Noy won’t meet target economic growth — Diokno

A former Cabinet secretary of former President Joseph “Erap” Estarda yesterday said that with the present direction it is undertaking, the Aquino administration will find it hard to meet its target of 7 to 8 percent economic growth for 2011, stressing that President Aquino has no one to blame but himself for a dismal economic performance in the first quarter of the year, which grew by a mere 4.9 percent, a big contraction from last year’s growth performance.

At the weekly Usaping Balita sa Serye, Estrada’s former Budget Secretary and University of the Philippines (UP) Professor Benjamin Diokno made this prediction as he urged government to reconsider its underspending policy and overemphasis in carrying out a witchhunt of suspected grafters and plunderers of the previous administration.

The blame game must stop, Diokno said.

For her part, Zambales Rep. Milagros “Mitos” Magsaysay, said the low 4.9 percent growth rate was triggered by Aquino’s inability to address the oil crisis, its non-implementatino of infrastructure projects and slow action on investment proposals.

Describing as “overrated” the Aquino government’s ability to pursue economic growth, Diokno said that after 11 months in office, people are now beginning to doubt Aquino’s ability to govern the country.

“After 11 months, many are beginning to doubt the present administration’s ability to govern well,” he said.

“The blame game has to stop,” he reiterated,

It is generally perceived that Aquino focuses too much on the alleged irregularities of the previous administration by going through the contracts signed by the Arroyo government, to the extent of losing focus on everything else.

At the same time, he has been ruffling the feathers of foreign investors with announcements that the contracts will not be honored due to some anomaly or other.

A French firm that bagged a contract for 72 Ro-Ros, has already stated publicly that it will be suing the Aquino government should it cancel the contract, through an international arbitration court.

The dregding of the Laguna Lake contract with a Belgian firm was similarly canceled by Aquino.

To date, the International Airport Terminal 3 controversy has still not died down, after the Pasay City Regional Court judge awarded Piatco, the consortium that built the terminal 3, a pittance of what it had invested, thus favoring the Palace stand on merely paying Piatco some $145 million as just compensation.

Diokno said that the predicted growth rate of 7 to 8 percent may still be achieved by the Aquino leadership only if the Philippine economy grows at a “blistering 9.1 to 11.1 percent in the second half of the year.”

“But that’s virtually impossible. We have not seen such rapid growth in recent Philippine history or perhaps ever! And what would be the sources of such spectacular growth?” he stressed.

Diokno warned that the first quarter growth of merely 4.9 percent is likely to be repeated in the second quarter of the year.

“Government underspending, especially for infrastructure projects and social overhead persisted. Two months of the second quarter are gone, and the rainy season has officially started,” said Diokno.

Aside from underspending, the Aquino government has been making itself too busy in the task of documenting, building a case and prosecuting suspected plunderers and grafters, Diokno noted.

The former budget secretary said the tasks are best left to one group while another group should “focus on building and narrowing the infrastructure gaps.”

“Another group should focus on fundamental reforms, looking for solutions to problems that ail the Philippine economy and society, such as persistent poverty, rising unemployment and worsening hunger rate,” Diokno said.

Magsaysay predicted that unless Malacañang makes a strong bid to address policy pitfalls, the public should expect slower economic progress for the rest of the year.

“The failure of government to stabilize policies and roadmaps that will give investors the confidence to do business in the country, the instability of the administration due to infighting and politicking does not send the right signals to investors,” Magsaysay stressed.

“Lastly, there is poor perception and confidence of investors as to who are at the helm of government tasked to manage and govern the fiscal and economic policies for the country,” the lady solon added.  –Charlie V. Manalo, Daily Tribune