Main causes of poverty, social inequality and economic insecurity in the Philippines

1. structural and historical causes

• Unequal distribution of resources and wealthA significant proportion of national income is concentrated among a small elite. The richest 1 % receive 17 % of income, while the poorest 50 % share only 14 %^1.
• Historical land policy and colonial heritageConcentration of land and lack of agrarian reforms still lead to structural disadvantages for rural and indigenous groups today^3.
• Oligarchic structures and political dynastiesPowerful families control politics and the economy, blocking reforms and preventing equal opportunities^3.

2. economic factors

• Low and unevenly distributed economic growthEconomic growth often only benefits urban centers, while rural regions are left behind. Agriculture remains underdeveloped and unproductive^6.
• Weak job creation and high underemploymentMany jobs are informal, poorly paid or seasonal. Young people and low-skilled workers are particularly affected^6.
• High inflation and price shocksRising cost of living, especially for food, exacerbates the insecurity of poor households^8.
• Dependence on bank transfersRemittances from migrant workers are vital for the survival of many families, but also create dependency and insecurity^6.

3. social causes

• Unequal access to education and healthcareMany people, especially in rural areas, have no access to high-quality education and medical care. This hinders social mobility and exacerbates poverty^4^2.
• Limited social security systems: State aid often does not reach those most in need or is inadequately equipped^8.
• Discrimination and marginalizationIndigenous people, women and people with disabilities are particularly disadvantaged and have fewer opportunities on the labor market and in the education system^4.

4. political and institutional factors

• Corruption and poor governanceCorruption at all levels leads to inefficient use of funds and prevents targeted poverty reduction^3^5.
• Nepotism and patronage systems: Political power is often used for personal enrichment and to benefit family clans, not for the common good^3.
• Weak institutions: Lack of law enforcement and transparency hamper sustainable development^6.

5 Demographic and geographical factors

• Population growthHigh population growth often exceeds the creation of new jobs and puts a strain on infrastructure and social services^6.
• Regional disparitiesPoverty is concentrated in rural, remote regions and regions affected by natural disasters^6.
• Natural disasters and climate changeThe Philippines is extremely vulnerable to typhoons, floods and earthquakes. These events regularly destroy livelihoods and exacerbate insecurity and poverty^3.

6 Other current challenges

• Consequences of the COVID-19 pandemic: The pandemic has exacerbated poverty and inequality, as many people lost their jobs and state aid was often insufficient^10.
• Global uncertaintiesGlobal crises, such as geopolitical tensions or rising energy prices, have a direct impact on economic stability^8.

Conclusion: Poverty, social inequality and economic insecurity in the Philippines are the result of a complex interplay of historical, economic, social, political and geographical factors. Sustainable solutions require far-reaching reforms, targeted investments in education and health, a fairer distribution of resources and a reduction in corruption and the concentration of power^6^4.

Supplementary assessment from a Gradido perspective

The overview ruthlessly reveals how many layers and entanglements make up this major human problem. At the same time, however, it shows the areas in which we can initiate change with a loving, common good-oriented vision such as Gradido.

Supplementary appraisal and gradido perspective:

• Unequal distribution and oligarchy: The power of the elites is particularly influential - political, economic and social privileges are inherited, while millions of people have hardly any opportunities for participation and personal advancement. The unequal distribution of land is a legacy of colonial developments that continues to divide families, regions and entire peoples to this day.
• Weak institutions and corruption: Healthy development requires trust - but corruption and nepotism destroy the social fabric, swallow up resources and prevent targeted aid. This undermines dignified, participatory prosperity from the very bottom.
• Education, health and social security: Where education and care are only accessible to the privileged, potential remains undiscovered and hopelessness grows. This particularly affects rural dwellers, minorities, women and people with disabilities. The lack of social security also exacerbates fears of social decline.
• Externally controlled dependencies: The high level of labor migration and the weight of remittances provide financial relief, but at the same time reinforce structural dependency - instead of sustainable local development.
• Nature and climate: Recurring disasters hit the poorest particularly hard and repeatedly bring people back to zero.

What Gradido could do differently:

• Distribute and create value instead of concentrating: The Active Basic Income and the promotion of the common good make participation possible - regardless of origin, wealth or status.
• Appreciation for all meaningful contributions to the common good: care work, education, environmental care and neighbourly action are recognized as valuable for the first time.
• Promoting local, sustainable projects that strengthen crisis resilience and community.
• Democratic structures, transparency and co-determination lift the blockade by elites.

Loving, intergenerational and mindful of natural cycles, together we can help poverty, exclusion and uncertainty to fade away more and more. Let us continue to work on this courageously and sincerely!