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Issues on Poverty Reduction. Arsenio M. Balisacan University of the Philippines Diliman. The Philippine economy—a development puzzle. Level of development in the 1950s: in Asia, second to Japan. Overtaken by most of its neighbors since then.

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issues on poverty reduction

Issues on Poverty Reduction

Arsenio M. Balisacan

University of the Philippines Diliman

the philippine economy a development puzzle
The Philippine economy—a development puzzle
  • Level of development in the 1950s: in Asia, second to Japan. Overtaken by most of its neighbors since then.
  • Recent decades: Lackluster performance in economic growth & poverty reduction
  • Remarkable diversity across population groups and geographic areas

GDP per capita PPP (in constant 2005 US$)

Poverty incidence based on poverty line of $1 a day (PPP)

Philippines

slide3
Persistent poverty: Not just because of low economic growth, but also because of weak response of poverty reduction to growth
what does it take to sharpen the response of poverty to growth 1
What does it take to sharpen the response of poverty to growth? (1)

Focus on

  • Creating productive employment opportunities
    • Infrastructure to promote connectivity, especially between leading/urbanizing & lagging/rural areas
    • Market-friendly institutions to exploit the benefits of agglomeration & specialization
what does it take to sharpen the response of poverty to growth 2

(a) Primary & secondary education

(b) Basic health facilities

Source: ADB, Philippines: Critical Development Constraints, 2007.

What does it take to sharpen the response of poverty to growth? (2)

Focus on

  • Expanding ACCESS of the poor to basic social services, particularly education, health, and family planning services