NEDA: Private sector crucial to sustained, inclusive growth

MANILA, Philippines — The National Economic and Development Authority (NEDA) emphasized the important role of the private sector in achieving sustained and inclusive economic growth.

Socioeconomic Planning Secretary Arsenio Balisacan told members of the Management Association of the Philippines (MAP) that the private sector is seen playing a crucial role in the current administration’s aim to steer the economy to a high growth path by generating more jobs and lifting more people out of poverty from next year until 2028.

“In particular, we see the private sector playing a significant role in bringing in the necessary investments that will lead to high-quality job creation, increasing the share of wage and salaried workers from 48 percent in 2021 to a range of 53 to 55 percent by 2028,” Balisacan said.

Aside from investments that will create employment, he said the private sector will also have a role in getting graduates to land jobs.

“To ensure that students will be qualified for higher-quality jobs, there must be closer coordination with the private sector with respect to job facilitation and skills development programs,” he said.

Balisacan, who is also director general of the National Economic and Development Authority, said the private sector would likewise be important in pushing for the country’s infrastructure development.

This is especially important as infrastructure backlogs have been one of factors that has prevented investors from coming to the country.

“Given our current fiscal constraints, we will use PPPs (public-private partnerships) to harness the private sector’s expertise, resources, and capacity to substantially upgrade the country’s infrastructure,” Balisacan added.

To ensure that the benefits of economic growth are inclusive, the NEDA chief said the government will prioritize solicited projects that fit into approved master plans and will connect leading and lagging regions.

According to Balisacan, plans to review the amended implementing rules and regulations of the Build-Operate-Transfer law are underway to address issues and concerns raised on the rules that are hindering investors from participating in PPPs.

The rules are seen to put more risks on the part of the private sector.

Balisacan said the private sector could count on NEDA to push and shepherd necessary reforms and to provide strong guidance on the economic policies that aim to promote sustained and inclusive economic growth in line with the long-term vision.

Under the AmBisyon Natin 2040, the vision for the country is to achieve high income status where no one is poor by 2040.

“There is no compelling reason to believe our country cannot reach its long-term ambitions. We can make it happen through robust partnerships between the public and private sectors,” Balisacan said.