THE Duterte administration is bent to meet its target of inclusive growth before 2022, when President Rodrigo Duterte's term expires.
One measure that this present administration is pushing is for local goverment units and concerned government agencies to implement the new six-year development plan in order to accelerate infrastructure development and expand opportunities in industry and services.
President Duterte on June 1 signed Executive Order No. 27 series of 2017, which directs all government agencies and LGUs to implement the Philippine Development Plan (PDP) and the Public Investment Program (PIP) starting this year until 2022.
PDP, which was approved by the National Economic Development Authority last February 20, is the updated medium-term plan anchored on the AmBisyonNatin 2040, the long-term plan for a stable and comfortable life for Filipinos, to be accomplished by creating a more inclusive, high-trust and resilient society, and globally competitive knowledge economy.
It aims to strengthen value and supply chain linkages, remove restrictions, provide incentives, and promote jobcreating investments so as to increase local and foreign direct investment (FDI) in the country.
Some of its provisions include integration of industry and services in a bid to to make it globally competitive, largely by strengthening forward and backward linkages for more efficient supply and value chains While it seeks to expand opportunities in industry and services, particularly for micro, small, and medium enterprises (MSMEs), cooperatives, and overseas Filipinos.
Also sought is to amend restrictive provisions in the Constitution; repeal or amend relevant laws, rules, and regulations that restrict foreign participation in certain economic activities; and ensure that regulations promote fair competition.
The incentive system will be modernized to remove nationality and export biases and make it more relevant to investors and more competitive with other Association of Southeast Asian Nations (Asean) member states.
The medium-term plan also seeks to increase the competitiveness, innovativeness, and resilience of industries and services in the Philippines.
To achieve this, the plan aims to develop high-value added, competitive, and sustainable sectors; improve the business climate; improve access to technology and innovation; and enhance labor capacities.
Other goals are to improve market access; ensure consumer access to safe and quality goods and services; improve access to production networks and finance; and enhance productivity, efficiency, and resilience.
Moreover, PDP lists legislation needed to propel these strategies. These include the Ease of Doing Business Act, Inclusive Business Bill, and amendments of the Public Service Act and the Retail Trade Liberalization Act.
The PDP also supports the repeal or amendment of the Flag Law (Commonwealth Act 138) to create a level playing field for foreign firms in bidding for government procurement.
Infrastructure development
The PDP notes that despite improved and expanded transport systems, "it is still inadequate visavis the growing demand?"
Thus, it underscores increasing investments in infrastructure and accelerating infrastructure programs and projects. This is mainly by ramping up spending on infrastructure to at least 5.3 percent of GDP in 2017 and possibly to 7.4 percent in 2022.
"With a growing economy, the Philippines requires more and better selected infrastructure investments, given its archipelagic landscape, expanding population and rapid urbanization," the PDP states.
PDP lists four major strategies to accelerate infrastructure development, and these are to increase spending on public infrastructure; implement strategic infrastructure for the various infrastructure subsectors; ensure asset preservation, and intensify research and development on costeffective technologies.
In particular, the plan aims to enhance the transport sector by providing adequate, accessible, reliable, and safe access for people and goods moving across the country, to neighboring regions, and to other parts of the world.
Accordingly, "there is a need to enact a National Transport Policy and to create independent regulatory bodies for the railways, airports and seaports, among others, to establish a more streamlined transport sector that is able to efficiently and effectively carry out the identified development strategies?"
Roadmaps and evidenced-based studies should be used to guide the rational development of an intermodal transport infrastructure network.
To improve connectivity and mobility, multimodal transport terminals will be established, complete with ancillary facilities to provide smooth transition for passengers and freight from one mode to another.
THe plan also provides for transport agencies to continue to forge convergence programs with concerned agencies to ensure that economic sectors are offered adequate transport infrastructure support and services.
To support development in Mindanao, road projects under the Mindanao Logistics Infrastructure Network are to be pursued along with the Improving National Roads for Inclusive Growth in Mindanao Projects in Western Mindanao. The capacity of the Brunei Darussalam, Indonesia, Malaysia, the PhilippinesEast Asean Growth Area road network will also be increased.
nelsonbagaforo@gmail.com
