Government, business urged to develop local mart

The Philippines, with its 80-million population, is a market in itself and government must provide the necessary programs to develop and strengthen this market.

Meneleo Carlos, chairman of the Federation of Philippine Industries (FPI), noted that the country’s growing population requires not only basic needs such as food, clothing, good health services and shelter but also facilities and opportunities for education, recreation, and livelihood programs. This opens a lot of potentials for increased job creation and employment but only if the local market can be provided with the purchasing power to attract such investments.

"We have to preserve jobs and industry and provide good services at affordable prices. But because there are a lot of inefficiencies in our trading system, our disposable income has weakened," he said.

Carlos made his presentation recently during a conference which has for its theme A Nation in Crisis: An Agenda for Survival organized by the Fair Trade Alliance. The event was participated in by some of the country’s leading manufacturers, labor and business groups, and members of nationalist movements.

The chairman of the networking committee on materials supply chain at the Export Development Council (EDC), Carlos cited poor infrastructure and high cost of transportation in the country as some of the sources of these inefficiencies. He noted, for instance, that farmers in region one are able to produce vegetables at prices that are competitive with those coming from China and Vietnam. However, the landed cost in Manila or other areas outside of the region becomes at least 50 percent more because of red tape and high transport and handling costs.

As a result, consumers are encouraged to buy imported but cheaper-priced vegetables to the detriment of the livelihood opportunities of our farmers. This cycle, he added, is viciously duplicated and experienced by other sectors in the country, partly explaining the growth of imports and the closure of many domestic factories in the last two years.

He called on government to use its resources efficiently to address these problems and improve the lives of Filipinos. One of his proposed solutions is the immediate implementation of e-commerce in government operations, particularly in areas which could help lower the cost of doing business in the country.

It is also important for government to develop a mechanism for training and re-training people to equip them for the changes that will take place with the introduction and use of technology, he said.

There is likewise a need to review loopholes of the build-operate-transfer (BOT) law and stop smuggling, dumping and other unfair trade practices.

To boost domestic industries, Carlos likewise urged government to pull back the tariff commitments that the country volunteered under the WTO and AFTA agreements until local industries are ready to face foreign competition.

"this is a good time to seriously start working on these programs now that the economy is experiencing single-digit inflation and interest rates. We should be able to keep this momentum for the benefit of our children," he said. – Philexport News and Features