Phl now a 'break-out nation,' says DFA secretary

MANILA, Philippines - From the ‘Sick Man of Asia’ to the “break-out nation,” the Philippines has come a long way in terms of good governance and economic reform, but such reforms have to be continuously instituted.

Foreign Affairs Secretary Albert del Rosario said labels now given to the Philippines such as “break-out nation,” “the NEXT-11” and “in the economic sweet spot” are testament to the growing confidence in the Philippine economy and its resilience.

“One label that the Philippines is happy to shed off is the ‘Sick Man of Asia.’ It is a reminder that benefits from sustained reform and governance do not happen overnight, and that reforms in the way government runs the country have to be continuously instituted over time,” Del Rosario said during the inaugural conference on globalization and economic growth at the Angara Centre for Law and Economic Policy.

“An investment-grade credit rating may not be far behind,” he added.

The secretary noted investments in the Philippines are on the rise, and investors are increasingly confident of the Aquino administration’s ability to deliver on its commitment to improve the business climate as well as infrastructure.

“If there is one main factor in the expansion of the local economy, it is the general perception that there is governance and transparency in the way things are being run. Good governance is being translated to good economics,” Del Rosairo said.

“Government spending is being spent wisely where it matters most. Seeing these, local investors have invested more in Philippines. Domestic investors steadily infuse money into the local stock market,” he added.

With improvements in business registration under the Department of Trade and Industry (DTI), entrepreneurship will be encouraged and more small and medium-sized enterprise (SMEs) will be created.

Del Rosario also pointed out that tourism arrivals are increasing, consumption spending is robust, government debt is shrinking, unemployment rate is declining steadily, and government spending remains manageable.

Globalization, he said, is the reason why the global economy has reached unprecedented levels of growth and prosperity. It is also the reason why the global economy could be on the brink of another collapse.

“The result is an unprecedented increase in world trade, increasing the profitability of business entities and corporations, fueling global growth, global job creation, and global poverty reduction more than at any time in history. And the Philippines has certainly benefited from this,” he said.