T
he global financial crisis (GFC) is on the wane,
but its impact on the social development of
the Philippines may linger for many years
to come. Properly understanding the nature and
consequences of this impact, particularly its differential
effects across population groups and social
divides, is crucial to the design of a development
strategy aimed at fostering an inclusive economic
growth to hasten the pace of poverty reduction.
This study sought to gain such an understanding by
examining the evidence and recent data, drawing
policy lessons, and presenting recommendations
toward improved poverty-mitigating responses
to economic and financial shocks. It adopted a
somewhat eclectic approach to assessing the GFC
impact on the economy and poverty. This involved
applying regression-decomposition techniques to
trace the GFC impact on gross domestic product
(GDP) and its major components; constructing
panel data from nationally representative household
surveys to trace the changes in household
welfare during the crisis; and conducting select
field investigations, focused group discussions, and
key informant interviews to supplement, verify,
and update information derived or observed from
national household surveys and desk reviews. The
study thus goes beyond anecdotal evidence characteristic
of many previous accounts on the social
impact of the GFC by systematically assessing the
evidence both at the national and local levels.