Social Investment Landscape

Philippines

The Philippines’ social economy is transitioning to the growth stage, driven by collaborative philanthropy and creative approaches to social funding such as pooled CSR funds

Summary

Executive Summary

In recent years, the Philippines has been among the fastest growing economies in the world, with an average annual growth of 6.3% between 2010-2016, up from 4.5% between 2000-2009. Domestic demand and increased infrastructure spending are expected to enable the Philippines to remain a top performer in 2019, with a projected GDP growth of 6.7%. This growth momentum will likely propel the country from lower-middle-income status to upper-middle-income in the medium term.

Nonetheless, the Philippines’ impressive growth has not translated to improved economic mobility. The 40 richest families account for about 76% of the economy while the country’s poverty headcount ratio, defined as the percentage of the population living below the national poverty line, has only declined slightly from 27% in 2006 to 22% in 2016. Disparities between affluent and poor households remain stark in key health indicators including maternal and child mortality and nutrition levels among children.

The Philippines’ social economy is transitioning to the growth stage, driven by collaborative philanthropy and creative approaches to social funding such as pooled corporate social responsibility (CSR) funds. The country has the second largest impact investing market in Southeast Asia in terms of the amount of capital deployed between 2007-2017. Since 2013, the Philippines has committed to taking nationwide actions to promote environmental, social and governance (ESG) compliance among banks. Moreover, the launch of the country’s first green bond in 2017 might provide the impetus to jumpstart the nascent sustainable finance space.

Philippines's Fact File

Philippines's 2018 Fact File

105 million

Population

USD 875 billion

GDP (PPP)

World Rank 28

6.7%

GDP Growth

USD 8,343

Per capita GDP (PPP)

World Rank 119

54 47 in 2016

World Giving Index Rank

20%giving money 36%volunteering time 51%helping a stranger

32,000

Number of Millionaires

22%

Poverty

56/137

Global Competitiveness Index

Global Competitiveness Rank (2016-2017) – 57/138

124/190

Ease of Doing Business Rank

Ease of Doing Business Rank (2018) – 113/190
Source: ADB, Charities Aid Foundation, Credit Suisse, World Economic Forum, World Bank. Figures are accurate as of March 2019

Dashboard

SDG Dashboard

Low economic mobility, poverty and income inequality, poor health care and nutrition, and environmental degradation are some of the key challenges the Philippines is facing in its development trajectory.
In February 2017, the National Economic and Development Authority Board approved the Philippine Development Plan 2017-2022, the first medium-term plan anchored to the national long-term vision for 2040 or Ambisyon Natin 2040. The Plan aligns the country’s development priorities broadly to the Sustainable Development Goals (SDGs) organised within 5 pillars: (i) enhancing the social fabric, (ii) inequality-reducing transformation, (iii) increasing growth potential, (iv) enabling and supportive economic development and (v) foundations for sustainable development. By 2022, the plan aims to achieve:
  • An upper-middle-income status,
  • Rural poverty rate of 20%,
  • High level of human development,
  • Unemployment rate of 3% to 5%,
  • Greater trust in the government and the society,
  • Greater resilience and drive for innovation.

Source: sdgindex.org (2018)

Note: The “traffic light” colour scheme (green,yellow, orange, red) illustrates how far a market is from achieving a particular goal

Government Initiatives

Government Initiatives to Address Development Gaps

Agriculture

SDG Goals

Gap

  • 26% of the total workforce were employed in agriculture but the sector contributed less than 10% of GDP in 2017.
  • The Philippines’ crop production index steadily declined from 119 in 2012 to 110 in 2017, impacting the country’s food security.

Government Initiatives

  • The Philippine Development Plan seeks to substantially increase the gross value add of agriculture, fisheries and forestry from the baseline value of 1% to 2.5%-3.5% between 2017-2022. Strategies supporting this target include improving agricultural productivity and the capacity of agricultural enterprises.

Climate action

SDG Goals

Gap

  • The 2018 World Risk Index ranked the Philippines the third most vulnerable country in the world with a high risk of tropical cyclones.
  • Climate change will cause crop yields to decrease by 25% according to the Food and Agriculture Organisation (FAO).

Government Initiatives

  • The National Climate Change Action Plan 2011-2028 outlines 7 key priorities: food security, water sufficiency, environmental and ecological stability, human security, climate-friendly industries and services, sustainable energy and knowledge and capacity development. The Philippines has committed to reducing carbon emissions by 70% by 2030.

Education and employability

SDG Goals

Gap

  • The Philippines slipped from 49th place in 2016 to 50th in 2017 in the World Economic Forum’s Human Capital ranking due to challenges in skills application and accumulation through work.

Government Initiatives

  • The Philippine government focuses on improving access and quality of the “K to 12” programme, which covers kindergarten and 12 years of basic education. It is also working to ensure that higher and technical education keeps up with the changing employment landscape.

Energy access

SDG Goals

Gap

  • Almost 10% of the Philippines’ population does not have access to electricity.
  • The country has the second highest electricity costs in Southeast Asia.
  • Total energy consumption is projected to increase at an average rate of 4% annually.

Government Initiatives

  • The Philippine Energy Plan 2017-2040 aims to ensure 100% access to energy, increase renewable energy capacity to at least 20,000 megawatts, establish an investment-driven natural gas industry and promote energy efficiency.

Health care

SDG Goals

Gap

  • 1 in 3 children under 5 years of age are malnourished. The prevalence of stunting increased to 33% in 2017 from 30% in 2013.
  • The Philippines has high rates of maternal and infant mortality, especially in rural areas.

Government Initiatives

  • The Philippine Health Agenda 2016-2022 aims to combat communicable and non-communicable diseases, malnutrition and industrialisation-related diseases. The government is also committed to improving health care service delivery and reducing inequality in access to health care.

MSME development

SDG Goals

Gap

  • MSMEs account for 99.6% of all enterprises but only 25% of the country’s exports.
  • MSMEs’ financing gap is estimated at about USD 2 billion.

Government Initiatives

  • The Magna Carta for MSMEs mandates banks to allocate 8% of their loan portfolio to micro and small enterprises, and 2% to medium-sized enterprises.

Poverty alleviation

SDG Goals

Gap

  • The country’s poverty headcount ratio has declined only slightly from 27% in 2006 to 22% in 2016.

Government Initiatives

  • The Philippine Development Plan 2017-2022 aims to reduce the national poverty headcount ratio to 13%-15% by 2022. Key policy measures include creating more and better jobs, improving productivity, equipping the workforce with 21st century skills, and investment in health and nutrition.

Water and sanitation

SDG Goals

Gap

  • About 9% of the population does not have access to clean water and 18% lacks access to improved sanitation.

Government Initiatives

  • The Philippines aims to achieve universal and equitable access to safe and affordable drinking water an adequate sanitation for all by 2030. It is also focusing on improving water quality.

Social Economy

The Philippines’ social economy is transitioning to the growth stage, driven by collaborative philanthropy and creative approaches to social funding such as pooled CSR funds

DEAL SHARE PLATFORM

Deal Share in Philippines

ASSIST Asia: Developing Green Skills in TVET Graduates

By Asia Society for Social Improvement and Sustainable Transformation (ASSIST)

ASSIST Asia is working to provide supplemental learning for Technical-Vocational Education and Training (TVET) Students and equip them with green skills through a hybrid learning approach, ensuring future sustainable industrial practices in the Philippines.

Climate Action and Environment, Education, Employability

The Renewable Energy Initiative seeks to support renewable energy actors in Asia in adopting policies and practices that make the production and deployment of renewable technologies ecologically safe, rights-respecting and regenerative.

Climate Action and Environment, Energy, Livelihood and Poverty Alleviation

ASSIST Asia: Equipping Disaster Preparedness for Children in the Philippines

By Asia Society for Social Improvement and Sustainable Transformation (ASSIST)

ASSIST is working on Master of Disaster Plus (MOD+), an informative, inclusive and fun-filled board game that aims to train children aged between 8-16 in the Philippines on disaster preparedness and active response to most common disasters.

Climate Action and Environment, Education

Street Business School (SBS) plans to certify 8-10 organisations serving people in extreme poverty in South East Asia to provide SBS entrepreneurship training to up to 3,600 women in their communities.

Education, Gender, Livelihood and Poverty Alleviation

ASSIST Asia: HERO-SEA Project for Healthcare Workers in Southeast Asia

By Asia Society for Social Improvement and Sustainable Transformation (ASSIST)

The HERO-SEA project seeks to address the well-being of the healthcare workers (HCWs) in Southeast Asia who are at the forefront of fighting global pandemics and other health crises through mental health and resiliency skills development.

Education, Employability, Health

Circular Cities Asia is working on a lean innovation programme for young innovators in higher education in Asia. They will learn about the circular economy and innovation and develop entrepreneurial solutions to environmental waste issues.

Climate Action and Environment, Education, Employability

Orbis International trains, mentors, and inspires eye care professionals around the world. We are currently partnering with governments and hospitals in Vietnam to provide eye care to the most needy.

Education, Health

Mapsea Corp.’s job matching platform SEASON is a specialised marine recruitment platform, utilising technology to link marine jobs to the right talent. The returns generated will be directed towards building a marine forest.

Employability

Case Studies

Case Studies in Philippines

Long-term partnership catalyses innovative financing solution for smallholder farmers

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Social Investment Landscape in Asia