When corruption becomes the system

The Philippine middle class is gradually disappearing, and it may totally disappear if corruption goes unabated.

The Philippine middle class, which accounts for roughly 40 percent of the population, is a growing demographic that acts as a key driver of consumer demand, yet it faces significant economic vulnerabilities and structural challenges.

Often described as being “one critical illness away from poverty,” this sector faces unique pressures, as enumerated below:

1. High vulnerability to economic shocks

While not considered “poor” by government standards, the lower-middle-class segment is highly susceptible to sliding back into poverty.

a) Medical emergencies: A major, often overlooked threat is the high cost of health emergencies. PhilHealth coverage is often insufficient, and HMO limits can be exceeded, leading to severe financial distress.

b) Job insecurity: While many hold formal, salaried jobs, they are highly dependent on economic stability. The Covid-19 pandemic, for example, disproportionately affected their income.

c) No safety net: Unlike the poor, who have access to government programs, this segment often has limited support.

This group, frequently defined as households earning between P25,000 and P145,000 monthly for a family of five (as of 2021 to 2023 estimates), faces structural, financial, and societal pressures.

The Philippine middle class, often considered the backbone of the country’s economy, faces significant and unique challenges that make it highly vulnerable to falling back into poverty despite, at times, a comfortable lifestyle.

“Invisible” status in public policy: The middle class often does not qualify for government subsidies or social protection programs, yet they are not wealthy enough to be immune to crises. They are often overlooked in government aid, which focuses on the poorest, making them feel like they are holding an empty bag.

If corruption goes unabated, it will intensify poverty and wipe out the vulnerable middle class. It will cripple national development, erode public trust in institutions, create a culture of impunity where public funds are redirected into private pockets, hinder economic growth, and undermine the rule of law.

Three thousand seven hundred DPWH projects worth P214.4 billion in unprogrammed funds over 2023 and 2024, with many of these projects concentrated in specific regions, reportedly turned out to be “ghost” projects.

Based on discussions during the Philippine Senate plenary debates on the proposed 2026 budget held in late 2025, about 100,000 workers considered part of the vulnerable middle class were affected or lost their jobs due to the “slowdown.”

Unabated corruption drains the national treasury, causing losses of hundreds of billions, or even trillions in local currency, and leads to a decline in foreign direct investment, reduced infrastructure quality, and increased national debt.

Impunity and systemic failure: When the legal system fails to punish offenders, corruption becomes an “unbreakable chain.” It becomes a system, meaning the institutions meant to fight corruption are often compromised by it, allowing corrupt practices to become “normal,” the way of doing business.

When not addressed, corruption becomes deeply rooted, making it difficult to reform because it becomes the system rather than just a glitch. It often persists due to a lack of political will, a weak judiciary, and an absence of punitive actions, causing it to increase over time.

Email: arturobesana2@gmail.com