A World Bank report that put the Philippines 15th out of 63 countries in terms of income inequality said that the top 1 percent of the country’s earners captured 17 percent of the total national income, with 14 percent of the income being shared by the bottom 50 percent.
“With an income Gini coefficient of 42.3 percent in 2018, the Philippines ranks 15th of 63 countries for which data on income inequality is available. Of (East Asia and the Pacific) countries for which data are available for 2014-19, only in Thailand is income inequality greater than in the Philippines,” said the WB report.
The gross inequality was attributed to “unequal opportunities, slow access to tertiary education among low-income households, inequality in returns to college education, and social norms putting the heavier burden of childcare on women.”
The WB added that while the Philippines was able to alleviate poverty from 49.2 percent in 1985 to 16.7 percent in 2018, the problem of inequality still persists.
“Inequality of opportunity and low mobility across generations wastes human potential and slow down innovation, which is crucial for building a competitive and prosperous economy that will, in turn, improve the well-being and quality of life of all Filipinos,” said Ndiame Diop, the World Bank Country Director for Brunei, Malaysia, Philippines and Thailand.
In a country where the top 1 percent lord over 17 percent of the total national income while the bottom 50 percent make do with a mere 14 percent, more has to be done to reduce inequality. The problem is that it is the same top 1 percent that hold the wealth and the power to make that happen, and that will not happen long as they prioritize their interests. Unfortunately for Filipinos who are feeling the brunt of this inequality, until this country’s leaders feel more empathy towards the struggling masses and relate less with the filthy and well-connected rich, that gap is not going to close anytime soon.*
