..the governance

Good governance, infra to boost PH growth until 2016

 

abs-cbnNEWS.com

 05/29/2011

MANILA, Philippines - The country is targeting a gross domestic product averaging 7% to 8% per year until 2016, hinged on massive infrastructure investments and sound institutions, among others.

Based on the Philippine Development Plan 2011-2016, the National Economic and Development Authority (NEDA) said “investments in infrastructure and in education and health, improvement in governance, and the supporting strategies…are expected to boost total factor productivity’s contribution to GDP growth.”

It said this will generate an average 1 million net employment annually, which would help prompt inclusive growth. The latter refers to growth shared by all.

NEDA, however, admits that immediate problems and obstacles remain, including lackluster investments, fiscal constraints and external debts.

“But many of these phenomena have existed long before and are in the nature of consequences rather than causes. Undeniable is the fact that some hopeful conditions have emerged, and that economic and political opportunities now exist for a real change…,” it added.

Infrastructure backlog

NEDA said the country needs to invest in infrastructure, primarily focusing on the creation of “integrated and multimodal national transport and logistics system.” This would help connect the “underserved but productive areas” to markets and social services.

Funding should come from better tax collection and rational budget allocation, it added. NEDA admitted, however, that government funds are not enough, which is why there is a need to rely on the public-private partnership scheme.

It stressed on the further expansion of information and communications technology-related activities such as business-process outsourcing, different branches of tourism, electronics, sustainable mining, housing and construction and agribusiness and agroprocessing industries.

Responsive governance

The PDP took note of weak institutions and corruption as another barrier to the investment climate.

“The advent of a new administration is an opportunity for government to regain the citizen’s trust, lay bare the truth regarding past abuses, and instill civil vigilance for the future,” it said.

NEDA took note of responsive governance, for example, “zero-based budgeting” in the budget-planning agenda. This means that “budgets of government departments and agencies are comprehensively scrutinized and justified in complete detail, from a zero base, not just incrementally.”

It also said budget releases should be anchored on the number of active personnel and actual progress of programs.

NEDA said that “without the wise application of wise resources, social cohesion, and good governance, little can come of even the best-laid plans, and another window of opportunity will have closed for this generation of Filipinos.”