Businesses push for human capital investments

MANILA, Philippines — Three business groups are recommending the use of investments in human capital as a strategy for economic recovery and inclusive growth in the country.

In a statement, business group Philippine Business for Education (PBEd), Philippine Business for Social Progress (PBSP), and the Makati Business Club (MBC) said issues on education and nutrition, could affect the future workforce.

They cited data from the World Bank and United Nations International Children’s Emergency Fund (UNICEF), which showed that one out of three children below five years old are stunted, and nine out of 10 10-year-olds cannot read simple text.

The groups emphasized that years of neglect in these sectors, exacerbated by the pandemic and two years of school closure, pose a threat in the country’s human capital in spite of having one of the youngest workforce in the ASEAN region.

PBEd president Chito Salazar said getting learners physically back to schools makes educational and economic sense.

“Our learners experienced learning loss because of school closures. In the long run, these learning losses will translate into a skills gap which will debilitate our economy,”Salazar said.

On the concern of nutrition, PBSP executive director Elvin Uy cited the latest Social Weather Station (SWS) report that around 3.1 million families experienced hunger in the first quarter of 2022.

“Children should not be left hungry and undernourished. It affects their growth, learning, and well-being,” Uy said.

To counter hunger, Uy identified a combination of direct interventions, such as school feeding and food subsidy programs, and market solutions.

“It is regrettable to see in social media truckloads of farm produce dumped in roadsides because farmgate prices have gone so low while retail price skyrockets. That needs to change,”Uy said.

For his part, Makati Business Club executive director Coco Alcuaz said that education, together with child nutrition, is an economic growth strategy.

“If we don’t have smart and healthy Filipinos, it doesn’t matter what we do on economic policy. Business is all about goals and solutions,” Alcuaz said.

In line with their push for investing in human capital, PBEd, PBSP, and MBC, will present their agenda for nutrition and education in a forum on July 13.

Business leaders Ramon del Rosario Jr. and Manuel V.  Pangilinan are set to lead the presentation.

“Economic simulations of Stanford University show that 28 percent GDP growth can be realized if education reforms are successfully implemented in the present generation of learners,“ Salazar said.