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BUILDING HUMAN CAPITAL

LESSONS FROM COUNTRY EXPERIENCES

The Trajectory of Human Capital Development in the Philippines

Abstract

Contents

1. Introduction .................................................................................... 1

Analytical Framework ..................................................................................... 1

Country context .............................................................................................. 2

2. A Policy Framework for Human Capital Development .................. 4

3. Trends and Patterns: Strong Beginnings, Modest and Unequal

Progress ............................................................................................... 7

Human Capital Index ..................................................................................... 7

Long-Run Trends in Human Capital Indicators .............................................. 8

Weaknesses (and Challenges) ...................................................................... 18

Conclusion .................................................................................................... 28

4. From Single-Sector to Transversal Approaches ............................ 31

Single-Sector Policies ................................................................................... 33

Whole-of-Government Approach .................................................................. 36

Whole-of-Life Approach ............................................................................... 39

Whole-of-Society Approach .......................................................................... 42

5. Summary and Future Challenges .................................................. 44

References ......................................................................................... 47

Annex 1 .............................................................................................. 53

Annex 2 .............................................................................................. 56

Figures

Figure 1: The HCI Score of the Philippines and Its Neighbors, 2018 .................................................. 3

Figure 2: Components of the Philippine Human Capital Index, 2018 ................................................. 8

Figure 3: Enrollment Rates and Expected Years of Schooling, 1950–2010 ...................................... 10

Figure 4: Per-Capita GDP and Average Performance of Students on 2018 PISA Tests .................... 12

Figure 5: Life Expectancy at Birth (Years), 1950–2015 .................................................................... 13

Figure 6: Healthy Life Expectancy at Birth, Males and Females (Years), 2000–2016 ...................... 14

Figure 7: Under-5 Child Mortality, 1950—55 through 2015–20 ........................................................ 15

Figure 8: Leading Causes of Death and Percentage Change, All Ages, 2007 and 2017 ................... 16

Figure 9: Under-5 Stunting (%), 1990–2015 .................................................................................... 18

Figure 10: Philippines HCI by Region and Wealth Quintile, 2017 ..................................................... 19

Figure 11: Philippines HCI Indicators by Region, 1998 and 2017 .................................................... 22

Figure 12: Selected Service Delivery Indicators by Region............................................................... 23

Figure 13: GDP per Capita and Education and Health Government Spending, 2017 ....................... 30

Tables

Table 1: Leading Causes of Morbidity by Gender, 2005 and 2015 .................................................... 17

Table 2: Human Capital Indicators by Wealth Quintile, 1993 and 2017 (%) ................................... 20

Table 3: List and Timeline of Policies Related to Human Capital Development ............................... 32

Annex Tables

Annex Table 1.1: List of Selected Legislation and Executive Acts Pertaining to Human Capital

Development ....................................................................................................................................... 53

Annex Table 2.1: Regions and Provinces of the Philippines .............................................................. 59

Annex Table 2.2: Distribution of Population Aged 6 and Over by Highest Education Level Attended,

Rural-Urban Residence, and Wealth Quintile (%), 1993 and 2017 ......................................... 60

Annex Table 2.3: Government education spending, as % of GDP .................................................... 60

Annex Figures

Annex Figure 2.1: Migrant Remittance Inflows (US$ million), 1977–2017 ..................................... 56

Annex Figure 2.2: School Enrollment by Age Group and Region, 2017 ............................................ 56

Annex Figure 2.3: Average Pupil-Teacher Ratios in Primary Education in the Philippines and

Comparator Countries, 1990–2016 ........................................................................................... 57

Annex Figure 2.4: Supply of Health Professionals in the Philippines and Comparator Countries,

2000–2015 ................................................................................................................................. 57

Annex Figure 2.5: Population with at least Basic Drinking Water in the Philippines and Comparator

Countries, 2000–2015 ............................................................................................................... 58

Annex Figure 2.6: Population with at least Basic Sanitation Services in the Philippines and

Comparator Countries, 2000–2015 ........................................................................................... 58

Acknowledgments

1. Introduction

Analytical Framework

Country context

0F

1F

2F

3F

4F

5F

Figure 1: The HCI Score of the Philippines and Its Neighbors, 2018

2. A Policy Framework for Human Capital Development

6 F

7F

8F

3. Trends and Patterns: Strong Beginnings, Modest and Unequal Progress

Human Capital Index

9 F

10F

10

Figure 2: Components of the Philippine Human Capital Index, 2018

Long-Run Trends in Human Capital Indicators

11F

12F

13 F

14 F

Figure 3: Enrollment Rates and Expected Years of Schooling, 1950–2010

40.0

50.0

60.0

70.0

80.0

90.0

100.0

110.0

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

20

06

20

09

20

12

20

15

Completion rate in primary education (%)

EAP LMC UMC PHL

0

10

20

30

40

50

60

70

80

90

100

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

20

06

20

09

20

12

20

15

Gross enrollment rate in secondary education (%)

EAP LMC UMC PHL

0.0

10.0

20.0

30.0

40.0

50.0

60.0

19

70

19

73

19

76

19

79

19

82

19

85

19

88

19

91

19

94

19

97

20

00

20

03

20

06

20

09

20

12

20

15

Gross enrollment rate in tertiary education (%)

EAP LMC UMC PHL

0

2

4

6

8

10

12

14

19

50

19

55

19

60

19

65

19

70

19

75

19

80

19

85

19

90

19

95

20

00

20

05

20

10

Years of completed schooling, 15–

19 years old

China IndonesiaMalaysia PhilippinesSouth Korea Thailand

15F

Figure 4: Per-Capita GDP and Average Performance of Students on 2018 PISA Tests

16F

Figure 5: Life Expectancy at Birth (Years), 1950–2015

40

50

60

70

80

90

1950-1955 1965-1970 1980-1985 1995-2000 2010-2015

China Indonesia South Korea MalaysiaPhilippines Thailand Viet Nam

Figure 6: Healthy Life Expectancy at Birth, Males and Females (Years), 2000–2016

50

60

70

80

2000 2005 2010 2016

Healthy life expectancy at birth (years), males

China IndonesiaSouth Korea MalaysiaPhilippines ThailandViet Nam

50

60

70

80

2000 2005 2010 2016

Healthy life expectancy at birth (years), females

China IndonesiaSouth Korea MalaysiaPhilippines ThailandViet Nam

Figure 7: Under-5 Child Mortality, 1950—55 through 2015–20

17F

18F

19F

0

50

100

150

200

250

300

China Indonesia South Korea

Malaysia Philippines Thailand

Viet Nam

20F

21F

Figure 8: Leading Causes of Death and Percentage Change, All Ages, 2007 and 2017

Table 1: Leading Causes of Morbidity by Gender, 2005 and 2015

Figure 9: Under-5 Stunting (%), 1990–2015

22F

23F

Weaknesses (and Challenges)

24F

25 F

26F

Figure 10: Philippines HCI by Region and Wealth Quintile, 2017

27F

Table 2: Human Capital Indicators by Wealth Quintile, 1993 and 2017 (%)

28

Figure 11: Philippines HCI Indicators by Region, 1998 and 2017

0

10

20

30

40

50

60

70

80

90

100

XV

I

VIII

XV

II

XIII XII IX X XI V II

XV I

IV VI

XIV II

I

VII

Under-5 Mortality Rate (%)

1998 2017

0123456789

101112

XV

I

VIII

XV

II IX V

VII

XIII XV II X VI

XII XI I III

IV

XIV

Median number of years of education, ages 15–49

1998 2017

0

5

10

15

20

25

30

35

40

45

50

XVI VIII XVII V XII VI IX VII X XV XIII XI I II IV XIV III

Under-5 Stunting (%), 2015

Figure 12: Selected Service Delivery Indicators by Region

0102030405060708090

100X

VI

XV

II IX IIV

III VX

V XX

II IX

III XI IV VII VI

III

XIV

Antenatal care from a skilled provider (%)

1998 2017

0102030405060708090

100

XV

II

XV

I

VIII IX II V X XII

XIII VII I

VI

XV XI

IV III

XIV

Birth delivered at health facility (%)

1998 2017

0102030405060708090

100

XV

II

XV

I I

VIII V IX XII

XIV X II

I

XV

VII

XIII II IV X

I

VI

Children under-2 who received all 8 basic vaccinations (%)

1998 2017

0

10

20

30

40

50

60

XV

I

XV

II

VIII V V

I

VII

XII I

XIV XIII IV IX XV X III

XI II

Married women currently using any modern method of contraception (%)

1998 2017

0

10

20

30

40

50

XIV

VII

I II VI I

IX

XII

I

XV

II V X

VII

XII III XI

XV IV

XV

I

Average pupil-teacher ratio in primary and secondary schools, 2016

Primary Secondary

0

10

20

30

40

50

XV III

XIV IV X

I

XII

I

XV

II

VII II V VI X

XII

VII

I

IX

I

XV

I

Enrollment rate in PhilHealth by membership status (%), 2017

Paying members Non-paying members

30F

31F

32F

33F

34F

35F

36F

37F

38F

39

39F

40

40F

41F

42F

43F

44F

45F

46F

47F

48 F

49F

50F

51F

Conclusion

contraception sexual education

individuals and couples

Figure 13: GDP per Capita and Education and Health Government Spending, 2017

y = 0.2468x + 2.2957

y = 0.6029x + 1.1174

0

2

4

6

8

10

12

14

0

2

4

6

8

10

12

14

6 7 8 9 10 11 12 13 14

Hea

lth

exp

end

itu

res

as %

of

GD

P

Edu

cati

on

exp

end

itu

res

as %

of

GD

P

Ln (GDP per capita)

Health

Education

4. From Single-Sector to Transversal Approaches

Table 3: List and Timeline of Policies Related to Human Capital Development

55F

56 F

57 F

Whole-of-Government Approach

58F

59F

60 F

61 F

62 F

63F

64F

65F

Whole-of-Life Approach

66F

67F

68F

69F

73F

74F

Whole-of-Society Approach

75F

76F

77F

78F

79F

80F

81F

5. Summary and Future Challenges

82F

83F

84F

References

Annex 1

Annex Table 1.1: List of Selected Legislation and Executive Acts Pertaining to Human Capital Development

Year Number Title

A. Education

B. Health

Year Number Title

C. Nutrition

D. Social Protection

Year Number Title

E. Population

F. Water & Sanitation

G. Employment

Annex 2

Annex Figure 2.1: Migrant Remittance Inflows (US$ million), 1977–2017

Annex Figure 2.2: School Enrollment by Age Group and Region, 2017

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

19

77

19

79

19

81

19

83

19

85

19

87

19

89

19

91

19

93

19

95

19

97

19

99

20

01

20

03

20

05

20

07

20

09

20

11

20

13

20

15

20

17

Philippines Indonesia Malaysia Thailand

0

5

10

15

20

25

30

35

40

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

EAP LMC UMC PHL

Annex Figure 2.3: Average Pupil-Teacher Ratios in Primary Education in the Philippines

and Comparator Countries, 1990–2016

Annex Figure 2.4: Supply of Health Professionals in the Philippines and Comparator Countries, 2000–2015

0

5

10

15

20

25

2000 2005 2010 2015

Medical doctors per 10,000 population

China Indonesia

Malaysia Philippines

South Korea Thailand

Viet Nam

0

20

40

60

80

2000 2005 2010 2015

Nurses and midwives per 10,000

population

China Indonesia

Malaysia Philippines

South Korea Thailand

Viet Nam

0

5

10

15

20

25

30

35

401

99

0

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

EAP LMC UMC PHL

Annex Figure 2.5: Population with at least Basic Drinking Water in the Philippines and Comparator Countries, 2000–2015

Annex Figure 2.6: Population with at least Basic Sanitation Services in the Philippines and Comparator Countries, 2000–2015

60

65

70

75

80

85

90

95

100

2000 2005 2010 2015

Rural population

China Indonesia

Malaysia Philippines

Thailand Viet Nam

60

65

70

75

80

85

90

95

100

2000 2005 2010 2015

Urban population

China Indonesia

Malaysia Philippines

Thailand Viet Nam

20

40

60

80

100

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

Urban population

China Indonesia

Malaysia Philippines

Thailand Viet Nam

20

40

60

80

100

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

Rural population

China Indonesia

Malaysia Philippines

Thailand Viet Nam

Annex Table 2.1: Regions and Provinces of the Philippines

Region

code Region name Provinces in region

Annex Table 2.2: Distribution of Population Aged 6 and Over by Highest Education Level Attended, Rural-

Urban Residence, and Wealth Quintile (%), 1993 and 2017

Type of household

Attended primary education Attended secondary education Attended higher education

1993 2017 %

change 1993 2017 %

change 1993 2017 %

change

Annex Table 2.3: Government education spending, as % of GDP 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017