News / Economy

Philippine Economy Grows but Wealth Slow to Trickle Down

A worker counts U.S. dollar bills and Philippine pesos inside a money changer in Manila, June 19, 2013.A worker counts U.S. dollar bills and Philippine pesos inside a money changer in Manila, June 19, 2013.
x
A worker counts U.S. dollar bills and Philippine pesos inside a money changer in Manila, June 19, 2013.
A worker counts U.S. dollar bills and Philippine pesos inside a money changer in Manila, June 19, 2013.
The Philippines' economic wealth is evident with growth surpassing that of China, new investment grade credit ratings and a surging stock market. But how many people are sharing in the country's new wealth?
 
Aris Bonifacio’s financial situation appears to be going from good to even better. The 32-year-old computer programmer has worked with the same insurance company for nine years. Business has been growing and so has his salary.
 
He said, after years of saving, he was finally able to buy a brand new car in April. Now he is ready to buy a condo from a high-end developer.  
 
Philippine Socioeconomic Planning Secretary Arsenio Balisacan said while the economy has been solid for several years, local businesses only started to increase spending about a year ago.
 
“People initially were taking a wait and see attitude, you know, one year or two years of wait and see," he said. "And you can’t really blame that.”
 
Balisacan said the country’s economy in the last four decades has had a “boom and bust” pattern mainly because of political instability, which has created a wary investment climate.
 
In recent years, the administration under President Benigno Aquino has tried to improve the country’s financial reputation by cleaning up corruption and prosecuting tax cheats and officials accused of graft.
 
Balisacan said the government also boosted infrastructure spending, which has helped push economic growth beyond seven percent for the past three quarters.  
 
“What exactly have been the major constraints to investments, whether it’s domestic or foreign? Number one that comes out is infrastructure, the quality of infrastructure,” he said.
 
Balisacan said traffic bottlenecks in the capital region and bad rural roads have eaten significantly into the cost of doing business, while rundown airports need upgrading to support tourism. He said investing in fixes will help attract businesses and bring other jobs to an economy heavily dependent on consumer spending and the service sector.
 
The country’s unemployment rate was 7.5 percent in the first quarter. Twenty percent of its workforce remains “underemployed,” working for far less than 40 hours a week. About one-third of the 97 million people in the Philippines lives in poverty and the Aquino administration says it is now focused on including the marginalized in its growth picture.  
 
At a park across the street from a luxury hotel in Manila’s business district, Junjer Catbagan said he has gone from job to job earning the same minimum wage of about $10 a day. The 23-year-old high school graduate works at the fish counter of a supermarket.
 
Catbagan laughed and said if there was anything new in his financial situation he would be at a better paying job. But reality is, his budget for raising a young family still falls short.
 
Other minimum-wage earners complain that the growing economy has meant higher costs of goods. And those in the so-called “informal sector” such as street vendors and garbage pickers say there is no difference at all in their earnings.
 
Even so, Jose Morales, who heads the Urban Poor Alliance, said the Aquino administration’s focus on cleaning up corruption is making a big impact on poor people’s lives.
 
Morales said ordinary people are empowered under this administration, and he feels it listens to his group’s proposed solutions.
 
The government has ambitious plans to cut the proportion of people living in poverty from 28 percent to 16 percent by 2016," he said. "To help with that effort, a new “sin tax” has gone into effect to raise additional revenue for healthcare and education for the poor.

You May Like

Video Migrants Caught in No-Man's Land In French Port

The deaths of hundreds of migrants in the Mediterranean this week has only recast the spotlight on the perils of reaching 'Fortress Europe' More

Video Westgate Mall Attack Survivors Confront Painful Memories

On anniversary of terror attack, survivors discuss how they have coped with trauma they experienced that day More

New Hints That Dark Matter Exists

New evidence from International Space Station hints at existence of dark matter and dark energy More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Migrants Caught in No-Man's Land Called Calaisi
X
Lisa Bryant
September 19, 2014 5:04 PM
The deaths of hundreds of migrants in the Mediterranean this week has only recast the spotlight on the perils of reaching Europe. And for those forunate enough to reach a place like Calais, France, only find that their problems aren't over. Lisa Bryant has the story.
Video

Video Migrants Caught in No-Man's Land Called Calais

The deaths of hundreds of migrants in the Mediterranean this week has only recast the spotlight on the perils of reaching Europe. And for those forunate enough to reach a place like Calais, France, only find that their problems aren't over. Lisa Bryant has the story.
Video

Video Westgate Siege Anniversary Brings Back Painful Memories

One year after it happened, the survivors of the terror attack on Nairobi's Westgate Shopping Mall still cannot shake the images of that tragic incident. For VOA, Mohammed Yusuf tells the story of victims still waiting for the answer to the question 'how could this happen?'
Video

Video Militant Assault in Syria Displaces Thousands of Kurds

A major assault by Islamic State militants on Kurds in Syria has sent a wave of new refugees to the Turkish border, where they were stopped by Turkish border security. Turkey is already hosting about 700,000 Syrian refugees who fled the civil war between the government and the opposition. But the government in Ankara has a history of strained relations with Turkey's Kurdish minority. Zlatica Hoke reports Turkey is asking for international help.
Video

Video CERN Accelerator Back in Business

The long upgrade of the Large Hadron Collider is over. The scientific instrument responsible for the discovery of the Higgs boson -- the so-called "God particle" -- is being brought up to speed in time for this month's 60th anniversary of the European Organization for Nuclear Research, known by its French acronym CERN. Physicists hope the accelerator will help them uncover more secrets about the origins of the universe. VOA’s George Putic reports.
Video

Video Whaling Summit Votes to Uphold Ban on Japan Whale Hunt

The International Whaling Commission, meeting in Slovenia, has voted to uphold a court ruling banning Japan from hunting whales in the Antarctic Ocean. Conservationists hailed the ruling as a victory, but Tokyo says it will submit revised plans for a whale hunt in 2015. Henry Ridgwell reports from London.
Video

Video Russian Economy Reeling After New Western Sanctions

A new wave of Western sanctions is hitting Russia’s economy hard. State-owned energy firms continue to bleed profits and Russia’s national currency plunged to a new low this week after the U.S. and the European Union announced new sanctions to punish Russia's aggressive stance in eastern Ukraine. But as Mil Arcega reports, the sanctions could also prove costly for European and American companies.
Video

Video Belgian Researchers Discover Way to Block Cancer Metastasis

Cancer remains one of the deadliest diseases, despite many new methods to combat it. Modern medicine has treatments to prevent the growth of primary tumor cells. But most cancer deaths are caused by metastasis, the stage when primary tumor cells change and move to other parts of the body. A team of Belgian scientists says it has found a way to prevent that process. Zlatica Hoke has more.
Video

Video Mogadishu's Flood of Foreign Workers Leaves Somalis Out of Work

Unemployment and conflict has forced many young Somalians out of the country in search of a better life. But a newfound stability in the once-lawless nation has created hope — and jobs — which, some say, are too often being filled by foreigners. Abdulaziz Billow reports from Mogadishu.
Video

Video A Dinosaur Fit for Land and Water

Residents and tourists in Washington D.C. can now examine a life-size replica of an unusual dinosaur that lived almost a hundred million years ago in northern Africa. Scientists say studying the behemoth named Spinosaurus helps them better understand how some prehistoric animals adapted to life on land and in water. The Spinosaurus replica is on display at the National Geographic museum. VOA’s George Putic has more.
Video

Video Iraqi Kurdistan Church Helps Christian Children Cope find shelter in churches in the Kurdish capital, Irbil

In the past six weeks, tens of thousands of Iraqi Christians have been forced to flee their homes by Islamic State militants and find shelter in churches in the Kurdish capital, Irbil. Despite U.S. airstrikes in the region, the prospect of people returning home is still very low and concerns are starting to grow over the impact this is having on the displaced youth. Sebastian Meyer reports from Irbil on how one church is coping.
Video

Video NASA Picks Boeing, SpaceX to Carry Astronauts Into Space

The U.S. space agency, NASA, has chosen Boeing and SpaceX companies to build the next generation of spacecraft that will carry U.S. astronauts to the International Space Station by the year 2017. The deal with private industry enables NASA to end its dependence on Russia to send space crews into low Earth orbit and back. Zlatica Hoke has more.
Video

Video Future of Ukrainian Former President's Estate Uncertain

More than six months after Ukraine's former President Viktor Yanukovych fled revolution to Russia, authorities have yet to gain control of his palatial estate. Protesters occupy the grounds and opened it to tourists but they are also refusing to turn it over to the state. VOA's Daniel Schearf reports from Mezhigirya, just north of Kyiv.


Carnage and mayhem are part of daily life in northern Nigeria, the result of a terror campaign by the Islamist group Boko Haram. Fears are growing that Nigeria’s government may not know how to counter it, and may be making things worse. More

AppleAndroid

World Currencies

EUR
USD
0.7768
JPY
USD
108.84
GBP
USD
0.6124
CAD
USD
1.0999
INR
USD
61.042

Rates may not be current.