7.3% GDP Growth Not Enough To Lick Poverty, Says Economists

from Pacific News Center

Jennifer A. Ng,

Registering a high gross domestic product (GDP) growth, such as the 7.3-percent growth reported in 2007, may not be enough to lick poverty in the Philippines, according to some economists from the University of the Philippines (UP).

During the UP Centennial Lecture Series, Professors Dante Canlas and Arsenio Balisacan discussed the causes of poverty in the Philippines and its supposed remedies.

Prof. Canlas, who was a former director general of the National Economic and Development Authority (NEDA), said the robust GDP growth in recent years has failed to translate into better incomes as seen in the 2006 Family Income Expenditures Survey (FIES).

"At this point, I don't think GDP growth is enough to fight poverty in the country. It may help but it will not be enough to eradicate poverty," said Canlas.

Canlas said that for the past few years, high GDP growth seem to benefit only five regions in the Philippines - the National Capital Region, Central Luzon, CALABARZON or Region IV-A, Western Visayas and Central Visayas.

He said that though the government's efforts are not completely lacking, there are still a lot to be done, particularly in peace and order in Mindanao and in agriculture.

Canlas said Mindanao's agricultural promise have yet to be tapped while other promising areas in agriculture have yet to be explored such as those in fisheries and aquaculture.

"There is still much to be done in terms of increasing agriculture production. The government can do a lot in bringing out the best in agriculture," said Canlas.

For his part, Prof. Balisacan, also the director of the SEAMEO Regional Center for Graduate Study and Research in Agriculture (SEARCA), said addressing poverty is really the most important policy challenge in the Philippines.

He said poverty in the Philippines is now higher than other east and southeast Asian countries, making the country the laggard in the region in terms of poverty eradication.

Balisacan said achieving pro-poor growth can only be done by expanding the poor's access to economic opportunities, human development, social services, and productive assets.

He said improving productivity growth in agriculture and increasing nonfarm investments in provinces will greatly help lift rural inhabitants out of poverty.

It is estimated that a third of the poor in the Philippines are in the provinces and only four percent of the total poor are in Metro Manila.