Being UMIC; Sara bludgeoned but unbowed

Finance Secretary Frederick Go sent me a primer on what it means for Filipinos for the Philippines to be upgraded by the World Bank into an upper-middle income country (UMIC). Here:

Why was the Philippines identified as UMIC?

Economic growth was a key contributor for the Philippines. GDP expanded by 5.8 percent on average during the period 2021-2025, reflecting growth across all industries. This growth, combined with a resilient Philippine peso (depreciated by 0.4 percent in 2025), resulted in Atlas GNI per capita rising by 8.5 percent in 2025. As a result, the Philippines’ GNI per capita reached $4,850, surpassing the WB’s UMIC threshold GNI per capita of between $4,636 and $14,375.

What do we stand to benefit from achieving UMIC?

First, the upgrade reinforces the Philippines’ attractiveness as an investment destination. Stronger investor confidence encourages businesses to invest and expand, creating more jobs and supporting sustained economic growth. It also supports the continued development of the country’s capital markets and expands access to financing.

Second, it also strengthens our creditworthiness, helping us access financing at more competitive rates over time. Since about 85 percent of the government’s financing is sourced domestically, lower borrowing costs can also translate into significant savings that can be redirected to priority programs and services.

Is classification by income levels enough as a measure of development?

No, the income classification is based only on average national income per capita and is not intended to measure how income is distributed or the living standards of every household. We would like to emphasize that this milestone reflects a stronger and growing economy, which in turn will attract more investments, jobs and economic opportunities. It is the government’s job to ensure that these gains translate into tangible and inclusive benefits for all Filipinos.

Is it true that we will lose access to ODA and concessional loans?

There will be no immediate change in our access to concessional financing over the next three years. Over time, we may gradually receive fewer grants, but this is part of the natural transition as countries become more economically advanced. Even beyond that, the impact on borrowing costs from multilateral partners is expected to be very limited – estimated at only around 10 to 20 basis points, primarily due to maturity premiums on certain concessional loans.

What do we need to maintain our upper-middle income classification?

Maintaining UMIC status requires sustaining strong and inclusive economic growth. This means continuing reforms that improve the country’s investment environment. We should also continue to invest in infrastructure and human development while strengthening our macroeconomic fundamentals.

What must be stressed about our country’s total borrowings?

Please note that 70-80 percent total borrowings are from domestic sources. Meanwhile, 20-30 percent are foreign borrowings and only about half of that is from multilaterals and bilateral concessional loans.

So the most important thing about achieving UMIC is that it improves the credit worthiness of our country, which reduces our borrowing cost for everything that is non-concessional, which represents the great majority of our borrowings.

Sara Duterte will be declared guilty

On the political front, if the second day of the Sara Duterte impeachment trial is an augury, then I fear for the Vice President.

She will be declared guilty – most probably on all four counts – 1) malversation or her pocketing P612.5 million of tax money and using thousands of fake receipts to cover up; 2) unexplained wealth with her bank accounts, jointly with husband Manases Carpio, having processed P6.77-billion monies in 18 years despite having earned only P30 million in salaries during the period; 3) bribery by giving regular cash envelops to her subordinates at DepEd and OVP and 4) grave threats, sedition and destabilization by announcing on TV she had contracted assassins to kill President Marcos Jr., the First Lady and former speaker Martin Romualdez, in a revenge killing spree.

Sara could not have found a more greenhorn trial lawyer in the person of Carlo Narvasa, admitted to the Bar only in 2016. The guy could not even articulate in plain English, although he is AB English graduate from Ateneo. He objected to anything and everything. He objected to an NBI agent as an expert witness by the prosecution on Sara’s “killing” videos (overruled). Boy Carlo objected even to the manner prosecution counsel Amando Ligutan (AB Philosophy, summa; juris doctor, UP; national champion, moot court, 2008) pauses between sentences to make a point (and stress the word “kill”) and even before the Cebuano lawyer could utter the initial words of his sentences. Boy Carlo objected to the use of photocopies as evidence, until the impeachment court clarified that accurate printouts of digital files are legally admissible as originals.

Thankfully, presiding senator-judge Chiz Escudero rejected nearly all of Narvasa’s objections and motions.

For her part, VP Sara showed up at the Senate premises at noon Tuesday, ostensibly to consult with her 16 lawyers, but not to show up at her own trial before the impeachment court (IC) that resumed at 2 p.m. She tried hard to exude confidence.

She knows the odds are against her, before the IC and before the court of public opinion. The charges against her are mostly self-evident, easy to explain and easy to prove. Her rants on TV and online videos voicing her intention and plan to kill Marcos Jr. leave many viewers and listeners flabbergasted and exclaim, “My God, what kind of human being is this?”

Sara tried to be poetic, misquoting a famous poem, “Invictus” by William Ernest Henley, which has this memorable line: “Under the bludgeonings of chance/My head is bloody, but unbowed.”

“In this bloodbath and bludgeoning,” VP told reporters hesitatingly, as if trying to recall her notes, “I will be bloodied but unbowed.”

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