Global turbulence affecting economy

WHILE former President and incumbent Rep. Gloria Arroyo of Pampanga province has blamed the Aquino administration’s alleged “politics of division” as the reason for the economy’s growth rate to drop, the Philippine Chamber of Commerce and Industry (PCCI) cited global factors for the current economic slump the country is experiencing.

In a statement, lawyer and business leader Miguel Varela, the new president of the PCCI, blamed the debt crisis in the eurozone, the sluggish growth of the US economy and the economic effect of Japan’s earthquake and tsunami as global factors that have contributed to the country’s economic turbulence.

He added that the Philippine economy was “affected by these global developments but business in the country continues to grow.” Varela explained that local and foreign investors are actually inspired by programs and pronouncements of President Benigno Aquino 3rd like the promotion of transparency, fight against corruption and assurance of a level playing field for all stakeholders to ensure the viability of doing business in the Philippines.

With an upgraded credit rating and increased investor confidence in the Philippines, Varela said that business had a good start in 2012. Moreover, he agreed with Hong Kong and Shanghai Banking Corp.’s positive projection that the Philippines will join global growth leaders and emerge the 16th largest economy in the world maybe even before 2050 if reforms are put in place.

“We are continuously supporting government thrust on improving the country’s international competitiveness and instituting local reforms necessary in the growth and expansion of our small and medium enterprises,” he added.

Under the theme “PCCI Invest 2012,” Varela said that the PCCI will break down the critical drivers that influence the Philippine’s ability to attract and expand investments. In that theme, P for Power and utilities, C for Competitiveness, C for Countryside development, and I for Industrial and trade policy formulation.

PCCI action

With power cost as an obstacle in attracting investors, Varela said that they work closely with government and private sector to bring the power rates to a more competitive level. They are working on a five-year electric power roadmap with specific action programs.

He added that they support the government in making reforms such as developing critical infrastructures and improving labor productivity to advance the country’s competitiveness ranking.

On countryside development, Varela added that PCCI has identified 12 sectors critical to local economic development: agribusiness, business process outsourcing, mining, tourism, home décor and lifestyle, shipbuilding, housing, infrastructure, education, creative industries, electronics, transport equipment and logistics.

For industrial and trade policy formulation, he mentioned that PCCI is advocating that government adopt flexible policies, ease the procedures in doing business, and give information and support services in activities like investment promotion and industry mapping.

With government support on these critical drivers, Varela is certain that the country will weather the impact of the global economic crunch. –RAADEE S. SAUSA REPORTER, Manila Times