Ending poverty best guarantee

MANILA, Philippines - Eliminating poverty is the best guarantee for national security, Defense Secretary Gilberto Teodoro said.

In a statement sent to the First National Conference of Independent Business Clubs held in Cebu City last week, Teodoro said he fully agreed with the view of economists that the country must set two goals or tasks to reach the highest possible level of human welfare in our society.

“One, we must eliminate poverty and end its transmission from one generation to another. And two, we must ensure continuous improvements in the living standards of all our people, especially those living on the edge of poverty.”

Teodoro said that to achieve these twin goals, the economy must ensure sustained growth of income and employment as well as macro-economic and price stability.

More than this, Teodoro said the country must safeguard political and economic freedom.

The Cebu forum discussed the Philippine Economic Roadmap drawn up by prominent economists Dante Canlas, Benjamin Diokno and Felipe Medalla.

Teodoro said his own economic philosophy is anchored on “an unshakeable faith in the market system and the private sector,” and “giving full play to entrepreneurship as the linchpin of economic growth.”

He pointed out that in a free economy, market competition will promote innovation, invention and technological progress, all of which are essential to our long-term economic growth.

Eliminating poverty, Teodoro said, would be impossible without good governance and peace and security in our society.

Expounding on his economic views, Teodoro said a big budget deficit resulting from lack of revenue would be disastrous for the country, and that he is in favor of expanding the tax base not only through fiscal measures but also through legal and political means.

Teodoro batted for opening up closed sectors of the economy to a wider market. He said the country must allow foreigners to participate in our economic development, but only to a limited extent. The government can allow foreigners to own the land on which they will build factories, or to set up tourist establishments, but it must have full control over the country’s natural resources, including agricultural, mineral nor forest lands.

Tax reforms, Teodoro said, would also allow the government to substantially increase public spending for infrastructure. “Infrastructure development must dovetail with programs designed to strengthen the country’s competitiveness. We should invite the private sector to take an active part in infrastructure development,” Teodoro said.