I have been running a business organization with diverse interests for decades, so I know very well how important it is for the members of such an organization, in spite of the differences in product or service areas, to coordinate, complement and operate for the benefit of the whole group.
The same is true with running the government, which is sometimes called Philippines, Inc., the biggest business organization in the country with the largest resources, the most number of shareholders and the most diverse interests.
Just like corporations or conglomerates, the successful operation of the government requires coordination and complementation of its different activities in pursuit of a common goal.
The common goal has been set by President Duterte: to make the Philippines a peaceful and progressive country.
The departments under the Office of the President must craft programs and adopt policies in pursuit of the goal set by the Chief Executive.
In general, I am glad to say that in the past six months, which comprise Duterte’s first semester in office, the economic-oriented departments have been moving in one direction. I believe this is one of the reasons investors continue to be bullish about the economy’s prospects, despite the uncertainties in the global economy.
For example, the World Bank last week upgraded its growth forecast for the Philippines for the next two years. In its January 2017 Global Economic Prospects, the World Bank said the Philippine economy would grow by 6.9 percent this year (from 6.8 percent in 2016) and by 7
percent in 2018.
Among other factors, the World Bank cited infrastructure as one of the major growth drivers for the economy. A good example of coordination and cooperation between executive departments with entirely different areas of operation is the memorandum of agreement (MOA) signed by the Departments of Trade and Industry (DTI) and the Public Works and Highways (DPWH).
The MOA, titled “Roads Leveraging Linkages for Industry and Trade (ROLL-IT) Program,” is a convergence program aimed at building roads to link the economic zones, which are being developed by the DTI and the private sector, throughout the country.
Under the MOA, the two departments will jointly undertake studies and implement infrastructure projects in priority economic and manufacturing areas in the Philippines.
The timing is also right, because the Duterte administration has committed itself to increase spending for infrastructure, beginning with P861 billion for this year, which is equivalent to 5.4 percent of GDP, from less than 5 percent under the past administration. According to the Department of Budget and Management, the government plan is to continue increasing infrastructure spending until it reaches 7.2 percent by 2022.
With better road linkages, ecozones and industrial estates in the rural areas are expected to become more attractive to investors.
I believe the program is in the right direction because right now, many ecozones are not being maximized because of the lack of, or inadequate, connections.
The program will also contribute to the President’s policy of developing new engines of growth in the countryside to generate employment in the provinces, where poverty is most prevalent.
We really have to push countryside development if we are to succeed in spreading the benefits of economic growth to the majority of Filipinos. Economic activities have been concentrated in Metro Manila for so long.
Hopefully, the MOA between the DTI and the DPWH will pave the way for more investments to reach the countryside and give Filipinos in the rural areas a much-deserved and long-overdue share of economic benefits.
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