‘Upper-middle income status not the finish line’

VANCOUVER – The Philippines’ ascent to upper-middle income status is a “milestone” but is not the “finish line,” Malacañang yesterday said as it acknowledges the need to address the plight of millions of still impoverished Filipinos.

Presidential Communications Undersecretary Claire Castro was commenting on criticisms that the government was celebrating the achievement even as a survey showed that more than 14 million families still consider themselves poor.

“This is a significant development – what could be called a milestone – because since 1987 this is the only time our level rose. So, we should be proud of it,” Castro said at a press briefing here.

The country’s elevation to upper-middle income status reflects a stronger economy capable of attracting more investors and eventually creating more jobs, the Palace official said.

“This is not the end. The country still has a lot to do to further boost the economy,” she said.

Castro emphasized that attaining upper-middle income status does not mean there will no longer be financially challenged Filipinos.

“That is where the administration’s intervention comes in. The government intervenes and implements the necessary measures so that our fellow citizens can experience relief from issues such as hunger,” she said.

“It would be even better if there were no obstructionists whose sole purpose is to sow discord and undermine the President and the administration,” she added.

Culmination

A House of Representatives think tank weighed in on the Philippines’ recent elevation to upper-middle income status, describing it as the culmination of sustained economic policies over the past years.

Novel Bangsal, executive director of the Congressional Policy and Budget Research Department (CPBRD), said the World Bank’s upgrade, triggered after the country’s Gross National Income (GNI) per capita reached $4,850, strengthens the nation’s credibility among foreign investors and expands its access to international financing.

“This did not happen in a day or a year. It is the culmination of about four decades of trying to improve our economic standing,” Bangsal said during a news forum in Quezon City.

“Because of this standing, since our credibility in the international arena has improved, we can access more funds in the international capital markets,” he added.

Despite the milestone, Bangsal cautioned against equating the country’s new classification with immediate poverty reduction. — Neil Jayson Servallos