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