Villegas: Corruption risks more poverty as infra spending drops

More Filipinos risk falling into poverty as corruption concerns stall infrastructure spending, while rising geopolitical tensions and higher global costs add pressure on household incomes, economist Bernardo Villegas said.

- Ehda M Dagooc

Speaking during an economic briefing in Cebu, Villegas said alleged leakages in public spending, particularly in flood control projects, have contributed to a sharp decline in infrastructure investments that traditionally served as a major driver of economic growth and poverty reduction.

“Infrastructure spending used to account for about 6 percent of gross domestic product. Now it is closer to 2 percent,” Villegas said. “That means resources that should have gone to roads, bridges, irrigation systems and other public projects are not generating benefits for the broader population.”

Villegas, founder of University of Asia & the Pacific (UA&P), said weaker public infrastructure investments have reduced one of the government’s most effective tools for creating jobs and improving productivity, particularly in rural areas where poverty remains concentrated.