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Ateneo de Naga Univrersity

College of Humanities and Social Sciences

Social Sciences Department
Economic Cluster


(Position Paper)

In Partial Fulfillment of the Requirements

For the Subject
Economic Development

Kurt Del Rosario

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.