The “Desirable Giant,” or the “middle class,” in the Philippines refers to the national vision of becoming a predominantly middle-class society by 2040, a key objective of the government to ensure prosperity and development for its citizens.

A robust middle class is seen as essential for economic growth and stability, and achieving this status hinges on fostering jobs creation, improving education and healthcare access, and creating resilient income opportunities to prevent economic shocks from pushing people back into poverty.

What does it mean to become a Desirable Giant?

The Desirable Giant is a vision of the majority of the 115.8-million Filipinos enjoying a stable and comfortable standard of living. It is the aspirational goal of the Philippines to become a prosperous, developed nation.

Based on Philippine Institute for Development Studies (PIDS) data, 39.8 percent of the population or roughly only 45 million Filipinos belong to the vulnerable middle class. This includes the 2.16-million overseas Filipino workers (OFW).

To expand and strengthen this middle class, the government should invest in human capital by improving education and skills training, fostering inclusive innovation through a supportive startup ecosystem and digital infrastructure, and enhancing social protection programs for greater resilience against economic shocks.

Additionally, the government must create a pro-business environment, lower costs through competition in key sectors like energy and logistics, and ensure access to affordable urban infrastructure such as housing and transportation.

It must improve the education system by enhancing its quality and relevance at all levels to meet labor market needs, focusing on digital skills to foster innovation and productivity.

It must digitalize the government where services, records, and transactions are conducted online with increased efficiency and transparency.

As the world moves toward greater connectivity and automation, the government must adapt by integrating digital solutions into its operations. Digital records will ensure that transactions are traceable and tamper-proof. This would minimize bribery and the manipulation of government documents.

The government must support a vibrant startup ecosystem and provide resources for innovation to create new opportunities for employment and income growth.

It must strengthen social protection and financial literacy. It must also enhance social safety nets by developing more comprehensive and adaptive social projection programs, including expanded health and unemployment insurance, to help the middle class manage economic shocks and transitions.

It must improve financial literacy by integrating practical financial literacy education, starting in primary school, and expand access to retirement savings and investment products to help Filipinos build assets and achieve financial stability.

The government must also:

Create a pro-growth economic environment by investing in physical and digital infrastructure, including urban planning for affordable housing and efficient public transport, to support a growing middle class;

Promote competition by implementing competitive-enhancing reforms in energy, logistics, and telecommunications to lower costs for business and consumers;

Foster an innovative ecosystem by creating an environment and the adoption of technology, which are critical for productivity, quality jobs creation, and global competitiveness;

Increase employability and income opportunities by boosting female labor force participation; and implement policies that support women’s greater participation in the workforce to enhance household incomes and drive economic growth;

Stabilize prices by implementing policies that reduce poverty and stabilize commodity prices to ensure that middle-class households can maintain their standard of living.

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