Topic #5: July 8-14, 2012
Facilitator: Reu Ildefonso
Intro/Background: The Philippines’ economic fortunes are on the way up, as a lot of indicators would point to. For example: Q1 GDP growth was at 6.4%, second only to China; the stock market index is up almost a quarter since January; and, two of the three major credit rating agencies have upgraded the country’s debt rating to a notch shy of investment grade – quite a remarkable achievement at a time when Europe and the US have been shot down from their Triple A perch.
However, the pace of economic development is pretty uneven. Large swathes of the country, both geographically and demographically, still do not benefit from the boom town the Philippines has recently become.
Discussion topic:
What can be done in order for the country’s economic development to be more inclusive?
- Ernie Reyes Sher's Comment:
Sher Moran
First, trust in the government of a country plays a big part in the growth of any economy. Corruption on the other hand keeps a country poor, it goes without saying. Here are my thoughts as I am one of those who remain in the Philippines. ...Although the Philippines was ranked 38th freest economy, long-term economic growth remains threatened by inadequate infrastructure and education systems including barriers in trade and investment. Overseas remittances has greatly balanced the $ earnings brought in the country but what we should also ask ourselves is how independent are we in creating economic growth from within and not solely being dependent on the economy of other countries? The Philippines was ranked as 61st among 80 countries in the global growth competitiveness ranking of the World Economic Forum (WEF), if there is any significance in this ranking this isn't good news. Now that there are sparks of growth seen 1st and expected 2nd quarter of this year, how do we keep it growing and steady? Conquering the three major economic sectors namely agriculture, industry and services up to the grass roots should be given serious attention this time around. Our GNP showed an increase in its report but so did the population of our country. My stand is independence in the creation of services and goods through out the archipelago, this should be given light. Most industries are concentrated in areas around metropolitan Manila and we can be sure that the upper middle to top business earners are the ones that feel the economic robustness. Not till industry and trade reaches the barangay levels that we can safely say that our economy getting stable. From within, we see potentials with power, transportation and communication services, infrastructures, agriculture and home industry, mining of course, rich in reserves like chromate, nickel, and copper etc. Significant offshore hydrocarbon finds have added to the country's substantial geothermal, hydro, and coal energy reserves but what remains to be seen is how the Philippines can manage to think “sustainability” and not be exploited by foreign partners.
- Ernie Reyes I agree with Sher - economic progress should translate into progress down to the grassroots level. Back in 1998, the IMF reported the slow decline in the Philippines' poverty rate was due to discrimination against agriculture and discouraging investment in human capital. Whether that still is the case, I am unsure, but what I am sure about is that investing in the human capital - through education and public programs that create jobs and uplift the citizens' quality of life - will make progress more apparent and more permanent. As much as we see the numbers rise for our GDP, investments and the like, we also see a rise in the number of households at or below the poverty line. This doesn't necessarily mean that the rich are getting richer, and the poor, poorer. But it does sound the alarm that despite the "progress", something still isn't right. In my extremely humble opinion, what matters at this juncture is to take advantage of this economic growth and invest in socio-economic programs in the rural to semi-rural regions. We need programs that develop relevant skills and create relevant jobs that can thrive in the global economy - jobs that leverage the Filipino's traits of ingenuity and exceptional work ethic. Aside from the too obvious task of ridding corruption within the government, there is also a need for more incentives for domestic companies to adopt policies that encourage rural development. By taking care of our own - our barangays and townships - we can make the Philippines more attractive to BOTH domestic and foreign investors, and open the doors of progress to more than just the privileged few.
- Glenn Gattud It still is the case mate. Agriculture is still declining, farmlands are being bought up for conversion into subdivision especially in areas close to the urban centers, the middle man is still very much entrenched in ripping off the farmers and its done in connivance with unscrupolous government officials and politicians...and now the Philippines stands to import fish, along with rice and meat (dont ask about vegetables)...so what's a poor Juan got to do? Pack his bags and head for the OFW fields abroad :-)
- Marl Rosal On an outsiders point of view, there are so many things that our government is doing wrong... whether they rectify and make a point in correcting those is another story... we could have been one of our counterparts in Asia, if only... but then again, all we could do is move on and veer on the road to progress.. if this is so, the first move would be to build roads and bridges in far flung areas or places where agriculture is still very much the bread and butter of people. Our farmers need to transport their products so that they can sustain themselves and play a big part in marketing it. The middlemen may be necessary but if you can do it yourself, the product will be cheaper. They also can produce more and there will be no need for us to import. This is also one way of encouraging the farmers or land owners to plant more and experiment on ways how to crop many times a year thus eliminating the need for importing. And in that way, we can export as many of our produce as needed. We can sustain ourselves and we can create income for our people. The need to sell their lands will no longer be an option, they can make use of it and make fortune out of it. Thus encouraging their children to love and tend to their lands, i believe this to be a better option than selling the land so you can pay the agency that deploys you abroad and earn a meager income or if lucky a much bigger chunk. :)
- Sonja Chan You all have commendable points, guys (Sher, Ernie, Glenn, Marlie)... interesting topic, Reu.... and I go with you all the way. I probably can't go into a lot of particularities like those you present but I will reiterate the base line... for purposes of our Philippines' not only economic but socio-economic upliftment, government should be able to take care of its own. It goes without saying that the OCW is one of the main strengths of the economy. If only yes, government can provide enough jobs in the country, he woudn't have to go out and look for greener pastures. It does bring back the food on the table, so to speak, but if I may, it also brings about family break-ups. uncared for children, infidelity and all the nasty things that go with this. Too, we might not be having what we know as the country's brain drain and instead have our own professional and intellectual minds back home taking care of home rather than bring over those God-given gifts of theirs to benefit other countries. There is such a thing as an international aspect of life, it's true, but shouldn't charity begin at home? The Philippines is so rich in natural resources and beautiful intelligent people - this could be reason enough for a small country like ours to be easily one of the world's big ones!.
- Glenn Gattud Thats why I suggested that we line em all up and shoot em :-) but I guess something less drastic can be done....like puhleeze dont vote for that scalawag who....ooops wait a minute! my buddies at the COMELEC just told me the election results are already done and yup...my dead grandmother voted for the guy. BUT - I still love this country and I'm staying put...there's still a lot more fun here than elsewhere :-)
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