Growth on its own is not the ‘royal road’ to the MDGs – the link between the two is distribution. The key is setting in train a political process that will lead governments and the private sector to distribute the assets, opportunities and benefits of growth more fairly, supporting human development outcomes and in turn, the achievement of the MDGs.

- ODI Briefing Paper on Economic Growth and the MDGs 

With all the talk of GDP growth rates in the news recently I think it’s important to bring up one key point: Growth matters for shit if it’s not inclusive and does not reduce poverty. If our focus is on growth for the sake of growth then the economic future of the Philippines will look little different from the last 25 years (or especially, the last nine years under GMA).

In a developing nation such as ours high GDP rates have been fool’s gold since most of the benefits have only circulated among a select slice of the economic spectrum. Our recent economic history is a classic case of the rich getting richer, while the poor stagnate. Sure, high GDP rates bring in hot money and foreign investment, but where exactly do the benefits of that accrue? Industries like call centers may bring jobs into the country, and help combat unemployment, but where exactly is the labor pool for that drawn? If anything, the recent rhetoric about inclusive growth is welcome; only so long as the structural inefficiencies that prevent it are addressed.

Economic discussions centered on achieving MDGs (which are all about reducing poverty and social development) has been fixed on creating inclusive and deep GDP growth. The fact is our growth has not necessarily achieved any large-scale reduction in poverty rates (which by the way, occurred with the lowest GDP growth rate in a few years). Poverty reduction has stagnated, with only small percentage points in terms of ‘self-rated’ poverty showing any improvement. But when we look at measures, such as the number of impoverished at the national line, the numbers show little change. According to World Bank numbers the poverty headcount ration in 2000 was 33%, in 2003 24.9%, in 2006 26.4%, and in 2009 26.5% (the latest).

Not encouraging.