ESPRESSO MORNINGS
By Joe Zaldarriaga
He was the architect behind Meralco’s most celebrated milestones in the field of communications— steering the company to five-time Company of the Year honors at the Philippine Quill Awards and leading the only PR team ever named Team of the Year in the history of the Anvil Awards.
Manong Joe’s leadership also extends as a respected member of the Board of Trustees for the Public Relations Society of the Philippines (PRSP), concurrent with his role as Chairman of the International Association of Business Communicators Philippines (IABC Philippines) where he also served as its President.
Manong Joe is a distinguished awardee of the medallion of honor and scroll of commendation from the University of Manila, owing to his years in public service as a communications professional. He shares his insights through columns in renowned publications, including The Philippine Star’s The Z Factor, and Philippine News Agency’s ESPRESSO MORNINGS.
The Philippines has officially crossed into the ranks of upper-middle-income countries—a milestone, that, on paper signals economic improvement but, as to the impact on the daily lives of Filipinos, is far more complex.
The World Bank moved the Philippines to upper-middle-income classification after the country hit the Gross National Income (GNI) of USD4,850—exceeding the income threshold of USD4,636 for the fiscal year, which it attributed to “broad-based expansion” that reflected gains across all major industries in the past five years.
For policymakers, this milestone is proof that the country is moving in the right direction and that years of economic policies and reforms have bolstered the economy. But for the ordinary Filipino, the milestone feels abstract at this point—with accelerating inflation, high fuel prices, and climate-related disasters threatening quality of life.
Of course, this milestone doesn’t instantly translate to higher salaries or lower prices of goods for Filipinos. But still, the reclassification matters. It helps how investors view our country, how international lenders assess risks, and how the Philippines negotiates trade terms with other countries.
The real challenge now, beyond maintaining or improving the country’s new classification, is translating this milestone into tangible benefits that are felt by ordinary workers and households. For the ordinary Filipino, the measure of progress lies in better pay, affordability of goods, and accessibility and quality of services, specifically healthcare and education. Unless these are felt by people on the ground, the upper-middle-income status is simply an achievement on paper.
Personally, poverty alleviation and addressing inequality are the most urgent priorities.
Beyond the distribution of financial aid to poor families, the government needs to improve poverty alleviation programs designed as a springboard to encourage productivity, instead of dependence. Our country cannot remain upper-middle-income if there is a growing number of Filipinos struggling to make ends meet or trapped in a cycle of poverty. Job creation is central to addressing this challenge.
The government should use our new upper-middle-income status as leverage to pull in more investments and create more jobs, particularly in the fields of agriculture and manufacturing, to balance or even lessen our economy’s dependence on remittances from overseas workers. This way, we spur development at both the regional and national levels.
To sustain progress, the country must diversify its economic base and strengthen domestic industries. In support of this, the government should also prioritize improving connectivity—roads, bridges, expressways—across the country to ensure that opportunities reach the provinces.
Quality education and upskilling are equally important and urgent to help Filipinos land jobs and develop careers that match their skills. When Filipinos are educated and skilled, they are better equipped to land quality jobs and can contribute more to the economy.
Beyond poverty alleviation, the government should also tackle inequality. Economic growth is meaningless and fragile if it only benefits the rich. To truly sustain progress, structural reforms must ensure that opportunities are spread across regions and sectors. This means strengthening institutions that invest in rural development, promote upskilling, promote fair and decent wages, and protect workers.
The Philippines’ reclassification to an upper-middle-income country is both an opportunity and a challenge for our country. It is an opportunity to attract investments and improve our financial standing as a nation. It is also a challenge to ensure that development is inclusive, that poverty is reduced, and that inequality is addressed.
The goal is to work towards a society where upper-middle income is not just a status on paper but a lived reality for millions of Filipinos.
