Poverty In the Philippines

32 million children and 20 million adults live in extreme poverty subsisting on $2.15 a day or less.

Poverty Impacts approximately half the population in the Philippines. Poverty in the Philippines is primarily due to the low earning capacity of the poor and their access to regular and productive jobs. The root cause of this condition is the low education level of the poor (often at second or third grade level) and the scarcity of meaningful jobs. Further adding to the dilemma “is the ‘culture of poverty’ in the Philippines that is characterized by a lack of aspirations, reliance on chance, and disillusionment with the social, economic, and political conditions.”

Thus the vast majority of the working poor are non-wage earners or informally employed in volatile jobs, making them ineligible for minimum wage protection, social security or health benefits. Less than two percent of the working poor receive minimum wage protection.

Real and Lasting Impact Upon Poverty

Clayton Christensen in his book “The Prosperity Paradox” stated that “With nearly 5 trillion dollars in international aid being spent since 1960, things have not improved, in fact 20 countries are poorer now than in 1960. Easing poverty is not the same as creating prosperity.” He further detailed that prosperity and jobs has been the catalyst behind the development of every nation to date. Consider the following:

“Above all, job creation will be the key factor for developing countries to reduce poverty [and] improve people's lives.” World Bank (8)

“Unemployment and underemployment lies at the core of poverty. For the poor, labor is often the only asset they can use to improve their well-being. Hence the creation of productive employment opportunities is essential for achieving poverty reduction and sustainable economic and social development. It is crucial to provide decent jobs that both secure income and empowerment for the poor, especially women and younger people.” United Nations General Secretary Report (9)

The key to breaking the generational cycle of poverty lies in helping poor children receive meaningful education. “Education is one of the best solutions to poverty. Globally speaking, even the most basic education – reading, writing and arithmetic – can open doors for children that would otherwise be locked tight. But it’s more than that. Many experts say that the cycle of poverty simply can’t be broken unless children receive education.” World Vision (10)

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