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Ateneo de Naga Univrersity College of Humanities and Social Sciences Social Sciences Department Economic Cluster

POVERTY AS A RESULT OF LACK OF EDUCATION (Position Paper) In Partial Fulfillment of the Requirements For the Subject Economic Development (ACOT102)

Kurt Del Rosario

1 BS – ACCOUNTACY ACOT102 – AC13

March 2018

Every community in the world is always bounded with a common goal; a vision that can make individual’s lifestyle and financial capacity better. Every community desires to be fully developed in terms of economic conditions. However, Economic Development for every community cannot always be achieved easily, sometimes, a community remains being stagnant or underdeveloped community. This is because of several factors that may affect a community economic development. One of these contributory factors can be “Poverty”. The term “Poverty” is not something new for everyone, because ever since poverty was part of the main problem of a community always. According to ( borgenproject.org, Compared to past studies before, the poverty rate as of 2018 was at 21.6%, which means this percentage still lives on the national poverty line. Furthermore, the page also revealed that rural poverty is at 36% of the total population while urban poverty might be lower but is continuously increasing overtime, wherein this can be a big threat in the future. One of the factors that directly affect Poverty is Unemployment, Due to over population, the workforce capacity needed by employers or the source of resources may not be exactly proportional with the population, which results to shortage of employment but also there is an overage for unemployed workers. (bizfluent.com), Unemployment rate in the Philippines as of the 4th quarted of 2018, was 5.10%. (trading economics.com). with unemployment, many Filipino families suffer from poverty and which results to various issues like hunger and malnutrition, child labor, and an increase in mortality death rate. Most common reasons of unemployment is the educational background, if someone is uneducated then therefore, he/she doesn’t have literacy, which leads him to work only for lower jobs like farming,fishing, and janitorial type of work. In Brgy, Tambangan, San Jose, Camarines Sur, Poverty and Lack of education is one of the notable factors that affect their development. According to the results that were gathered during the data gathering, 35% of the people in Brgy, Tambangan are unemployed, and 33% of them are working, and most of their source of income is from salaries or wages coming from agricultural work. However, a big part of the population is still studying at that time.

In terms of educational attainment, the frequent levels of educational attainment fall only to Primary and secondary due to lower capital and insufficient funds to sustain for education, and only few were able to graduate on college. One of the main indicators of poverty is the family monthly income, if a family passes the standards for the average family income in the Philippines they are most likely to be over the poverty line, which means they are still generating enough money for their daily lifestyle. According to Philippine Statistics Office, the average family income is 22,000 pesos per month. Based on the results of the suvey, wherein 218 families where interviewed, most of the families where earning P 0-1,500 per month, then 29 of the families were able to receive the highest income in the barangay, which is P 13,501- 15,000. Moreover, if we based on the standard set by the Philippine Statistic office, no family in Barangay Tambangan were able to achieve the average family income which means that all the families there are at poverty level. For the hypothesis, Poverty and Lack of education are directly proportional with each other, if a person is well educated. Therefore, he must be more likely to get a decent job easily, but if the person is uneducated. Therefore, he must be more likely to experience a hard time finding a job. According to the topic discussed in Human Capital; Education and Health in Economic Development, if the human capital of a community is large, therefore, each community has a greater chance of having a good economic status. Then, one factors of human capital is education. The theory says that education is a primary factor in increasing the human capital of the person, the more the person is educated and was able to accomplish studies until college, he can be able to get a high wages that can be satisfying to his family. In comparison with investing money, people should learn to invest in their children education to land on a satisfying job.It is an inevitable fact that, education increases economic efficiency and social consistency, and this gradually uplifts ever poor from poverty. In connection with the issue in barangay Tambangan, Since most of the residents there had only finished until secondary school, their human capital might be low, therefore, their work are primarily on farming, fishing, or skilled based jobs which generates a lower income. If their sources of living are quite low, therefore, they are most probably be under poverty, because they

cannot get a sufficient money for their family. In terms of numbers almost 347 of the population do not have jobs and there is also a 379 people part of the population who were only to finished primary school meaning to say, they were only able to finished until Grade Six or below. This two quantities are very near to each other which only says that if a person is educated therefore, he is more likely to have a good job. In addition, Rostow Stage of Growth theory can also be included because the theory asserts that every country passes through growth stages until they can achieved the developed economy. The first step in this stage shows that a certain community is dependent on their agriculture and which leads to low output and income. Since mostly of the farmers and other workers related to agriculture were not able to finish studies they tend to be confined with this work or job. Therefore, they don’t have enough income to raise their children and invest primarily on education. In comparison to Brgy. Tambangan, they are an agricultural community therefore all uneducated workers tends to work there despite of having low income. In conclusion, with the theories presented above, we can formally say that Lack of education and Poverty are directly associated with each other, with the human capital and rostow stage of growth theories it was hereby proven that we should have to invest more on education so that we have a diminishing returns in the future. We should always remember the importance of education, if we wanted to uplift our economic status from poverty, Let us start from educating the children because a good education is more likely to open a good life for every people in the community.

References: https://tradingeconomics.com/philippines/unemployment-rate https://borgenproject.org/effects-of-poverty-in-the-philippines/ https://borgenproject.org/facts-about-poverty-in-the-philippines/ https://www.apa.org/pi/families/poverty https://psa.gov.ph/survey/annual-poverty-indicator http://kgt.bme.hu/files/BMEGT30A105/Todaro__Smith__2015_Economic_Development_12th_ed.pdf