Focus on inclusive growth appropriate, say economic managers

MANILA, Philippines - Focus given by the leaders of the Asia-Pacific Economic Cooperation (APEC) on inclusive growth is timely and bodes well with the Aquino administration’s economic agenda, economic managers said yesterday.

“The focus on inclusivity is appropriate and necessary at this stage,” Budget Secretary Florencio Abad said in a text message.

“For the Philippines, still confronted with poverty and the social conflicts it breeds, inclusivity has been priority from the very beginning of the Aquino administration,” he added.

Putting the bulk of the budget for social investments, conditional cash transfers (CCT), universal health care and the bottom-up budgeting are some of the efforts to promote growth inclusivity, the budget chief said.

Agreements made during the year-long APEC meetings in Manila concluded on Thursday also outlined the administration’s commitments, Finance Secretary Cesar Purisima said in a separate text message.

He pointed to the Cebu Action Plan, an agreement by finance ministers in September that laid out a 10-year strategy on financial integration, budget transparency, financial resilience and infrastructure development.

The Boracay Action Agenda toward assisting growth on micro, small and medium enterprises (MSMEs) is also another effort. MSMEs account for more than 97 percent of firms in the country.

“They set the foundation for the inclusive integration roadmap,” Purisima said, pertaining to the upcoming integration of the Association of Southeast Asian Nations next year.

At the closing of the year-long APEC meetings, economic leaders, led by President Aquino, declared that making growth and prosperity felt by the poorest of poor is key toward eradicating terrorist threats in the region.

The statement was issued amid terror attacks in Beirut and Paris, France as well as the downing of a Russian plane that left hundreds of people dead.

At the same time, the 21 APEC leaders said global growth has been “uneven” and remains behind expectations.

To thwart this, a five-year Strategy for Strengthening Quality Growth was crafted listing the following priorities: building market-driven public institutions, boosting poverty reduction interventions, resisting protectionism and ensuring the environment’s protection.

“The huge and unprecedented public investments in CCT, basic education, universal health care, social housing, livelihood and jobs generation…are example of inclusive development programs,” Abad said.

For his part, Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr. said the central bank’s mandate include making sure everyone has access to credit.

“Inclusive growth has become an increasingly prominent objective across regional groups and in individual economies. An important element is financial inclusion,” Tetangco said in a text message.

“It is easy to appreciate the benefits of financial inclusion…by broadening access to financial products and services and fostering stability in the financial system,” he added.

“The BSP considers financial inclusion not only as an important advocacy, but as a relevant corporate objective,” he said.