SOUTHEAST Asia is one of the hardest hit by the COVID-19 pandemic disruptions in 2020, which not only slowed down efforts to reduce poverty, but evidently pushed millions of Asians below the poverty threshold. In the Philippines, one of the countries with longest lockdowns, the economy shrank by 9.6% during the first year of the pandemic. From 2018 to 2021 (first semester), the number of poor Filipinos increased from 22.3 million (21.1%) or to 26.1 million (23.7%) (source: Asian Development Bank’s Asian Development Outlook 2022). The country’s poverty threshold is estimated at P12,082 per month for a family of five or about P80 per person per day for basic food and non-food needs. On the other hand, subsistence threshold is estimated at P8,393 per month for a family of five or about P56 per person per day. Poverty is not just about lack of income but demonstrates itself way beyond material aspects — such as hunger and malnutrition, social exclusion and discrimination, lack of participation in decision-making and every aspect of life (UN website). The good news is that the economy has started to recover since 2021 despite the continuing pandemic crisis. This year, Asia’s economy is expected to grow by 5.2% and the Philippine economy by 6.0% (source: ADB’s Asian Development Outlook 2022).

Social mobility, the movement of people along socioeconomic strata between generations, is one significant factor of the movement out of poverty. Even prior to the pandemic, there was low social mobility among low and semi-skilled Filipinos. Based on 2003 to 2009 data, daughters were in better socioeconomic positions relative to the sons and compared to their fathers. In the Philippines, the data show that education is an important social mobility factor. School closures due to the pandemic led to losses equivalent to over half a year’s worth of learning. Learning losses caused by pandemic-induced disruptions in the education system are more impactful for the poor. It is important to note that there are varying policy priorities for promoting social mobility among different socioeconomic groups. For example, direct provision is very important for the “extremely poor,” while subsidies are more important for the “poor.” There are four strategies to consider in facilitating upward social mobility in the Philippines:

• reduce learning losses through resumption of onsite schooling, especially in the poorest provinces

• greater access to public infrastructure and creation of more gainful employment opportunities

• expand social safety nets, particularly healthcare

• narrow the digital divide for capacity building and investment in peoples’ skills

Above are some of the highlights of the insightful presentation of Arturo Martinez, Jr., ADB statistician, during the Financial Executives Institute of the Philippines (FINEX) Meeting with the theme: “Breaking the Cycle of Poverty” held recently. FINEX is an active advocate of poverty alleviation through the FINEX Foundation led by trustee Conchita Manabat and the Social Involvement Committee led by Chairperson Carmen Seriña and Vice Chair Noemi Villaruz. Hats off to these ladies with big hearts.

Inspired by FINEX’s belief that the battle of poverty can be won with emerging collaborations and continuing partnerships of like-minded organizations, FINEX Foundation formalized its partnership with three partner non-government organizations (NGOs), which shared their poverty alleviation programs and impact.

• Tulay sa Pag-Unlad Inc.  (TSPI) a microfinance NGO, represented by Executive Director Alice Cordero. Since its inception some 40 years ago, Alice said TSPI has released P130 billion in micro loans benefitting about four million households.

• Coalition of Services of the Elderly, Inc. (COSE) represented by Rochelle Aqualin, and

• Consuelo “Chito” Madrigal Foundation, Inc. (CCMFI) represented by  Corito Bautista and cousins Chuchu  Eduque and Ging Montinola. CCMFI provides education, training, and housing for distressed families. It was a joy to reminisce with the cousins when both were Citibank trainees.

FINEX poverty alleviation initiatives mainstream the value of teaching the poor “how to fish” through financial literacy and entrepreneurship education with its partner organizations. FINEX President, Mr. Michael Guarin said that the FINEX partnerships for poverty alleviation is indeed a part of the FINEX “Inspiring Market Confidence. Empowering Positive Change” theme.

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The views expressed herein do not necessarily reflect the opinion of these institutions. Know more about #FINEXPhils through www.finex.org.ph.

Ms. Flor G. Tarriela was the first chairwoman of the Philippine National Bank. She is a former Undersecretary of Finance and the first Filipina vice-president of Citibank N.A.  She is a trustee of FINEX and an Institute of Corporate Directors fellow.  A gardener and an environmentalist, she established Flor’s Garden in Antipolo, an ATI Accredited National Extension Service Provider and a DoT Accredited Agri Tourism Site.