02/07/2026
The Alliance of Concerned Teachers (ACT) Philippines dismissed the World Bank's classification of the Philippines as an upper-middle-income country (UMIC), saying it bears little resemblance to the daily realities faced by Filipino workers, whose wages continue to lag behind soaring prices and the rising cost of living. The group stressed that teachers and education workers reject the classification as their salaries remain far from livable and decent.
"Are we in the same universe? Ni hindi nga nakabubuhay ang sahod sa bansa, mapa-g**o, kawani, at karaniwang manggagawa man. Kung ang batayan nila ay kung anu-anong growth indicators na sila rin ang nagtakda, hindi 'yan ramdam ng karaniwang mamamayan," ACT Chairperson Ruby Bernardo stated.
ACT also reiterated its long-standing criticism of the World Bank's role in shaping Philippine economic and education policies. The group pointed to the institution's history of promoting neoliberal reforms—including privatization, fiscal austerity, deregulation, and market-oriented policies—through loans and policy conditionalities that have weakened public services and undermined workers' rights.
ACT warned that the country's new income classification should not be celebrated as an economic milestone, as it serves to reinforce a development model that deepens the country's dependence on foreign borrowing and external policy prescriptions under the banner of "poverty reduction" and "shared prosperity."
ACT also challenged claims that the UMIC classification reflects the resilience of the Philippine economy. The group argued that Filipino families remain highly vulnerable to inflation, stagnant wages, and external economic shocks, as recently demonstrated by the spike in fuel and commodity prices driven by the conflict in West Asia and broader global instability due to US wars of aggression.
"The government should not merely acknowledge that income disparities persist and millions continue to struggle. It must demonstrate genuine political will by raising workers' living standards through a P1,200 national living wage, a P50,000 entry-level salary for teachers, and a P36,000 basic salary for all government employees," Bernardo stressed.
ACT maintained that genuine development cannot be measured by income classifications crafted by international financial institutions but by the quality of life enjoyed by the people. The group called for breaking free from neoliberal policies imposed by foreign financial institutions and advancing an economy anchored on national industrialization, genuine agrarian reform, and the creation of stable, productive jobs that serve national development rather than foreign profit.
"The Philippines needs an economy built on national sovereignty and the people's needs—not one dictated by the interests of the World Bank, the IMF, and other foreign powers. Only by pursuing a self-reliant and people-centered development path can we achieve genuine and lasting prosperity," Bernardo concluded. #
2 July 2026 | PRESS RELEASE
PH's upper-middle income status detached from reality; workers' wages, teachers' pay remain far from livable and decent -ACT
