There is so much emphasis on "uplifting the poor and the marginalized". That is well and good. But the Philippine Institute of Development Studies (PIDS) has urged all sectors not to ignore or forget the Filipino middle class, who "play a critical role in socioeconomic growth due to their access to higher education and income." The PIDS is celebrating Policy Research Month and has chosen the theme: "Securing a Future for All by Growing a Resilient Middle Class". Researchers from the academe, government and private sectors revisit the AmBisyon Natin 2040 as a goal for everyone to aim for

The Philippine Institute for Development Studies (PIDS) officially launched the 22nd Development Research Month (DPRM) with a kickoff forum and press conference, held at Novotel Manila Araneta City.

With theme, “Securing a Future for All by Growing a Resilient Middle Class”, or in Filipino, “Pagtiyak ng Kinabukasan sa Lahat sa Pamamagitan ng Pagtatag ng Malakas na Middle Class”, the DPRM revisits AmBisyon Natin 2040, which envisions the Philippines as “a prosperous middle-class society where no one is poor”.

During the forum, PIDS Senior Research Fellow Dr. Jose Ramon Albert provided key insights from their study  “Wealth Creation for Expanding the Middle Class in the Philippines”. He described the middle-class household as typically comprising 3 to 4 members, with a monthly income between PHP 24,060 to PHP 144,360. Albert highlighted that this segment represented around 39.8% of the population in 2021 and plays a critical role in socioeconomic growth due to their access to higher education and income.

However, there are threats to this growing demographic. “Many middle-class households have experienced job losses, reduced incomes, and increased expenditure on education and health,” explained Albert. He warned that unless action is taken, these setbacks could hinder the middle class from fully contributing to inclusive growth. To address these concerns, Albert emphasized the need for comprehensive strategy to not only expand the middle class but also make it resilient against global megatrends that can exacerbate existing inequalities.

In their study, Albert and co-authors PIDS Senior Research Fellows Dr. Roehlano Briones and Dr. John Paolo Rivera suggested a four-pronged approach to achieve a sustainable transformation. This includes promoting social justice in natural resource management and climate action, harnessing new opportunities in trade and investments for MSMEs, ensuring a future-ready workforce and social protection, and improving digital governance and public service delivery.

Meanwhile, Undersecretary Rosemarie Edillon of the National Economic and Development Authority (NEDA), who served as one of the forum’s discussants, identified key investment areas that can help fulfill the aspirations of the middle class.  These include housing and urban development, agriculture, manufacturing, connectivity, financial services, and tourism. “We must implement many more strategies so that they can better move up the social ladder,” she stated. Edillon also highlighted the importance of social protection to ensure the welfare and sustained growth of the middle class.

In discussing the broader governance implications, Ms. Daniela Braun, Country Director of the Konrad Adenauer Stiftung, pointed out that good governance is essential in empowering the middle class. “Good governance is not only a worthy goal in itself, but also a means to achieve economic growth,” she said, contrasting the effects of corruption in poorly governed countries with the trust and investment spurred by good governance.

The forum concluded with remarks from Atty. Marco Sardillo III, Executive Director of Asia Society Philippines, who underscored the apparent vulnerability of the middle class, particularly during crises such as the COVID-19 pandemic. “The assumption is that the oligarchs are invested in our politicians, and they look after the poor. It is the middle class that is left to their own devices,” Sardillo noted. He urged both the government and media to raise awareness on middle-class issues, as a more informed population is better equipped to engage in its own development. “If more of us were aware of what is at stake when we talk about the middle class, then maybe we’ll start taking these issues more seriously,” Sardillo said.

The DPRM is held every year in September to promote and draw nationwide awareness on the importance of policy research in formulating evidence-based plans, programs, and policies.

https://pids.gov.ph/details/news/press-releases/22nd-development-policy-research-month-calls-for-the-protection-of-vulnerable-middle-class