University of the Philippines Cebu College Social Sciences Division Gorordo Ave.

, Lahug Cebu City

Responding to the Millennium Development Challenge An Insight Paper

Submitted to: Prof. Anna Marie Talam

Submitted by: Patricia Monique M. Paca

October 2010

I. Summary Poverty is about more than inadequate income..it is about lack of fundamental freedom of action, choice, and opportunity. - James Wolfhenson World Bank Poverty is one factor that hinders the Philippine economy to achieve its goals in meeting the needs of the people. It is in this light that a program referred to as Millennium Development Goals was developed. As a whole, it aims to create a better country for the people. The first goal of MDG is to eradicate extreme poverty and hunger by 2015. This was further divided into two targets halve proportion of families below subsistence threshold and halve proportion of malnourished children. While these targets seem to be realistic and feasible enough, some hindering factors towards achieving them were cited - political and economic instability, rapid population growth, poor government implementation and monitoring, to name a few. As quoted in the article, Business cannot exist within the ocean of poverty. Since business is directly affected by the existence of poverty, a framework was developed for strategic businesses action to be able to contribute to the achievement of the MDGs. These are core business activity, social investment, and policy advocacy. As core business activities towards the eradication of poverty, companies are advised to invest resources to provide or generate business opportunities. Business can help mold entrepreneurs by generating livelihood activities. And finally, companies can support the food fortification and nutrition programs upheld by the government. Moving out into the social sector, companies can help develop social enterprise, make their employees involved in community-based programs, and integrate health and nutrition agenda by social marketing. Finally, since there are business leaders that are considered to be advocate of change, businesses can contribute to the eradication of poverty through carrying out the policies and programs advocated by the government.

II. Insights Poverty is everywhere in the Philippines. But whats sad is that it is being sugarcoated by towering infrastructures, vast highways, and high-technology equipment used in airports, to factories, and down to the automation of election. The sight of these developments takes the notion of poverty out of the typical Filipinos mind. It is heartbreaking to see the figures presented in the article. To know that about a third of all Filipinos are poor, that 16.8% of the population live below the Php107.00 food threshold per day, will make you reconsider you initial thoughts of Philippines moving forward to a better and more productive future. On first look, the eradication of extreme poverty and hunger in the Philippines by 2015 seems possible. But given that the MDGs were formulated 10 years ago, in year 2000, probably people were positive that 15 years will be enough. Today, 10 years after the making of the MDGs, there has not been any significant difference. I believe that the poverty situation has not been alleviated, not even halved. Nevertheless, the MDG has five more years to reach their desired outcome. The first target of the first millennium development goal is to halve the proportion of families living below the subsistence threshold. But this goal is being hindered by a lot of factors like economic instability and the booming of population in the country. The reason why a lot of families live below the subsistence threshold is their family size. Most of the families who have no homes are those who have more children families who earn more. In my opinion, there is nothing wrong with having a lot of children but parents should see to it that they can provide for their growing family. As mentioned earlier, rapid population growth is a hindrance towards achieving the goal. It is because parents are not anymore able to fend for their families, to provide food for their children. This results to a high rate of malnutrition among children who live below poverty line. I think this target will not be achieved in 2015 because this target requires the participation not just of the people behind MDG but of the Filipino people. And since there are still qualms about the RH bill, which I

believe can help solve the booming population growth in the Philippines, this target will be impossible to accomplish within 15 years. The second target cited in the first goal of the MSG is to have the proportion of population who live below the minimum level of dietary consumption and halve the proportion of malnourished children. According to the article, malnutrition is a major threat to a Filipino childs survival. It is sad to know that several children die because they do not receive the proper nutrition they need. And whats worse is that the UN projects this target unachievable by 2015, rather it needs 24 more years to accomplish. I agree with this since the eradication of hunger can impossibly take just 15 years to finish. Also given that this is not the only issue being focused on by the government. Even their goal of minimizing poverty through halving the proportion of malnourished children will take more than 15 years. But it is enlightening to know that the MDG team is doing something about this problem. Even through their small efforts to advocate nutrition programs will be of big help. I believe that if the people behind the MDG will continuously do what they have to do to reach this target, then a country with no one living below poverty line is not that far away. Since business is directly affected by high poverty incidence in the country, it is right for companies to also contribute to the alleviation of poverty. I believe that the core business activities enumerated in the article will really contribute to the achievement of the goals. First, one of the reasons why poverty is at its high these days is because of unemployment. Many of those who live below the poverty line have no jobs, and have no diplomas to support them. If companies will be religious in generating job opportunities, these people will at least have the hope to rise from their situation. By allocating a portion of their investment to create business opportunities, companies will be able to help bring people above the poverty line. Second, there are promising entrepreneurs that are not able to exercise their skills because of poverty. The companies support to these entrepreneurs will surely contribute to the achievement of the MDGs. Lastly, I agree that companies should comply with programs like food fortification and nutrition program. Since poor government implementation and monitoring hinders the realization of the goals, if companies will

contribute to the elimination of this one factor, they will be contributing to the achievement of the MDGs as a whole. Of course, companies should not confine themselves in the field of business; they must extend to the communities surrounding them so they have a better grasp of the things happening in the real world. Therefore, it is but right for companies to engage in social investment and philanthropic activities. Educating the people or engaging them in skills training will be a big push towards the alleviation of poverty. For in doing this, you not just getting these people out of poverty, you are teaching them how. It is good to know that the activities listed under social investment are all doable and are possible to achieve within the given period. Same as in the core business activities, the integration of health and nutrition was also included in the philanthropic activities of the MDG. I agree with the fact that health and nutrition is being laid more attention since poverty is directly linked to poor health and malnutrition. Making businesses work for the poor. This is the content of the third sphere of influence. The last among the companys spheres of influence is policy advocacy or dialogue. The first two spheres were all about generating activities that companies could do to help in the accomplishment of MDG; this third sphere focuses more on implementation and putting advocacies into real action - especially those that encourage the poor to engage in their own business to recover from poverty. Since companies are advised to encourage promising entrepreneurs to continue and start up their own small businesses, policy advocacy puts a prime on the hastening of the registration process for start-up businesses. I agree with this because it somehow encourages the rising entrepreneurs to push through with their own businesses. And consistent with the first two spheres of influence, policy advocacy also takes note of the importance of nutrition education. Knowing that the MDG team has been consistent with their provisions on the promotion of nutrition programs, gives me high hopes that eventually the MDGs will be reached and realized.

III. Recommendation The MDG has set a very important trend in businesses helping in the alleviation of poverty in the country. But development does not stop in setting goals. The team must work to develop more feasible strategies. It is a good point that they have identified what hinders them from achieving their goals, so they can do something about them. In order for a faster goal accomplishment, they must first eliminate the hindering factors. For example, they know and they have cited that the rapid population growth hinders their goal to halve the proportion of people living below the subsistence level, they must first do something about the rapid population growth in the country so they can work their way to the target. Also, the people should be informed more about this project. They must make this readily accessible through the utilization of media. Not all people have access to internet which may be the reason why only a few, probably only those in school, know about this. It is important for the Filipino people to gain knowledge about this program so they can also act accordingly. I believe that the issue about poverty is not new to Filipinos. What is new to them is that the Philippine Business Sector is actually doing something to ease the worsening situation. I am favorable to the idea the businesses in the country are contributing to the eradication of poverty in the country. Hence, they should continue this program even beyond 2015. If goals are not met within the desired period, I hope that they will still pursue with their goals. After all, it is not the poor alone who will benefit in this pursuit; it is the whole country and its people.