A Paper on the Philippine Economic Development On Social Services, Resource Allocation, and Poverty
Submitted in partial fulfillment of the course Introduction to Economics
De La Salle University, Manila
Submitted by: Nadine Bernardino Menina Murillo Precious Ong Hazel Venida
Introduction In our everyday living, it is inevitably observable that, indeed, the Philippines could not seem to escape from the cruel hands of poverty. The Philippines is not just way behind the other countries in terms of developing as a whole. It is, in fact, experiencing a number of unresolved macro and micro economic issues, and barely enough improvement seems to have been recorded. Whether you are in another country, in your back yard, or even at the comfort of your own home, the drastic undeniable traces of poverty are just screaming at you – crying for help and begging for some real action. As foreign as they may seem, these screams actually come from people you commonly encounter – be it the filthy residents beneath the bridges of Manila, the old garbage collector at your subdivision, the breast-feeding mother just across the dumpsite, or even the hungry street children you oftentimes shoo away. Regardless of whether we recognize them or not, these people are considered to be the living proofs of how the Filipino nation has been for the past few decades. Somehow, they tell stories that we should have paid attention to long ago – stories of how and why we should take statistics and economics very seriously.
Let’s be blunt and straight-forward. The Philippines is in deep poverty, and such situation will continue if there wouldn’t be any noticeable improvements on our economic growth in the next few years. According to the National Statistical Coordination Board or NSCB (Sarmiento, 2011), extensive poverty continues to burden the Philippines despite its gradual growth and development. The Philippines was said to have had a 7.3 percent Gross Domestic Product (GDP) growth in 2010, yet this has obviously failed to free us from poverty. Even more, over 23.1 million Filipinos up to present are still receiving salaries below 2 U.S. dollars per day, which most likely is barely enough to sustain a decent living for an ordinary Filipino family. General Romulo Virola
from NSCB also adds that the government should have minimized the country’s poverty incidence by approximately 2 percentage points every year in order for us to drastically cut in half, if not eliminate, poverty incidence by 2015. The country not meeting its target is, however, not much of a surprise for some economic analysts because figures really show such prediction.
One of the main causes that economists have pinpointed is the Philippines’ heightened unemployment rate. Because of the country’s high unemployment and underemployment rate, our economic growth has continued to move on a flat yet unsteady scale. Reports from the National Statistics Office (NSO) states that there has been approximately 18.7 percent of
underemployment since 2010. About 2.9 million of Filipinos were unemployed and about 6.8 million were underemployed in 2010. On an additional note, “employment growth in the Philippines slowed considerably in the second quarter of 2010, despite the faster economic growth that was achieved in the first quarter.” (Sarmiento, 2011) These figures are observable representations of a major employment issue in our country. Primarily, unemployment is not necessarily because of a deficiency or unavailability of enough job opportunities but rather because Filipinos are being offered substandard occupations. Such employment feeds on the vulnerability of desperate yet defenseless workers. Because the quality of jobs available is suffering, the country is unable to produce substantial growth in its GDP. The room for economic improvement is being hampered by the mere absence of a promising industry – something that primarily acts as the determining factor of a...
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