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The main goal of the Philippine Development Plan, 20112016, is Inclusive Growth- growth that is rapid enough to matter... sustained growth that creates jobs, ...and continuously reduces mass poverty. Poverty incidence did not change much from 2006 to 2012. Doubtful that the trickle-down effect of usual marketdetermined economic growth could achieve inclusive growth till end of Plan. Hence, need to shift central focus of plan from rapid and sustained economic growth to employment generation and livelihood improvement that will reduce mass poverty.
The Poor are not homogeneous and experience poverty differently. Hence, Plan must be poor-people-responsive which includes gender responsiveness. Key requirement is participation of target group.
The government uses tools of monetary and fiscal policy to achieve goal of inclusive growth that includes the objectives:
a. b. c. d. full-employment, economic stability, gender and class equality, and protection of the environment.
Need for an alternative framework for monetary and fiscal policies: Use policies to generate more employment and improved livelihood for the poor.
Example A: Shift central bank policy goal from inflation targeting to employment targeting especially for poor women.
Example B: Central bank manages fluctuations in foreign exchange rate to cushion fluctuations in peso value of remittances from OFWs who are predominantly lowerskilled women
Example C: Government should initiate policies to redistribute income and assets for generation of more revenues :
More progressive income taxation Faster completion of land reform program Encourage culture of philanthropy and social responsibility among the upper income classes. Creative partnership between private sector investors and government in improving physical infrastructure in poor communities
Example D: Government provides direct income transfers for the extremely poor families such as the Conditional Cash Transfer program.
Example E: Public works employing poor women and men to improve physical infrastructures in poor communities.