NEDA chief bats for good governance in face of globalization

Socioeconomic Planning Secretary and National Economic and Development Authority (NEDA) Director General Romulo Neri said over the weekend that in order to survive globalization, there must be good governance.

"Remember, good governance is a main competitive  factor now in globalization. Because money we can get from elsewhere. Technology we can get from elsewhere. Manpower we can get from elsewhere. But governance, we cannot import. Governance is the only thing that is not tradable," said Neri in his lecture at the CPG Roundtable Breakfast Forum in honor  of the late President Carlos P. Garcia held in Club Filipino, Greenhills, San Juan.

The event was a gathering of executives who hail from Bohol.

During his talk entitled "Filipino First Policy and Globalization", Neri said that on Aug. 28, 1958, the National Economic Council passed Regulation 204, officially promulgating the Filipino First Policy, which called for the adoption of guidelines giving preferential treatment to Filipinos.

However, he said the Filipino First Policy provoked protests from foreign business quarters, notably the Americans and the Chinese during that time.

"(During recent times) Critics have questioned globalization as a means to make richer countries become richer and poor countries become poorer. In reality, it is not globalization’s fault, but the country not being prepared to meet the demands of globalization, especially the demands of good governance," he said

Neri said that promoting competition is  the best strategy now, to get the industries and services more globally competitive.

He said technologies have provided the means by which competition can promote efficiency and quality.

Neri said that in telecommunications, the government was able to promote competition in the big sector once dominated by one company. Incentives, too, have opened roads for new players.

"Currently we are in the midst of reforming our petroleum and electric power industries, to reduce the cost. We are also improving the local and foreign transport services in order to provide better transport services in our country. There are opportunities and pitfalls in globalization. The global network is a competitive world and players must forever be innovating and improving. You cannot just sit on our laurels in globalization," said Neri. 

"Our country must improve its governance because governance is a main factor in competitiveness and in attracting investors," he also said.

Neri likewise urged the country to reform its laws and institutions in order to cope with the demands of globalization.

"The Philippine government is required under the constitution to interpret foreign agreements in favor of our basic law. The WTO (World Trade Organization), allows member countries certain safeguards to protect the economic and political interest. The Philippines has enacted laws to protect unfair trade practices. While the government is committed to its international commitment, such as the WTO, the government is also mandated by the constitution to protect the interest of Filipino businessmen in the industry," he said.

The protection of  the Philippines  and its economy is paramount, he said. "However, in order to create wealth, you have to promote investments, both local and foreign. The constitution does not mandate a state of ‘stand alone or do it alone.’ The constitution allows foreign investments to come in. So the challenge now is how do we promote our national interest in the globalized world?," Neri said.

He said that the geopolitical situation now has changed vastly from the time of President Garcia.  

"Why is it that everytime we have a political problem, the economy starts to fluctuate violently? It is important that our institutions, like Congress, our justice institutions the bureaucracy, should stand firm and stabilize everything," he said.

Neri advised that there should be no "false nationalism", but rather a "pragmatic" culture in the society, without having to sacrifice the interest of the Filipinos and the government.