World Bank: Philippine farm policy deepens poverty
Misguided farming policies, including land reform, are keeping millions in the Philippines poor, according to a report released by the World Bank this week.
The report said only the manufacturing and service sectors, which require huge capital and skilled workers, had grown significantly over the last decade while agriculture, which employs most of the non-skilled, faltered.
“These productivity trends reflect a growing scarcity of land and a progressive reduction in the amount of land per worker, aggravated by agrarian reform policies,” the World Bank said.
In the study, titled “Philippines: Fostering More Inclusive Growth,” the World Bank said some of the factors that prevented economic benefits from trickling down to the poor were insufficient investments in social services, unequal patterns of development in regions of the country, unequal access to public services, among others.
The World Bank also said that business sectors that contributed most to the overall growth of the Philippine economy did not provide substantial employment opportunities. The relatively high number of unemployed has made it difficult for the country to reduce poverty, it added.
The acceleration of economic growth since 2001 did not lead to poverty reduction. A third of the country’s nearly 100 million population live on less than 2 US dollar (ca. 12 DKR) a day.
The World Bank study said unequal pattern of regional development, intense demographic pressures, the poor’s limited access to social services and decreased government spending on social welfare are the main factors that keep poverty level high in the Philippines.
The Washington-based lender proposed that the Philippine government must implement policies that encourage more investments. This will create more jobs, raise incomes and reduce poverty incidence.
To boost investor confidence, the government should narrow the deficit and upgrade the country’s infrastructure particularly in transport and electricity.
The World Bank also suggested that the government should invest more on education, health, and social protection services and expand the poor’s access to these services.
Kilde: www.worldbank.org
