Honorable Secretary Arsenio Balisacan of NEDA, Honorable Secretary Renato Solidum, Jr. of the Department of Science and Technology, other government officials, panelists of this forum, leaders of academia, civil society, the private sector, development partners, esteemed guests, colleagues, and friends. Good morning.
The Philippines is on track to enter upper middle-income status in the next couple of years due to a healthy increase in income per capita over the past 14 years. This progress is attributed to good macroeconomic management, continuity in structural reforms and infrastructure development, and steadfast financial support from Filipinos working overseas.
However, merely reaching Upper MIC status should not be the end goal for the Philippines. The aim should be to catch up with Upper MIC not just in income but also in access to quality education, affordable healthcare services, quality jobs, and effective social protection—critical components for maximizing productivity as highlighted in the PDP.
While progress has been made on some fronts, the Philippines still lags behind regional peers. The country's Human Capital Index (HCI) stands at 0.52; this means a child born in 2020 can achieve only about half their productive potential by age 18. This index is lower than neighboring upper-middle-income countries like Malaysia (HCI 0.62) and Thailand (HCI 0.61), as well as lower-middle-income peers such as Indonesia and Vietnam.
Investing in human capital is urgent for the Philippines not only to catch up with regional peers but also because of its long-term benefits. Unlike China, Vietnam, Thailand and Malaysia which are aging fast, the proportion of working-age population in the Philippines is projected to continue increasing for another generation.
To harness this labor potential for growth and technological progress effectively requires more investment in children and youth's skills to meet industry demands. There needs to be greater emphasis on STEM areas.
The future growth trajectory depends significantly on talent management quality: investing both in children's early years and youth human capital while better utilizing talents within the country and abroad. Senegal’s recent offshore oil production exemplifies how Filipino talents are globally recognized; thus emphasizing that investing domestically while leveraging international expertise can maximize prosperity.
In summary: "The wealth of this country is its people," Diop stated. "Prosperity is maximized when people reach their maximum productivity levels." Achieving this necessitates good health care systems alongside robust educational frameworks supported by effective social protections—all facets addressed through comprehensive human capital investments.
Diop outlined three key recommendations from the report:
1) Prioritize early childhood development during formative first ten years where cognitive abilities are shaped.
2) Adopt a multi-sectoral approach integrating nutrition with primary healthcare alongside basic education.
3) Strengthen Local Government Units' capacity through partnerships with central government entities along with private sectors & CSOs ensuring efficient implementation at grassroots levels.
The World Bank remains committed by supporting government initiatives targeting resource allocation towards critical areas needing intervention most urgently via multi-sectoral projects focusing on nutrition healthcare education water supply particularly targeting LGUs displaying significant gaps aligning them closely towards achieving PDP objectives.