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Top 10 Facts About Poverty in the Philippines

Poverty in the Philippines
Poverty in the Philippines is more persistent than in other countries in Southeast Asia. Consisting of 7,641 islands, the Republic of the Philippines is a country located in the western Pacific Ocean. Despite a declining poverty rate in recent years, 21.6 percent of the country’s population still live below the national poverty line.

Rural areas in the Philippines show a poverty rate of 36 percent in comparison with the 13 percent of urban areas. However, urban poverty has also shown a steady increase in recent years, possibly due to the unemployed and low-income migrants who are unable to afford housing.

Other key contributors to the poverty rate include vulnerability to shocks and natural disasters, an underdeveloped agricultural sector, high population growth and moderate economic growth. Here are 10 facts about poverty in the Philippines, including the causes, outcomes and improvements.

10 Facts About Poverty in the Philippines

  1. Agriculture is the main source of income for rural inhabitants, primarily in farming and fishing. Most farmers and small landholders live in areas that are prone to natural disasters or conflicts. Declines in agricultural productivity, unsuccessful small landholder farming operations and unsustainable practices have caused deforestation and weakened fish stocks.
  2. Over a third of the rural inhabitants in the Philippines are impoverished. Indigenous people residing in these areas experience higher rates of illiteracy, unemployment and poverty. A lack of access to productive capital and limited market access has created slow economic growth and underemployment. The rural poor have limited options for off-farm employment and low access to inexpensive financial services.
  3. The majority of poor Filipino households have only achieved basic levels of education. At least two-thirds of poor households are headed by an individual with an elementary level education or below. Additionally, most poor families have minimal access to health and education services.
  4. Poverty levels in the Philippines are affected by unrestrained population growth. The average poor family in the Philippines consists of six or more members. Similar to other countries, impoverished regions typically have higher birth rates. In rural areas in the Philippines, the average woman will have 3.8 children compared to the cities where the average woman will have 2.8.
  5. Four out of 10 poor families in urban areas do not have decent living conditions. Most of the poor households in urban areas reside as informal settlements in slum areas of major cities like Manila. These homes do not include proper facilities and also are bad for the environment. These settlers typically move to major cities from other provinces in search of better economic opportunity and livelihood.
  6. Moderate economic growth has not resulted in poverty reduction. The average annual GDP increased by only 0.63 percent per person between 1980 and 2005. Incidents of inequality among regions have also continued to increase, hindering the reduction of poverty. The country’s economic growth is directed at Manila and the two bordering provinces. This prevents distant provinces from sharing the benefits of prosperity.
  7. The Government of the Philippines utilizes social protection programs to provide poor families with direct assistance. Impoverished families can receive cash assistance through a conditional cash transfer program. The program requires all families to enroll their children in school and vaccinate their children with government-provided immunizations.
  8. The International Fund for Agricultural Development (IFAD) is working in the Philippines to improve the incomes and food security of rural populations. IFAD primarily focuses on women, fishers, small landholders and indigenous people residing in fragile ecosystems. Recent projects and programs are intended to improve the environment with natural resource management and sustainable access to land. Projects also include skills for managing soil and water along with support for fishing communities.
  9. President Rodrigo Duterte has been focused on improving poverty-related issues for the country’s poor. President Duterte signed an executive order to pass a law that makes contraception free and more easily accessible to the poor. Duterte is also improving infrastructure with new roads, bridges and airports as a result of a planned increase in expenditure. Such improvements will better connect impoverished communities to Manila and thus bring opportunities for better jobs.
  10. The government of the Philippines created AmBisyon 2040 and The Philippine Development Plan 2017-2022 in efforts to reduce poverty. Both plans aim to improve living conditions for the poor and reduce poverty by 15 percent by 2022. To achieve this goal, it is recommended these policies work towards creating more jobs, improving productivity in all sectors and educating Filipinos with the necessary skills for work in today’s economy.

The Republic of the Philippines has made and continues to make improvements in poverty reduction. However, overpopulated urban areas and lack of economic opportunities for rural populations still create a need for more progress. The fact that such issues are receiving recognition from political leaders and various organizations is creating hope for the Philippines and its people.

– Diane Adame
Photo: Flickr

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Four Important Facts to Know About Infrastructure in the Philippines

Infrastructure in the Philippines
Amidst the 7,107 western Pacific islands known as the Philippines, poverty is uniquely endemic. A country of scattered landmass, the Philippines is ranked the third most disaster-prone country in the world, as its close proximity to the equator encourages destructive weather such as earthquakes and storms. Natural disasters disproportionately and recurrently hit the poorest regions of the country, coursing them into higher levels of poverty.

This, along with uncontrolled population growth, exacerbates the reality of poverty within this collection of islands. Fortunately, there are significant plans in the works that focus on kicking such insufficiency to the curb, solutions that include the advancement of infrastructure in the Philippines.

Historically, insufficient infrastructure development has stunted both economic growth and poverty reduction, but there is an active movement toward improvement. Within the past couple of years, proposals have been met with action to pave the way for a change. The following are four important facts regarding infrastructure in the Philippines.

Four Facts About Infrastructure in the Philippines

  1. $7.6 billion has recently been approved to establish new infrastructure in the Philippines. President Rodrigo Duterte has plans for robust projects such as bridges, roads and the Metro Manila Subway. Under the national “Build, Build, Build” initiative, the country is looking to spend $180 billion to renovate and build airports, railways, roads and ports over a six-year period.
  2. Additional financing for the Rural Development Project for the Philippines was approved January 11, 2018. Costing over $2 million, this project aims to promote job creation, especially within rural development. It seeks to boost rural incomes and enrich both farm and fishery productivity in specified regions, as well as to establish essential pieces of infrastructure, like a network of roads, that allow farmers to sell products at market and connect to the urban areas.
  3. The Mindanao Trust Fund-Reconstruction and Development Project Phase II (MTF-RDP2) was approved April 4, 2018. Costing over $3 million, this project focuses on post-conflict reconstruction, improving labor market policy and programs, promoting social inclusion for ethnic minorities and appeasing forced displacement. The objective of the MTF Facility is to advance development in conflict-affected areas in Mindanao by assisting in social and economic recovery within these communities.The MTF-RDP2’s objective focuses on improved access for conflict-affected communities to basic socioeconomic structure and alternative learning systems. According to Xubei Luo, Senior Economist at the World Bank’s Poverty and Equity Global Practice, “Making a difference in Mindanao makes a big difference to the Philippines. Increasing public investment in Mindanao to boost development there would expand opportunities for conflict-affected communities, broaden access to services and create more and better jobs.”
  4. From 2006 to 2015, poverty in the Philippines took a dive. A recent report by the World Bank states that economic growth is responsible for poverty levels dropping by five percent. From 26.6 percent in 2006 to 21.6 percent in 2015, such a decrease in numbers is also a result of the expansion of job opportunities outside the agriculture sector.The Filipino government has a goal to reduce poverty from 13 to 15 percent by 2022. According to the World Bank, plans include the Philippine Development Plan 2017–2022 and AmBisyon 2040, a long-term vision to reduce poverty and recover the lives and wellbeing of the most marginalized regions and communities of the nation.The World Bank’s Poverty Assessment report recommends the following policy directions to achieve the proposed targets: “Create more and better jobs; improve productivity in all sectors, especially agriculture; equip Filipinos with skills needed for the 21st century economy; invest in health and nutrition; focus poverty reduction efforts on Mindanao; and manage disaster risks and protect the vulnerable.”

The sizeable collection of Filipino islands has an undying potential to continue reducing poverty through its infrastructure advancement efforts. Although an extremely complex process, both the booming Filipino economy and government project initiatives are projected to gradually alleviate cyclical Filipino poverty. The future of infrastructure in the Philippines is looking bright.

– Mary Grace Miller
Photo: Flickr

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More High-Paying Jobs to Reduce Poverty in the Philippines

poverty in the philippines
Poverty in the Philippines has declined from 26.6 percent in 2006 to 21.6 percent in 2015. A report released by the World Bank on May 30, 2018 titled ‘Making Growth Work for the Poor: A Poverty Assessment of the Philippines’ reveals the major factors that contributed to this decrease.

Factors for Poverty Decline in Philippines

  • A rise in income and introduction of new job opportunities beyond the agricultural sector led to about two-third of decline in poverty.
  • The Pantawid Pamilyang Pilipino Program, a cash transfer program of the Philippine government, enhanced the living conditions of 1.5 million people thereby reducing national poverty by 1.5 percent. The program works towards alleviating poverty by providing financial assistance to 77 percent of poor households.
  • Houses that received foreign or domestic remittances experienced significant changes in their living conditions. Around 15 million households in the Philippines receive money through domestic or foreign employment sources; this helped reduce poverty by up to 4 percent.

However, though these positive developments helped reduce poverty in the Philippines, the rate of decline has been very slow compared to East Asian countries. Between 2006 and 2015, there has only been a 0.9 percent decline in poverty as per the international poverty line ($1.90/day), while the East Asian countries — including China, Indonesia and Vietnam — have shown 2-2.5 percent in poverty reduction.

Education, Employment and Disaster Relief

Lack of education is one of the main reasons for this slow decline. Since a majority of the poor lack an education, they lack access to better employment opportunities; this trend thus keeps the majority of citizens trapped in the poverty cycle.

Many poor households also have only one earning member in the family, who is generally employed as a laborer in the agricultural sector. Such households are often the poorest and remain extremely vulnerable to the frequent changes in production rates.

Another reason for poverty in the Philippines is the deterioration of the quality of employment over the years. A report reveals that although the Philippines has experienced economic growth, it has failed to maintain consistently high standards in various sectors. In addition, poor disaster management skills have often lead to failure of timely protection and evacuation of people.

The Need for Productive Employment

The U.N. clearly highlights the link between economic growth, high-paying jobs and poverty eradication. The group states that economic growth of the country as a whole on its own will not help in reducing poverty; rather, economic growth has to be combined with an increase in the number of “productive employment” made accessible to the poor.

As mentioned in the report, “The vicious cycle of inequitable investment in human capital and lack of well-paying job opportunities traps the poor in poverty generation after generation.” What is needed then is to transform the pattern of growth to make it more inclusive, and to provide better jobs to achieve higher and more stable incomes. The vice chairman of the labor committee, Senator Juan Edgaro Angara states that “jobs remain the key to poverty. If there is enough income, a permanent and decent job, the lives of Filipinos would be surely uplifted.”

The Public Employment Service Office of Philippines (PESO) held a job expo on June 2, 2018, at which around 103 people were hired on the spot. This gathering is considered to be one of the biggest job fairs in Visayas, Philippines and this year it presented people with around 33,000 positions. Sen. Juan Angara commended the expo and said that every province, city and municipality in the Philippines has its own PESO — this prevalence should ensure that every Filipino gets a job to help them rise out of poverty.

Just days after this job expo, another job fair was organized at Rizal Park, Manila on June 12, 2018, to mark the 102nd anniversary of Philippine Independence. According to the Department of Labor and Employment, around 30,000 jobs were offered which included 45 local, 25 overseas and eight government agency positions. Generally, though, it was the transportation and domestic construction sectors that offered a majority of the vacant positions.

New Initiatives to Alleviate Poverty in the Philippines

The Philippines has around 22 million people — or around one-fifth of its population — still living below the poverty line. The launch of AmBisyon 2040 by the National Economic and Development Authority (NEDA) is a long-term commitment to uplift the underprivileged sections of the society.

Functioning parallel to such an effort is also the Philippines Development Plan 2017-2022. Both these initiatives have set out ambitious goals to eradicate poverty in the Philippines by transforming the country into a prosperous middle-class society where “people will live long and healthy lives, be smart and innovative and will live in a high-trust society.”

To make this a reality, the government has taken up the task of reducing poverty by one percent every year to see a reduction of 13-15 percent by 2022. In addition to these two initiatives, the poverty assessment stresses the following to catalyze the rate of poverty decline:

  • Focusing on creating a greater number of high-paying jobs
  • Improving the business environment to attract more investment
  • Making means to improve productivity in all sectors, mainly agriculture
  • Ensuring skill development to make the Filipino population highly capable for the 21st century economy
  • Improving health and nutrition
  • Placing special emphasis on initiatives to reduce poverty in Mindanao
  • Making better provisions to manage disasters and protect the vulnerable sections of the society

Thus, with new initiatives and a greater focus on creating more well-paying jobs, the government hopes to reduce poverty in the Philippines and bring about a permanent change in the lives of the Filipino people.

– Shruthi Nair
Photo: Flickr

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Five Cities Suffering From Poverty and Overcrowding

poverty and overcrowding
The world is experiencing rapid population growth and urbanization. Advances in medicine have allowed for increased life expectancy as well as decreased infant mortality, while birth rates have largely remained unchanged. This combination of circumstances has lead to great growth; between 1999 and 2011, the population increased by nearly one billion people.

The population increase has led to rapid urbanization. People migrate to cities with the promise of economic or educational opportunity, technological advancement and access to health care. It is estimated that by 2050, 66 percent of the world’s population will live in urban areas.

This urbanization of cities that are neither prepared nor equipped to deal with overcrowding places strain on both natural and manmade resources alike. The following is a list of five cities suffering from both poverty and overcrowding.

Five Major Cities Dealing With Poverty and Overcrowding

  1. Mumbai, India: With a population density of 171.9 people per square mile, India is notorious for overcrowding. Mumbai is no exception, with a population near 23 million and a population density of almost 70,000 people per square mile.Mumbai serves as India’s commercial hub and is home to the Bollywood industry, making it prone to migration. Yet, those with hopes of Bollywood often end up in prostitution or organized crime. The population has doubled in 25 years, leading to many slum neighborhoods.In fact, half of the population of Mumbai lives in overcrowded, unsanitary slums that comprise only eight percent of the city’s geographic area. Although great wealth exists throughout Mumbai, poverty and overcrowding continue to increase.
  1. Dhaka, Bangladesh: Being named the most densely populated city in the world in 2015, Dhaka suffers from overcrowding and poverty alike. It has also been named to lists of least livable cities and fastest growing cities.Its population is over 18 million, with a density of 114,300 people per square mile. Roughly one-third of Dhaka’s residents live in poverty, with two million inhabiting slums or without any form of shelter.
  1. Lagos, Nigeria: Lagos is Africa’s fastest growing city. In 2017, the population was 21 million; the U.N. predicts that this number will rise to over 24 million by 2030.Situated between the Atlantic Ocean and a lagoon, Lagos is Nigeria’s commercial capital. Yet, 300,000 people live in slum neighborhoods and make a living by fishing out of hand-built canoes.  One-fifth of the city’s residents live in poverty.The slum houses are fashioned from scrap-metal and elevated on stilts to protect against flooding. There is little access to clean water, electricity or quality education. The majority of slums are built along the coast, causing friction with the wealthy as well as the government, which has evicted many communities on faulty logic in order to seize the land.
  1. Manila, Philippines: Manila has a population of 1.7 million and a land area of less than 10 square miles, leading to a high population density of over 170,000 people per square mile. Manila serves as the Philippines capital and home of its banking and commerce industries.In Manila, 600,000 people live in slum districts, which are ridden with disease and malnutrition. Many kids do not attend school, as parents are often forced to choose between feeding the family or sending the kids to school.
  1. Ulaanbaatar, Mongolia: Ulaanbaatar boasts the highest population density on this list, with over 760,000 people per square mile. The influx in population resulted in unplanned neighborhoods known as “ger” areas, which house 60 percent of Ulaanbaatar’s population but are vulnerable to natural disasters and lack water and sanitation sources as well as electricity.A number of expensive apartment buildings mark the city’s skyline, yet many of these buildings remain empty due to the high cost of living. The government intervention has tended to benefit the upper-income subgroups, rather than those living in poverty.

Poverty and overcrowding are endlessly entwined. Rather than placing a halt on migration and urbanization as many cities have attempted, lack of affordable housing, quality water and sanitation facilities, education opportunity and food shortages ought to be addressed. Cities must respond to the growing demands that come with overcrowding in order to help alleviate poverty and decrease hardship.

– Jessie Serody
Photo: Flickr

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Programs Across the World Address Poverty in the Philippines


Despite the rising economic growth rates in the Philippines, poverty in the Philippines continues to prevail nationwide. According to the Asian Development Bank (ADB), 21.6 percent of Filipinos live below the national poverty line.

There are many factors that create and maintain the cycle of poverty in the Philippines. Unemployment is one of the main reasons that poverty reduction has not kept up with the country’s growth. Alongside an increasing population, job resources remain insufficient for millions of Filipinos.

The Philippine poverty condition remains a challenge due to the government’s lack of capacity to establish sustainable poverty reduction programs. Governments from other countries, alongside international institutions, have implemented strategies aimed to tackle the Philippine poverty crisis. These programs share the common goal of alleviating poverty in the Philippines by addressing unemployment in the country.

The World Bank

The World Bank plays a large role in working towards eradicating poverty in the Philippines. One of the projects financed by the World Bank is the ‘Philippine Rural Development Project.’ The goal of the project is to create greater work opportunities for Filipinos in the rural areas by supporting farmers and fishermen through improving their access to markets.

As of last year, results from The World Bank reported an increase in household incomes for farmers and fisherfolk beneficiaries. As of January 2018, this project has been approved for additional financing to continue its contribution in addressing poverty in the Philippines.

The United States of America

USAID has established the Philippine-American Fund (Phil-Am Fund) as a strategy to tackle poverty in the Philippines. One of the program’s objectives is to develop solutions to the country’s economic challenges. The Phil-Am fund financially supports  Philippine organizations to support business start-ups.

This strategy to address the poverty crisis promotes entrepreneurship by offering a self-sufficient facility for citizens who do not have the capacity to take part in the province’s economic activities.

As of last year, the Phil-Am fund has managed to support the establishment of start-up businesses, provide training in standards for food-related establishments and has integrated more efficient farming technology in the Philippines.

Australia

Australia’s foreign aid to the Philippines includes ‘The Philippines’ Sustainable Livelihood Program’ (SLP), which helps Filipino families by providing employment assistance. The SLP also helps Filipino citizens start at enterprise — an approach that encourages self-sufficiency.

Australia’s aid program aligns with the Philippine government’s goal to tackle poverty and promote development. Sustainable livelihood is the primary goal of this program, and includes micro enterprises, skills training and pre-employment assistance.

Filipinos who take part in this program have agency and decision-making responsibilities by providing access to microenterprise development and employment. SLP has become an efficient platform for productivity and development and since its establishment in 2011, SLP has achieved 97 percent of targeted program participants.

Promotion of Autonomy

The above-mentioned programs designed to address the Philippine poverty crisis all share one feature: the encouragement of self-efficiency. Rather than providing charity to the Filipino citizens living in poverty, these programs empower the people by giving them access to opportunities. The citizens are provided with the agency to take control of their work, promoting an inclusive form of development.

– Dane de Leon

Photo: Flickr

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Philippines’ Poverty Rate: Rural Communities Still Left Behind

Philippines' Poverty Rate
The Philippines’ poverty rate decreased from 25.2% in 2012 to 21.6% in 2015, according to the Family Income and Expenditure Survey (FIES) conducted by the Philippine Statistics Authority (PSA).

The drop in the Philippines’ poverty rate coincides with a steady decline for extreme poverty in the country. In 2015, 12.1% of the population lived in extreme poverty. Those who classify as living under extreme poverty are those whose earnings cannot buy three meals a day.

But despite the decline in these numbers, there are still glaring problems regarding the issue of poverty. One of the more prominent ones is the continued prevalence of poverty within most of the basic sectors in the country. Five of the nine basic sectors determined by the PSA—farmers (34.3%), fishermen (34.0), children belonging to families with income below the official poverty threshold (31.4), self-employed and unpaid family workers (25.0) and women belonging to poor families (22.5)—have higher poverty rates than the general population (at 21.6%). Farmers and fishermen consistently registered as the two sectors with the highest poverty incidence since 2006.

 

Poverty in the Philippines

 

Not surprisingly, the poorest regions in the country lay in the rural and agricultural areas, particularly in the island of Mindanao, an underdeveloped region that has also served as a battleground for Muslim militants and government forces for decades. The Autonomous Region of Muslim Mindanao (ARMM) registered the highest poverty incidence in the survey. Additionally, 53.4% of its 3,781,387 residents live below the poverty threshold and 30.1% live in extreme poverty.

In contrast, the Philippine capital of Metro Manila had the lowest proportion of the poor. Only 6.5% of the population lived below the official poverty line.

The downward trend in the Philippines’ poverty rate has most experts hopeful that poverty will continue to fall. Some are quick to cite that despite the fall in numbers, there are still more than 26 million Filipinos who remain poor, with 12 million lacking the means to feed themselves.

However, most agree that addressing the basic roots of poverty also must address graver issues that stem from it. Drops in the Philippines’ overall poverty rate do not matter to those who see no way out in war-torn towns, says counterinsurgency expert Justin Richmond. “The widespread vulnerability that you see in every area dealing with radicalization is lack of economic opportunities,” Richmond says in an interview with Rappler, a Philippine news organization.

Richmond also maintains that only in improving the standard of living in underdeveloped areas can the government truly prevent a possible radicalization of citizens.

“It’s all based on vulnerability,” Richmond concludes.

– Bella Suansing

Photo: Flickr

Poverty in the Philippines: Facts and Figures

Poverty in the Philippines
Poverty in the Philippines is widespread. The Republic of the Philippines is a country of 7,107 islands in the western Pacific Ocean. It is located in Southeast Asia and struggles to reduce high poverty rates. The United Nations (U.N.) reports that the Republic of the Philippines has one of the highest poverty rates in Asia despite a steady decline in recent years.

The country is rich in natural resources and biodiversity because of its close proximity to the equator; however, it is prone to earthquakes and storms, making it the third most disaster-prone country in the world.

The Philippines’ poverty level is also tied to uncontrolled population growth. According to the U.N., the Philippines “rapid population growth has exacerbated poverty and has fueled rapid urban population growth, overseas labor migration, and unprecedented environmental degradation.”

Philippine Poverty Stats

The Philippine Statistics Authority (PSA) released its latest poverty incidence update on March 18, 2016. The statistics, which account for the first semester of 2015, contain data collected from the Family Income and Expenditure Survey (FIES) done in July 2015. This data shows that:

  • The poverty level for all Filipinos is 26.3 percent; for the same period in 2012, it was 27.9 percent.
  • The portion of the population who fall below the food threshold, or are unable to meet basic food requirements, is 12.1 percent; for the same period in 2012, it was 13.4 percent.
  • The poverty incidence for families in 2015 was 21.1 percent; in 2012 it was 22.3 percent.
  • The subsistence level, or the portion of Filipino families extreme poverty, in 2015 was 9.2 percent; in 2012 it was 10 percent.

The food threshold is the minimum income needed to meet basic food requirements set by the Food and Nutrition Research Institute (FNRI). The poverty threshold is expanded to include basic non-food needs such as clothing, housing, transportation, health and education expenses.

The PSA includes these statistics in their reports and calculates how much income would be required for a family of five at subsistence level to pull themselves out of poverty.

In the first semester of 2015, the income gap for a family living in poverty in the Philippines is still 29 percent short of the threshold.

The Rural Poverty Portal reports that half of the poor in the Philippines live in rural areas. The poorest of the poor are the indigenous, landless laborers, fishermen, small farmers, mountain folk and women.

Deforestation, depleted fisheries and unproductive farmland are major problems for these peoples. Illiteracy and lack of educational opportunities are also critical issues.

The Republic of the Philippines made great strides in poverty reduction in recent years, but as with most countries, they still have much to improve upon.

– Rhonda Marrone

Photo: Flickr

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Filipino Siblings Help Unlock Electricity and Escape Poverty

Filipino Siblings Help Unlock Electricity & Escape from Poverty
According to the World Bank, 1.1 billion people live without access to electricity. Many of them, including one out of every 50 households in the Philippines, rely on kerosene or battery-powered lamps for light. Kerosene lamps pose fire hazards, particularly in the Philippines, which the UN ranked the third most disaster-prone country in the world. Even further, for rural poor families, kerosene can be hard to come by, forcing people to walk many miles a day to purchase oil for their lamps.

This was an issue siblings Aisha and Raphael Mijeno knew they had to find a solution to. So they developed SALt, a lamp that provides a sustainable source of light and energy using saltwater and metal rods. With just one glass of water and two tablespoons of salt, the LED lamp, which is a Galvanic cell, can safely light a home for eight hours. Because it is composed entirely of a salt solution, it eliminates dangers and toxicity levels present in kerosene and battery-powered lamps.

The only maintenance the lamps require is changing the anode every six months. Because the Philippines is composed of over 7,000 islands and most residents live close to the sea, they can use ocean water rather than creating their own solution. In emergencies, the lamp can charge smart phones merely through the standard USB cable. This is an added safety measure that helps people get in touch with loved ones in an emergency or find access to food, water, safety supplies, or shelter.

Aisha Mijeno, an engineer at De La Salle University in Lipa and member of Greenpeace Philippines, says she will partner with NGOs to help distribute the lamps to poor families with no access to electricity. For poor families not represented by the NGOs, the lamps will be available for a price of $20. For general customers, the retail price will be slightly higher, and for each lamp sold an additional one will be given to a needy family.

The Mijenos have won numerous entrepreneurial awards for their invention, including the Kotra Award at the Startup Nations Summit 2014 and Ideaspace Foundation Award 2014. Both awards will help Aisha and Raphael fund and advertise their lamps. Their innovations will not only bring light to those who need it most, it will also empower them to better their conditions and gain more opportunities.

Says Aisha, “This isn’t just a product. It’s a social movement.”

— Jenny Wheeler

Sources: Huffington Post, Salt
Photo: Treehugger

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Eliminating Poverty with Sustained Economic Reform

Sustained_Economic_ReformA new potential Anti-Poverty Model has emerged out of sustained economic reform in the Philippines. Over the past two years, local growth has significantly reduced poverty in the country. Looking ahead, continued reform measures could bring the number of poor Filipinos down to just 18-20 percent of the population by 2016.

In recent years, sustained economic growth in the Philippines has brought more jobs and improvements in living conditions for the country’s poor population. Over the course of just one year, more than a million jobs were created. What is more, unemployment is also at the lowest rate that it has been in ten years.

World Bank leading Economist Rogier van den Brink stated, “If growth is sustained at 6 percent per year and the current rate at which growth reduces poverty is maintained, poverty could be eradicated within a single generation”. In order to achieve this goal, however, key structural reforms will need to be sustained and sped up.

The most important structural reforms to focus on will be increasing investments in infrastructure, health and education, enhancing competition, simplifying regulations to promote job creation, and protecting property rights.

Back in January, the World Bank’s Philippine Economic Update was released, with the theme “Making Growth Work for the Poor.” The report lists the aforementioned goals and recommends rationalizing tax incentives by making them more targeted, transparent, performance-based, and temporary.

The potential success of continued reforms depends hugely on strengthening tax administration and improving the transparency and accountability of government spending. Once the Filipino population can agree with the manner in which their tax dollars are being spent, the new growth cycle can perpetuate itself accordingly.

During a press conference, Mr. Ven den Brink was probed on the Philippines’ lower-than-expected growth in Gross Domestic Product during the first quarter. He responded by explaining that since 2013, it has become much easier to see the way that even slow economic growth can directly reduce poverty.

Ven den Brink explained that regardless of the specific GDP number, what really matters is how that growth affects the poorest people. According to the World Bank economist, household and labor survey data all paint the same poverty-reducing picture.

While it is true that slow-moving government spending has limited the growth of the Philippine economy during the first quarter of the year, significant changes in poverty still pervade. Rates of underemployment and poverty are decreasing, and the lowest real income is growing 20-30 percent faster than the rest of the country.

Van den Brink also noted that the government’s Conditional Cash Transfer program has been a key poverty-reducing tool. The program gives out payments every month to the poorest households, which has successfully helped to lift entire families out of the poverty cycle.

Although some remain skeptical, poverty elimination in the Philippines is starting to seem like more of a feasible reality. This could be a major milestone not only for the Philippines, but for all of those involved in the global fight against poverty. Sustained economic growth could finally level the playing field, once and for all.

– Sarah Bernard

Sources: Business World, InterAksyon, World Bank
Photo: Flickr