Skip to comments.Philippines: a booming economy struggles to make growth inclusive
Posted on 06/20/2013 6:57:20 PM PDT by TexGrill
Cesar Purisima, the Philippine finance minister, has a good story to tell about his country's economy, which grew 6.6% last year.
In London last week for meetings in the leadup to this week's G8 summit in Northern Ireland, Purisima pointed out that the Philippines enjoyed the fastest growth in the first quarter in all of Asia (2.2%), even better than China. The problem for the Philippines as for many countries in the developing world enjoying strong growth is how to translate this into a tide that lifts all boats.
Growth has accelerated under the government of Benigno Aquino, now halfway through his six-year term. But growth has made little impact on unemployment, which hovers at around 7%. Underemployment is nearly 20%, and more than 40% of the employed are estimated to be working in the informal sector.
Asked how the Aquino government, which came into power pledging to cleanse the country of corruption, is promoting inclusive growth, Purisima says the Philippines has quadrupled the budget for conditional cash transfers, aimed at the poorest fifth in the population of 95 million. The cash grants, which range from 500 pesos (£7.40) to 1,400 pesos per household, are given on the condition that parents send their children to school and have their health checked regularly.
"These are not unique, they are copied from Brazil," he says. "They were introduced before the Aquino government and now reach 4m families. We want that figure to hit 5.6m by the end of the presidential term."
The other pillar of the inclusive growth strategy is increased spending on education and universal healthcare.
(Excerpt) Read more at guardian.co.uk ...
I wish them the best.
Every former Spanish colony is corrupt, and has been for hundreds of years. If the RoP manages to beat that, it will be a testimony to the quality of their human assets.
The Philippines is a great place for retired expats, but not for doing business, unless for doing only as a hobby.
thanks for these news bits from S-E asia
chile is an exception.
“Chile is an exception.”
If it is, and I have no first-hand knowledge as I do with the Philippines, I’d have to suppose that it is due to Pinochet.