NEDA chief: Peace key to sustainable economy

MANILA, Philippines — Peace, especially in Mindanao, can help boost the Philippine economy further.

This is according to the National Economic and Development Authority director general Arsenio Balisacan, who discussed the State of the Philippine Economy during the 4th US Embassy Seminar for Regional Media on Monday.

The seminar, held at the U.S. Embassy in Manila, was aimed at updating the regional media about the Asia Pacific Economic Cooperation 2015, which the Philippines is hosting.

"The effect of the Mamasapano incident on our economy depends on how we deal with the issue," Secretary Balisacan said, adding that if the way the government deals with the incident will result in uncertainty, this will have a negative impact on our economy in the form of foregone opportunities.

The NEDA director general said Mindanao has an enormous growth potential and believes that it can grow much faster than other areas in the country. Mindanao, he said, is an ideal place for agri-business, tourism and light industries, among others.

David Whiting, acting economic counselor at the U.S. Embassy in Manila, said that while the Philippines has grown to become, starting in 2010, the second fastest growing economy in the region, second to China, many investors have shied away from Mindanao because of security issues.

He said the passage of the Bangsamoro Basic Law will bring economic growth in Mindanao.

Whiting, who discussed Investment and Bilaterial Relations between the United States and the Philippines, added that the BBL will help create political security in Mindanao, which can make the area attractive to foreign investors.

Balisacan and Whiting, emphasized during their respective talks that the country needs more Foreign Direct Investments or FDIs to create more jobs and sustain the healthy economy it has attained.

U.S. Ambassador Philip Goldberg, meanwhile, said that while the United States continues to support the peace process in Mindanao and is implementing a number of programs to bring development there, not all areas in Mindanao are conducive to development because of security issues.

Balisacan, in his presentation, said that peace and human security, especially in Mindanao, is one of the key areas that have to be addressed because this constraints growth.

"Economic growth will be higher if we fix the problem in Mindanao," Balisacan said. (FREEMAN)