Rizal Philippines
December 29, 2015
We wish a happy and prosperous 2016 New Year to every one. Many Filipinos are hopeful that 2016 will be better.
Why is this question relevant to AGSB Leaders? Well our mantra in AGSB is nation building, If we are to be building a nation, poverty has to be reduced if not eliminated.
Why are we poor? From Manila Times
From Philippine pride - 10 reasons why Philippines is still a poor country This article places the responsibility of being poor on the individual. Poverty is a matter of personal choice
From Prof Ciel Habito of Ateneo de Manila
Poverty reduction by 50% is one of the key goals of UN Millineum Development Goals. This was missed by the PHL observes Prof Ciel Habito, professor of economics at Ateneo de Manila University.It is said that for every 1% growth in GDP, there is a corresponding decrease in poverty level. While the Philippines has achieved an average growth of 4.5 % from 2004 to 2009, poverty incidence grew to 26.5%, the number of poor families increased by 185,000 and high school participation decreased.
What are the reasons?
1. There is no inclusiveness in the grwoth, only 1% of the population controls 60% of the GDP. What could be behind this? Lack of taxation? Govt control?
2. The jobs are mostly from BPO, gambling and technology but which are not linked to other areas of economy. Thus the job creation can not support nor solve the 6.5 unemployment and 20% under employment. The jobs from the service sector (say SM or other retail establishments even BPO and gambling are not permanent, and thus can not promise sustained employment and security
Prof Habito proposes 5 measures to reduce poverty:
1. Focus on MSME (I was right on having this as an advocacy and teaching this for the last 13 years, being engaged in probono talks of Go Negosyo, free lessons on Entrep blog)
2. Competition policy (The govt has not been keen in discouraging monopolies and giant companies that stifle grwoth as in telecom)
3. Human development (education, and pursuits like this Leadership development
4. Asset reform
5. Sector industry inclusive growth. The best way is to develop manufacturing as a generator of jobs ( or even agriculture
