APPLIED ECONOMICS – ACTIVITY 1

High Rates of Poverty and Low Growth in the Philippines

Poverty in the Philippines has always been an economic issue for years and having

poverty is unfair, unethical, and dangerous. It is one of the most serious problems that the

government must deal with. In relation to its nature, poverty in the Philippines arose from the

rapid population growth in the country. The majority who are affected by this are mostly the

poor because it causes many of them to limit their ability to pursue their dreams. However,

the government is preceding a plan to eradicate poverty and it will continue any further to

remain a poor country hopefully.

The Philippines has a fairly high poverty rate with more than 16% of the population

living below the poverty line. Because of the many people reliant on agriculture for an

income and inequality in wealth distribution, about 17.6 million Filipinos struggle to afford

basic necessities. From 2015 to 2020, the rate of poverty declined from 21.6% to 16.6%.

Philippine President Rodrigo Duterte aims to reduce the rate of poverty to 14% by 2022.

Through its strategy, AmBisyon 2040, the Philippine government plans to eradicate extreme

poverty by 2040. Furthermore, the government has implemented various programs and

reforms to reduce poverty by targeting education, healthcare and the overall economy.

Here are five ways the program is combating poverty in the Philippines.

Having poverty in the country is a difficult one to experience and not many people

can enjoy life as they can. For a large segment of the population, appropriate safety nets

during times of crises may prevent them from falling into poverty. It is essential to take this into

account in designing policies and programs to significantly reduce the poverty rate. Higher

income growth is of little help in reducing poverty because of the relationship between

growth and poverty in the country.