A PROMINENT economist said Friday that the private sector must increase its economic activities to ensure the economic gains of last year are going to be maintained.

In his lecture, entitled “Why the World is not Flat (What is Really Happening to the Global Economy),”  organized by the Makati Business Club, Dr. Bernardo Villegas said business has an important role to play in ensuring that the 7.3-percent growth of the country’s gross domestic product (GDP) be carried over the succeeding years.

“Our GDP has been consumption-driven and what the country must do is to generate more foreign direct investments to ensure the growth will be on the long-term basis,” said Villegas.

“The G part of the economic equation is hopeless. Instead, exports should be propelled and no longer be at the cellar. Manufacturing should also not be discarded by the government,” added Villegas.

As far as Philippine business is concerned, Villegas said Philippine corporations must also do beyond the country’s borders for expansion. He cited San Miguel Corp., JG Summit Corp., Jollibee Foods Corp. and Liwayway Marketing Corp., manufacturer of Oishi brand of snack products, for making the moves to expand their businesses outside the country.

In particular, he cited fast-food chain Jollibee for being the consistent market leader in the Philippines by clobbering the multinational fast-food chains.

“Look at Jollibee. It has continuously beaten the multinationals here in the country because it has found exactly what the Filipino consumers want in their hamburgers,” he pointed.

He commended the move by these companies because this gives them more options in their business. “Investing abroad minimizes market failures in the Philippines,” he said.

Villegas also pointed out that these companies have to first build their brand and capability in the Philippines before going out. “It shows microeconomics is still important in the global economy,” he said.

Villegas said Philippine business must focus on doing business in emerging markets, particularly with the BRIC group (Brazil, Russia, India and China).

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A PROMINENT economist said Friday that the private sector must increase its economic activities to ensure the economic gains of last year are going to be maintained.

THE Philippines can commit to the structural reforms lined up for the member-economies of the Asia-Pacific Economic Cooperation (Apec), except to the competition policy among the 21 nations in the Pacific Rim, said an official of the Department of Foreign Affairs (DFA).