ADB says limited success for poverty programs in Philippines
Agence France-Presse
First Posted 15:57:00 07/23/2008
Filed Under: Economy, Business & Finance
MANILA, Philippines -- The Asian Development Bank (ADB) said Wednesday that its programs aimed at lifting millions of Filipinos out of poverty have had limited success.
"ADB assistance program over the past five years has been successful in meeting its more selective objectives, despite need for improvements. However, the larger context for the next country strategy continues to be daunting," it said.
The Manila-based lender said it had lent nearly $10 billion for programs addressing the Philippines' fiscal woes, developing capital markets and ensuring reliable power supply.
Despite these, tax revenues slipped to 14.1 percent last year, below the 14.8-percent target set by the government, and poverty rose to 32.9 percent of the population in 2006 "despite robust growth."
"In the coming years, the Philippines will face significant development challenges," the bank said in an evaluation report.
It sees the economy growing at a slower rate of 5.5 percent this year and 5.6 percent in 2009 after a 30-year high of 7.2-percent growth last year.
It urged Manila to address "unsatisfactory job creation" that has seen much of the labor force underemployed in the past 10 years.
This, it said, has led to labor migration with an estimated 8.2 million Filipinos, or nearly a fourth of the labor force, working overseas as of 2006.
"Private capital formation is low compared to neighbors," it said. "The export base is narrow and its value added low."
The bank says investors have singled out corruption, poor infrastructure and education as key to improving the country's attraction for investments.
"Further infrastructure and social expenditure increases are needed, financed by a strengthened revenue effort."
|
