Service sector growth isn’t inclusive
This weekend, the 14th, is the most important date of the month of February. This day emphasizes the significance of the widely regarded cupid’s month of February. As folklore suggests, it is the month cupid perpetually nurtured as lovers’ month; a month of peace; a month of mutual assurances; and a month where truths are revealed in whispers.
However, on the contrary, by all indications, cupid completely abandoned us this month. As felt, instead of romantic whispers, we heard eardrum-rupturing bombs; instead of assurances of safety, we chilled on widely televised beheadings and torching of innocent human beings; and instead of government’s allegations of providing protection to its citizens, we are witnessing the aftermath of the carnage and the interment of the Fallen 44.
The timing maybe off but timing isn’t truth’s concern. It seeks its own path without fear. In fact, it reveals itself in many forms. The general public, however, treat truths differently. Some are factual but are taken for granted. A few are unfounded allegations but are embraced upon as gospel truth. Whatever the motivations are, one thing is certain, every session (senate and congress) of the supposed investigation to unearth the truth about the Fallen 44 is an opportunity to make one’s face recognizable for re-election. Thus, assertions as to one’s honesty and authenticity of one’s allegations as well as their ways of handling the investigations, most likely,shall be ostensibly filled with biases and are to be taken with caution.
In the meantime, however, these incidents offered a temporarily relief of the current economic issues the majority of our countrymen are in. This is so as joblessness and unproductivity still abound among the poorest of the poor and the supposed government priorities and pronouncements have remained vague and questionable.
For one, just last week, at the start of the first APEC Senior Officials Meeting in Clark, Pampanga, Philippine Foreign Affairs Undersecretary Laura Del Rosario said that “APEC member economies will continue the discussions during the public-private dialog on services started in Surabaya in 2013”. Moreover, she emphasized that “services will be the main focus of our host year, because we think that services really form part of the connectivity aspects of the Asia Pacific." Specifically, their priorities on services covered “information technology and business process management, creative industries, and research and development services.” Interestingly though, emphasis was made on the fact that “they are taking into account the perspectives of small and medium enterprises as they strive to maximize participation in the global value chain.” Yet, such emphasis is still on SMEs that are into the service sector.
The truth is, the service sector has consistently grow for more than a decade now. As to why the emphasis is still on it in the APEC discussions is because that’s the right way to go, at this point in time, as we interact globally with other nations. However, as we try to prepare ourselves of the consequences of the imminent global integration, we shouldn’t turn a blind eye on the plight of our less fortunate brethren, those mired in abject poverty.
Notably, majority of those in dire strait are in the agriculture sector. In fact, if examined closely, those who are mired in poverty in the highly urbanized cities’ slum areas are rural migrants. These are offshoots of the continuing rural exodus on account of the feeling and perception of helplessness in the countryside. Knowing fully well that one-third of our labor force is in the agriculture sector, then, even a little percentage could translate into a huge number. Worst, despite having the most number in our labor force, the agriculture sector contributes just a disappointing 11percent to our gross domestic product or GDP.
Generally, there are two ways of attaining inclusive growth. These are productive employment and income redistribution. Though a long term approach, productive employment can be addressed by encouraging new investments, both foreign and domestic. On the other hand, income redistribution can be done through social spending programs like cash transfers. Unlike other measures, inclusive growth takes the long term approach by focusing on the productive employment.
True enough, we had our own share of foreign direct investments. Notably, however, most of these have been so focused only on business process outsourcing. In fact, this is clearly manifested in the latest economic report which should consistent growth in the service sector. Unfortunately, however, as far as inclusive growth is concern, the BPO sector does not contribute that much. This sector employs not only the well-educated but the best among them. Thus, they don’t directly give opportunities to individuals who are among the inadequately educated, the poorest of the poor, so to speak.
In addressing this concern, this government should enjoin investors to invest in agriculture, tourism (preferably countryside tourism) manufacturing and infrastructure (which are seen to support agriculture and tourism through the development of road networks, ports, and airports) sectors. These types of undertaking will surely address the acute need for jobs among the poorest of the poor who are mostly in the agriculture, manufacturing and construction sectors.
- Latest
