“It will take political will on the part of three branches of government to harness enough resources to fund anti-poverty initiatives, among them a no-holds-barred approach to curbing corruption”
The good news on the socio-economic front is that poverty incidence in the country fell to 15.5 percent in 2023 from 18.1 percent in 2021.
This, according to the National Economic and Development Authority, is a positive development that’s likely to lead to a further decrease in the poverty rate to single-digit level by 2028.
The 2023 full-year official poverty statistics released by the Philippine Statistics Authority on July 22 showed the number of Filipinos living in poverty decreased by 2.45 million to 17.54 million in 2023 from nearly 20 million in 2021.
The latest numbers surpassed the government’s target of a reduction in poverty incidence in 2023, which was set at 16 percent to 16.4 percent in the Philippine Development Plan 2023-2028.
The figures indicate poverty incidence among families declined to 10.9 percent in 2023 from 13.2 percent in 2021.
This corresponds to a decrease in the number of impoverished families from 3.5 million in 2021 to 3.0 million in 2023.
For NEDA Secretary Arsenio Balisacan, the numbers are encouraging and “underscore our unwavering commitment to implement effective policies and initiatives that uplift the lives of our countrymen. As we welcome news of our progress, we remain steadfast in our efforts to ensure that our economic gains are truly felt by all Filipinos, rich and poor alike,” he explained.
We’re glad the number of food-poor families decreased to 740,000 in 2023 from 1.04 million families in 2021, or a significant reduction of 300,000 families.
In terms of population, the number of food-poor individuals also dropped from 6.55 million in 2021 to 4.84 million in 2023, a decrease of 1.71 million individuals.
It is also worth noting the country’s average per capita income increased by 17.9 percent between 2021 to 2023, outpacing the 15.3-percent rise in the annual per capita poverty threshold during the same period.
The mean per capita incomes of the first, second and third decile classes also recorded significant increases of 25.3 percent, 22.9 percent, and 22.2 percent, respectively.
NEDA believes high inflation during the first half of 2023 likely partially offset the positive effects of income growth on poverty reduction.
The decline in poverty incidence could actually been higher had inflation been more moderate. But what is interesting is that mean per capita incomes for the poorest Filipinos—those belonging to the bottom deciles—grew very fast, faster than those in the top decile classes and faster than the rate at which the poverty threshold grew. “In other words, economic growth was progressive,” NEDA said.
But there are challenges ahead.
One, the government should prioritize food security and make food available, accessible, affordable, and nutritious.
The government should also boost agricultural productivity and effectively manage food prices through supply- and demand-side interventions; invest massively to improve infrastructure and markets; and strengthen targeted interventions to enhance health outcomes.
All this should be component parts of an all-out war on poverty that the Marcos Jr. administration should launch in the next three-and-half years of its term in office.
Aren’t we exaggerating when we say that nothing less than a full-scale war should be launched to defeat poverty in this country?
No, definitely not.
When we talk about rescuing roughly a fourth of the total population of the country from the clutches of poverty, then the entire resources of the government should be mobilized.
It should be a multi-pronged war involving all sectors, not just the national and local governments, but also the private sector and civil society or the organized citizenry.
It will take political will on the part of three branches of government to harness enough resources to fund anti-poverty initiatives, among them a no-holds-barred approach to curbing corruption.
The immediate goal of the war on poverty should be to abolish absolute poverty and uplift the lives of the poorest of the poor.
This will entail targeted assistance to them in terms of cash aid, provision of job and livelihood opportunities as well as subsidized health/medical care and free education and skills training.
The Marcos Jr. administration is on the right track in targeting single-digit poverty incidence by 2028.
By achieving this goal, the next administration should be able to pick up the baton and move even closer to not just upper-middle income country status but perhaps even beyond. (Email:[email protected])
