Noy outlines government efforts to sustain economic growth

MANILA, Philippines - The government has always treated the country’s human resources as a growth engine, President Aquino said yesterday as he outlined his administration’s efforts to sustain or even accelerate the economic momentum before a gathering of Asia-Pacific business leaders and executives.

“The Filipino people are front and center in our governance agenda. Over the years, they have proven to be our country’s greatest resource – from the time they rose up against a dictator to reclaim democracy, to the time they voted for meaningful change in 2010, and even to the present day, as they fuel our resurgent economy,” Aquino told participants and delegates to the 23rd Pacific Economic Cooperation Council (PECC) general meeting.

“They are our bosses, and we see them as our most vital partners in growing the economy. This, we believe, is the quickest path to inclusive growth,” Aquino said.

“Indeed: the task of building a stronger, more inclusive nation – or even a stronger, more inclusive world – no longer falls only on the shoulders of those in power, or of men and women like yourselves,” Aquino pointed out. “For our part, we Filipinos have taken on the responsibility. We will share in the work and its rewards.”

The PECC General Meeting gathers leaders from business, government, academe and civil society from the Asia Pacific to discuss issues and challenges affecting the ability of every nation in the region to institute and sustain balanced and inclusive growth. 

Recommendations from the meeting will be discussed in the Asia-Pacific Economic Cooperation Leaders’ Summit in November in Manila.

“It goes without saying: everyone, across the entire spectrum of society, is fully and completely engaged in growth – and we want to accelerate this momentum,” he said.

“Government is exerting maximum effort to further engender an atmosphere conducive to business, down to our communities. In the same way that government has invested in the capacities of Filipinos through social services and education, among others, so too are we making investments to ensure that micro, small and medium enterprises (MSMEs) reach their full potential,” Aquino pointed out.

He also cited the SME Roving Academy which has helped more than 85,000 potential and established Filipino entrepreneurs by training them in business planning, financial management and product pricing and costing, among other skills and knowledge.

“By the end of 2015, 100 Go Negosyo or business centers will be put up around the country. These will offer MSMEs services such as business registration processing, training sessions and seminars and the establishment of market linkages,” he said.

“With greater regional integration on the horizon and the vast potential of e-commerce, these interventions will help our MSME sector to thrive,” he added.

In the past five years, Aquino said the government has been working vigorously to enhance the state of Philippine infrastructure.

In 2010, the infrastructure budget was equivalent to 1.8 percent of the country’s gross domestic product.

“Today, it stands at four percent of the (GDP) and we are determined to increase it to five percent of GDP by 2016. Might I emphasize that, through the years, our national infrastructure component has been receiving a higher percentage of a much higher GDP,” he noted.

Traffic task force

“A task force of different agencies is hard at work to alleviate traffic along Metro Manila’s thoroughfares. Critical transport infrastructure like seaports, airports, bus terminals and light rail transport continue to be upgraded, while big-ticket projects for transportation systems are in the pipeline,” he said.

“This will not only ensure that the Philippines becomes more competitive, but that the benefits of trade, investment and growth are able to reach even the most far-flung communities of the Philippines,” he maintained. 

In anticipation of greater regional integration as well as to ensure the country’s long-term growth, Aquino said his administration has opened up key sectors.

He said that in 2014, he signed into law the bill allowing the full entry of foreign banks in the Philippines, the amendments to the Cabotage Law, which would improve the transport of cargo for import and export and the Philippine Competition Act, which would penalize all forms of unfair trade practices as well as prevent monopolies.

“What our government has done over the last few years has been to stimulate a virtuous cycle of empowerment, where the growth of business, industry and the wider economy is spurred by the participation of the dynamic, innovative and hardworking Filipino people,” he said.

“At every step of the way, our government is there to provide support. At every step of the way – whether we are studying the plans for a new bridge, or evaluating fiscal policy – we have always asked ourselves, ‘how does this redound to the benefit of our countrymen?’” Aquino said.

“This strategy and the success it has wrought in my country is proof positive of the simple fact that economic progress is inseparable from the progress of the people. Good governance works. Reform works,” he stressed.

The President said investing in the people was the most logical way to ensure continued progress since failing to capacitate the people would only help widen the social and economic divide between their citizens.

He noted many would then be relegated to the most unskilled portions of the economy and invaded by a sense of hopelessness.

“As we capacitate our people, so too do we empower them to take advantage of opportunities that arise. These citizens in turn gain the ability to make greater contributions to both government and society-at-large, helping foster an even more inclusive economy,” Aquino said.

Real transformation

The President also said that transformation has not only affected institutions and the economy but also the mindset of Filipinos.

“We see today a people who have felt the effects of good governance – and who will refuse to accept anything less. My countrymen will continue to demand integrity, accountability and sustainable, inclusive growth even after I have stepped down from office. They will demand the continuity of the successes we have reaped,” Aquino said.

The President also cited the government’s conditional cash transfer program, which now covers 4.4 million households.