[Press Release] Joint Foreign Chambers (JFC) Statement For The Philippine Development Forum 2013
February 5, 2013 at 12:37
The JFC is pleased to participate in the 2013 Philippine Development Forum (PDF), and be part of the substantive policy dialogue among stakeholders on the country’s development. The JFC sees this as an exciting time to be part of the PDF. Last year, we saw the economy grow by a healthy 6.6%, an increase in government spending on infrastructure projects, and this Administration’s improved tax collection. The President enjoys high popularity here and abroad, largely due to the consistency of carrying out the anti-corruption platform on which he won the presidency. The BPO industry continues to grow, attracted by the highly literate and youthful population.
While the JFC believes this is all very encouraging, we also believe that the Philippines still has a long way to go on the road to becoming a middle income economy. It cannot afford to be complacent about what until now can best be classified as short term gains and rectification of prior poor governance. We share with all who are part of the PDF the vision of the Philippines as a successful, thriving, inclusive economy and democracy with levels of low poverty similar to other large ASEAN economies.
Two years ago the JFC produced “Arangkada Philippines,” a comprehensive advocacy paper containing recommendations “leading to the creation of $75 billion in new foreign investment, 10 million jobs and over one trillion pesos in revenue for the Philippine economy within this decade” if implemented. Much like the PDF agenda evolving from Working Group Meetings among government and the international development community, Arangkada is the result of many Focus Group Discussions composed of representatives from the private and public sector alike. It concludes that the country must focus on more rapid development of Seven Big Winner Sectors namely manufacturing and logistics, infrastructure, tourism, information technology, creative industries, agribusiness, and mining. Since the program’s launch in December 2010, the JFC has monitored the progress or otherwise of the recommended reforms. As of the first assessment January 2012 sectors that showed substantive improvement include BPO, policy infrastructure, telecommunications, logistics, and the general business environment with emphasis on labor. Recommendations for these sectors were seen to have been adopted and in some cases completed. Sectors rated as having less improvement, however, were mining, agribusiness, tourism, and manufacturing. Come February 26, Arangkada’s 2nd Anniversary will be commemorated with an assessment of the past year. We invite you to join us at the Arangkada Philippines Forum this coming February 26, 2013 at the Shangri-la Makati Hotel to see how much further we have come.
For the Philippines still has many issues to address, not in the least poor infrastructure that makes it vulnerable to natural disasters. BPOs, while a success story, account for only 2% of jobs in the country. We have yet to see a vibrant export sector. And while the country has immense natural resources, the mining industry has been unable to move forward.
Today the Philippines has at least two important windows of opportunity which should not be lost. Externally, it has attracted increased attention and respect at a time when substantial segments of foreign manufacturing and other businesses are seeking to relocate or expand to new sites. Internally, President Aquino enjoys high approval ratings and last year demonstrated strong political will to fight corruption, raise taxes, and initiate a modern public sector reproductive health policy. The sad reality that similar opportunities have been lost in the past underlines the importance of all of us attending this PDF seizing the moment in the next few years to move the Philippines to a sustainable high growth path with focus on inclusive growth, getting the much needed infrastructure implementation finally going, removing more barriers for foreign investors and addressing the need to become part of the Trans Pacific Partnership (TPP) and negotiating a Free Trade Agreement with the European Union.
Be assured then that your partners in the JFC will continue to work with government, the donor community, and civil society to the best of our abilities, finding workable solutions to the challenges that hinder greater economic development, beginning with the hope to effectively participate in and contribute to the 2013 PDF.
