The National Economic and Development Authority (NEDA) underscored the critical role of a robust middle class in realizing the Philippines’ long-term vision of a prosperous, predominantly middle-class society by 2040 or the “AmBisyon Natin 2040.”
Speaking at the 62nd Philippine Economic Society (PES) Conference on Nov. 8 in Quezon City, NEDA Secretary Arsenio Balisacan highlighted the importance of policies that support the transition of Filipinos into the middle class and protect them from economic shocks.
The NEDA-sponsored plenary session, themed “Growing and Strengthening the Middle Class towards Realizing the AmBisyon Natin 2040,” highlighted the need for comprehensive strategies to uplift the Filipino middle class.
“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 for Policy and Planning Group Rosemarie Edillon gave the plenary presentation, emphasizing the holistic set of priorities that the government must focus on.
“To sustain a middle-class living standard, Filipinos need adequate income and 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,” Edillon said.
Reacting to Edillon’s presentation, World Bank lead economist Gonzalo Varela noted the necessity of creating quality jobs and promoting higher productivity sectors by reducing barriers to entry, enforcing competition, and opening key enabling sectors for faster productivity growth.
Varela said reducing trade and investment costs is essential to outward-oriented growth.
“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.
The plenary session, organized by NEDA, explored the socioeconomic factors contributing to middle-class growth, including education, job creation, social safety nets and equitable income distribution.
The discussions also covered policy measures, financial inclusion strategies, and innovative approaches to support and expand the middle class as a driver of sustainable economic growth and development.
The nation celebrates Economic and Financial Literacy (EFL) Week starting Nov. 11, 2024, spearheaded by NEDA as mandated by the EFL Act or Republic Act No. 10922.
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