Results
- Philippines Second Sustainable Recovery Development Policy Loan will result in the creation of an estimated 314,000 more or better-paid jobs through 2025
- Estimated to boost GDP growth by 0.8% over 3 years
- Philippine Rural Development Project created 11,510 infrastructure jobs in three years
- Over 136,000 people benefit from new or better jobs in agriculture or fisheries
- 46% increase in the income of beneficiaries involved in enterprise development
- 1.3 million farmers with agricultural assets or services, of whom 39% were women
The Challenge
While the Philippines has been one of the most dynamic economies in the East Asia and Pacific region, with GNI per capita more than tripling, and poverty declining sharply from 33.5 percent in 2000 to 18.1 percent in 2021, it still faces a complex range of structural challenges. These include limited market competition in several key sectors; underinvestment in infrastructure; regulatory restrictions that impede foreign direct investment; and low growth in the agriculture sector, heightened by vulnerability to natural disasters and institutional weaknesses. Three World Bank Group engagements – a jobs report, a development policy loan (DPL), and a rural development project – highlight the importance of transformational economic reforms to promote employment in middle-income countries.
WBG Approach
The upcoming Philippines Growth and Jobs Report identifies essential reforms to boost growth, job creation, and labor productivity and wage increases. These reforms could create an estimated 1.6 million jobs by 2035, increase real wages by 9 percent, and boost GDP growth by 1.5% annually over a decade. The report aims to inform policy discussions and reform efforts, offering robust analytics and detailed policy recommendations that can inform Development Policy Operations (DPOs).
By encouraging private investment in infrastructure services, the Philippines Second Sustainable Recovery DPO will result in the creation of an estimated 314,000 more or better-paid jobs through 2025, and will boost GDP growth by 0.8% over 3 years. Other policy actions under the DPO include the mobilization of sustainable finance, establishing incentives framework for private-public partnerships, and support for green job creation.
Launched in 2014 and scaled up in 2023 the Philippine Rural Development Project (PRDP) aims to establish a modern, value-chain oriented, and climate-resilient agriculture and fisheries sector. Its rural infrastructure and market linkage component generated a total of 11,510 jobs within three years, including over 4000 jobs for skilled workers. By mid-2024, 2110 km of roads had been built of the 2552 funded under the program. Over 136,000 people benefitted directly through new or better jobs in sustainable enterprises in agriculture or fisheries. The project also improved the technical capacity of 81 Provincial Local Government Units (PLGUs) to plan and manage subprojects in the agriculture sector. It achieved a 26 percent increase in real household income of beneficiaries, a 46 percent increase in the income of beneficiaries involved in enterprise development, and a 118 percent increase in the value of annual output. It reached over 1.3 million farmers with agricultural assets or services; 39 percent of these beneficiaries were women farmers.
