PH needs 20 years to significantly reduce poverty—Neda chief

Arsenio Balisacan of NEDA. INQUIRER FILE PHOTO

MANILA, Philippines—The country’s chief economic manager told lawmakers on Wednesday that at least two decades of consistent economic growth would be needed to significantly reduce poverty.

National Economic Development Authority director general (Neda) Arsenio Balisacan reacted to Anakpawis Rep. Fernando Hicap’s question why the country’s consistent economic growth under the Aquino administration has not significantly reduced poverty.

“Bakit lumalaki ang ekonomiya pero patuloy na dumarami ang mahihirap sa bansa? (Why is the economy growing but the number of poor is increasing?)” the militant lawmaker asked the Neda chief during the Development Budget Coordinating Committee hearing at the House of Representatives on Wednesday.

Balisacan said no country has ever reduced poverty significantly in just a span of three years.

He said had the previous administrations reduced poverty incidence by a percent per year in the past 18 years, the country’s poverty incidence would have been reduced to only 8 percent.

But under the Aquino administration, government statistics show that poverty incidence went down to 25.2 percent in 2012 , or down one percent from 26.3 percent in 2009.

“We cannot reduce poverty even in the next three years. We need 20 years or so to see significant (growth),” Balisacan said.

“We simply have not grown long enough,” he added.

The budget committee, chaired by Budget Secretary Florencio Abad in representing Aquino finance team, is comprised of the country’s main economic managers, among them Finance Secretary Cesar Purisima, Internal Revenue chief Kim Henares, Neda chief Arsenio Balisacan, and Bangko Sentral ng Pilipinas Governor Amado Tetangco Jr.

The committee aims to assess the overall economic targets, expenditure levels, revenue projection and the financing plan in relation to the national budget.

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