Philippine Economic Society (PES)
MANILA, Philippines — Building a strong middle class is necessary to realize the country’s long-term vision of a prosperous, predominantly middle-class society by 2040 or AmBisyon Natin 2040, according to the National Economic and Development Authority (NEDA).
Speaking at the 62nd Philippine Economic Society (PES) Conference, NEDA Secretary Arsenio Balisacan emphasized the importance of policies to enable Filipinos to enter the middle class and protect them from economic shocks.
“Our first and important step is to address the poverty in the country. Once individuals rise above poverty, we must focus on mitigating their vulnerabilities to risks by enhancing the resiliency of our jobs and other income opportunities to prevent them from falling back into poverty,” Balisacan said.
NEDA Undersecretary Rosemarie Edillon, who gave the plenary presentation, highlighted the actions that the government must prioritize to have a strong middle class.
To sustain a middle-class living standard, she said Filipinos need to have adequate income to support their needs, as well as have substantial savings.
“The government must continue to implement policies that reduce poverty, keep commodity prices low and stable, increase employment opportunities and improve the employability of Filipinos, as well as build resilience by strengthening social protection,” she said.
For his part, Gonzalo Varela, lead economist for the Philippines at the World Bank highlighted the need to create quality jobs and promote higher productivity sectors by reducing barriers to entry, enforcing competition, as well as opening key sectors for faster productivity growth.
In addition, he said reducing trade and investment costs is essential to promote growth from external sources.
“Along with the need to create more opportunities, the Philippines needs to create capabilities by establishing strong human capital and equipping workers with the skills of the future, integrating approaches to fix foundational challenges and preparing for technological disruptions,” Varela said.
Earlier, Balisacan said the middle class makes up about 40 percent of the Philippine population, based on data and studies from the Philippine Institute for Development Studies.
Under the AmBisyon Natin 2040, which represents the collective and long-vision and aspirations of the Filipino people, the aim is for Filipinos to enjoy a strongly rooted, comfortable and secure life by 2040.