Inclusive growth pushed

MANILA, Philippines - Southeast Asian leaders voiced their commitment to inclusive growth during the World Economic Forum (WEF) on East Asia yesterday as they cited the importance of investing in people to improve lives and protect resources.

Inclusive growth has been President Aquino’s goal since becoming president in 2010.

“It is a truly symbiotic relationship: As we empower our people to improve their lot in life, they empower us to battle the vested interests that remain in society,” Aquino said during the opening plenary of the forum also attended by Indonesian President Susilo Bambang Yudhoyono, Vietnamese Prime Minister Nguyen Tan Dung and Myanmar Vice President U Nyan Tun in Makati City.

“Ultimately, it is our countrymen who give us the confidence to continue blazing the path of reform,” Aquino said.

The four leaders expressed optimism about the future of the region despite the enormous challenges that they admittedly would have to hurdle to further improve their countries’ economies.

Aquino said the biggest resource of the Philippines now is its people, who have been the principal players in turning points in the country’s history.

He stressed the collective efforts of the Filipino people have “allowed us to achieve national redemption and progress” despite the “worst efforts of our leaders” at times.

Aquino cited the restoration of democracy through the bloodless People Power Revolution in 1986 and the elections in 2010 during which Filipinos took a stand against decades of neglect, corruption and impunity by giving his administration a mandate to initiate reforms.

He emphasized that good governance is good economics and that large-scale reforms in every aspect of society would only take root if inclusive growth is achieved.

The President noted that reforms have made it harder for unscrupulous officials to tinker with taxpayers’ money and ensured punishment against “all those who committed wrongdoing – regardless of their power, wealth, or influence.”

The task, however, is not that easy, he pointed out.

“As you may have guessed, tangling with these very wealthy individuals and sectors with vested interests was not an easy task. But those in our administration were not shaken: Dismantling the culture of corruption was a promise we made to the people,” he declared.

“If we truly wanted to improve the lives of our people, we could not possibly shirk from this challenge. We had to take on all those who had a misplaced sense of entitlement – who believed that they had more rights than their fellow Filipinos,” Aquino said.

Proof of his administration’s determination to make wrongdoers – even those in high places – accountable were the hospital arrest of his predecessor and now Pampanga Rep. Gloria Macapagal-Arroyo who is facing corruption charges, and the ouster of then chief justice Renato Corona for failing to declare over 98 percent of his wealth in his statement of assets, liabilities and net worth.

“It is evident: Our country is in the midst of a dramatic turnaround in every sector, and we are intent on continuing this trend and making certain that each and every Filipino enjoys the full dividends of progress,” he said.

All signs point upward

Despite the expected rise in population in the coming years, opportunities still abound for the country to reach or even breach economic growth targets, he said.

“All signs for the future are pointing upwards: According to United Nations population projections, in 2015, we will be hitting a ‘demographic sweet spot’ that will last approximately for the next 35 years,” Aquino said. “Countries in such conditions post an average yearly growth of 7.3 percent over the next 10 years. We are incredibly poised to take full advantage of the situation, having made strategic investments in education and skills training, which will equip our future workforce with the correct skills to fill the jobs that are being and will be created,” he maintained.

He stressed that it’s ultimately the people who would propel the country to inclusive growth and global competitiveness.

“This is why inclusive growth is not just a mantra for us; it is the yardstick by which we measure any government undertaking. After all, it is a participatory public – one that is empowered, and one that gives government their trust and confidence – and a government that never misplaces that trust that ultimately makes equitable progress possible,” Aquino said.

He also said the country was able to survive its “darkest moments” through the “patriotism, the willpower, and the wisdom of the Filipino people.”

He said the country now has public servants “fully committed to harnessing their power for good – for the betterment of the nation” and help sustain the economic momentum.

Aquino said this has enabled the nation “to go from success to success, and truly make waves throughout our archipelago, in the international community, and in the vast, immeasurable ocean of history.”

Resources unleashed

With reforms freeing significant amounts of resources, the administration was able to undertake bigger development projects and invest more in social services.

He cited the expanded conditional cash transfer program and the adoption of the K-12 scheme to make the educational system at par with global standards.

“There is a simple idea behind all these initiatives: Our people are the be-all and end-all of this government, and we are not content with waiting for the benefits of growth to just trickle down the social pyramid,” he said.

“This is why, from the beginning of our term, most of our efforts have been targeting the poorest of the poor. This year, however, we have expanded the scope of our efforts and are now likewise targeting those who are deemed ‘near poor,’ or those who are one catastrophic illness or one natural disaster away from going below the poverty threshold,” he added.

He said the country’s achievements have even attracted the attention of major credit ratings agencies.

He said the WEF itself has given the country a positive outlook.

“And we are set to build on our momentum and become even more competitive, as our manufacturing sector continues its revival, and as we continue to increase our infrastructure spending – more than doubling it, from around P200 billion in 2011 to more than P400 billion in 2014,” he said.

Leaders’ consensus

Indonesian President Yudhoyono, who arrived in the country yesterday for a state visit and to participate in the WEF, said Manila’s hosting of the event “is a solid vote of confidence for this country’s remarkable economic achievements.”

“We live in an extraordinary era. Asia is in the midst of a revolution. This revolution is quite a different kind than the explosive 20th century revolution, but equally if not more powerful,” he said.

Vietnamese Prime Minister Dung said the holding of the WEF on East Asia in Manila “indicates the interest of the international business community and the Philippines’ reform efforts and fast growth in the recent years.”

Dung also lashed out at China’s aggressive moves in regional waters, saying full development cannot be achieved without stability.

“Development is not possible without peace and stability. Vietnam always strives for peace and stability in Asia Pacific, and is optimistic about the future prospects and cooperation development in the region,” he said.

Klaus Schwab, founder and executive chairman of the WEF, praised the Philippines for its rebound despite being hit by disasters, particularly Super Typhoon Yolanda.

“We are indeed moving forward in every step for the inclusive, equitable, and sustainable development. It’s a long way to go; however, we are moving forward. I am confident that this situation will bring inspiration to understand the importance of promoting growth with sustainable development,” said Myanmar vice president U Nyan Tun.