Wanted in the 2016 polls: A leader for sustained and inclusive growth

THERE is now a consensus among Filipino and foreign economists that the Philippines has shifted to a higher growth level of 6 percent to 6.5 percent. Ceteris paribus, or all other things being equal, we expect this trend path of the economy to continue for the next six to eight years, encompassing the period of the next administration. The chart below shows this trajectory to a higher level of growth for the Philippine economy. While we experienced a moderate economic expansion of 4.63 percent during the presidency of Gloria Macapagal-Arroyo, it was only recently (2010 to 2013) that the country experienced an average annual gross domestic product (GDP) growth of 6.12 percent.

Definitely, the altered political climate has been a major factor in this development, as the Aquino administration spearheaded key governance and economic reforms. However, pundits on the Philippine political economy will agree that a lot still has to be accomplished, especially in terms of poverty reduction, human-capital formation, infrastructure provision, and reviving the agricultural and manufacturing sectors. Obviously, these cannot be achieved in the last two years of President Aquino’s term.

This early, various names have already cropped up as possible contenders for the position of chief executive of the land. Survey institutions have already started releasing their results from the past quarters that show Vice President Jejomar C. Binay still leading the pack. The ongoing investigations into the anomalies allegedly committed during his stint as mayor of Makati City have further heightened the ongoing political firestorm. By next year, the atmosphere of increased political uncertainty will start to dampen the investment appetite of both local and foreign firms. The next president will have to maintain a political and governance milieu that will nurture the higher growth trajectory of the economy.

What, then, should be the characteristics of this person who will lead us to sustained and inclusive growth from 2016 to 2022?

Integrity. Given the tremendous public backlash against corrupt officials and the “good” approval rating that the current “clean” President is still getting, his successor should definitely be perceived as a person of integrity. Corruption, dishonesty, malfeasance, and the luxurious lifestyle of the candidate and his or her family will weigh negatively on the electorate across all classes. Disdain for these kinds of politicians has probably reached an all-time high more than a year ago, when the P10-billion pork-barrel scam exploded.

Effectiveness. Many are tired of ineffective and incompetent leaders of government institutions who fail to produce the outputs expected by the general public. The next president must be able to lead an effective Cabinet that can deliver palpable results in terms of facilitating basic services, improving infrastructure, cutting red tape and weeding out undesirables, and promoting efficiency in the bureaucracy.

Promotes unity. Too much “politics” and factionalism have hindered the policymaking process and implementation of major government programs. The next head of the country must be a leader who is able to reach out to various groups and sectors, even those outside his or her allied groups, and unify them. The next president must also be a conflict manager, bringing opposing groups together to provide solutions to urgent social problems. Inclusive development will require huge investments in social capital, and the new president must be the catalyst for building trust and confidence among the citizenry.

Savvy in handling the political economy. While heeding the advice of economists, political scientists and other experts, the new chief executive must be able to navigate the political seas and be aware of the key forces that will help him or her push for major economic and political reforms. He or she must also be able to weigh or balance the costs and benefits of state intervention in the workings of a market economy. Reviving the agricultural and manufacturing sectors will require a leader who is cognizant of the state-market dynamics in the pursuit of an effective industrial policy.

In touch with the people. This is the so-called Joko Widodo, or Jokowi, model. Under this model, the leader needs to regularly visit and have dialogues with key sectors or groups in his or her constituency to get the public pulse. The importance of these activities is to get feedback directly from the people, rather than relying mostly on one’s Cabinet or advisers. If the leader wants growth to be inclusive, then this is strategic in terms of crafting development policies that will benefit the majority of the people.

A servant leader. Last, the next chief executive must be a model of public service. In all his or her actions, the public good must be his or her yardstick, not the promotion of any personal or sectoral objective. This is important, as various groups align themselves with the president in the pursuit of an implicit vested interest. He or she must be able to go beyond these and, instead, advance the public welfare and the majority’s aspirations.

We do not expect the next leader to have all these characteristics and to be a superman or superwoman. But he or she must be seen as someone striving toward having or enhancing these qualities. Quality leadership and governance will be a critical factor for sustained and inclusive growth for the Philippine economy. It is incumbe nt upon the citizenry to be able to choose this right leader in 2016.

–http://www.businessmirror.com.ph/wanted-in-the-2016-polls-a-leader-for-sustained-and-inclusive-growth/