EDITORIAL - Growth for equitable progress

Hailed as “one of the greatest economic comeback stories in recent years,” the Philippines is hosting the 23rd World Economic Forum on East Asia, which formally opens today in Makati’s Central Business District. It is the first time that the country, once regarded as Southeast Asia’s economic laggard, is hosting a regional event of the WEF.

The forum provides an opportunity for the Philippines to attract more investments and visitors, and its theme is what the country needs: leveraging growth for equitable progress. This year the Philippines is expected to be the fastest growing economy in Southeast Asia, and more upgrades in its investment rating are seen. Administration officials attribute these gains to the campaign against corruption and focus on good governance.

Economic managers, however, admit that inclusive growth continues to elude the country, and investment grade has not translated into levels of investment that can put the country at par with its more competitive neighbors.

Low investment levels mean a continuing exodus of Filipinos for jobs overseas due to a dearth of decent employment opportunities in their own land. As recent official statistics have shown, sustained economic growth has also hardly made a dent on poverty, despite direct interventions such as the conditional cash transfer program.

Climate change is also threatening the gains of economic growth as weather disturbances that are considered bizarre wreak havoc across the archipelago. Food security, water and energy resources are also at risk as rising global temperatures alter weather patterns.

The WEF gathering in Manila seeks to discuss ideas on achieving equitable progress, advancing models for sustainable growth, and realizing regional connectivity. It is being held as the 10-member Association of Southeast Asian Nations prepares for economic integration within a year. Picking Manila as the host for the WEF regional event is a recognition of the country’s recent economic gains. Now the nation needs more reforms to make the growth equitable.