No one should be left behind

PROOF positive that confidence in the Philippine economy is on the upswing is the increase in foreign investments in the country’s economic zones. According to the Philippine Economic Zone Authority (Peza), the various economic zones attracted P83.692 billion worth of fresh investments in the first half of the year, mostly from Europe, Japan and the US. This figure is double the P43.61-billion new investments recorded by the agency in the first six months of 2012.

This growth was driven mainly by electronics and manufacturing, with five multinational companies due to inaugurate their new manufacturing plants in economic zones in Batangas and Laguna later this year.

Peza expects more foreign investments to be channeled to the different economic zones in the country in the coming months, with companies from Germany, the UK and the US leading the charge. At least 289 European companies have invested in the Philippines’s economic zones, but the country’s top source of foreign investments is still Japan.

Another sign that the economy is going great guns is the increase in tourist arrivals. The Department of Tourism reported late last week that the country attracted 2.011 million tourists from abroad from January to May, the highest five-month total ever. This covered both foreign tourists and overseas Filipino workers who visited their relatives here during the period. Overall, arrivals grew by 10.54 percent from only 1.819 million in the same period in 2012.

The downside of the economic upturn, however, is that the country is not spending enough for the social protection of the vulnerable sections of the population, according to the Asian Development Bank (ADB). Our spending for social-protection programs remains below the regional average, despite the fact the Philippines is already considered a “large middle-income” country.

The country’s total expenditures for social protection, which the ADB breaks down into three major categories—social insurance, social assistance and labor-market programs—represent less than 10 percent of its poverty-line expenditures.

What this means is that the Aquino administration is not spending enough to address the needs of the poor, who make up a third of the total population.

What this means is that the Aquino administration has yet to walk the talk when it says it is determined to achieve inclusive growth.

Foreign investments do create jobs and more tourist arrivals bring much-needed revenues to the government. By the same token, credit-rating upgrades and gross-domestic-product increases are definitely welcome. But all these would be meaningless unless they lead to uplifting the lives of those who need help the most: the poor. At this point, much needs to be done so that the poor are not left behind in the country’s march to progress.

source:  Business Mirror