Sen. Angara: PHL needs middle class to move forward, but middle class is vanishing

(Updated 7:03 p.m.) Cash may be pouring into the economy, but it is making Philippine society even more inequitable, Sen. Edgardo Angara told new graduates of the nation's premier university. "The new globalized, IT-driven world economy did narrow income gaps between countries—but it also widened income gaps within them," Angara said, noting that 20 in every 100 Filipino families are middle-income, while 80 are poor. But while it is in the minority, it is the middle class that the country needs to move forward, he said.   "Whether we indeed make that great leap forward—whether we indeed become more competitive in ASEAN and in the world—depends on whether we build and expand the likes of you, an enlightened middle class," Angara said, addressing over 4,000 graduates of the University of the Philippines, Diliman at the school's commencement exercises on Sunday. However, he warned, the Filipino middle class is vanishing. Who are the middle class? While noting that there is more than one way to categorize people as middle class—by income or expenditure, or by attitude or “identifying with a certain standard of living,”—Angara said that the government defines the middle class by the following characteristics: “Those with an annual family income of from P282,000 to P2.296 million; families whose heads have a college degree; those who own a house and lot, though this is arguable; those whose homes have strong roofing materials; and those who own an oven, an air-conditioning unit, and a vehicle.” But many of these people, and these families, are in danger of falling into poverty, he said. “If you live just above the poverty threshold, a single stroke of fate—one accident, calamity, or crisis can send you falling through the cracks.” And because of this, "every year the poor increase, because three in every 100 middle-income families slip back into poverty," he added. 'Less than one in every 100 of us'   Despite economic gains, the poverty level in the Philippines has remained unchanged since 2006. Meanwhile, said Angara, the wealth of the Philippines' 40 richest families grew last year by an amount equivalent to 76.5 percent of the growth in the country's GDP. "And there are very few of these wealthy families: they number less than one in every 100 of us," he said. Angara's net worth in 2011 was P78,273,061.33. His son, Aurora Rep. Sonny Angara, is the top spender among Team PNoy’s candidates, with P85.52 million worth of ads aired and booked for in his name as of April 10, the Philippine Center for Investigative Journalism reported. “A strong middle class is the voice of reason that moderates vested interests; the force of change that compels societies to invest in their own future,” said Angara in his speech. "The wealthy cannot be relied on to be always altruistic, while the poor are often powerless. It is, then, up to the middle class to grow the economy—and nurture a caring national community." Opportunities Angara pointed to the ASEAN nations' economic integration into a single market in 2015 as an opportunity for the country to capitalize on having a proportionally larger working-age population.   "If we capitalize on this demographic dividend, we will be able to finance our own growth from our people’s own savings, without having to levy new taxes or borrow from other nations’ savings," he said. Angara, who was UP President from 1981 to 1987, called on this year's batch of graduating Iskolar ng Bayan to justify the country's investment in them by "living a life of purpose."   He stressed that the "new generation of ilustrados" will not be conscious of their social role without leadership.   "You hail from an institution of leaders and game-changers, with a proud tradition of excellence and service. You must be nothing less, achieve nothing less," he said. — KG/BM, GMA News