The business community has given the Chief Executive a near-perfect grade in terms of accomplishing economic goals at the occasion of his last State of the Nation Address (Sona), underscoring the increased competitiveness of the country during the Aquino administration.
“In trade and investments, it’s an 8 [out of 10], because he has brought us investment- grade status, as well as increased our global competitiveness ratings, leading to more foreign direct investments [FDI],” Peter Angelo Perfecto, Makati Business Club
(MBC) executive director, said in a text message to reporters.
The President did not get the perfect score from the MBC executive, because infrastructure woes continue to burden the business community and reforms in the Bureau of Customs remain unaddressed.
Management Association of the Philippines President Francisco “Popoy” del Rosario similarly gave high marks to the Chief Exe-
cutive for the economic gains achieved by Mr. Aquino and his Cabinet.
“I give him a 9. I agree with the economic achievements cited, especially gross na-
tional product growth, national competitive rankings, stable ranking system, and rollout of PPP [private-public partnership] infra projects and increased FDI,” del Rosario said.
However, issues of concern remain, added del Rosario, as job creation, closure of major legal cases, peace in Mindanao and the China territorial conflicts are still threats to the country’s attractiveness.
The businessmen also acknowledged the gesture of President Aquino in recognizing the efforts of his Cabinet members as a good management and leadership practice.
The Federation of Philippine Industries gave President Aquino a score of 8 for improving the economic climate in the country and ushering in record FDI in 2014.
“The President was able to clearly com-municate what his administration has managed to deliver so far in line with their original contract with his bosses of a daang matuwid. I believe this was probably his best Sona speech, and I hope that this will mean that we can expect more from the final year, even as elections
fast approach. I am still hopeful that key infrastructure PPPs will roll out and legislative priorities, like the antidynasty bill, BBL [Bangsamoro Basic Law], FOI [Freedom of Information], BOT [Build-Operate-Transfer] law amendments, CMTA [Customs Modernization and Tariff Act] and DICT [Department of Information and Communications Technology] will prosper,” Perfecto said.
“I think the Sona achieved the President’s purpose of reminding our people of the gains of the last five years, while urging us to continue to build on what we have achieved. He told us that while much has been accomplished, we’ve only just begun! I think it was successful as an inspirational message,” del Rosario commented.
Employers Confederation of the Philippines President Edgardo Lacson said: “There is, indeed, a long list of accomplishments by the present administration, as reported in the Sona, which the nation appreciates.
But the quest for progress and prosperity is a never-ending journey, and no one president can lay claim to have achieve all the goals he sets at the start of his term. Much more are expected and need to be done, and new challenges
must be faced by all succeeding adminis-trations with deep commitment and political will. There is universal agreement that every president leaves a very important legacy that benefits our country.
However, history always takes a long time to pass its judgment for outgoing presidents. Good governance, as articulated in daang matuwid is a fundamental principle that must be nurtured by the incoming president and all those coming after him. The people expect no less.”
Economists believe that the President’s Sona lacked explanations for the administration’s shortcomings and budget woes.
University of Asia and the Pacific economist Victor Abola said the Aquino administration did register impressive economic growth compared to previous post-Marcos administrations; much of these were brought about by the changes instituted by previous administrations.
“Certainly, [growth] in these last five years has been faster than in the previous administrations, at least since Marcos’s time. But we have to remember that he inherited an economy that was in the best condition than any president after Marcos,” Abola told the BusinessMirror in a phone interview
on Monday.
“In terms of reserves, in terms of GDP [gross domestic product], in terms inflation, in terms of interest rates, it was already low in 2010. It just got better, but we don’t know if it was really so much better, according to our potentials, because we may be doing better, than our past, but not really our potential,” he added.
Abola also said that, while the President did mention the achievements of the PPP initiative, he failed to recognize the shortcomings of the program.
The economist said the PPPs were hounded by implementation delays through slow processes or legislations that prevent the continuation of projects.
Abola said these delays and policies, like the antimining executive order and the belated recognition of the importance of foreign direct investments to grow the economy, have made the Aquino administration seem antibusiness.
“It shows that, actually, the bottom line for me is he has not been very friendly to business. [This happens] if you violate basic needs of business,” Abola said.
Former Philippine Economic Society President Alvin Ang said the President also failed to talk about the budget.
Ang said it would have been a good opportunity to discuss how the current administration intends to maximize the government’s resources and remaining time in office.
He said the country continues to struggle with infrastructure problems, which could be addressed by public or government projects that could be completed in the remainder of the President’s term.
Problems, particularly on the adminis-tration’s poor use of public funds, have been the major reasons the economy has not exhibited robust growth.
Data from the Philippine Statistics Authority showed that public construction contracted 24.6 percent in the first quarter this year, from a growth of 17.5 percent in the same period in 2014.
Ang added that the President could have also talked about income-tax reform. He said this is crucial, especially because this would benefit the middle class.
In 2013 in the study titled “Will the Recent Robust Economic Growth Create a Burgeoning Middle Class in the Philippines?” former National Statistical Coordination Board Secretary-General Romulo A. Virola said 24 percent of the population was considered part of the middle class.
More than half of the population of Metro Manila, on the other hand, is part of the middle class. Further, less than 70 percent of families living in the National Capital Region and
Region IV-A belong to the low-income class.
Catherine N. Pillas, Cai U. Ordinario