IF the recently delivered State of the Nation Address showed anything at all, it is that President Aquino enjoys being at the bottom of the barrel, so to speak, wallowing in the accumulated slime there. He wants to take us to that pit, to join him in throwing dirt at his predecessors, rubbish of his creation at his critics, and insults to the intelligence of plain citizens. Let us refuse to join him in his journey of the dumb.
Instead, let us lay out the vision of the Philippines that we want for ourselves, where prosperity and inclusiveness prevail throughout the land, a vision that we can bring into realization within our lifetime.
From a rule of thumb in computational algebra, we know that a variable that is increasing at a given rate doubles in value in that period of time shown by the number 75 divided by the given growth rate. Applied to concrete Philippine economic reality, this is saying that if our gross domestic product (GDP) per capita of $2,700 of today is growing at 6 percent per annum, it will double in approximately 12.5 years, reaching approximately $5,400 by 2028. This is nowhere approaching high-income status among nations, but it is high enough to justify parading proudly on the world stage, in fact, for some nations, even arrogantly pushing neighbors around.
Beginning in July 2016, when the current administration mercifully bids good-bye, let us plan out doubling our GDP per capita by 2028. This will happen if our GDP grows steadily at 8 percent per year, while our population remains growing at its current rate of approximately 2 percent per year. Can we do it? Why not?
Our context raising the GDP growth rate to 8 percent per annum will require larger amounts of investments than we have been mobilizing so far. We just have to attract more and more foreign direct investment. Notice how even the biggest of our domestic investors are now finding need for foreign partners as they bid for the public-private partnership projects that the government has been rolling out lately.
Increased investment will produce another extremely salutary effect: The inclusiveness that we desire for all Filipinos. Increased investment will create jobs in the hundreds of thousands and, perhaps, later in the millions for our working people. This will enable us to begin getting rid of poverty in our midst and begin establishing a less unequal society.
Some consensus has long been reached that economic growth is indispensable to the success of any income-distribution program. It is economic growth that creates employment and it is employment that gives working people access to the benefits of the expanding economy. Without economic growth, income distribution cannot be improved.
Of course, it is not increased investment alone that will enable us to give improved incomes to our working people. Foreign trade policy that gives primacy to the export of labor-intensive products, as well as fiscal policy that expands and intensifies social benefits to lower income groups will also have to be mobilized to bring about that end.
Just one more year and we can begin working for the realization of our dream.
Image credits: Jimbo Albano
5 comments
A year from now, you’ll be begging for Aquino to return if Filipinos vote for Binay. Aquino has done great for the Philippines, and the west respects him. The moment Binay gets sworn in, is the start of a massive rollback. Foreign investors, and corporations will pull their funds and plans, and the peso will take a dump.
And the stock exchange PSE index will dive by 20 to 40%.
even a simple citezin like me understands that liberating our economy ,letting foriegn businesses in and fuses with the existing would mean growth not for the economy but for teh working people as well. the work force of the philippine is so massive that current job market cant accomodate, good example is ,lots of my friends still looking for job until now. if more fdi means more job.
it cant be deny that contractualisation is the current system of our labor today. it could be uplifting for us if foreign firm footing on our shore, offering all the benifits the law dictates, high wage offer{(low wage reason why foreign firm outsource labor force), but still higher comparable to ours now} and they should oblige to direct hire filipino.
pls consider this, filipinos with working age are either high school graduate or college undergrad unable to be absorb for a white collar job,not english proficient for a call center job. phil need factories and companies that suits the people.
korek, naniniwala tayo sa BM Editor…
simple lang, additional indicators; masasabing umuunlad ang PILIPINAS at hindi na tatawaging “SICK MAN of ASIA” kung ganap ng mababawasan ng kalahati (1/2%) ang homelessness (urban poor), street children, urban and rural poor squatters, under-employment, political settlement with CPP-NPA at MORO insurgency..
meaning, 8.0% GDP growth rate for two consecutive good governance president (12 years)..
“8 percent per annum will require larger amounts of investments” This goal will never be achieved in the quagmire of bad leadership. As we know it from past experience, in this country a good leader is just but once in a dozen and the one that is ending his term appears to be the best so far contrary to the columnist perception. I am old enough to know what I am talking about.