Several of the world’s high-ranking government officials, business executives and civil society leaders gathered in Makati Shangri-La for the 23rd World Economic Forum on East Asia (WEF-EA) on May 21 to 23.

For the first time, the Philippines hosted the international event, attended by more than 600 delegates from around 30 countries. According to its website, WEF is an international institution that engages various leaders “to shape global, regional and industry agendas.”

Under the theme “Leveraging Growth for Equitable Progress,” the forum focused on the envisioned Association of South East Asian Nations (Asean) Economic Community (AEC) and on encouraging inclusion in the region.

PH showcase gains

In his keynote speech, President Benigno Aquino III mentioned the widespread reforms and sound management principles initiated by his administration. He took pride in the government’s successes in addressing corruption, pursuing structural reforms, and investing in education and healthcare. “We have always said that good governance is good economics, and the results of our reforms on the economic end are proving us right,” he said.

GOOD GOVERNANCE, GOOD ECONOMICS. President Aquino praised his administration’s successes in addressing issues such as corruption. (Photo by Huffington Post)

Aquino added that the Philippine economy has been undergoing a “dramatic turnaround” in recent years. Citing the population projections of the United Nations, he said the country would be hitting a “demographic sweet spot” in 2015, when majority of the population would be in the workforce. Countries in such conditions, he explained, attain an average yearly growth of 7.3% over the next 10 years. Last year, the Philippines posted a 7.2% growth rate despite the devastations caused by Super Typhoon Yolanda.

The president also attributed the progress to the Filipino people, calling them the country’s “greatest resource.” “Ultimately, it is our countrymen who give us the confidence to continue blazing the path of reform,” he said.

Inclusive growth

Furthermore, Aquino mentioned that the country’s economic gains would go to waste if not felt by its own people. “[Inclusive growth] is the yardstick by which we measure any government undertaking,” he said.

He discussed various programs which his administration is using to realize inclusive growth. These include the Conditional Cash Transfer Program, which currently provides assistance to 4.3 million families, the Kindergarten to Grade 12 scheme, which aligns the country’s education system with international standards, and the Pera ng Bayan (The People’s Money) website, which allows citizens to see how the government is spending the taxpayers’ money.

“There is a simple idea behind these initiatives,” he said. “Our people are the be-all and end-all of this government, and we are not content with waiting for the benefits of growth to just trickle down the social pyramid.”

Ateneo Economics Association President Margarita De Chavez agrees with the president, saying, “Growth in itself only benefits a portion of a population.” She said, “It’s important that the different sectors of our country, including the poorest of our countrymen, are included in the growth.”

Asean integration

Aside from encouraging inclusion, the forum also centered on the upcoming AEC in 2015. The AEC aims to create a single and competitive market for Asean countries. It involves the liberalization of trades in goods, services, labor and capital.

In a Business Mirror opinion piece, Jose Ferdinand Reyes III wrote that the AEC “will transform the region into an economic bloc that can attract investments that, in turn, will lead to the creation of jobs and an increase in incomes.”

However, there have been doubts as to whether the Philippines is fully prepared for the AEC. “There are still other sectors that are still unprepared,” said Economics Department Professor Fernando Aldaba, who has a doctorate in economics. He mentioned that the agricultural sector will be “one of the most vulnerable when imports come in.”

In an article by Rappler, foreign affairs analysts Julio Amador III and Joycee Teodoro noted the poor state of infrastructure in the region. They said this “hinders investment and slows the implementation of AEC commitments.”

Despite this, Aldaba mentioned that there are other sectors in the Philippines that could benefit. “In terms of the movement of skilled laborers, [we have] an advantage because we have lots of them already in [the] Asean,” he said.

According to the National Economic and Development Authority, moreover, local businesses will also benefit as it will allow them to “engage more in intra-regional trade, increase market access, and expand production capacities.”

But despite the showcase of impressive economic performances, there were those who criticized the Aquino administration for its “hypocrisy.” Former Bayan Muna Representative Teddy Casiño accused the government of “window-dressing the economy… to hide the fact that poverty has worsened and corruption is as rampant as ever.”

Nevertheless, Trade Secretary Gregory Domingo told the Philippine News Agency that the hosting of the WEF-EA “will change a lot of negative perceptions about the Philippines.”“A lot of delegates have never been to the Philippines. Many of them have been here long ago. They were surprised–positively surprised on what they saw here,” he observed.