerals are gold, iron, copper, silver, platinum, chromium,
manganese, lead, and zinc. Non-metallic minerals are coal, oil, asbestos, clay,
gypsum, lime, salt and gravel, sulphur, asphalt, building and ornamental stone
(adobe stone and marble); and mineral water. In recent years, oil was discovered
along the shore of western Palawan. In 1979, the government in consortium with
other countries has started drilling oil wells. The waters all around the islands
abound with fish and other marine products.
There are around 2,400 species of fish, including Pandaca Pygmaca, the
world’s smallest fish. Also found are 10, 000 species of shell life. Pearls of great
beauty can be found in the Sulu area. Corals and sea weeds also abound in
Philippine waters. Inshore fishponds have been constructed to increase the supply
of fish. As of 1994, the Philippines’ top 10 port products are: electronics, garments,
fresh food, processed food, metal manufactures, others (mineral products, fashion
accessories and leather goods, chemicals and coconut products). The Philippines is
rich in natural resources. Its fertile plains and rich valleys produce a variety of crops
for local consumption and for export. The major agricultural products are rice, corn,
coconuts, hemp (abaca), rubber, sugarcane, tobacco, fruits, vegetables, and coffee.
Rice is staple food of the people but the total production is not sufficient to meet the
ever increasing demand for the exploding population. The government has imported
rice from neighboring countries like Thailand, Vietnam, Malaysia, China and
India.5

__________________________
4
Ibid, ADB p. 1
5
Marvin Laya, “The Philippines is Rich in Natural Resources” in Prezi. (January 23, 2014) p. 1.
https://prezi.com/ln9qpvezmaqp/the-philippines-is-rich-in-natural-resources-its-fertile-pl/
(accessed July 1, 2018) [henceforth, Phil Rich in Natural Resources]

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Causes of Poverty in the Philippines
Philippines is very rich in natural resources and there is no reason for the Filipinos to be

suffering from poverty. But, what could be causing poverty in the Philippines? Since the time of

the Marcos administration, the economic growth of the Philippines had been slow. Philippines

was once considered as richer than its neighboring countries in the early 1970s. Its slow

economic growth could be partly attributed to the corrupt administration of Ferdinand Marcos

and its cronies from 1970s to 1980s. Next to slow economic growth is Philippines’ rapid growing

population – Philippine population has almost tripled from 35,804,730 in 1970 to 103,320,200 in

2016 according to Index Mundi – Philippines’ Population.

According to The Economist: “What distinguishes Manila from other South-

East Asian capitals is the ubiquitous Jeepney, the loud rickety bus used by the
city's poorer inhabitants. Once modified American Jeeps, nowadays most
Jeepneys are cobbled together from second-hand Japanese lorries. They have
become a metaphor for the Philippine economy: inefficient and easily overtaken.
In the 1970s the Philippines was richer than its neighbours. Yet while it chugged
along at growth rates of around 2 percent, other countries stepped on the gas: it
was passed by Singapore, Malaysia, Thailand and, more recently, by China. A
former American colony, it could have made more of its cultural affinities with
the United States, including the widespread use of English. The incompetent and
crooked rule of Ferdinand Marcos from 1965 to 1986 bears some of the blame for
its failure to do so. A sluggish economy combined with a fast-growing population
has forced some 8m Filipinos—equivalent to almost a tenth of the resident
population—to seek jobs abroad.[Source: The Economist, August 16, 2007]6
The slow economic growth has not been high enough to keep up with the continued

increasing population. Philippines had unsatisfactory capability of generating employment for its

job-seeking Filipino people which resulted in high unemployment rate.

__________________________
6
_Jeffrey Hays, “Economic History of the Philippines” in Facts and Details. (2008) p.1.
http://factsanddetails.com/southeast-asia/Philippines/sub5_6g/entry-3916.html (accessed July
10, 2018)

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 If a Filipino is lucky enough to get employed, sometimes his income wouldn’t be sufficient

for the family. Oftentimes, a poor Filipino applicant would experience discrimination because

other applicants are better than him in terms of educational background. These are some of the

reasons many Filipinos work abroad to provide subsistence for the family.

In the Agricultural Sector, the Philippine government fails. Briones said in his article:

“But the reality of government failure does not mean that ‘getting prices right’
is sufficient to address stagnant agricultural productivity. Agricultural
transformation usually does not occur by mere operation of commercial forces,
which are themselves prone to market failure. At the very least, government
intervention of some sort will be required to provide the public goods needed for
agricultural transformation. Among the most pressing public goods are innovation
and dissemination of new technologies, including in traditional crops, especially
rice. Other public goods include gravity irrigation and rural roads; yet due diligence
must be exercised to ensure only efficient projects are identified and
implemented.”7

The Philippine government fails in increasing productivity in the agricultural sector

primarily because the government is unable to provide its support to the Filipino farmers such as

innovation, new farming technology to increase pay-offs, financial assistance during cropping

and in times of calamities and completing farm to market roads. Government support in prices of

agricultural products and barriers in trade in the case of rice resulted to higher prices for

consumers in urban and rural areas which consequently resulted to limited benefits to larger

farmers. Government’ weaknesses of structure in the agricultural sector remain unaddressed,

which limits the potentials for improved productivity in the sector. As a consequence of these

and other problems, poverty rates among farming households have remained very high.

Citizens in the Philippines have organized themselves to participate and assert, especially on

social, economic, environmental and political issues.

Page 5 of 10
__________________________
7
Roehlano M. Briones, “Philippine Agricultural sector Reaps What it Sows” in EastAsiaForum.
(December 11, 2013) p. 1. http://www.eastasiaforum.org/2013/12/11/philippine-agricultural-
sector-reaps-what-it-sows/ (accessed July 12, 2018)

They work together through nongovernmental organizations (NGOs) in the Philippines to

participate in the decision making process on issues that involve the people especially poverty.

Funds coming from different sources are solicited by different NGOs to work hand in hand with

government agencies to address citizens’ issues like poverty.

Following the announcement of the $24 million Philippine-American Fund by

the U.S. Agency for International Development aimed at funding development
projects of local NGOs, pressure to deliver results from these groups is higher as
ever, something which is crucial for progress to happen. “There should be much
greater awareness of the importance of bringing NGOs to a higher level of
management expertise, of professionalism, of financial governance, of creativity
and of the ability to undertake larger programs so that they can truly transform
society, especially the disadvantaged,” Phil-Am Fund chief of party Victoria
Garchitorena told Devex.8

Most of the poor families that migrate in the urban areas come from the provinces because

of lack of opportunities and having no land to cultivate. Oftentimes, these poor families end up

as squatters and contribute to the growing population of Filipinos suffering from poverty in the

urban areas.

8
Lean Alfred Santos, “Elevating NGOs role key to developing society in the Philippines” in Devex.
(October 1, 2013) p. 1. https://www.devex.com/news/elevating-ngos-role-key-to-developing-society-in-
the-philippines-81960 (accessed July 28, 2018)

“With or without the talks between the government and communists, land reform will
continue to be implemented. It will not end this way,” Duterte said in a speech during the

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 distribution of Certificate of Land Ownership Awards (CLOAs) to beneficiaries in Sultan
Kudarat.

The communists see free distribution of agricultural land as a basic principle of genuine
agrarian reform. The free distribution of land was among the issues tackled by the
government and National Democratic Front of the Philippines peace panels before the
peace talks collapsed in November last year.9

Urban poor families must be encouraged to go back to their provinces and make them a part

of those awardees of land being distributed as part of the Comprehensive Agrarian Reform

Program.
9
Dharel PLacido, “Duterte: Land reform to continue despite collapse of peace talks” in ABS-CBN News.
(April 2, 2018) p. 1. http://news.abs-cbn.com/news/04/02/18/duterte-land-reform-to-continue-despite-
collapse-of-peace-talks (accessed July 28, 2018)

The southern Philippines has a long history of conflict, with armed groups
including Muslim separatists, communists, clan militias and criminal groups all active in
the area. Three groups comprise the Muslim separatists - the Moro National Liberation
Front (MNLF), the Moro Islamic Liberation Front (MILF) and the Abu Sayyaf. The
MILF and the Abu Sayyaf are breakaway factions of the MNLF. The communist
insurgency, on the other hand, is propagated by the Communist Party of the Philippines'
(CPP) military wing, the New People's Army (NPA). Most of the conflict in the south is
in the remote islands of central Mindanao, especially on Basilan and Jolo.10
Broader issues in Mindanao such as poverty and education should be addressed
by the government when it starts rehabilitation efforts in the besieged city of Marawi, an
analyst said Tuesday. Atty. Benedicto Bacani, executive director of the Institute for
Autonomy and Governance at the Notre Dame University, said the conflict in Marawi is
just a symptom of a bigger problem in Mindanao. "We cannot just do this by destroying
and rebuilding. When you talk of rehabilitation, it's rebuilding. But rebuilding to address
this scourge of violence, extremism should be a broader concept," he told ANC
Tuesday. Bacani is proposing the formation of an independent commission involving
different sectors to plan the rehabilitation of Marawi. He is expecting this commission to
come up with sustainable solution to the Mindanao problem. "Rehabilitation would mean
really addressing poverty, more education, better governance, and relationships also --
building and healing relationships. You need a comprehensive plan to be able to do that,"
he said.11

The continuing conflict in Mindanao for decades now has resulted to scarcity of jobs and sources of
livelihood. Clashes between the government forces and the rebel groups destroy agricultural farmlands
and fishing areas in Mindanao which majority of the locals depend on. Because of lack of resources to
bring back the damaged sources of livelihood, people in the communities affected by the conflict are
dragged into more serious poverty situation. Tourism industry in the affected areas continued to decline
because of security reasons. The Philippine exhausts all its effort in peace talks. This peace talk can be
supported by the government’s economic policies and programs. To prevent the locals from joining the
rebel groups, the government can provide jobs for workers and deliver basic government services.

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Delivering government programs and basic services could help reduce poverty in the conflict hit areas in
Mindanao.

10
BBC News, “Guide to the Philippines conflict” in BBC News. (October 8, 2012) p. 1.
https://www.bbc.com/news/world-asia-17038024 (accessed July 29, 2018)

Patrick Quintos, “Marawi rehab should address poverty, other Mindanao issues - analyst” in ABS-CBN
News. (June 27, 2017, 2012) p. 1. http://news.abs-cbn.com/news/06/27/17/marawi-rehab-should-
address-poverty-other-mindanao-issues-analyst (accessed July 29, 2018)

Thinkers and Philosophers – Views on Poverty

“The Western philosophical tradition, though often invoked by those who counsel against

bold policy, has rarely accepted this proposition. In fact, it offers some sharp answers to the

question too often ignored in contemporary discussions: why should inequality worry us? Plato,

for example, associated economic inequality with ineffective citizenship at either end of the

spectrum. For him, the rich become lazy and inattentive to their responsibilities, and the poor

lack the resources to succeed. For Thomas Hobbes, the extremely prosperous can employ their

resources to undermine sovereign authority, while the impoverished become agitated and

restless.”8

Inequality continues to exist in each nation suffering from poverty like the Philippines.

The writer agrees with Plato and Hobbes in saying that “the rich become lazy and inattentive to

their responsibilities, and the poor lack the resources to succeed” and “the extremely prosperous

can employ their resources to undermine sovereign authority, while the impoverished

become agitated and restless” correspondingly. This is true in the Philippines. Rich Filipinos do

not work as hard as the poor ones. It is easy for rich Filipinos to live comfortably in the

Philippines because the poor ones are very much willing to serve them as long as they get paid

although they also have dreams to fulfil. Poor Filipinos find it hard to succeed because of lack of

Page 8 of 10
resources. They need to prioritize their basic needs first before anything else like education or

venturing in a business.

_________________________
8
David Lay Williams, “Should we care about inequality? Let’s ask a philosopher” in The Washington Post.
(March 28, 2014) p.1.
https://www.washingtonpost.com/news/monkey-cage/wp/2014/03/28/should-we-care-about-
inequality-lets-ask-a-philosopher/?noredirect=on&utm_term=.aca55f6a0967 (accessed July 7,
2018) [henceforth, Inequality]
Yet perhaps the most important and influential philosopher of inequality
was the eighteenth-century Genevan, Jean-Jacques Rousseau. Having grown up
in poverty, he became one of the Enlightenment’s most feted intellectuals –
becoming a full-blown celebrity in an age that amply rewarded his talents. Yet he
consciously shunned the wealth that typically accompanied such achievements in
his age (unlike his bitter rival Voltaire). Rousseau witnessed inequality’s effects
on his own beloved native city, which was transitioning from a feudal to capitalist
economy centered on nascent manufacturing and, more notably, international
banking. It was with this transformation in mind that Rousseau insisted in his
“Discourse on Political Economy,” “one of the most important tasks of
government [is] to prevent extreme inequality of fortunes.” Rousseau describes
several threats to the public good posed by economic inequality. First, the
wealthy are in a position to shape the laws to serve their own interests, typically at
the expense of the poor. This is the central narrative of his “Discourse on the
Origins of Inequality.” For Rousseau, the wealthy tend to leverage their money
into political power, all under the banners of freedom and equality. 9

This writer agrees with Rousseau’s idea that: “one of the most important tasks of

government is to prevent extreme inequality of fortunes.” This is because, when some people are

extremely wealthy, it creates an environment wherein the wealthy people have the tendency to

influence higher public officials in making decisions that favor the wealthy population.

Recommendations

The government’s approach to resolving the poverty issue in the Philippines has

to be improved. This will require all government agencies involved in responding to poverty by

Page 9 of 10
coordinating accordingly towards the speedy reduction of poverty. This would require the

following:

1. Reconstructing government institutions that establish poverty policy and implement

programs for poverty that would improve poverty reduction and minimize corruption in

government agencies.

__________________________
9
Ibid, Inequality p. 1

2. Investing in infrastructure, education and job creation to improve economic growth.

3. Establishing a national population policy designed to control population growth. The

Philippine government must provide choices about sexual and reproductive health and

family size that is ideal for the lives of women and their families.

4. Philippine government should represent the Filipino people, not just corporations, and

must protect wealth equality for all Filipinos while at the same time ensure that

Philippines continue to be attractive as a venue for doing business.

5. Government agencies and non-government organizations must complement each other in

their poverty reduction programs.

6. Allocating budget for eradicating extreme poverty in the Philippines by investing in

education and health of poor families.

7. Maintaining stability in food prices to safeguard the poor families from the harmful

strong effect of food price increase.

8. Boosting higher performance and productivity of the agricultural zones.

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