The Philippine economy is standing at the brink of transformation, driven by demographic shifts and technological advancements. With the fertility rate declining to 1.9 babies per woman, the working-age population is set to burgeon, making this moment pivotal for the nation’s economic growth. Experts suggest this demographic dividend could be the key to accelerating GDP growth, potentially reaching 8% if properly leveraged. This scenario is reminiscent of Thailand’s unfortunate experience of growing old before becoming rich—a fate the Philippines seeks to avert through strategic planning and action.
According to Deputy Executive Director Lolito Tacardon of the Commission on Population and Development, the current age structure now favors working-age individuals aged 15 to 64, which presents opportunities for economic development. For the last one and a half decades, the Philippines has seen its GDP grow between 6% and 7%. With the right approach to utilizing this youthful workforce, the country could catalyze even greater economic success.
While the Commission on Population once focused on controlling population growth, today's efforts stress the importance of development. By allowing market forces and individual family choices to dictate childbearing, rather than government mandates, the nation hopes to nurture both its population and economy. This realignment is already observable as local government units (LGUs) report difficulties in accessing birth control due to stagnant budgets.
Once lauded as paragons of family planning, free contraceptive supplies have dwindled drastically—from 50% availability down to 17%—leaving many women scrambling to procure them at local pharmacies. This shift suggests the government believes less intervention may allow families to make their own informed choices.
The demographic challenges of aging populations are echoed globally, with developed and developing nations grappling with the pressures of increasing retiree numbers and declining birth rates. Diwa Guinigundo, former Deputy Governor of the Bangko Sentral ng Pilipinas, cautioned about the consequences of this demographic shift, highlighting the strain on resources as the working-age population shrinks relative to the elderly.
Guinigundo voiced concern about the historical highs of fertility rates delaying necessary reforms, which could have expedited economic opportunities. This delay, he asserts, could have mitigated poverty more effectively had proactive public policies been implemented sooner. Nonetheless, he acknowledges the strides made through reforms since the policy changes began to liberalize the economy.
Such reforms transformed the Philippines, helping it shed the stigma of being 'the sick man of Asia' as it achieved continuous positive growth over two decades. The challenge now lies not just in managing the current population trends, but doing so effectively enough to stimulate sustainable economic prosperity.
Industries pivoting on technology play significant roles as well. A notable example is TELUS Digital Philippines, which has embraced the rise of generative AI (GenAI) to revolutionize customer service experiences. Having rebranded to highlight their innovative direction, TELUS Digital emphasizes the synergy between AI and human expertise to deliver exceptional customer interactions.
Rajiv Dhand, Regional Vice President of TELUS Digital APAC and Africa, expressed, "While AI is transforming customer service, it can't replicate uniquely human skills, such as empathy and emotional intelligence, which are key to building lasting customer relationships." The company is already leveraging AI to empower customer service agents with quick access to information, allowing them to provide personalized support efficiently.
GenAI tools are proving to be indispensable, enhancing overall productivity not just for customers but also for employees. TELUS has seen improvements such as increased agent satisfaction by 37% and reduced training time for new hires since implementing AI-powered solutions.
To prepare team members for this AI-infused world, TELUS invests heavily in training programs, equipping employees with knowledge ranging from the basics of AI to advanced usage scenarios. This commitment ensures their workforce is primed to drive performance and deliver effective coaching.
The dual focus on demographic trends and technological advancements provides the Philippines with fertile ground for growth. By creating productive avenues for its burgeoning population, along with integrating cutting-edge technology, the nation appears poised for economic success—provided systemic hurdles can be overcome.
International firms like TELUS Digital serve as models for blending human talent with technology, crafting skills development strategies aimed at giving their teams the tools necessary for thriving within rapidly changing environments. By prioritizing such initiatives, the Philippines can aspire to build its economic framework on innovation and adaptability.
The convergence of these two factors—the changing demography and the technology sector—stands to redefine what economic potential looks like for the country. With diligent planning, the Philippines can utilize its youthful population and technological advancements to secure its position on the global economic stage.
Whether or not the Philippines will truly avoid the pitfall of aging before achieving prosperity remains to be seen, but the path forward seems clear. Immediate focus on education, skills enhancement, and leveraging technological advancements will be necessary steps. With concerted efforts across all sectors, the country's potential can be unleashed, driving it toward sustainable and inclusive economic growth.
