Breaking its cocoon

Ruffy Magbanua /

FROM consumption-driven to investment-driven.

By and large, this was the gist of Communications Secretary  Martin Andanar’s speech before the members of the British Chamber of Commerce in the Philippines and other investors during the “Dutertenomics” Forum.

Andanar says in order for the country to break out its cocoon, it needs to engineer a paradigm shift — from a consumption-driven economy to one that is investment-driven.

That shift must be characterized by massive investments in physical infrastructure and human resources.

Now on the brink of an economic transformation, the country plans to boost infrastructure spending, not just in absolute terms but as a percentage of the gross domestic product.

In presenting the six-year comprehensive development plan,  Andanar explains: “ This ambitious agenda seeks to build infrastructure projects that will integrate major cities and even the islands of our archipelago.”

Bottom line is to promote economic development that is not concentrated in the nation’s capital or its major urban centers — a strategic move aimed at bringing  opportunities to towns and cities far and wide.

“The Philippines continues to grow at a pace that leaves most of Asia. We want to keep it that way,” he adds.

The country’s economic  growth is on the upward trend since 1999.

And because of its  resilience, it continues to grow  despite major wars in Afghanistan and Iraq, the SARS global epidemic, the oil and food price shocks, as well as political and security challenges in recent years.

Pushing forward the robust economy were the Foreign exchange earnings from overseas Filipino workers and the business process outsourcing industry.

These sectors  have contributed at least four percent to annual growth, with more than US$50 billion in cash, equivalent to one-fifth of the GDP, being pumped in every year.

With trade relations between the United Kingdom and the Philippines gaining momentum,  Andanar underscores some significant footholds gained by both countries.

These are  the 447-million British pound acquisition of Whyte and McKay by Andrew Tan in 2014; the 550-million-pound takeover of Quorn Foods by Monde-Nissin Corp. in 2015; and the Philippine Airlines’ US$600-million order with Rolls Royce to outfit six new Airbus units with Trent XWV engines in February last year.

The net foreign direct equity of US$5 billion by the UK was considered as the Philippines’ largest European investment.

It has over 14 UK companies listed as being in the negotiations to enter the Philippine market.

So far, more than 800 BCCP member companies have expressed interest in expanding into the rapidly developing Philippine economy.

Infrastructure and power sectors, particularly in the area of renewable energy are in the list of BCCP.

To achieve inclusive economic growth, the country has to break-free of  its cocoon indeed.

E-mail: ruffy44_ph2000@yahoo.com