Governance and growth: Twin concepts in building a nation

This month has especially been trying for Philippine politics. Reports and different narratives on the arrest of former President Rodrigo Duterte dominate the news. This has heightened polarization anew, pitting one political camp against each other. The followers of former President Duterte are angry as he is now in the custody of the ICC. The impeachment trial of Vice President Sara Duterte deepened political divisions.

The noisy Duterte supporters protesting these developments are well within their rights. Political expression is a cornerstone of democracy -- so long as they do not resort to violence and fake news. These issues emphasize how the rule of law applies to all and must be applied evenly. No individual is above accountability no matter how powerful they might be. The International Criminal Court is a manifestation of the workings of the rule of law on an international level.

The rule of law provides stability and confidence—essentials not only for a functioning society but also for attracting business investment. The Philippines has long acknowledged the role of foreign investments in bolstering economic growth and generating jobs for Filipinos. For this year, the government is aiming to achieve an economic growth of between 6% and 8%; an investment-led growth is ideal. 

Thus, efforts of the government to make the Philippines attractive to investors should revolve around stability and confidence, and these could only be achieved through the pursuit of good governance and following the rule of law. 

To govern well, an administration must be able to address people’s top concerns. A Pulse Asia survey commissioned by the Stratbase Group conducted February 20-26, 2025 found that five of the top 10 most urgent national concerns in the Philippines are largely economic. Controlling inflation ranked as the highest priority, identified by 73% of Filipinos. Other key concerns include increasing workers’ pay (32%), reducing poverty (24%), creating more jobs (24%), and addressing involuntary hunger (18%). 

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What does it mean for economic growth to be driven by investments? 

This kind of growth hinges on investments in infrastructure and manufacturing industries. Through these big-ticket initiatives, the Philippines can create jobs, raise incomes, and continue to pump a resilient economy. These investments will generate a multiplier effect, fueling economic progress that would in turn give way to even more investments. 

Public-private partnerships (PPPs) are crucial because it synergizes the leadership and vision of the government with the efficiency and performance capabilities of the private sector in terms of access to capital and technical expertise.

As of February 2025, a total of 187 strategic investments in the sectors of renewable energy, digital infrastructure, food security, and manufacturing were certified amounting to PHP 4.6 trillion. These investments are expected to generate 300,000 jobs for Filipinos—a testament that investments can drives a trickle-down effect that directly benefits its citizens. With stable employment, more Filipinos can afford essential necessities and further bolsters an already strong consumption economy.

Between planning and execution lies a vast field of possibilities, and government offices like the Department of Budget and Management (DBM) and the Anti-Red Tape Authority (ARTA) have been instrumental in streamlining regulatory and administrative processes that tend to frustrate businesses with time wasting bureaucratic barriers. We are hopeful that local government units will follow suit the executive branch. 

Initiatives to ensure a transparent conduct of government transactions were beefed up. In July 2024, President Ferdinand Marcos Jr. signed the New Government Procurement Act (NGPA), a landmark anti-corruption measure introducing open contracting for full transparency in procurement. The revival of the Digital Information for Monitoring and Evaluation (Project DIME) also strengthens oversight, using satellites, drones, and geotagging to prevent “ghost projects” and ensure infrastructure funds translate into real progress.

Meanwhile, ARTA’s electronic Business One-Stop Shop (eBOSS) has streamlined and digitalized government processes. As of February 2025, almost 200 LGUs are fully compliant, highlighting the significant reduction in business permit processing times and increase in registration and revenues. 

President Marcos’ Executive Order 18 on Strategic Investments Green Lanes must be converted into a law in order to further support the initiatives of ARTA. 

At the core of these initiatives is a commitment to ensuring that every peso spent on infrastructure and every investment received translates into tangible benefits for the Filipino people.

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An example of foreign investments in our country is the construction of the South Commuter Railway Project (SCRP), a section of the North-South Commuter Railway. It is a nearly 55-kilometer modern suburban railway line connecting Metro Manila and Calamba City. It is expected to reduce travel time by 50%. It also aims to contribute in reducing greenhouse gas emissions in the country, in line with our climate change agenda, as well as in generating jobs for Filipinos.

ACCIONA, a global leader in sustainable infrastructure and renewable energy, has commenced the construction of the permanent works on the SCRP this month. All around the globe, ACCIONA has built more than 3,000 km of rail track and 1,200km of high-speed lines. Now, they are bringing their expertise to the Philippines. 

This example shows us that attracting investments through good governance is possible. 

Governance and business are deeply connected. Attracting investors to the Philippines requires more than a business-first approach—it demands strong governance that addresses broader economic and policy dynamics harmonized towards achieving sustained and inclusive prosperity.

Investors pay close attention to how a country is governed—whether technology is used to streamline transactions and reduce corruption, and whether officials are held accountable for misconduct.

Upholding the rule of law promotes accountability and fairness, strengthens institutions, and gives businesses confidence that their investments are secure. Economic growth cannot happen without effective governance. For the Philippines to achieve real, investment-driven progress, both must go hand in hand.

Rupert Paul Manhit is the COO and managing director of think tank Stratbase Group. He is the executive director of Philippine Trade Foundation (Phils Inc.)