THE PHILIPPINES may find it difficult to graduate to upper middle-income status if the government does not solve the problem of flooding, GlobalSource Partners said.
“Despite the government of President Marcos spending about half a trillion pesos on flood control projects in just over two years, and there are about 5,000 of them, nothing seems to have come out of such massive public spending,” GlobalSource Country Analyst Diwa C. Guinigundo said in a brief.
“If this persistent issue of flooding is not addressed and addressed decisively, the Philippines will find it extra difficult to break out of the lower middle-income group.”
The Philippines remained a lower middle-income country with a GNI per capita of $4,230 in 2023, according to the World Bank’s income classification standards. It has remained a lower middle-income economy since 1987.
Gross domestic product (GDP) needs to expand by at least 6% annually in the near term to ensure significant growth in incomes. However, the persistence of natural calamities will continue to hamper growth, Mr. Guinigundo said.
“Natural calamities go with the territory. They challenge the durability of infrastructure and sustainability of economic growth,” Mr. Guinigundo said, noting that Typhoon Yolanda (international name: Haiyan) in 2013 alone cost the Philippines around $13 billion or around 5% of gross domestic product.
“More outlays for flood control will just be dissipated and money allocated for key infrastructure projects will just be wasted because they are likely to be devastated during similar weather shocks.”
The government must establish a robust flood control and management plan — combining both engineering and localized planning best practices — to ensure the proper use of flood control budgets, Mr. Guinigundo said.
“For despite all the public money thrown at so-called flood control, the Philippines has remained on top of the World Risk Report for 2024 for its lack of coping and adaptive capabilities.”
The Philippine risk score rose to 46.91 this year from 46.86 in 2023, remaining the most at-risk country for the 16th straight year, according to the World Risk Index.
As of early Monday morning, deaths caused by tropical storm Kristine (international name: Trami) hit 116, according to the National Disaster Risk Reduction and Management Council.
“Effect on life and property could have been somewhat mitigated if preemptive measures had been taken earlier when PAGASA (the government weather service) warned in its advisory that the tropical cyclone was serious, as it turned out to be. For many cities and provinces, it was the worst in a couple of decades,” Mr. Guinigundo said. — Beatriz Marie D. Cruz