Citizenswatch unveils needed economic reforms

AMID a flurry of great economic news for the country, from a higher competitiveness ranking to increased growth, a group of business leaders, who banded together as Citizenswatch, organized a forum that aimed to search for other ways that could push the country several notches higher. Their recommendations show that the “doables” in leveling up the country’s economy could still be salvaged in the remaining two years of the Aquino administration.

Citizenswatch, spearheaded by Prof. Dindo Manhit, has identified three main points: 1) spur investments in more power plants; 2) continue with the secondary price cap on energy costs; and 3) review the taxes imposed on electricity and fuel, with the view of lowering the additional burden on consumers. Once accomplished, these points, together with other recommendations, are expected to lower energy costs, which would propel the economy higher and help consumers.

The high energy costs deter the entry of huge foreign investments in the country and impair the economic renaissance happening under President Aquino’s watch. The group also identified irritants, like the 100 signatures, from people in the barangay to Department of Energy personnel, that Energy Secretary Carlos Jericho L. Petilla said are needed for one feasibility study for a power plant.

During the forum, George Chua, president of the Federation of Philippine Industries, said another irritant is the seeming lack of direction shown by local government units that can hurt the economy, like the Manila city government ordinance that caused the container-van congestion problem at the ports. “Is it a wonder for us not to have inclusive growth?” he asked, as he said that government rules, such as that ordinance, are what led car manufacturers to move to Thailand and Indonesia, and not the Philippines.

For Alfredo Yao, president of the Philippine Chamber of Commerce and Industry, besides the high cost of power and logistics, local and foreign businessmen have other concerns. These include conflicting laws and regulations, and the lack of access of small and medium enterprises to financing. Solving these problems, as per the recommendations of Citizenswatch, would mean increased employment, higher investments and that elusive inclusive growth.

According to Manhit, the economic agenda the group fosters addresses inequality and poverty by shifting from a consumption-led, jobless growth to an investment-driven, job-creating one. Perhaps, it is time for the government’s economic planners to rethink along these lines. –Lito U. Gagni / Gagni’s Gleanings, Businessmirror