By Alexander Villafania
PASIG CITY, METRO MANILA – Traditional weaknesses, such as lack of infrastructure, rule of law, a weak finance sector, and high cost of doing business, are being identified as among the key issues that continue to beset the country's economic growth.
But the Asian Development Bank (ADB) stated in a report that the country only needs to focus on some principles to counter these weaknesses and pursue economic improvements.
In a recent report entitled Philippines: Private Sector Assessment, the ADB makes a number of recommendations all aimed at stronger ties among businesses in the Philippines, as well as better relationships between the business sector and the government
Some of these recommendations include completing integrated public works like roads, shipping, communications, and other basic network needs; linking these with industrial and geographic development programs like tourism; enhancing access to markets, credit, and basic services; and designing processes that reduce the cost of doing business.
Other important recommendations include establishing base administrative services and decision making to lower levels of government such as local government units; and using information technology to facilitate governance and administrative process.
For the public-private partnerships (PPP) that President Benigno “Noynoy” Aquino III is encouraging, the ADB report stated that the government must improve transparency in selecting institutions to work with in specific projects. It must provide better accounting of projects, such as its expenses and revenues.
Further push must be made on the aspect of high-profile anti-corruption activities to assure potential project partners and the public of accountability.
Cayetano Paderanga, a former professor at the University of the Philippines’ School of Economics and author of the report, said that effective PPP implementation can boost the country's competitiveness. This should result in better infrastructure quality and technical expertise of people. Furthermore, properly implemented PPP projects contribute to efficient delivery of public services.
“This forward-looking assessment makes concrete proposals to realize the potential contribution of the private sector to inclusive economic growth in the Philippines. We are gratified that these proposals have contributed to the policy directions embedded in the Philippines Development Plan for 2011-2016,” according to Neeraj Jain, ADB country director for the Philippines.
