Lensay B.

Jeremias
Grade 12 GAS-B

National
The Impact of the Global Financial Crisis on Poverty in the Philippines

Abstract:

The recent global financial and economic crisis which started in the United
States and expanded to other developed countries has, to some extent, affected
developing countries as well. Given the vulnerability of most developing
countries, it is important to monitor the impact of this global crisis on poverty.
This study, therefore, aims to assess the impact of the crisis on poverty in the
Philippines. The result of this study would serve as inputs to policymakers in
prioritizing mitigating measures that would address the impact of the crisis. In this
study, monitoring is done primarily through the conduct of CBMS surveys in
selected sentinel sites. Household- and community-level data were collected to
capture the different dimensions of poverty. In addition to the CBMS core
indicators, specific indicators (including the outcome and impact indicators) were
monitored to determine the impact of the global crisis. These indicators were
identified based on the relevant key transmission channels for the Philippines
including overseas employment and remittances, and local employment. The
study also looked at the different coping mechanisms adopted by the households
in response to the crisis.
Regional
Suicide cases increasing due to global economic
crisis.
Bicol region feeling its brunt.
By Carl Ala, is a political economist and finished
Development Studies at the University of the Philippines-
Manila.

We are just feeling the first effects of the global

economic crisis but our country men are already hard hit.
Just take the numerous firms particularly the pre-need,
insurance, factories and rural banks that have already
declared bankruptcy and affected thousands of Filipinos.

The crisis has not only hit the lower strata of our
population but the well-off section as well. Trina Etong,
the wife of broadcaster Ted Failon, was among them as
she took her life due to a failed investment. Of course
the effect on the basic sectors like workers and farmers is
more pronounced because what is involve in their case is
not just about investments but the food and future of
their families.

In a Third World country like the Philippines, the

average portion of a family’s income allotted for food is
almost 75%. Most Filipinos have trouble putting food on
their table three times again let alone have their children
educated. Even without the global economic crisis, their
lives are already very hard, so when they further feel the
effects of the crisis many Filipinos lose hope and some
resort to suicide.

In Sorsogon alone there are at least 26 cases of

suicide starting January this year and the cases are also
increasing in Albay and other Bicol provinces. I think that
at least 75% of these cases are economically related and
the other 25% cases are for other reasons.

The government should immediately act on this

before this becomes worse. Some measures that it can
do to address this is to declare a moratorium on tax
increases and new taxes for at least 5 years. So the new
text tax and the increase in fines for traffic violations
should definitely be shelved. Also in protecting Filipinos
particularly consumers from the onslaught of the crisis,
the government should at the minimum place price
controls for basic commodities like rice and petroleum
products as well as put a freeze in increases in power and
water rates and tuition fees.
Local

The Impact of the Economic Crisis on Local

Governments
The international economic slowdown has had a deep
impact on local governance. It challenges local
governments to improve their economic policies and
increase their efforts to promote local economic
development. However, local governments are also an
important part of the solution to the crisis, by offering an
effective lever for economic development. These are
some of the main conclusions of the recent report ‘the
Impact of the Global Crisis on Local Governments’ of
United Cities and Local Governments (UCLG).

The UCLG report provides a global vision on the

impact of the economic slowdown on local governments.
According to the UCLG, the crisis has had a direct
influence on the size and composition of local
government finances. However, this impact varies from
country to country, depending on the level of
decentralization and exposure to global markets.
National governments in countries with relatively low
levels of decentralization, for example, utilize most of the
available sources to improve the economic situation on
the national level. This leads to serious strains on and
budget gaps in local government finances.