WB urges PH to foster more inclusive growth

The Philippines needs to undertake measures, including stepping up efforts to create more jobs and livelihood, in a bid to promote inclusive growth and poverty reduction, a World Bank (WB) official said on Tuesday. (Photo: The World Bank)

MANILA — The Philippines needs to undertake measures, including stepping up efforts to create more jobs and livelihood, in a bid to promote inclusive growth and poverty reduction, a World Bank (WB) official said on Tuesday.

Mara K. Warwick, the WB Country Director for Brunei, Malaysia, the Philippines and Thailand, noted that while the percentage of economically secure and middle class in the Philippines has grown in the last 20 years, a portion of the population remains not yet economically secure and still at risk of slipping back into poverty.

“The goal for the Philippines, therefore, remains to promote inclusive growth that benefits all – that continues to lift the extreme poor out of poverty, that builds the economic security of those still vulnerable to slipping back into poverty, and that addresses the remaining challenges of the middle class, including their lack of access to services, particularly housing, and their vulnerability to shocks due to a lack of proper risk management tools,” she said during the Foreign Correspondents Association of the Philippines (FOCAP) event.

Warwick thus urged the Philippines to foster economic mobility, or improve one’s lot in life, to meet the different needs and aspirations of various income groups.

“At the core of economic mobility are jobs and livelihoods,” she said. “Improving the quality of jobs and addressing disparities in education through early childhood development programs will help. Providing opportunities for the poor to access jobs by supporting formal market participation is critical.”

Warwick added greater access to financial services can also boost livelihoods that people create for themselves.

The WB official further said the Philippines should maintain its social assistance programs for the poor; and social insurance should be extended to cover all workers, not only those in the formal sector.

“Resilience to shocks, including natural disasters, is also a priority. This requires a broad range of interventions, including resilient infrastructure, social safety nets, and insurance to deal with these shocks,” she added.

Moreover, Warwick underscored the need for stronger revenue mobilization “so that the tax system can raise more resources to support these measures.”