Neda: PHL middle class already living life most Pinoys want for themselves in 2040

THE Pinoy middle class is already living the life that the majority of Filipinos can only dream of living in 2040, the National Economic and Development Authority (Neda) said.

Based on the results of the long-term vision the Neda calls AmBisyon2040, data showed 79.2 percent of Filipinos only want a simple and comfortable life in 25 years. Only 3.9 percent of Filipinos want the life of the wealthy.

Neda Deputy Director General Rosemarie Edillon said the AmBisyon2040 data were obtained from responses in 42 focus-group discussions (FGDs) and 10,000 survey respondents nationwide.

The Neda said the seemingly “low aspirations” of Filipinos reflected the dire economic straits experienced by millions nationwide.

“In part, yes [things are that bad], because we all know from statistics that we still have some ways to go. We keep repeating that, regardless of the progress that has been made—and we recognize that progress has been made—there is still a lot of catching up to do,” Economic Planning Secretary Emmanuel F. Esguerra said.

“It’s also, in a way, influenced by what they experience on a daily basis. The aspiration, naturally, is the opposite of that, to be able to free oneself from those constraints that make living a daily struggle,” he said.

A simple and comfortable life means owning a medium-sized home, earning enough to support everyday needs; owning at least one car/vehicle; providing for their children’s college education; and traveling around the country for vacation.

Data from the Philippine Statistics Authority showed there were 23.75 million poor Filipinos, including 9.81 million Filipinos living in extreme poverty, in the full year of 2012.

Data showed that 73 percent of respondents said they want to earn enough and provide for the college education of their children and 62 percent want to own a car/vehicle.

The Neda said 61 percent said they want to have enough money for daily needs and own a medium-sized home, while 30 percent said they want to be a business owner and relax with family and friends.

Around 21 percent of respondents said they want to be able to take occasional trips around the country.

While 79 percent of Filipinos want to live within the same city they work in and only 7 percent want to work and live elsewhere, the majority of Filipinos prefer to be mobile.

Filipinos want to be able to have mobility for day-to-day living and leisure purposes, and travel locally and abroad with family.

In terms of the mode of transportation, around 77 percent want to own a car/vehicle, and only 23 percent want to travel using good public transportation.

Esguerra said these data reflect some of the key reforms that the government needs to make in order to give Filipinos the kind of life they want to live.

“We need to take a look at where we were before. But there is no denying that there are still problems,” Esguerra said. “The fact that people prefer to have their own means of transportation is a reflection of the fact that they don’t have a good experience with public transportation.”

Esguerra said instituting these reforms is the primary role that the government will play in helping Filipinos realize the kind of life they want to live.

These include crafting and implementing reforms that further economic growth; invest in people and protect them against economic, social and other shocks that may cause instability in their lives.

Without these reforms, Esguerra said that, instead of being able to grow the country’s per-capita income to $11,000 in 2040, per-capita incomes can only rise to around $5,000 in 25 years, from the current $3,500 level.

“Note that over the last 33 years [1981-2014], we were only able to raise our real per-capita income by 1.8 times,” Esguerra said.

“In contrast, without reforms, per-capita income can only grow to around $5,000 over a period of 25 years, i.e., not even double the current level of $3,500,” he added.

With this, the Neda chief said, this can contribute to efforts to eradicate poverty nationwide by 2040 or even sooner.

The Neda stressed that part of the country’s commitment when it agreed to adopt the 17 Sustainable Development Goals (SDGs) in September 2015 was to eradicate poverty by 2030.

Under SDG 1 on poverty eradication, countries like the Philippines must eradicate poverty for all people, including those living on less than $1.25 a day; reduce by half the proportion of men, women and children of all ages living in poverty; and implement social- protection systems that cover the poor and the vulnerable.

Not a plan, not a campaign

EDILLON said AmBisyon2040 is not a long-term plan. It was merely a long-term vision from which future administrations can choose to draw their policies and reforms from.

The Philippines is not a stranger to crafting long-term plans. The Ramos administration crafted Philippines 2000, which contained set policy strategies and other pertinent information that normally comprised a plan.

However, AmBisyon2040 does not prescribe policy strategies and specific reforms. It only contained data on Filipinos’ aspirations.

The FGDs were conducted mainly among marginalized groups, including indigenous peoples, while the survey was conducted across the ABCDE income groups.

She said in one month to two months, the government will translate this into monetary and economic targets that succeeding administrations can base their long- and medium-term plans on.

Edillon and Esguerra also recommended that the AmBisyon2040 data-gathering exercise be done after the end of each medium-term plan, or after a decade.

This is crucial, since Edillon said the vision of Filipinos for themselves and their country will change over time. This may render some policy reforms and solutions outdated.

The Neda officials were also keen on stressing that Ambisyon2040 is not an endorsement of the status quo or a campaign tool for the current administration.

They said the data merely provided current information that can be used in national planning. -Cai Ordinario, Businessmirror