BusinessMirror October 14, 2018

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PHILIPPINE STATISTICS AUTHORITY

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BusinessMirror

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A broader look at today’s business n

Sunday, October 14, 2018 Vol. 14 No. 3

BRIDGING THE RICHPOOR GAP Report shows govts split between fighting and fueling income inequality

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By Jonathan Mayuga

OES income inequality matter? If Southeast Asian countries were to be used as barometers, the answer to this would gravitate to the negative side, particularly if the per capita income and the efforts taken by governments to bridge the rich-poor gap are taken into consideration. For instance, Singapore—the wealthiest country in Asean— has a GDP per capita of around $57,700.

However, in the newly released edition of the Commitment to Reducing Inequality (CRI) Index report developed by Oxfam and De-

PESO EXCHANGE RATES n US 54.1710

velopment Finance International, Singapore only ranked 149th out of 157 countries. On the other hand, the Philippines—long considered an economic laggard in Asean despite its vast potential—only has a GDP per capita of around $3,000. But it ranked considerably higher than Singapore in the 2018 CRI Index, landing at 97th. Cases like those of the Philippines and Singapore fuel debates among governments all over the world that fueling—instead of fighting—income inequality is the way forward.

The CRI Index

THE CRI 2018 ranks countries based on social spending, par-

ticularly health, education and social protection; progressivity of tax policy; labor rights and minimum wages. While developed countries dominate the top 10 performers in terms of addressing income inequality, some developing economies are actually making significant strides to narrow the chasm between the rich and the havenots in terms of policies—on social spending, tax and labor rights. These three areas are critical to reducing inequality, according to the CRI 2018 report. The 157 countries ranked showed a clear divergence in governments’ policies. The Republic of Korea, Indonesia and Georgia are Continued on A2

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Enhancing the PHL human capital

WB index shows 1 in 3 Filipino children under 5 still suffers from malnutrition, stunted growth

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By Cai U. Ordinario

OT all Filipino children born nowadays will be able to be as productive as they could be when they grow up, according to the latest report released by the World Bank (WB). Based on the World Bank’s Human Capital Index (HCI), if Filipino children will be able to enjoy complete education and full health support, they will only be 55 percent as productive when they grow up. The World Bank explained that the HCI measures the amount of human capital that a child born today can expect to attain by age 18, given the risks of poor health and education that prevail in the country where he or she lives. “In terms of the overall index, the Philippines performed better than the average for its income group but below the average for the East Asia and Pacific region. The index finds that children born in the Philippines will be only 55 percent as productive when they grow up as they could be if they enjoyed complete education and full health,” the World Bank said in a news statement.

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THE index takes into consideration survival, which measures whether children born today will survive to school age; school, which measures how much schooling children will complete and how much will they learn; and health, which measures if children will leave school in good health and would be ready for further learning and/or work as adults. Data for the Philippines

55%

The percentage of productivity that Filipino children born today would likely attain when they grow up. showed 97 out of 100 children born in the Philippines will survive to age 5. Of these children, those who will be able to start school at 4 years old will be able to complete 12.8 years of school by their 18th birthday. The World Bank said students in the Philippines scored 409 on a scale where 625 represents advanced attainment and 300 represents minimum attainment. However, when years of schooling are adjusted for quality of learning, Filipino children only complete 8.4 years of schooling. This means, the World Bank said, a learning gap of 4.4 years. Data showed that in terms of adult survival rate, around 80 percent of 15 year olds nationwide will survive until age 60. “This statistic is a proxy for the range of fatal and nonfatal health outcomes that a Continued on A2

BIDOUZE STéPHANE | DREAMSTIME.COM

DEPARTMENT OF SCIENCE & TECHNOLOGY

The World Bank’s Human Capital Index index finds that children born in the Philippines will be only 55 percent as productive when they grow up as they could be if they enjoyed complete education and full health.

n JAPAN 0.4825 n UK 71.4895 n HK 6.9122 n CHINA 7.8236 n SINGAPORE 39.1635 n AUSTRALIA 38.2447 n EU 62.4158 n SAUDI ARABIA 14.4433

Source: BSP (October 11, 2018 )


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