TACKLING POVERTY IN THE PHILIPPINES

The Philippines is a developing country and more than a quarter of its population is under the poverty line. Growth is necessary to alleviate poverty but will not necessarily do so alone. Despite a high growth rate in the Philippines income inequality is high. Metro Manila is covered by skyscrapers and shopping malls but across the country poverty is evident, access to education is limited and unemployment is high.

Several issues contribute to the high poverty and inequality in the Philippines. Corruption in the local and national levels of the political system is one of the greatest factors. Institutions are weak so fraud does not allow wealth efficiently flow through the system. Overpopulation and poor family planning has been another factor. With conservative values contraception has been taboo and only recently legalized. Another reason for poverty is the migration culture of the filipino labor market. Since the 1970s filipinos have moved to the Middle East, United States and Europe to obtain better salaries.

One manner in tackling this problem is promoting vocational training within the manufacturing sector for young females about to enter the labour market, ca 18-25 years old.

Growth is necessary to reduce poverty. The Philippines should invest in the workforce of the growth-producing manufacturing sector. Today, the services sector makes up for the largest percent of Philippine GDP. While it is beneficial to pursue IT or technology-based services, the manufacturing sector (automobile, food, metal/mineral and or telecommunication industries) needs strengthening in order to establish a strong, base economy. The Philippine government and business are today investing into manufacturing sector growth. Workers need to be prepared with the technical skills necessary for manufacturing jobs. Finished, manufactured goods encourages export growth and contributes to overall economic wealth. Filipino labour has often migrated to other countries and focusing on the domestic manufacturing industry will encourage the workforce to invest in the Philippines instead.

Women are less like to participate in the labour market or be employed relative men, which adversely affects income equality and also national economic growth. Structural discrimination of females in the labour market needs to be addressed. Education for filipino women in industries other than traditional fields of housekeeping and nursing should be promoted to increase shared prosperity.