PHILIPPINE DEVELOPMENT PLAN 2017-2022

The National Economic and Development Authority launched the Philippine Development Plan (PDP)
2017-2022, the blueprint for the country’s development under the Duterte Administration, in Pasay
City, Friday.

Over 300 people from the public and private sectors attended the event, titled Aksyon para sa
AmBisyon: The Philippine Development Plan Expo.

The PDP 2017–2022 largely stems from the 0-10 point Socioeconomic Agenda. It is the first of four
medium-term plans that will work towards realizing AmBisyon Natin 2040, the collective vision of
Filipinos over the next 25 years.

Now available online, the PDP has 21 chapters aimed at laying a strong foundation for inclusive
growth, a high-trust and resilient society, and a globally competitive economy—all of which will
enable Filipinos to achieve their aspiration of a “matatag, maginhawa, at panatag na buhay.”

The said plan is structured along the pillars of malasakit (i.e., enhancing the social fabric), pagbabago
(i.e., inequality-reducing transformation), and patuloy na pag-unlad (i.e., increasing growth potential).

The PDP has set targets that the government aims to achieve.

By 2022, the Philippines will be an upper-middle income country. The growth rate of GDP is set at 7
to 8 percent in the medium term.

Overall poverty rate is targeted to decline from 21.6 percent in 2015 to 14 percent by 2022. Poverty
incidence in rural areas is intended to decrease from 30 percent to 20 percent for the same period.

The unemployment rate will also go down to 3-5 percent by 2022 from 5.5 percent in 2016.

Other targets are higher trust in government and society, more resilient individuals and communities,
and a greater drive for innovation.

Embedded in the PDP are bedrock strategies that provide the necessary environment for the plan to
work. These include achieving peace and security, accelerating infrastructure development, building
resilient communities, and ensuring ecological integrity.

“We already have the goal. Now here’s the plan to turn AmBisyon Natin 2040 into reality,” Secretary
of Socioeconomic Planning Ernesto M. Pernia said.

Senator Loren Legarda, National Competitiveness Council Chairperson Guillermo Luz, and Dean
Dennis Mapa of UP School of Statistics were present in the Expo and spoke on the pillars of the PDP.
The Expo also featured booths showcasing the strategies set in the PDP, as well as plans and
ongoing programs of government agencies.

Case Study: Philippine Development Plan

“In creating an enabling environment towards the country’s viable and sustainable development,
it is crucial that the government improves the country’s access to energy.” The Philippine Energy
Plan for 2012-2030 is the overarching plan for energy and is heavily influenced by the 5 year
development plans created by the administration. The Philippine Development Plan 2017-2022
(PDP) is a massive undertaking in improving the country’s infrastructure, increasing energy
access, lowering costs for citizens, keeping up with economic growth, and staying within the
bounds of global agreements for climate change and sustainable growth. It was approved by the
National Economic and Development Authority (NEDA) Board and President Rodrigo Duterte
on February 20th, 2017. Although the plan directly tackles Sustainable Development Goal #7,
affordable and clean energy, the energy access also addresses issues of poverty, education, work
and economic growth, sustainable communities, and many other of the development goals of the
UN. Several metrics were used to create the strategies for the PDP. The Philippine government
is expected to grow 7-8%, with poverty decline targets of 21 to 14%. The Philippines also
targeted unemployment, inequality, resilience, and several other factors.

The Three Pillars: Malasakit

The Tagalog word meaning ‘care’, Malasakit refers to the goal to regain people’s trust in public
institutions and each other. These strategies aim to promote awareness of anti-corruption
measures, invigorate the public sector, increased access to legal aid, and promoting culture
sensitive governance.

The Three Pillars: Pagbabago

The Tagalog word meaning ‘change’, Pagbabago is strategy aimed at reducing inequality by
increasing opportunities for growth and transformation. The popularized term has been ‘inclusive
growth’. Universal social protection, basic education, and other social services will be improved
upon while also raising the country’s status in the global market for more opportunities.

The Three Pillars: Patuloy na Pag-unlad

The Tagalog phrase for ‘continuing growth’ this third pillar focuses on economic growth. The
Philippines have seen massive growth in the past decade or so through their change from an
agricultural economy to industry and manufacturing focused powerhouse. The Philippines plan
to focus on continued growth of their technology, R&D, and innovation sectors.

Improving our quality of life and well-being

Through increased R&D, policy memos, and measurable targets, the PDP hopes to continually
promote energy access and security in the near and long term. Several sectors including
electricity generation and transport are considered. The development of infrastructure is directly
in response to improving for its citizens.
A major undertaking of the Philippines Energy Plan (PEP) is missionary electrification,
improving energy access for rural underserved areas. Through a program called the Qualified
Third Party, the government is attempting to provide generation and distribution services for
households in areas that are not viable or unattractive to private sector investment. By the end of
2017, the DOE and NEA are on track to meet 90% electrification of households. By improving
energy access in these rural regions, other issues became highlighted and indirectly affected as
well. Working with the Reforestation, Watershed Management, Health and Environment
Enhancement Fund, was able to involve health center construction, solid waste management,
irrigation systems, and other support infrastructure to rural communities. The solutions to energy
access and electricity directly and indirectly improved quality of life for the citizens of this
region.

Meeting the needs of both present and future generations

The PDP directly addresses issues of present and future generational energy access. As
mentioned before, energy infrastructure cannot help but be a long term investment because of
high capital costs and long return times. The immediate concern is to reach electrification of
most households, hoping to complete the electrification of all neighborhoods in the Philippines
by 2020.

In terms of one planet living, the PEP is aimed at reducing GHG emissions to offset the affects
of climate change. By measuring their total emissions from energy-related activities, they’re able
to better understand the negative impact of fossil fuels and target specific energy types.
However, the Philippines have not seen major change in their GHG emissions to date and are
projected to slowly increase over the next few decades.

Justice and equity in terms of recognition

Section VI of the PDP is Socially Responsive Programs focusing on expanded rural
electrification, host community benefits, alternative fuels, energy efficiency, and climate change.
As stated in the plan, “Access to electricity is essential in improving the quality of life of the
people as it facilitates opportunities for growth and development.” Increased electricity is a
preferred method of developing countries in promoting equity and has helped communities with
access to lighting, increased productivity, and better education. The Philippine government has
done a great job in identifying and ideating around ideas of social injustice in terms of income
inequality, growth strategies, and government support for improved social equity.

Living within ecosystem limits

With a strong dedication to the Marrakech Vision, the Philippines have promised a switch to
renewable sources of energy generation as quickly as possible. However, in order to continue
their rapid growth and economic successes, the Philippines have financially maintained a strict
adherence to natural gas and coal sources, with their oil production growing by an average 7.6%
since the mid 1990s. Although sustainability and growth are large parts of both the Philippine
Energy Plan and Philippine Development Plan, the promises do not match the finances of today.
There must be strong commitment to renewable energy sources if the Marrakech vision is to be
upheld.
Difference Between Economic Growth vs Economic
Development
Economic growth is the increase in goods & Services produced by an economy or nation, considered for a specific

period of time. The rise in the country’s output of goods and services is steady and constant and may be caused by an

improvement in the quality of education, improvements in technology or in any way if there is a value addition in

goods and services which is produced by every sector of the economy.

It can be measured as a percentage increase in real gross domestic product. Where a gross domestic product (GDP)

is adjusted by inflation. GDP is the market value of final goods & services which is produced in an economy or nation.

Economic Development is the process focusing on both qualitative and quantitative growth of the economy. It

measures all the aspects which include people in a country become wealthier, healthier, better educated, and have

greater access to good quality housing. Economic Development can create more opportunities in the sectors of

education, healthcare, employment and the conservation of the environment. It indicates an increase in the per capita

income of every citizen. The standard of living includes various things like safe drinking water, improve sanitation

systems, medical facilities, the spread of primary education to improve literacy rate, eradication of poverty, balanced

transport networks, increase in employment opportunities etc. Quality of living standard is the major indicator of

economic development. Therefore, an increase in economic development is more necessary for an economy to

achieve the status of a Developed Nation.

It can be measured by the Human Development Index, which considers the literacy rates & life expectancy which

affect productivity and could lead to Economic Growth.

Economic Growth vs Economic Development Infographics

Below is the top 7 difference between Economic Growth and Economic Development

Key differences between Economic Growth vs Economic Development

Both Economic Growth vs Economic Development are popular choices in the market; let us discuss some of the major

Difference Between Economic Growth and Economic Development:

 Economic Growth is the increase in the real output of the country in a particular span of time. Whereas,

Economic Development is the increase in the level of production in an economy along enrichment of living

standards and the advancement of technology.

 Economic growth does not consider the Income from the Informal Economy. The Informal economy is

unrecorded economic activity. Whereas, Economic Development takes consideration of all activities, whether

formal or informal and eases people with low standards of living a suitable shelter and with proper

employment.

 Economic Growth does not reflect the depletion of natural resources. Depletion of resources such as

pollution, congestion & disease. Governments are under pressure due to the environmental issues, majorly

the problem is due to Global warming. However, Economic Development is concerned with Sustainability,

which means meeting the needs of the present without compromising.

 Economic growth is the subset of economic development.

 Economic growth indicates the expansion of the Gross Domestic Product (GDP) of the country and the

concept of Economic Growth is basically related to the developed countries. Economic Development is a

broader concept than the Economic Growth. Economic Development refers to the increase of the Real

National Income of the economic and socio-economic structure of any country over a long period of time.

Economic Development is related to underdeveloped or developing countries of the world.

 Unlike economic development, Economic growth is an automatic process. Meanwhile, economic

development is the outcome of planned and result-oriented activities.

 Economic Growth refers to the rise in the value of all the products produced in the economy. It indicates the

yearly increase in the country’s GDP or GNP, in percentage terms. It alludes to a considerable rise in the per-

capita national product, over a period, i.e. the growth rate of increase in total output should be greater than

the population growth rate.

 Economic growth is necessary but not enough to achieve economic development.

 They both Economic Growth vs Economic Development have different indicators for their measurement.

Economic Growth can be measured through an increase in the GDP, per capita income, etc. However,
 Economic Development can be measured through Improvement in the life expectancy rate, infant mortality

rate, literacy rate, and poverty rates.

Head To Head Comparison Between Economic Growth vs Economic

Development
Below is the topmostComparison between Economic Growth vs Economic Development are as follows –

The basis of Comparison between

Economic Development Economic Growth
Economic Growth vs Economic

Development

Economic development is a much

broader concept than economic growth.

Economic Growth is a narrower concept
Concept Economic development = Economic
than economic development.
Growth + Standard of Living

Economic Development is considered as Economic Growth is considered as a

a Multidimensional phenomenon single dimensional in nature as it only

because it focuses on the income of the focuses on the income of the people of
Scope
people and on the improvement of the the country.

living standards of the people of the

country.

Term Long-term process Short term process

Both Qualitative & Quantitative Terms: Quantitative Terms:

HDI (Human Development Index), Increases in real GDP.

Measurement gender-related index, Human poverty

index, infant mortality, literacy rate etc.

 Economic Development is related to
Economic Growth is related to
Related To Underdeveloped and developing
developed countries of the world.
countries of the world.

Qualitative and Quantitative Impact on

Brings a quantitative impact on the
the economy. Improvement in life
Effect economy. Increase in the indicators like
expectancy rate, infant, literacy rate,
per capita income and GDP, etc.
poverty rates, and mortality rate.

Process Tenor Continuous process In a certain period

Conclusion – Economic Growth vs Economic Development

After examining the above information, we can say that Economic Growth is a subset of Economic development.

Economic Development is a bigger concept than economic growth. Economic Development uses various indicators to

measure the progress in an economy as a whole, however, Economic growth uses only specific indicators like the

gross domestic product, individual income, etc for the calculation. Economic Growth is often contrasted with

Economic Development, which can be defined as the increase in the economic wealth of an economy or nation, for

the welfare of its residents. Here, you should know that economic growth is essential but not the only condition for

economic development.

Economic Growth is a narrower concept than economic development.It is an increase in a

country's real level of national output which can be caused by an increase in the quality of resources
(by education etc.), increase in the quantity of resources & improvements in technology or in another
way an increase in the value of goods and services produced by every sector of the economy.
Economic Growth can be measured by an increase in a country's GDP (gross domestic product).

Economic development is a normative concept i.e. it applies in the context of people's sense
of morality (right and wrong, good and bad). The definition of economic development given by
Michael Todaro is an increase in living standards, improvement in self-esteem needs and freedom
from oppression as well as a greater choice. The most accurate method of measuring development
is the Human Development Index which takes into account the literacy rates & life expectancy
which affect productivity and could lead to Economic Growth. It also leads to the creation of more
opportunities in the sectors of education, healthcare, employment and the conservation of the
environment.It implies an increase in the per capita income of every citizen.

Economic Growth does not take into account the size of the informal economy. The informal
economy is also known as the black economy which is unrecorded economic activity. Development
alleviates people from low standards of living into proper employment with suitable shelter.
Economic Growth does not take into account the depletion of natural resources which might lead to
 pollution, congestion & disease. Development however is concerned with sustainability which means
meeting the needs of the present without compromising future needs. These environmental effects
are becoming more of a problem for Governments now that the pressure has increased on them due
to Global warming.

Economic growth is a necessary but not sufficient condition of economic development.

Growth Occurs When

1. There is a discovery of new mineral/metal deposits.
2. There is an increase in the number of people in the workforce or the quality of the workforce
improves. Example: training and education.
3. There is an increase in capital and machinery.
4. There is an improvement in technology.

Development Occurs When

Measures of economic development will look at:

 An increase in real income per head – GDP per capita.

 The increase in levels of literacy and education standards.
 Improvement in the quality and availability of housing.
 Improvement in levels of environmental standards.
 Increased life expectancy.

Difference between Economic Growth and

Economic Development
We can also have a situation where there is growth and development, i.e. increase in luxury goods and
education.

Development alleviates people from low standards of living into proper employment with suitable shelter.
Economic Growth does not take into account the depletion of natural resources which might lead to pollution,
congestion & disease. Development, however, is concerned with sustainability which means meeting the needs
of the present without compromising future needs.

A. Economic Growth
Growth is an increase in the country’s output.
B. Development
Development is an improvement in factors such as health, education, literacy rates and a decline in poverty
levels.

Change in Development

The Relationship between Inequality and Economic

Growth
Poverty has come down most when inequality has fallen, and there is high economic growth. Initial low levels of
inequality are associated with more negative elasticities of poverty reduction concerning growth. Higher initial
inequality results in less effect on poverty with an increase in economic growth.
1. Savings rate
The marginal savings rate changes with decreasing or increasing income. The marginal savings rate is
the fractional decrease in saving that results from a decrease in income.

2. Credit market constraints

The poor can’t get loans.

3. Political economy
Governments pursue poor policies (redistribution policies) trying to reduce inequality which results in high
inflation, high deficit, and lower growth. However, there doesn’t seem to any relationship between inequality
and economic growth empirically. But, higher economic growth leads to lower levels of poverty (not the same
as inequality)

Growth Effect
The positive growth of people’s income and no change in income leads to a decrease in the poverty level.

Redistribution Effect
If there is a rise in inequality and mean income remains constant, then poverty will rise.