NEDA calls for investments in poverty reduction

The National Economic and Development Authority (NEDA) is urging international development partners to invest their talent and expertise in developing countries, poverty reduction programs.

Socioeconomic Planning Secretary and NEDA director general Arsenio M. Balisacan said the World Bank and other similar institutions should invest in enabling local capacities of developing countries in policy analysis and program management for poverty reduction efforts.

“In development organizations such as the World Bank, there is a wealth of knowledge, experience, and expertise in poverty reduction, particularly on what works and what does not in this area,” Balisacan said.

Speaking before the World Bank Group – International Monetary Fund ( IMF) 2014 Spring Meetings on “Ending Poverty: How Should the World Bank Group Measure its Contribution?” recentlyBalisacan underscored the unique ability of international development organizations in mobilizing talents and expertise for the generation of global public goods and services.

The World Bank-IMF session aims at taking a forward-looking approach to stimulate thinking on what needs to be accomplished in measuring progress against its poverty reduction goals and who are best placed to implement these measures.

“A ‘one size fits all’ approach to poverty reduction hardly works in practice. But improving the access of developing countries, especially the least developed ones, to this reservoir of expertise is key to understanding the contribution of development partners to poverty reduction,” Balisacan said.

Balisacan also emphasized the need for more timely and comprehensive data that are useful for policy makers and program administrators interested in targeting the poor and providing them basic services.

Data are public goods, thus when applied with least developed countries and focus on data generation on these countries, the same will be able to advance the poverty reduction goals.

“We need to invest in good data because from my perspective as a policy maker, the rates of return are very high and the cost is not so much. The power of data when used properly in advocacy and for reforms cannot be underestimated,” Balisacan said.

The invitation to invest in policy analysis and program management for poverty alleviation is in tune with the updated Philippine Development Program (PDP).

Balisacan describes it as a roadmap to inclusivity, that is, increasing economic gains sipping down to the larger portion of the population.

Accelerating job creation requires capital accumulation. Investments must continually rise for the economy to grow and absorb labor into productive jobs. The government should maintain positive expectations of consumer and business sectors through macroeconomic stability, a strong financial system, and a healthy external sector.