Economist: Corruption exposé good to economy

CEBU, Philippines - The corruption exposé in the Philippines is actually good rather than detrimental as it is seen to send a good impression in the international investment community. The recent development is not a hindrance to the country’s economic upswing.

“Corruption is not an obstacle to economic development, as long as our fundamentals is stable,” said economist Bernardo Villegas of the University of Asia and the Pacific (UA&P).

In fact, he said the more the Aquino government will be able to send corrupt people to jail, the more the Philippines will get greater confidence from the outside observers.

The government should better send a good number of “crooked” leaders into jail, as this is good for the economy, and sends hopes for the people in general, said Villegas.

He said the rosy economic outlook for the Philippines projected by local and foreign economists and global rating agencies will continue to prove right in the next few years, even after the term of President Benigno Aquino III.

“Dont fear the change of leadership, whoever become the next president [by 2016] has very thin opportunity to be corrupt because the private sector and the civil society are now more vigilant,” said Villegas.

Villegas is known as the “prophet of boom” economist in the Philippines because of his bias on positive perspective amid the economic and political problems, said that what the Philippines has achieved today, is only the fruit of what the past Presidents in the last 25 years have built, started with Cory administration.

Even the outsiders he said are running out of imperatives for the Philippines, because of its profound economic strength. The Philippines has been named as the “Next Tiger in Asia,”, “Asia’s Rising Star,”, “An emerging market to watch out for,” and similar adjectives by different foreign observers.

There is no doubt, he said the country is moving up, regardless of its shortcomings specifically in the leadership and government administrative and legislative levels.

In fact, he said the country’s Gross Domestic Product (GDP) will hit in an average of eight percent this year, and even with the current GDP growth, the Philippines outperformed other countries in Asia, and is the fastest growing economy in the region to date.

“Our neighbors [countries] are getting more and more in trouble,” said Villegas adding that because of the institutional reforms built by the leaders in the Philippine government in over two decades now, what regarded as the “sick man of Asia” suddenly have its debut.

The strong fundamentals established in the Philippines, and the growing OFW remittance, and the regained interest of manufacturing sector in Japan, Korea to come the Philippines, strength in BPO, and rich talent pool, and other positive foundations will continue to shield the country from external or internal inventions.

In the next 10 years, regardless of leadership transition, the Philippines is seen to hit the GDP growth between seven to 10 percent, he further projected. /JOB (FREEMAN)