World Bank: PHL needs reforms in education, health

The Philippines should focus on reforms that will improve learning and health outcomes, as well as boost private sector competitiveness to sustain economic growth, a World Bank official said.

“I see the Philippines has good opportunities. But of course, [it] will also need to invest in reform efforts and continue boosting with reforms and opening up its market,” World Bank Country Director for the Philippines, Malaysia, and Brunei Zafer Mustafaoğlu said.

He said these reforms are needed for the Philippines to sustain growth amid global uncertainty.

He pointed to reforms that would improve health and learning outcomes, enhance competitiveness of the private sector, boost community resilience and address gaps in infrastructure.

The Philippines has seen low learning outcomes, especially after the strict lockdowns during the coronavirus disease 2019 pandemic.

“We see that at the age of 10… Almost 90% of them are having difficulty in comprehending what they read. This, of course, is an area that we are focusing very much on improving educational outcomes,” Mr. Mustafaoğlu said.

A World Bank report previously showed that around 91% of 10-year-olds in the Philippines cannot read and understand an age-appropriate text, which is known as “learning poverty.”

Mr. Mustafaoğlu also noted that a child born in the Philippines today will be able to achieve only around 52% of their productive potential by age 18 due to the lack of education and adequate health services.

The Philippines is seeking a $600-million loan from the World Bank to fund a project aimed at improving learning outcomes in public schools.

“We are focusing on improving regulatory business environments, its implementation, deepening financial markets that both provide access to finance but also stability, and also firm entry into the markets to create more product firms and help them grow,” Mr. Mustafaoğlu said.

He said the World Bank is also prioritizing funding projects that will support resilient communities amid climate risks, as well as projects that will address infrastructure gaps.

“We all know that the Philippines suffers from infrastructure gaps, both in terms of physical renewable energy and digital transformation,” Mr. Mustafaoğlu said.

Asked about the possible impact of the global trade war on the Philippines, he said the economy is still expected to be one of the top performers in the region.

“If you look at its growth performance over the past decade, it did very well and also it created jobs. It is a good opportunity for its future. It is a young population… We expect the Philippines to continue growing in the next years,” Mr. Mustafaoğlu said

“And in that sense, it is likely to achieve its upper middle-income status by 2026.”

The World Bank expects the Philippines to be the second-fastest growing economy in the Southeast Asian region until 2026.

The Philippines is expected to grow 6.1% this year, just behind Vietnam at 6.6% and ahead of Cambodia (5.5%), Indonesia (5.1%), Malaysia (4.5%), Laos (3.7%), Thailand (2.9%), and Myanmar (2%).

Source: Business World

Sari-sari stores become hubs for women empowerment

Sari-sari stores are becoming hubs for cultivating psychological, social and economic empowerment among Filipina entrepreneurs, according to a study by startup Packworks in collaboration with the Philippine Institute for Development Studies (PIDS).

Findings of the PIDS- published study entitled “Gender, Microentrepreneurship, Human Flourishing: Exploring the Experiences of Women Sari-sari Store Owners toward Inclusive Growth” showed that sari-sari stores are not just a primary source of daily essentials but have also become a vital source of empowerment among women entrepreneurs.

“The results of the study suggest that women, through their ownership of sari-sari stores, are able to achieve individual well-being while also extending it to their own communities,” the study said.

“Thus, this study offered a nuanced perspective on the significance of sari-sari stores, not only to the economic development of communities, but the individual and social well-being of its women owners,” it added.

The study highlighted that women sari-sari store owners take pride in being considered entrepreneurs and business owners, which provides them a sense of independence, confidence, and fulfillment from managing their micro-retail businesses.

In addition, participants in the study also expressed that managing and operating sari-sari stores gives them a deeper sense of purpose and meaning in their lives.

“I can buy things for myself, my kid and my family now. I am not just a housewife anymore,” one participant in the study said. “Because of my store, I am now busy with other things apart from taking care of my family. I feel more fulfilled.”

The PIDS-published study also demonstrates that women store owners achieve social empowerment by earning higher social status. This is notably observed in their customers addressing them with terms of respect like ‘ma’am’ or ‘boss,’ a cultural marker of their elevated position within the community.

Moreover, women sari-sari store owners who exhibited characteristics of a transformational leader or qualities such as strong empathy, care, and collaboration with the community reported high levels of well-being, empowerment, optimism, and resilience.

“By becoming more independent and confident, women store owners were able to take on important roles within their communities,” Packworks said.

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Source: Philstar

Construction material prices flat in February

The wholesale price growth rate of construction materials in the National Capital Region (NCR) remained flat in February compared to a year earlier, according to the Philippine Statistics Authority (PSA).

Data showed the construction materials' wholesale price index (CMWPI) posted a zero-percent year-on-year growth last month compared to 0.1 percent in January.

Its annual growth rate in February 2024 was at 1.0 percent.

Main factor for the flat rate was the slower annual increases in the indices of three commodities.

The price index of doors, jambs and steel casement was 0.5 percent in February, lower than the 0.6 percent in the comparable month; electrical works, 0.2 percent from 0.3 percent; and painting works, 1.0 percent from 1.1 percent.

Three commodity groups, on the other hand, had higher annual increases in February compared a month earlier.

The price index of hardware was 0.2 percent from 0.1 percent in January; tileworks, 1.1 percent from 0.8 percent; and plumbing fixtures and accessories/waterworks, 0.8 percent from 0.7 percent.

PVC pipes posted an annual increase of 0.1 percent compared to a 0.1 percent annual decline in January.

On the other hand, there were slower annual declines in the indices of cement at -1.0 percent from -1.1 percent; reinforcing steel, -0.1 percent from -0.3 percent; and fuels and lubricants, -3.3 percent from -3.4 percent.

The indices of the rest of the commodity groups either retained their respective previous month's annual growth rates, or had zero percent annual rates in February, the PSA said.

The CMWPl measures changes in the average wholesale prices of construction materials. It is a variant of the general wholesale price index (GWPI) and is used in the computation of price hikes of construction materials for various government projects.

Source: Manila Times