MANILA, Philippines - The country’s economy is an evolving model of good governance, guiding political and administrative innovations, according to the government’s strategic planning agency.
The National Economic and Development Authority (NEDA) said the Philippines has an evolving economic growth model that particularly involves political and administrative innovations related to good governance.
NEDA’s national planning and policy director Rosemarie G. Edillon said the model takes into account public trust in government institutions as a factor for spurring national development.
Edillon said it is an evolving model that still involves labor and capital, but that innovations play a huge role.
“Not only do the latter improve overall efficiency, we think that they exert a secular impact on both labor and capital. That is why innovations call for immediate implementation. Over the medium term, we need to bring in technological innovations,” Edillon said, during the recent 1st Asian Regional Roundtable jointly conducted by the OECD Development Centre and the ASEAN+3 Macroeconomic Research Office (AMRO).
The NEDA director said that the perceived quality of institutions is partly determined by the outcomes of these innovations, such as strengthened fiscal discipline and strategic public investments.
“The emphasis on good governance addresses a lot of obstacles that previously constrained our growth path. Since this administration focused on addressing these constraints, the country improved its global competitiveness and transparency rankings,” said Edillon.
The Global Competitiveness Report 2012-2013 of the World Economic Forum ranked the Philippines 65th among 144 countries in its 2012 survey, a significant jump from 75th place last year. In 2011, Transparency International reported that the Philippines improved from 2010’s 134th place to 129th out of 183 most corrupt countries in its 2011 Corruption Perception Index.
The country’s gross domestic product (GDP) grew 6.1 percent in the first semester while the unemployment rate went down due to a growing labor force.
NEDA said however that government need to show more tangible results to reinforce public optimism.
“For this, we need private investments to achieve rapid and sustained growth,” Edillon said.
The external condition of the economy is likewise vital in strengthening confidence in the domestic situation of the country.
“It is very important for us to find effective and sustainable solutions in the context of attaining a more stable global economy. However, if public and private investments produce results domestically, then the external situation would not matter very much,” said Edillon.
Infrastructure are among the government’s priority development areas which requires a productive and active public-private partnership, which should have both a medium and long term impact.