Biz experts call for swift action to cope with crisis

CEBU, Philippines – An economics professor of the University of San Carlos believes that “better planning and better executions” of government projects to avoid wastage in public funds is an effective measure to mitigate the effects of the global economic crisis.

In a forum organized by the Ramon Aboitiz Foundation, Inc., Fernando Fajardo said many expects foresees a dismal rate in the country’s economic output for 2009 and that Filipinos will experience further difficulties. 

“Do not just survive but thrive in the face of the crisis and during the impending recovery. Not just priming up aggregate demand to stimulate the economy in the short run but more and better quality inputs and increase in total factor productivity from sustained growth,” Fajardo said. 

The government has created a P300 billion stimulus package for infrastructure and social protection programs to mitigate the negative impact of the crisis yet Fajardo warned the government must act fast to implement the programs as the crisis is starting to take its toll.

He also said the society itself needs to be pro-active and that individuals should be more “engaged” to address the problem.

Meanwhile, Joey Bermudez, president of the Management Association of the Philippines and chairman of the multinational financial services firm Maybridge Asia Inc., said there is no need for the Philippines to mimic stimulus of first world countries.

“An electronic shock fit only for a badly damaged economy. The Philippines does not have a sub-prime crisis. Its major financial institutions are not in the brink of collapse,” he said.

For his part, RAFI president Roberto Aboitiz said the Eduardo Aboitiz Development Studies Center will provide opportunities for growth and development of individuals and groups through training, capacity building and dialogue, policy studies and development, data banking and referral systems, network development and institution, and research and other related services.

Aboitiz also said what needs to be challenged is the “whole concept of free trade economics in general.”

“As we look at the numbers, let us reflect also on what really went wrong,” he said. — Johanna T. Natavio/JMO (THE FREEMAN)