UNDP to gov’t: Shield households from Middle East fallout

The United Nations Development Programme (UNDP) urged the government to strengthen measures that would cushion households, farmers, and workers from the prolonged Middle East conflict—warning that failure to contain the crisis could translate into “lasting human development losses.”

In a policy brief, Mohamed Shahudh, UNDP Philippines country economist, stated that the government should prevent the ongoing oil shock from evolving into a “broader setback” affecting poverty, education, health and livelihoods.

“[It should] protect price stability for fuel and food staples through supply-side measures and careful sequencing of the relief measures that expire in mid-July, rather than broad price controls,” Shahudh said.

He added that targeted interventions would help “preserve” the purchasing power of households most exposed to rising prices while reducing the risk of deeper poverty.

“I think the government has responded well for the first round, with a really targeted, time-bound approach,” he noted.

The economist mentioned that broader measures may become “necessary” as the conflict persists, particularly in areas already experiencing sharp increases in fertilizer costs and those placed under states of calamity.

“As the crisis progresses, a more comprehensive set of measures may be needed, particularly at the subnational level,” Shahudh said.

Meanwhile, the UNDP warned that the country remains “highly vulnerable” as it relies heavily on Middle Eastern oil imports, imported fertilizer and remittances from Filipino workers in Gulf countries.

“The UNDP estimates that the immediate impact of the crisis could set back the Philippines’ human development progress by the equivalent of 0.01 to 0.05 years, with losses compounding the longer the disruption persists,” the agency stated.

The development body estimated that more than 35,000 Filipinos could initially fall below the lower middle-income poverty threshold, while prolonged disruptions could further weaken household incomes, food security and access to education and healthcare.