Growth with redistribution, finally: Regional poverty and inequality in the Philippines, 2000–2018

Abstract

While the poverty reductions in the Philippines in 2012–2018 are modest compared to what Vietnam, China or Indonesia achieved, all trends indicated the country's continuing growth will be inclusive. This paper traces the evolution and decomposition of poverty and inequality in 2000–2018 using official national household surveys. We find the growth since 2012, unlike before, was consistently pro-poor. Moreover, growth and redistribution aligned after 2012 to reduce poverty, whereas often before 2015 they offset each other's effects. Inequality improved, as the proportions of households with both heads and their spouses employed or receiving domestic assistances have risen faster among the poor than among the non-poor. Finally, the overall trends in the quality of growth and its contribution and that of redistribution to poverty adjustments are reflected in most regions. The Philippine experience in 2000–2018 thus underscores that growth alone does not ensure poverty reductions, while growth with government-directed redistribution can.