Aquino administration’s gains will be lost if…
This is a reaction to Rep. Walden Bello’s commentary titled “Global poverty down, Philippine poverty remains high” (INQUIRER.net, 6/10/13).
Bello stated that: “The challenge in the final three years of the Aquino administration is to lay a new macroeconomic paradigm for sustained development. Retaining the old neoliberal framework, though in more pragmatic form, will ultimately erode the gains the administration has made in successfully battling corruption and containing poverty via the CCT program.”
The efforts of the Aquino administration during its initial three years led to a significant gross domestic product (GDP) growth and a better ranking in the corruption perception index, both of which in turn reduced the country’s poverty incidence in mid-2012 to 27.9 percent from 28.8 percent in mid-2006 (“Seeing progress, poverty in mathematical terms,” Opinion, Inquirer, 4/30/13). Not bad at all, given the global recession that caused economic woes in many developing and developed countries.
However, the 2012 World Factbook provides data showing the Philippines a little bit slower in poverty reduction than neighboring countries that have softened the neoliberal measures they had selectively adopted. The comparative analysis based on major economic indicators is as follows:
1. The Philippines, with the second highest in GDP-Purchasing Power Parity (PPP) per capita at $4,500, has the highest poverty incidence at 26.5 percent and the highest inequality; while its service sector has the highest percentage share in its total labor force, its agricultural and industrial sectors have the lowest. The reason for this, Bello opines: “In East Asia, most countries, with the exception of the Philippines, managed to avoid comprehensive structural adjustment even as they rhetorically praised market reforms to high heavens.”
2. Cambodia, with the lowest in GDP-(PPP) per capita at $2,400, has the second highest poverty incidence at 20 percent and the second highest inequality; while its service sector has the lowest percentage share in its total labor force, its industrial sector has the lowest, and its agricultural sector, the highest.
3. Indonesia, with the highest in GDP-(PPP) per capita at $4,800, has the second lowest poverty incidence at 11.7 percent and the lowest inequality; while its service sector has the second highest percentage share in its total labor force, its industrial sector has the highest, and its agricultural sector, the second lowest.
4. Vietnam, with the second lowest in GDP-(PPP) per capita at $3,500, has the lowest poverty incidence at 11.3 percent and the second lowest inequality; its service sector has the second lowest percentage share in its total labor force, while its industrial and agricultural sectors have the second highest.
Therefore, the Aquino administration has to continue introducing government interventions that will not only lay a new macroeconomic paradigm for sustainable development in agriculture and industry but also soften certain adopted neoliberal measures that do not really contribute to poverty reduction and inclusive growth.
—EDMUNDO ENDEREZ,
