Imagine
mescueta@theguidon.com
The Philippine economy’s growth has been impressive this past year. Originally, the government had pegged economic growth to be at the 5 to 6% range, but economic expansion reached 7.1% in the third quarter. Thanks to increased infrastructure spending, remittances from overseas Filipino workers, a boom in tourism and progress in manufacturing and services, this was all made possible. Next to China’s growth rate of 7.4% in the third quarter, international groups have praised the country’s economic development as one of the fastest growing in Asia.
The Philippines is now recognized as a Tiger Cub economy for the first time since the administration of Fidel V. Ramos. But the truth is, I wouldn’t get too excited just yet with all the news of our country’s economic rise. Heck, we’ve barely scratched the surface.
Yes, the Philippine peso became its strongest in recent years, with an exchange rate of around P40.85 to one US dollar early in December. Investment grade rankings of the Philippines are bound to improve, and while Europe and the United States are struggling economically, the Philippines is the only country in the world whose growth forecast was upgraded by the International Monetary Fund.
However, a strong Philippine peso is not entirely a good thing. It means less money for the OFWs’ families to provide for their basic necessities. It also means losing our country’s cost competitiveness in the information technology business processing (IT-BPO) industry, which affects revenue from call centers—resulting in a shift of advantage to rival India. Even if the Philippine IT-BPO firms offer quality service, keeping the Philippine peso at P42 to a dollar will help maintain competitiveness, which entails more jobs and greater revenue.
The Emerging Trends in Real Estate 2013 survey by PricewaterhouseCoopers and the Urban Land Institute (ULI) ranked Manila 12th among 22 cities from the Asia-Pacific region as top investment destinations. The ULI stated, “Markets in Manila have performed well as a result of the growing economy, a transparent and business-friendly government, and the country’s ongoing success.”
But who exactly are benefitting from such success? Where is that distribution of wealth? In fact, a survey published by the Social Weather Stations (SWS) on self-rated poverty saw a rise in poor Filipino families from 9.1 million to 11.1 million. This just proves Cielito F. Habito’s column in the Inquirer last June 25, entitled “Economic growth for all,” when he wrote that ours is an “oligarchic economy where the wealth is in the hands of the few.”
Another SWS survey last August discovered that fewer Filipinos believe their quality of life (net personal optimism) will improve in 2013. Among all socioeconomic classes in Luzon and Visayas, only Mindanao saw an increase in net personal optimism, which could probably be attributed to the recent Bangsamoro deal.
No, I am not putting down the 7.1% growth. I’m merely playing devil’s advocate. We are moving, but oh so slowly. These are merely baby steps and there is so much more that must be done. There is no clear-cut route to true economic growth.
I agree that it begins through good governance and every Juan, rich or poor, who must realize that he is part of the continuing effort for the betterment of the nation he claims to love so dearly.
