Governance key to investments, growth – analysts

The Marcos administration should be able to address the issues of soaring prices, low wages, poverty, jobs and corruption to attract investments and achieve sustainable long-term economic growth after the havoc caused by the pandemic, policy experts said.

In a virtual forum organized by think tank Stratbase Institute and advocacy group DemocracyWatch Philippines following the President’s first State of the Nation Address, top economists and academicians laid out an agenda for development as the nation strives to recover from the economic consequences of COVID-19.

Stratbase president Dindo Manhit said while the worst of the COVID crisis is now perceived to be over, it is the economic consequences of the pandemic that need to be squarely addressed. This is especially true since, according to a recent Pulse Asia survey, 77 percent of Filipinos rate themselves as poor.

“There is enough legal framework to move from a consumption-based economy to an investment-led growth,” Manhit said. “But we need sound fiscal management to attract local and foreign investment.”

He said there are many ways for the government to develop integrity – specifically, passing laws such as the E-Government Act, Freedom of Information law, and amendments to the Civil Service Code.

He also said Sustainable Development Goals must be localized: “This would involve the creation of smart, inclusive, and resilient local government units that rely on open data and governance innovations that address demand for better public services.”

Foundation for Economic Freedom president Calixto Chikiamco, for his part, said three sectors need to be given priority: agriculture, forestry and energy, with laws needing amendments to reflect the challenges of the times.

Zy-za Nadine Suzara, executive director of the Institute for Leadership, Empowerment, and Democracy, said government would have to work on increasing the absorptive capacities of agencies in the bureaucracy so they could implement programs as envisioned.

“Without a strong commitment to good governance and anti-corruption, it will be difficult to achieve expenditure results, fiscal sustainability, and better yet, meaningful development outcomes for our country,” she said.

“Fiscal policy will only benefit society if it is contingent on addressing democratic deficits,” she said, adding that civil society must reclaim that space and participate in democratic governance. This way, fiscal policy will benefit not just the elite and the politicians but various sectors of society.