Sustainable Economic Growth for The Philippines: Not in the Near Future

Written by: JP Carlos

According to the Organization for Economic Cooperation and Development (OECD), the Philippines had the most favorable projected growth rate at 6.2 percent from 2015 to 2019 among the ASEAN nations.  The statement by the Paris-based organization was made during the ASEAN Trade and Investment Summit in Burma.  Of course this announcement heralds the potential growth in the country’s business sector.  But a troubling truth remains – can projections turn into reality?

The parameters for economic growth vary depending on who you ask.  Suffice to say it is more than just the gross domestic product reported or the amount of investments that come in.  Likewise, it goes beyond, the number of businesses sprouting up or the number of trade agreements signed.  Surely, I will not question such announcement as this is beneficial to our trade and economic future.  Rather it forces me to contemplate on the steps our government will take to turn this projection into reality.

The ugly truth is that the average Filipino person does not see nor feel this positive news to unfold in in the near future. 

Corruption – a way of life

To begin, there is a continuous clamor for power and money within the government from all levels of the system.  I can’t help but think that corruption is a way of life for elected officials.  Who in his right mind would want to invest in a highly corrupt country?   We need a crackdown on corruption at all levels of the government.  How this can be done is the question.

Energy problems

Second, the overwhelming fluctuations in the cost of energy affect businesses and every Filipino.  Even the uncertainty of available energy is being questioned since the Department Of Energy claims a huge deficit between the consumption and the energy produced. 

Value of the Peso

Third, inflation rate has constantly plagued the Filipino people as it affects the prices of basic commodities and the minimum wage.  In short, the purchasing power of the Philippine Peso has been weak. 

Educating the Filipino Youth

Fourth, the current state of the education system does not allow for a stronger educational foundation for the future of the country.  For example, teacher to student ratios are still out of proportion.    In addition, classrooms and schools cannot handle the number of students. 

Global Competitiveness

Fifth, global trends has affected our country both in good ways and otherwise.  Global competitiveness is an area we still have to improve.  How can we compete with high quality international products when the government can’t even support local industries?  The Philippines used to be a top producer of rice but now we have to import it from neighboring countries.  We require sustainable programs that will create globally competitive products.  More importantly, we need programs that actually reach the industries, the local producers and merchants. 

Process flaws

Lastly, there are numerous flaws in government processes and systems present in our country.  For example, the inefficient processes in the bureau of customs have jammed the Philippine ports.  Thus, businesses are unable to receive their goods on time.  Coupled with the truck bans in certain cities, movement of cargoes is affected.

The prospect of having an economic growth not just in 2015 but until 2019 is good news.  However, with the current situation that the country faces, it is hard to be optimistic.  Unless these issues are addressed with sensible and sustainable solutions, the projections will simply remain as a possibility.

Do you think the Philippines can experience sustainable economic growth in the near future?


Written by:  JP Carlos
image by OpenClips cc-0 via Pixabay