The next Asian Miracle? Poverty remains high in Phl

CEBU, Philippines - Despite the concerted efforts of the government, private sector and social entrepreneurs that helped the Philippines recover from being the “Sick man of Asia” to an economic miracle, the country’s poverty level remains a perennial problem of the government.

This according to Senator Paolo Benigno “Bam” Aquino IV in his keynote speech during the Open Collaboration of East Asia New Champions 2014 Summit held at Mövenpick Hotel Mactan Island Cebu over the weekend.

The three-day OCEAN Summit, which ran from May 23 to 25, was an extension meeting of the World Economic Forum East Asia Summit held last May 21-22 in Makati.

Aquino said despite the country’s high GDP (7.2%) growth last year, achieving inclusive growth still tops the agenda of the government to help the poor populace feel the country’s economic gains.

The senator cited that the major calamities that hit most parts of the Visayas last year has taken a toll on the country’s economy as a whole.

Aquino, who was a 2006 Young Global Leader of WEF and awardee of Schwab Foundation for Social Entrepreneurs, added that the high unemployment and underemployment rates are among the problems that significantly affected the young people, citing 2012’s poverty incidence at 25.2 percent and 2009’s 26.3 percent.

He emphasized the need for creative and innovative solutions, one of which is to have an inclusive business framework that engages the local government, national agencies and civil society groups.

“As a social entrepreneur, you work in communities, you make sure you help the poor, upscale the products and operations,” he said.

He added that social enterprise that involves the private and public sectors also allow communities to have access to the market and make people productive, adding that this should bring access to more Filipinos.

Only then can the country reach a true inclusive growth when everyone, including those in far flung areas, get economic benefits.

He cited a known Filipino-owned fast-food company that has been sourcing 50percent of its onion supply from Kalasag Farmers, a local farmer group in Nueva Ecija, helping them grow with their business.

He added that the Go Negosyo Bill, which he authored, has also supported the micro, small and medium enterprises like that of the Kalasag, saying the government should push the MSMEs to grow and become economically empowered.

An event like OCEAN aims to gather people together and find new innovative ways to solve old problems, the senator also said, telling more than 200 forum participants that “all Filipinos must contribute to achieve inclusive growth.”

Solve issues through dialogue

The World Economic Forum, as a very special community, aims to encourage governments, business sector and civil society organizations to solve glbal issues through a dialogue.

Broadcast journalist Karen Davila, who is a 2010 Young Global Leader and founding curator of Global Shapers Manila, said one of her interviewees once said that many problems in the world can actually be solved through dialogues, however, most Filipinos have not been oriented with it.

OCEAN 2014 Summit co-chair Davila said, “I know for a fact that I am also like that, that’s what we need to change.”

She also said the Philippines’ attention is focused on one thing, good governance, but stressed “it cannot just be fighting corruption.”

Davila added that the WEF allows different perspectives from different people specifically Filipino leaders and East Asia WEF champions to unite and form solutions to pressing problems concerning social and economic development.

She further said that Cebu was chosen as a venue for the open collaboration summit because it is where the mix of startup tech geniuses, innovators, business leaders and social change makers meet: “And this makes Cebu very special.”

For his part, OCEAN chairperson Winston Damarillo said Cebu’s local leaders had a great opportunity to talk with WEF global experts, extending the avenue for more dialogue with the local community. They met with leaders of the Philippines to talk on topics that advance the state of the ASEAN region.

The summit, being held for the first time in the province, focused on supporting innovation zones and inclusive growth for businesses and for community stakeholders. 

Anna Oposa, one of the summit’s speakers, has called on the government and people to take action to save the marine species, noting that the marine industry has given most Filipinos livelihood, food and boasts the tourism industry as well.

It also powers the country’s economy, added Oposa, co-founder of Save the Philippine Seas. She shared she also started the Shark Shelter Project to protect the thresher sharks being hunted fishermen in Cebu’s Malapascua Island.

On the other hand, the successive calamities that hit the country last year has pushed businessman Manny Osmeña to start the Disaster Response Vessel Project which aims to have mobile hospitals for easy response in times of disaster.

Osmeña, who owns Manny O Wines, said a disaster prone country like the Philippines needs to upgrade its disaster response system and that he believes medical vehicles will make the process more efficient and faster.