Development with Equity

Inequality remains to be the biggest obstacle to the country’s development according to World Bank director for the Philippines Joachim Von Amsberg – thus we cannot say that the country has achieved Development with Equity.

Equity is defined in terms of two basic principles. The first is equal opportunities: that a person’s life achievements should be determined primarily by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of deprivation in outcomes, particularly in health, education and consumption level.

The world development report 2006 encapsulates the very situation of the Philippines – the rampant inequality in terms of income, assets and opportunities. Though the government is continuously creating jobs, yet, the qualified Filipino workers are still small thus leaving a greater number still unemployed.
The labor force population in January 2006 was registered at 35.2 million; this translates to a labor force participation rate (LFPR) of 63.8 percent. The total employment in January 2006 was 32.4 million, which results to national employment rate of 91.9 percent. Now the total unemployed persons numbered 2.8 million in January 2006, which translates to an unemployment rate of 8.1 percent. The incidence of underemployment went up to 21.3 percent in January 2006 from 16.1 percent a year ago.(NSCB).

In terms of income, even if there are about 63.8% unemployed Filipinos, they have meager income, not enough to sustain their needs. And because they have low income, they are remains unable to upgrade whatever assets they have, that is if they have one. It still remains that whoever has the resources, s/he is the one who can afford to acquire new assets, or properties that they can sell in times of need. Indeed it is difficult to attain development with equity in a country like our. However there’s a way to attain this.
In my point of view, maybe our country has to realign its priorities in terms of implementing economic and political reforms.
There is a great need for new policies that would address the country’s need to attain development with equity. The present government has to invest in people – this does not just mean about manpower or labor force, rather it includes especially the early childhood nutrition and development which translates to various issues – food security, sound population policy and better health services. Our country’s countryside still lacks hospitals, health workers, etc. Investment in people also includes quality education services – this does not just mean their college education but their early years in school because it is the basic foundation of every Filipino worker. The far flung areas of the countries still lack schools because the concentration remains in the center, there still are neglected areas and the government has to address this. Also it is important that the high school years until the college education are given utmost attention ensuring that the graduates are equipped with proper education and training in their field. It is a common reality that there maybe a hundred thousands graduates every year but not even 80% are hired because they fail to meet the standards of the company they are applying for even if it is in line with course. Also to consider providing safety nets to insure vulnerable groups from shocks especially because there are groups that needs such attention in cases of war, tragedies – since the country is infested with these kinds of atrocities and calamities; as well abuse cases on women and children.

There is also a need for expansion of access to justice, land, and economic infrastructure such as roads, power, water, sanitation and telecommunications – the basic infrastructures literally and figuratively. People need to be provided with proper justice thus, they should be taught with the law – they should know the law, to know their basic rights. They should also be provided with quality infrastructures not just a kind of road that needs to be repaired after months. The basic services for the people in the country should be good as well if not perfect.

Furthermore, there is also a need for a policy that promote fairness in financial, labor, and product markets, so that poor people have easier access to credit and jobs, and are not discriminated against in any market. In fairness to the present government, PGMA is extending her way to implement programs for poor people to have easier access to credit, but there is still a need for the more sound information dissemination among this group so they can avail of these opportunities and they should be taught as well how to manage it.
Equity in the international arena is also a central concern, and can play a powerful complementary role to domestic action. In a globally interconnected world, leveling the international playing fields, both economically and politically, will help domestic efforts to combine equity with efficiency and growth.

In my view, equity and economic efficiency as well as growth are complementary in the long run to reduce the poverty prevalence - together with the interdependence between the economic and political dimensions of development it also reinforces the importance of empowerment among people who resides in the country.

The country can still meet development with equity so long as the leaders aim for it and do the necessary policies to address the country’s problems not just their personal interests.