Senator Loren Legarda has filed Senate Resolution No. 505 calling for an inquiry into the implications of the Philippines' recent classification as an Upper Middle-Income Country (UMIC) by the World Bank, stressing that the country's economic progress should be reflected in the daily lives of ordinary Filipinos.
While describing the upgraded income classification as a significant milestone, Legarda emphasized that the achievement should not be measured solely by economic indicators but by tangible improvements in the quality of life of Filipino families.
The senator said the country's elevation to UMIC status is the result of the collective efforts and sacrifices of overseas Filipino workers (OFWs), laborers, farmers, fisherfolk, professionals, and other Filipinos who have contributed to the nation's development over several decades.
Under Senate Resolution No. 505, the Department of Economy, Planning, and Development (DEPDev), in coordination with the Department of Finance (DOF) and other concerned government agencies, is directed to submit a comprehensive report on the implications of the Philippines' new income classification.
The proposed report will assess government policies and strategies to ensure that the benefits of the UMIC status are experienced across all sectors of society. It will also examine the country's access to concessional financing, official development assistance, grants, and loan terms, as well as the possible effects on sovereign borrowing, credit perception, fiscal space, public investment planning, and the delivery of public services.
Legarda also noted that despite the country's upgraded economic classification, longstanding structural challenges remain, including corruption, unemployment, and the economy's continued reliance on remittances from overseas Filipino workers.
The resolution aims to help policymakers determine how the Philippines can maximize the opportunities presented by its new World Bank classification while ensuring that economic growth translates into inclusive and sustainable development for all Filipinos.
