Study blames politicians for poverty

Businessmen and politicians with vested interests have been blamed for the widespread poverty in the Philippines, which has been left behind by its Asian neighbors in the race to development.

Advisory and research group Stratbase Research Institute noted the ranks of poor Filipinos rose by 3.4 million between 2003 and 2009 despite the economic growth during the period, as the government continued to be influenced by politicians and businessmen with vested interests.

Stratbase, in the third quarter issue of its quarterly publication Spark, cited data from the World Bank and the National Statistical Coordination Board, which showed that the magnitude of poor population increased from just 19.8 million in 2003 to 23.14 million in 2009.

Poverty incidence, in terms of percentage of poor people, also increased from 24.9 percent to 26.5 percent during the period, data from the NSCB showed.

Poverty rose because the Philippine economy, being under the influence of rent seekers or those with vested interests, has been one of the poorest performers in Asia over the past 50 years, it said.

It also cited a report by former Economic Planning secretary Cielito Habito showing that while East Asian economies posted average annual GDP growth rates from 3.6 to 6.0 percent between 1960 and 2008, the Philippines only managed an annual average increase of 1.4 percent during the same period.

With population in the country still increasing at more than 2 percent per year, real per capita incomes have risen only by 20 percent from 1981 to 2009.

Despite this meager economic growth in the Philippines, poverty incidence rose because such growth has not been as effective in reducing poverty as in the rest of Asia, according to Stratbase.

It noted a report from the Asian Development Bank, which found that for every 1 percent growth in gross domestic product, poverty incidence has gone down by an average of 1.5 percent across the world and 2 percent within Asia.

In contrast, poverty incidence in the Philippines had actually risen since 2003, a time when the economy is thought to have grown very well. “In short, not only is the country’s growth record dismal, but its capacity to share the benefits of such growth is deplorable,” said professor Victor Andres Manhit, president of Stratbase. –Roderick T. dela Cruz, Manila Standard Today