Philippines is blessed with rich natural resources. The land is highly fertile for agriculture. However, even though Philippines is abundant with natural resources poverty is still a grave problem for the populace. The reasons are many and varied like the unfitting and inappropriate economic policies, negligence of the natural resources, bribery and government’s failure in implementing anti-poverty reforms.
During the period of 1980s and 1990s Philippines was strong in the export sector. However, the export sector declined in the late 1990s as People’s Republic of China and Vietnam posed a strong competition to the country. The Philippines export sector declined due to various reasons especially due to the decline of the competitiveness of once highly in demand electronic products. This is attributed to the deficient investment, sky-scraping manufacturing charge, deprived infrastructure and slow promotion to the latest technology. The neighboring countries like Indonesia, Malaysia and Vietnam showed their skills in producing high quality electronics with advanced technologies but at a low rate.
The deprived Filipino families worked in street corners. Their daily means of income comes from selling foods or accumulating recyclable materials. The poor people are lowland landless agricultural workers, poor farm owners and cultivators, hawkers, hunters etc. A large section of the deprived Filipino live in the rural areas where the employment opportunity is meager and the those who live in the urban areas are subject to poverty due to very less family income and also due to the internal migration of the rural poor to the urban vicinity.