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Raising quality of life is the average Filipino family’s primary concern, and it stands to reason that this would be the focal point of President Ferdinand R. Marcos, Jr.’s fourth State of the Nation Address (SONA) before the joint session of the 20th Congress at the Batasang Pambansa today.
According to the Philippine Statistics Authority (PSA), around 40 percent of Filipinos are considered middle class, a segment that is vulnerable to economic shocks. While the proportion of middle-class Filipinos has generally increased over the past few decades, the Covid-19 pandemic caused a temporary setback.
Yet, this is arguably the proverbial sweet spot. The Philippine Institute for Development Studies (PIDS) characterizes middle-class Filipinos as having “high education levels, stable employment, smaller family size (compared to those in the lower income class), and good access to services.” Some 60.6 percent of residents in urban areas belong to the middle class. Moreover, an expanding middle class does not always result in inclusive development. To avert a slide into a widening income gap, heightened civic engagement must be fostered.
To optimize opportunities for enlarging the middle class and improving the well-being of Filipino families, the PIDS’ seven-point action agenda deserves our policymakers’ consideration.
First: Investment in human capital development. The education system must be strengthened at all levels, focusing on elevating quality and relevance to labor market needs. This includes “investing in early childhood education, enhancing STEM education, promoting vocational and technical training, and supporting lifelong learning initiatives.”
Second: Promotion of inclusive innovation and entrepreneurship. This entails propagating a vigorous startup ecosystem and boosting innovation across all sectors of the economy. This can be achieved through measures such as improving access to finance for MSMEs, streamlining business regulations, and providing targeted support for high-potential industries.
Third: Enhancement of social protection systems. Develop more comprehensive and adaptive programs that can sustain the middle class through economic shocks and transitions. This social protection menu includes unemployment insurance, portable benefits for gig workers, and expanded healthcare coverage.
Fourth: Improvement of urban planning and infrastructure: Invest in sustainable urban development and infrastructure that can support a growing middle class, including affordable housing, efficient public transportation, and green spaces.
Fifth: Promotion of environmental sustainability. All aspects of economic planning and development must be permeated by climate change adaptation and mitigation measures toward building a more resilient middle class and protecting natural resources for future generations.
Sixth: Fostering digital inclusion. Expand access to digital infrastructure, devices, and skills training in order that all segments of society can participate in and benefit from the digital economy.
Seventh: Strengthening governance and institution-building. Improve the efficiency, transparency, and accountability of government institutions in order to build public trust and create a more enabling environment for middle-class growth.
By implementing these policies, the Philippines can work toward realising its vision of becoming a predominantly middle-class society by 2040. By fostering a more inclusive, resilient, and dynamic middle class, the Philippines can build a stronger foundation for long-term prosperity and social progress.
In conclusion, President Marcos’ SONA must go beyond metrics and milestones to reflect meaningful improvements in the everyday lives of Filipino families. The true measure of progress lies in secure jobs, affordable food, accessible healthcare, quality education, and a safer, more hopeful future for all.
