New report shows drastic economic impact of illiteracy on the Philippines

by Cristina Chi Philstar.com

MANILA — A new report by the World Literacy Foundation found that the problem of illiteracy costs the country’s economy an estimated P258 billion or $4.72 billion every year.

In its report “Economic Cost and Social Impact of Illiteracy” released Monday, April 3 the international organization said they found that the impact of illiteracy cuts across different aspects of social welfare and the economy.

To approximate the economic impact of illiteracy on people’s personal income and on a country’s national income, the World Literacy Foundation used UNESCO’s mathematical formula for calculating the economic impact of illiteracy.

The study, released ahead of the threeday literacy conference held by the World Literacy Council, found that the estimated cost of illiteracy to the global economy is estimated at $1.19 trillion.

“Around the world, the impact of illiteracy on personal income varies but it is clear earning potential is limited. Illiterate people earn 30%-42% less than their literate counterparts,” the report said.

It added that people who cannot read or write struggle to find opportunities to increase their earnings due to the absence of basic literacy skills needed for vocational