Gaining momentum

THE Philippine government has recently expressed optimism that growth is finally within reach, citing the recent improvements in the Philippine economy.
In a recent interview with the press after the Foreign Loan Approval and Registration System (FLAReS), Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr. expressed elation over the fact that the Philippines has been gaining positive attention from different international agencies because of the country’s macroeconomic fundamentals.
The BSP chief further noted that with the higher spending of the government, the forceful rebound of the economy, and the improved economic conditions of countries like the United States, upgrades from credit rating agencies such as the Standard & Poor’s (S&P) are not far from happening again. It can be recalled that last December, S&P raised the credit rating of the Philippines from stable to positive.
Tetangco was proud to say that the Philippines “is in a good spot today,” citing the BSP’s successful efforts in handling the debt management of country. According to him, the strengthening of key ratios in the economy makes the country more capable of handling mature obligations.
Likewise, the Palace also had some good news to tell with the recent World Bank (WB) report on the Philippines titled “From Stability to Prosperity for All” commending most of the government’s efforts towards economic progress.
In a recent press briefing, deputy presidential spokesman Abigail Valte said that improvements made when it comes to tax administration as well as efforts in tax enhancement were commended by WB. Valte further went on by saying that “strong macroeconomic fundamentals, political stability, and popular government that is seen by many as committed to improving governance and reducing poverty” made all the economic growth possible.
While the WB has posted positive expectations for a blooming Philippine economy, it clearly stated in its Philippine Quarterly Update (PQU) that the greatest determinant of the country’s economic success will rest on how much improvement has been in the lives of the poor Filipinos. The report, which was mainly authored by Karl Kendrick Chua, suggested that quality employment will result to improved job generation; thus, improving the lives of many Filipinos. Chua also said that the “labor market is a better indicator for real growth, not the financial sector alone.”
Welcoming the suggestion of WB, Valte said that the government is considering much needed fiscal and institutional reforms “to move the country towards inclusive growth.” While admitting that it might take some time before developments are felt due to high oil prices and others, Valte said the government is eyeing efficiency and effectiveness of the budget as part of the reforms.
Being open to criticisms and showing willingness to improve is commendable. In the case of the Philippine government, however, it must not forget that part of its obligation is to make its constituents feel that positive changes are actually happening. It must also bear in mind that Filipinos have waited long enough for changes to finally happen. And while rising numbers and good statistics can be impressive; what really matters at the end of the day is if the Filipinos were able to feel that things have actually worked for them as promised.
(www.asianjournal.com)
(NYNJ March 23-29, 2012 Sec A pg. 6)