MANILA, Philippines - Filipinos may have to wait five to 10 more years to reap the benefits of long-term economic growth due to the still high birth rate in the country, even as the United Nations population agency urged the government to invest in the youth.
Dennis Mapa, a consultant of the National Economic and Development Authority (NEDA), said it might take the Philippines five years to a decade to enjoy the benefits of demographic dividend.
Demographic dividend is defined as the economic benefit arising from a significant increase in the ratio of working age adults relative to young dependents that is attributed to a significant decrease in birth rates.
The United Nations Population Fund (UNFPA) stressed the need for the government in the Philippines and other countries to invest heavily in the youth for economies to soar.
According to the State of the World Population 2014 released by the UNFPA yesterday, there are 1.8 billion young people worldwide who could propel economic growth.
Mapa explained that as women begin to have fewer children, the proportion of non-productive dependents is reduced. The decline should also be accompanied by an increase in the working age group to spur economic growth.
“While the country’s fertility rate is declining, it is very slow and unemployment is still very high, particularly among the youth,” Mapa disclosed.
He said high fertility and unemployment rates are the two biggest obstacles for the country to attain demographic dividend.
Based on the current trend, Mapa said it might take another five years for the country to attain the desired 2.1 percent fertility rate.
But if the government will not implement any intervention programs, he said it will take a decade or until 2025 for the country to attain the economic dividend.
Although the number of 15 to 24 years age bracket or the so-called working age group in the country is increasing, most of these workers are currently unemployed and therefore not earning right.
Mapa pointed out that economic dividend is not automatic and substantial policies are needed to attain such.
UNFPA country representative Klaus Beck said governments worldwide, including the Philippines, should expand access to contraceptives to lower the fertility rates.
“Potential economic growth gains would be realized through economic dividend, which can occur when the country’s working age population is larger than the population that is dependent and younger,“ the UNFPA official said.
Beck further noted that women who are educated and have fewer children could have better job opportunities.
“A good education gives young people the skills and knowledge that will enable them to mitigate reproductive health risks,” Beck pointed out.
Ifugao Rep. Teddy Baguilat Jr. said they have allocated a bigger budget to provide for the needs of the estimated 20 million young people in the country.
Baguilat said they also expect full implementation of the Reproductive Health Law in the coming months since they have allotted budget for its enforcement.
Commission on Population (PopCom) executive director Juan Antonio Perez III agreed that there is a need to expand reproductive health services.
Perez said providing the youth with family planning services is essential in enabling the country to reap the benefits of demographic dividend.