CEBU, Philippines - Acknowledging the potential of the manufacturing sector to promote inclusive growth and economy-wide productivity in the country, the academe stood for diversified industrialization and urged more Filipinos to take up engineering courses to strengthen the industrial base. In the recent economic forum held at the University of the Philippines – Cebu, Asian Development Bank recommended that the Philippines should strengthen the manufacturing sector which can lead to more employment opportunities for the grassroots level of the community rather than just focus on the services sector that can only cater to some segments of the society.
UP–Cebu faculty member Rhodora Bucoy said that the economic growth has not benefitted the majority of the Filipinos but has only been enjoyed by a few particularly the elite sector.
Compared to other Asian countries such as Japan, Korea and Taiwan, she added that equality is more severed and more serious in the Philippines.
She further said that there is a need to diversify the industrialization and push towards where the competitive edge of the country lies.
She noted that inclusive growth must address the root cause of poverty and that there is a danger of relying to the services sector instead of high-value areas such as the manufacturing sector which could also serve as economic drivers of development.
“Inclusive growth is beyond the general classification of political and social dimensions.
It is a growth engaged by the majority of the people including the poor men and women. The real challenge here is how to make this growth real,” she said, serving as one of the reactors during the economic forum.
In the current Philippine context, Bucoy said that the resources of the country should be utilized for the productivity of the country and not for graft and corruption.
There should also be a wide distribution of wealth and protection of the environment when addressing the efforts of industrialization, she noted.
She also expressed support to the public and private dialogue as proposed by ADB but further suggested a “broader” dialogue in which the marginalized sector of the society will be involved.
She added the engineering growth in the country could promote employment and equity among Filipinos.
Meanwhile, UP - Cebu Professor of Finance and Economics Fred Avestruz said that Philippines should emulate developed countries such as Germany which has a solid manufacturing base and has a better recovery than United States.
“Why is the economy growing but people are still suffering,” he stated.
He added that if the country is pushing for inclusive growth, the engineering field must be developed since it is needed in the manufacturing sector and encourage more students to pursue such field.
He cited that Commission on Higher Education statistics showed that for school year 2012 – 2013, the number of enrolled students in engineering programs decreased to 12% from 14.34% last year.
With the 14% enrolees, he also noted that only 11.6% of which who graduated at the end of the school year while the rest shifted to other courses.
Avestruz further said that the academe has to be included in the public and private sector dialogue since a concerted effort in all sectors is necessary to address every aspect that has weakened the Philippine economy.
He further suggested that the capability of increasing the students in engineering courses could start from the high school level penetration wherein subjects such as science and mathematics are improved while developing their mindsets to become engineers.
“We really need engineers and more technical people in the country. More graduates, more engineers, more industries. The industrial sector provides jobs that have higher productivity, higher wages and higher salaries,” he said.
Although he admitted that the industry sector is currently not doing very well, Avestruz emphasized that the industrial sector is the right part for inclusive growth.
Despite the strong economic contribution of the services sector, he added that a competent engineering force and improved manufacturing industry could add to the attractiveness of the country for more foreign investments. (FREEMAN)