The World Bank has highlighted the importance of empowering local government units (LGUs) in the Philippines to enhance human capital through health, nutrition, and early childhood interventions. This initiative is crucial for the country's aim to achieve middle-class status by 2040, as stated in the latest Philippines Economic Update.
Human capital refers to the health, knowledge, skills, and experience acquired throughout a person's life. Zafer Mustafaoğlu, World Bank Country Director for the Philippines, Malaysia, and Brunei Darussalam emphasized that "the process of building human capital is sequential and cumulative," making it vital to start early in life.
LGUs have a unique role in providing services at individual and community levels due to their mandates under the 1991 Local Governance Code. They are responsible for delivering healthcare, nutrition services, and managing social welfare. They also provide early childhood education services for children aged three to four years.
According to Tara Béteille, World Bank’s Lead Economist and Human Development Program Leader for the region: “Good nutrition in the early years as well as positive early experiences affect the quality of the brain’s architecture.” Investing in early childhood yields high returns on investment for national development.
Despite efforts to support LGUs' roles in human capital development, challenges remain such as a shortage of "early years workers." Béteille noted that these workers—community health workers, preschool teachers—are essential for improving outcomes in health and education sectors.
The report recommends bold reforms including addressing worker shortages, enhancing LGU capacities, and motivating workers with better training and compensation. Performance-based grants could encourage LGUs to prioritize early childhood services while mechanisms like Program Convergence Budgeting (PCB) can help pool resources effectively.
Additionally, harmonizing national and local government roles along with improved monitoring will enable better outcomes for Filipino children's early development stages.