Developing a stronger human capital

Education and health are not just fundamental rights, but also the bedrock of a nation’s prosperity. They represent the core of human capital—the collective skills, knowledge, and well-being of the population that drive economic growth and social progress. Despite the immense talent and skills of Filipinos, ongoing challenges in the education and health sectors hinder our full potential.

Below, we discuss areas where the government has made progress and areas needing improvements with some recommendations.

Areas of agreement. The House of Representatives aims to pass a 2025 national budget of P6.35 trillion, 10.1 percent more than this year’s P5.76 trillion. Although sector allocations are yet to be finalized, the proposed budget emphasizes significant priorities in education and health, underscoring a commitment to human capital development.

Key educational priorities include the Department of Education’s (DepEd) “Matatag” agenda, strengthening early childhood education, improving/increasing access to learning resources, and developing globally competitive and inclusive Technical-Vocational Education and Training and higher education programs.

For the health sector, the 2025 budget prioritizes accelerating the Universal Health Care Act, establishing more health-care facilities, improving the supply and deployment of human resources, and promoting digital health.

Areas for improvement. Build more classrooms. This is a top concern for 52 percent of Filipinos based on the January 2023 Pulse Asia survey. DepEd estimates that an annual investment of approximately P105 billion through 2030 is required to build 12,000 new classrooms each year and eliminate the backlog of 165,433 classrooms. Overcrowded classrooms compromise the quality of education and restrict students’ learning. Expanding the voucher system, which currently only covers Grades 7-12, to include kindergarten to Grade 6 pupils, can also alleviate overcrowding while more classrooms are being built.

Hire more teachers and support staff. The Alliance of Concerned Teachers (ACT) reported a need for 144,789 additional teachers and 94,540 support staff for school year 2023-2024. Despite this pressing demand, only 3,352 of the 9,650 planned hires were made. This resulted in a teacher-student ratio of 1:40, far from the target of 1:30 set by DepEd. The slow hiring of administrative staff is also contributing to teacher burnout. According to ACT, with nearly 50,000 understaffed schools, at least two administrative staff per school are needed to effectively reduce teacher workloads.

Hire more health-care workers. Health Secretary Ted Herbosa notes that an additional 190,000 workers are needed to meet health goals and sustain health programs in the country. The continuous migration of health workers seeking better pay abroad leaves local facilities understaffed, making it crucial to increase compensation and enhance working conditions to retain and attract new health-care workers.

Prioritize the first 1,000 days, which are crucial for a child’s physical and cognitive development, requires targeted nutritional programs and maternal health-care initiatives. According to the World Health Organization, malnutrition during this period in a child’s life can have long-term effects on health and educational outcomes.

Foster government and private companies’ collaborations to pool resources, expertise, and technology. Incentives like tax breaks and recognition can motivate companies to build schools and clinics, provide scholarships, and support health and nutrition programs. By integrating education and health initiatives into corporate social responsibility programs and developing mentorship and internship opportunities, companies can further boost students’ skills and employability.

DepEd’s “Adopt-a-School Program” receives support from the Ayala Foundation and San Miguel Corp. for classrooms and materials. Similarly, Nestlé Philippines contributes to the First 1,000 Days initiative, enhancing early childhood nutrition and education.

Regularly assess education and health programs to track progress and ensure accountability across planning, implementation, evaluation phases, while also advocating for supportive policies and legislation. Incorporating these consistently into Legislative-Executive Development Advisory Council’s agenda would ensure that these sectors receive the attention and resources needed to strengthen our human capital.

Conclusion. Amidst the numerous challenges facing DepEd and Department of Health, government leaders must rally agencies with the resolve of a teacher calling for “eyes on the board,” committing resources, reforms, and a sense of urgency to develop our human capital. By channeling more resources into education and health—and ensuring these funds are spent properly and effectively—the Philippines can fully harness the potential of our citizens, paving the way for a more prosperous, equitable, and sustainable future where every individual has the opportunity to thrive.

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Gary B. Teves served as finance secretary under the Arroyo administration.