Increasing investment in children's early development will improve the well-being of all Filipinos and strengthen the country's economic potential, a World Bank report released on Monday said.
The report, "The Philippines Human Capital Review: Investing in the Early Years to Boost Human Potential," describes the importance of health, nutrition, education, and social protection during the first decade of life. Investment in these areas boosts human capital, which is the accumulation of knowledge, skills, health, and experience that allows citizens to realize their potential as productive members of society.
“For the Philippines to successfully navigate the transition to an upper middle-income status, it will need to ensure that its population is equipped with the education, skills, and health necessary to meet the demands of a more complex and competitive economic landscape,” said Ndiamé Diop, World Bank Country Director for Brunei, Malaysia, the Philippines, and Thailand.
“The Philippines has a relatively young population, which can be a significant asset if the youth are well-educated and healthy. This demographic dividend can only be harnessed with adequate investment in human capital,” Diop added.
The demographic dividend refers to the economic growth potential that arises when the labor force is growing more rapidly than the population dependent on it. To realize that potential, countries must implement policies that invest in human capital and enable employment of the growing workforce.
However, according to the World Bank’s Human Capital Index (HCI), which measures health and education contributions to productivity for future workers' generations; The Philippines lags behind its regional peers. Due to underinvestment in key areas like health services and education Filipino children born today are projected only about half as productive when they reach adulthood as they could be.
Several factors contribute towards this productivity gap including limited access & unequal distribution regarding educational & healthcare facilities; low proficiency levels foundationally such as reading writing numeracy problem-solving etc.; pervasive poverty inequality along heightened vulnerability from natural disasters exacerbated by climate change says report findings.
World Bank Economist Toni Joe Lebbos emphasized criticality early childhood development within context overall human-capital strategy requiring comprehensive national-level plans extending essential 'early years services' countrywide:
"Early years services such as nutrition programs early childhood education help ensure children develop necessary social emotional cognitive physical skills helping them succeed school later life," stated Lebbos adding interventions demand firm commitment collaboration government agencies digital transformation service delivery inclusion disadvantaged populations locally governed units (LGUs) playing pivotal roles thus enhancing capacities becoming urgent priorities targeted capacity-building budget support lagging LGUs equitable incentive mechanisms recommended boosting performance accordingly