Beyond subsidies: Financial inclusion and food security

Rising food prices and climate shocks reveal that hunger is not just about food—it is about financial tools that help families prepare and recover.

- JAIME ARISTOTLE B. ALIP, PHD

For decades, food security in the Philippines has been addressed largely through subsidies, relief distributions, or emergency interventions. These remain vital, especially when rice prices spike, typhoons devastate farms, or families go hungry. Yet, recent government programs show a growing recognition that financial inclusion plays a role in achieving food security.

Why financial inclusion matters

According to the Philippine Statistics Authority, food inflation at the national level rose by 0.6 percent in August 2025, driven by increased costs of fish, meat and vegetables. For low-income households, even small hikes in food costs can erode purchasing power quickly, forcing choices among nutrition, health, education, or savings.

Households without access to credit, savings, or insurance are the first to suffer. With few buffers and limited access to finance, they are pushed into selling assets, skimping on meals, or withdrawing from incomegenerating activities —eroding resilience.

In contrast, financial inclusion enables families to borrow for farm inputs even when prices are high; maintain savings for lean periods; access insurance to manage shocks; and use digital financial services for subsidies, payments, or business transactions.

Hunger and poverty are not just about the absence of food, but of reliable income and buffers against shocks. Linking food security programs with financial tools allows households to move beyond short-term coping and into long-term planning.

Strength in struggles