World Bank Says That PH Has One of the Widest Wealth Gaps in East Asia

In a study conducted by the World Bank, it was discovered that the Philippines is still lagging in East Asia in closing one of the widest wealth gaps, ranking 15th out of 65 countries on inequality.

In a report called “Overcoming Poverty and Inequality in the Philippines: Past, Present, and Prospects for the Future,” the World Bank stated that despite the Philippines making progress in poverty reduction, this still had one of the highest inequality rates in East Asia.

“The Philippines aims to become a middle-class society free of poverty by 2040, but we know from global experience that no country has managed to make this transition while maintaining high levels of inequality,” mentioned Ndiamé Diop, World Bank Country Director for Brunei, Malaysia, Philippines, and Thailand.

“Inequality of opportunity and low mobility across generations wastes human potential and slow down innovation, which is crucial for building a competitive and prosperous economy that will, in turn, improve the well-being and quality of life of all Filipinos,”  mentioned Diop.

At present, the top 1% of earners together capture 17% of national income as stated by the World Bank, with an estimated 14%being shared by the bottom 50%.

The World Bank likewise stated that while the difference between the bottom and top earners in the Philippines has narrowed, this figure is still higher than other regional peers. Among East Asia Pacific countries, only Thailand is income inequality greater than the Philippines.

Source: Philstar