Growth must trickle down to masses – Gibo

MANILA, Philippines – Lakas-Kampi-CMD standard bearer Gilbert Teodoro Jr. vowed to make economic growth trickle down to the grassroots level if he gets elected as the next president of the Philippines.

The Harvard-educated Teodoro said this can only be done if there is sustainable economic growth of at least eight percent for a period of at least 10 years.

“We have to have long-term growth so that it can trickle down,” Teodoro said in a rountable discussion with editors of The STAR.

Such sustainable economic growth, he said, can only be possible if the government puts in place the proper environment to attract foreign and local investments.

For foreign investments, he said, he would use his first 100 days to invite two big-ticket global firms to set up operations in the country and use this as pitch to invite other potential investors.

”Success will build on success,” he said.

He believes in liberalizing some lands except agricultural lands. He also believes in opening up other sectors such as tourism and mining to attract investments. At the local level, Teodoro promised to provide fiscal incentives to local government units that are “investor-friendly.”

Additional funds to help in extending these incentives may come from the President’s discretionary funds, he noted.

He is counting on investors to bring in the funds that would fuel economic growth but was also practical enough to recognize that there is a need to impose new taxes.

“No choice,” when asked if he plans to impose new taxes.

However, he said he wouldn’t anymore touch the current income tax rate, noting that this is already among the highest in the region.

“Our income tax rates are one of the highest. You can’t anymore play with that. It’s very high already,” he said.

Instead, Teodoro said, he would push for an increase in consumption and excise taxes.

He also plans to maximize growth areas outside Metro Manila by ensuring that there are enough roads and bridges that would link the regions to the capital.

“We will ease communication between and among regions.

You’ll have to have more airports and seaports. That’s the only time you can serve more,” he said.

Teodoro said his government would push for improvements in the corporate regulatory environment by raising the salaries of regulators.

In the area of power, Teodoro said his government will tap alternative sources of energy but those that are not too costly for the country.

He noted that geothermal energy is quite expensive and added that there may be a link between earthquakes and the use of this kind of power.

As he laid out these grand plans, the former defense secretary said that ultimately, the key to ensuring economic growth is to have peace and order and a stable government. –Iris G. Gonzales (The Philippine Star)