EDITORIAL – Inequality

The rich get richer and the poor get poorer, and neither people power 1 nor 2 has changed this state of the nation. The country’s economy continues to grow, but the growth has not been enough to reduce the income gap between a tiny elite and the big majority of the population. And that yawning inequality, according to the World Bank, is one of the biggest obstacles to development and the reduction of poverty in the country and the rest of Asia.

Inequality is glaring in the Philippines, where nearly a third of national income is controlled by only five percent of households, according to the World Bank. A fourth of households, meanwhile, account for only six percent of national income, the bank’s country director for the Philippines, Joachim von Amsberg, said.

The country has lagged behind neighboring countries such as Indonesia and Thailand in poverty reduction from 1990 to 2000, Von Amsberg reported. He attributed the slow progress to high inequality combined with modest economic growth. Von Amsberg called for "equity enhancing policies" that Philippine officials surely know are needed for poverty alleviation. Budget constraints, a general deterioration of public services and lack of political will, however, have held back the proper implementation of these policies.

Education, which is supposed to open opportunities to the poor for advancement in life, is not living up to its promise as the quality of education especially in the public school system steadily deteriorates. There is a widening divide in the quality of education available to the rich and poor. Millions of Filipinos have access only to the most basic of health care services. Microlending programs are available but their coverage is limited. The agrarian reform program is faltering from lack of the necessary farm support services.

Worse, a feudal political system that has remained unchanged since the establishment of the republic contributes to the perpetuation of social inequalities. Unless sweeping changes are made, the country could find itself the region’s laggard in poverty reduction.