WB urges PHL government to increase infra-spending

The World Bank is encouraging the Philippine government to increase its infrastructure spending if it wants to realize its goal of achieving inclusive development for the people.
Motoo Konishi, country director of the World Bank and co-chair of the Philippine Development Forum in a press briefing Tuesday, said infrastructure spending by government needs to increase from 2.6 percent to 5 percent of the GDP (Gross Domestic Product) by 2016.
He said that over many decades, economic growth did not benefit the majority of the population, did not create decent jobs for all and did not lift lagging regions out of poverty.
 “We believe this is the reason why inclusive growth is at the core of President Benigno S. Aquino’s Social Contract with the Filipino people,” Konishi said.
The one and a half day-forum focused on the government’s agenda for inclusive growth.
Konishi said government spending on infrastructure needs to go up by 5 percent or even higher to help the economy grow faster.
He said the Department of Public Works and Highways (DPWH) Secretary Singson has mentioned that the contracts are out for all the Public investment Program they manage which means construction are set to start.
“This will maximize the amount of spending in infrastructure and will further encourage inclusive development.  What is needed for more inclusive development is better infrastructure,” he said.
He said a coherent and efficient intermodal transport roadmap with backbone links to growth areas needs to be adopted through close coordination of line agencies such as DPWH and the Department of Transportation and Communication (DOTC).
“For Mindanao there is a need to augment the stimulus funds for infrastructure development of power, roads and ports to reap the dividends of peace stability,” he said. [PIA 11/ Lovely A. Carillo]