National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said the Philippines must maintain sound economic fundamentals and robust partnerships for inclusive growth.
Delivering the Temasek Distinguished Speaker Lecture at the Lee Kuan Yew School of Public Policy, National University of Singapore on Feb. 11, Balisacan emphasized how Manila has much at stake in this collective action for rules-based, positive-sum policy responses.
The Temasek Distinguished Speaker Lecture series provides a platform for speakers to share valuable insights with the public policy community.
During his lecture, Balisacan highlighted key megatrends shaping regional and global development which include rising inequality, growing protectionism, increasing use of industrial policy to promote disruptive technologies, and the high cost of energy transition amid climate change.
Balisacan said these megatrends are affecting the policy environment for open trade and investment and will affect the development of Asia’s emerging economies including the Philippines.
“Asia’s low- and middle-income countries face a range of megatrends that shape and constrain—or, viewed positively, enable and facilitate—their development strategies,” he said.
“Yet these same megatrends can also open up new avenues for growth if acted upon strategically, employing both reactive measures to meet immediate challenges and forward-looking policies to anticipate emerging opportunities,” Balisacan added.
Balisacan however said that in case of the Philippines, the country can build on the strong economic momentum it has built over the last two decades by further strengthening economic resilience.
The NEDA chief cited the importance of diversifying the Philippine economy beyond consumption and services, noting that the government must create an enabling investment climate, aggressively increase the presence in regional and global markets to strengthen the external sector, and enact structural reforms to improve the functioning of markets for critical sectors.
Balisacan said the Philippines should also adopt technologies and foster innovation to sustain productivity growth.
To leverage such technologies, Balisacan said the Philippines would need to invest significantly in its human capital.
“Fortunately, the Philippines is well-positioned to leverage its dense migrant networks to support capacity building and technology infusion, especially in this age of digital connectedness. More importantly, this calls for policies addressing emigration and encouraging talent to return, such as sufficient funding for research and strengthening academe-industry linkages,” he said.
Balisacan said the Philippines must also strengthen partnerships with traditional allies, like-minded nations, and ASEAN middle powers, by focusing on trade, investment, and development cooperation amid the unfolding trade war and climate crisis.
“Partnership at the regional and international levels, especially among smaller, open economies caught in the rivalry between economic giants… is more crucial now than ever,” he said. (PNA)
