WHY IS THE PHILIPPINES

A POOR COUNTRY?
TOP 10 REASONS
 High Inflation
● High commodity prices experienced by Filipino households
nationwide

● PSA: In September of 2018, the country's inflation rate rose

from 6.4% in August to 6.7%, the highest in over 9 years

● More expensive commodities make it more difficult for the

government to meet its target of reducing poverty

● 10% increase in prices of food could lead to 2.3 million poor

Filipinos, while the same increase in non-food prices could
lead to an addition of 1.7 million to poverty
● The Philippine economy in 2019, as measured by gross
domestic product or GDP, whole growth clocked in at a
mere 5.9%, the lowest growth rate in 8 years.

● Private investments failed to prop up growth, rather

somehow dragged it down.

● By looking at the respective contributions of the last

year’s economy’s key sectors: agriculture, industry and
services, it was found out that, for every P100 of
national output, P58.4 came from services, P33.8 from
industry, and a mere P7.8 from agriculture..

Low Economic Growth

 ● One third of the workforce (2015) but
contributes less than 15 percent economic
output

FAILURE TO
● In 2017: less than one third of the workforce
(25.97)

DEVELOP
● Poverty incidence in agricultural families is
higher than the national average

AGRICULTURAL ● Historical implication: Long-running feud of

coconut farmers and government

SECTORS ● Lack of technological advancement: Education,

Research & Development, Infrastructures

● Urbanization of agricultural areas

● From 1960 to 2016, the average value was 21.36

percent, with a minimum of 9.65 percent (2016)
and a maximum of 31.06 percent (1974)
WEAKNESS IN EMPLOYMENT AND
QUALITY OF JOBS GENERATION

● Underemployment is at 6.735 million (2018) higher by 3.5%

● Contractualization: 70% voluntarily regularized & 30% compliance upon inspection

● Minimal wage growth because of weak bargaining power

● Overworked and underpaid

● “Many of the newly created jobs are precarious and low-paying” Warwick
 EXTRACTIVE INSTITUTIONS :
ENORMOUS GAPS BETWEEN RICH
AND POOR SOCIETIES

● Small group extract incomes and wealth from the rest of society and
to block economic growth when its interests are threatened.

● Spanish establish extractive institution in the Philippines

● Remain unsolved up to date, preventing Filipinos from making the

great leap forwards from poverty to riches

● The gap between the rich and the poor in the Philippines may have
been wider in the past 25 years.
 CORRUPTION
● The Philippines is the 101 least corrupt country out of 175 countries.

● Corruption rank in Philippines averaged 92.09 from 1995 until 2016,

reaching an all time high of 141 in 2008 and a record low of 36 in 1995.

● The Philippines is getting more corrupt under Duterte, dropping 13

notches in the 2017 Corruption Index.

● The continued dominance of political dynasties in the country makes it

more difficult to combat corruption.
 Minimal Access to Public Health Care
● According to UNICEF, 32 percent of children ages 5 and below are
suffering from moderate to severe malnutrition while 60 percent of
Filipinos have died not even seeking a healthcare professional.

● Amongst the whole population of the Philippines, a lot of Filipinos do

not have the access to basic care.

● Throughout history, the poor has always been deprived of their right
for health services.
 Minimal Access to Education
● By unfortunate circumstances, the Philippines has the lowest rate in
having educational attainment due to it also having the highest rate
of deprivation at 49.4 percent in 2017.

● During the year 2016, 6 out of 10 families have at least one member
who didn’t complete the basic education curriculum. This was lowered
to 5 out of 10 families in 2017.

● The economic capability of the Philippines is already hindered by the

people’s low education and skill levels.
Overpopulation
● The Philippine’s population growth rate is 2.36% per year.

● Various studies have shown that larger family size is associated with
higher poverty incidence, gap and severity.

● Many Filipinos are not able to acquire their basic needs.

● Lack of family planning

Political Oppression
● In the Philippines, it is said that 140 politically powerful families
control the Congress and consequently, the lives of 100 million
Filipinos.

● Meanwhile, the country is on and off martial law

● ordinary Filipinos have to change the unfair system of dynastic

families that rule with the power of the police and military.

● poor and unemployed, they become voiceless

BE THE CHANGE YOU
WANT TO SEE.
 References
https://www.adb.org/countries/philippines/poverty
https://www.adb.org/publications/poverty-philippines-causes-constraints-and-opportunities
https://www.borgenmagazine.com/why-is-the-philippines-poor/
https://businessmirror.com.ph/2017/02/19/gap-between-rich-and-poor-in-phl-widening-report/
https://businessmirror.com.ph/2018/09/06/higher-inflation-seen-to-plunge-more-pinoys-into-povert
-this-year/
https://www.forbes.com/sites/panosmourdoukoutas/2017/06/01/why-filipinos-remain-poor/#2899c1d54f
b
https://www.manilatimes.net/2015/05/27/business/columnists-business/why-philippine-agriculture-f
ils/187085/187085/
https://openknowledge.worldbank.org/handle/10986/26320
https://www.philstar.com/opinion/2018/06/18/1825542/agriculture-dying-philippines
https://pia.gov.ph/news/articles/1016613
https://www.rappler.com/nation/136750-filipinos-jobs-remain-poor-world-bank
https://www.rappler.com/business/251184-china-halve-tariffs-united-states-imports-february-2020
https://www.rappler.com/newsbreak/fast-facts/213604-things-to-know-philippine-inflation-over-the
years