Second wave of reforms needed to spur economy — FVR

The Philippine government must embark on a second wave of economic, social and political reforms to fuel faster economic growth that has shown some signs of perking up under President Arroyo.

On the economic front, the government must shift its focus on specific industries, not the general economy.

This was the main message of former President Fidel V. Ramos on the opening day of the National Conference of Employers (NCE) held in Makati City before the weekend.

The first wave of reforms, the former chief executive pointed out, was done during his incumbency when no less than 229 reform bills were passed into law, 60 of them on the economy.

The Philippines experienced its boom years during Ramos’ terms when the economy grew at an average of five percent from 1992 to 1997. After that, it simply crawled marginally forward.

Specifically, Ramos suggested the regulation of shipping rates in the country to bring down the cost of moving goods and people across the islands and passage of a new law that puts up asset management companies that clean up non-performing assets.

"The government must push forward a more effective anti-graft campaign" that is sapping its limited resources, the former President stressed.

The reforms must include amending the protectionist provisions of the 1987 Constitution to open several segments of the economy like utilities, natural resources development and the media for new foreign investments.

He likened the new strategy to cooking "bibingka," the delicious native rice cake. It must be done with "apoy sa ilalim at apoy sa ibabaw" (heat from the top and heat from below).

The heat on top should come from the country’s leaders both in government and in business, he explained, while that from below is the mobilization of the grassroots, particularly the small and medium enterprises.

On the part of business, Ramos advised them to exercise their social responsibility by paying their correct taxes. He pointed out that in a recent tax mapping made by the Bureau of Internal Revenue, it found that 99 out of 100 business establishment in one area were breaking one or several tax laws.

For his part, Roberto de Ocampo, Ramos’ finance secretary and now a professor at the Asian Institute of Management, pointed out that the biggest obstacle to more rapid growth is peace and order. Second is the ballooning fiscal deficit.

He divided the peace and order problem into two parts, criminality and terrorism in the South. He however, objected to more violence as a solution to the Mindanao peace problem.

He advocated a more aggressive economic and social program to give our Muslim brothers a taste of progress as a better road to peace than violence. – Abe P. Belena, Philexport News and Features