The Philippines faces the challenge of addressing structural issues despite its dynamic economy in East Asia and the Pacific. While the country has seen its GNI per capita more than triple and poverty decrease from 33.5% in 2000 to 18.1% in 2021, it still grapples with limited market competition, underinvestment in infrastructure, regulatory issues for foreign investment, and slow agricultural sector growth. These challenges are compounded by the country's vulnerability to natural disasters and institutional weaknesses.
In response, the World Bank Group has initiated several projects to support economic transformation and job creation in the Philippines. A key initiative, the "Philippines Growth and Jobs Report," suggests reforms to enhance growth, labor productivity, and wage increases. These reforms hold the potential to create 1.6 million jobs by 2035, raise real wages by 9%, and increase GDP growth by 1.5% annually over ten years.
The Philippines Second Sustainable Recovery Development Policy Loan (DPO) aims to create an estimated 314,000 more or better-paid jobs by 2025 and increase GDP growth by 0.8% over three years. This DPO is part of the strategy to mobilize sustainable finance, establish a private-public partnership framework, and support green job creation.
The Philippine Rural Development Project (PRDP), launched in 2014 and scaled up in 2023, aims to develop a modern, market-oriented, climate-resilient agriculture and fisheries sector. It created 11,510 jobs within three years, upgraded 2,110 km of roads, and directly benefitted over 136,000 people through sustainable agriculture and fisheries. The project notably increased household incomes by 26% and doubled the annual output value by 118%, reaching over 1.3 million farmers, of which 39% were women.
Key lessons from the PRDP emphasize the need for detailed data collection to tailor interventions effectively and evaluate the mobilization of private sector funding.
Looking ahead, the World Bank Group has outlined a new Country Partnership Framework for the Philippines for 2025-28. This includes support for inclusive growth, climate resilience, and digital transformation. The framework also encompasses the $600 million PRDP Scale-Up to further stimulate growth in agriculture and fisheries, strengthening the rural economy.
Downloadable resources titled "Policies for Prosperity Supporting Jobs Growth and Climate Resilience in Philippines" are available in a PDF format.