ECONOMICS-NEDA Part 2 , Outlining the plans for CUTTING RED TAPE.

07/8/2016 | 3:55 0 Posted in Business and Finance, Local Issues

At the Consultative Workshop set up in Davao recently, there was a very significant mix of the top figures from the business sector as well as those from the new government’s camp which comprised many of the people who are likely to be active in assisting and empowering Duterte to escort the nation away from its socioeconomic woes.

Most significant among those who participated, Ernesto Pernia, the Socioeconomic Secretary apprised all present the government was seized of the matters concerning the welfare of the common Demoman and that there was no question of failing to come up with the answers; to explain his claim, he mentioned the various steps that were already in place in addition to those being implemented phase wise.

The first area of concern that he brought up was that of investments; he indicated that some steps were being initiated to create a climate conducive for investments; the basic requirements for ensuring that included:

Shortening of procedures to cut unnecessary delays due to red tape,
Sound infrastructure,
Much controlled law and order situation,
Analyzing the constitutionals roadblocks like restrictions that are imposed on Foreign Direct Investments, and
Revamping the system of taxes to make it more efficient.

The whole idea was to control, provide and improve all the factors that contribute to an improvement in the conditions which will result in higher investments; more investments will result in creation of more jobs and this will finally reduce poverty gradually with the cascading effect.

The roadmap for socioeconomic reforms, which is called the 10-point Socioeconomic Agenda, and has been prepared by the Duterte administration, was highlighted at the Davao Consultative workshop which had the attendance of the top business leaders of the country.

They emphasized that the 10-point agenda laid down the detailed steps to improve the general socioeconomic climate including:

Hand-picking and extending the current macro-economic policies that were sound and sustainable; these included all monetary, fiscal and trade policies,
And, ensuring that the total expenditure on annual infrastructure is enhanced so much that it is to the level of at least 5% of the Gross Domestic Product; this effort should encourage Public-Private Partnerships in crucial projects and playing key roles.

The socioeconomic agenda of President Rody Duterte also maintains a veritable focus on the following:

Ensuring that more investments are forthcoming through maintaining the security of the land-tenure,
There are more investments in the development of the human capital,
Increased investments in Education sector,
Enhanced investments in Healthcare sector,
Promotion of the Arts, Science and technology fields,
Encourage and reward innovations,
Improve programs for social protection including the conditional Cash Transfer program that insulates the poorer people from economic crises and instability,
Empowering the couples to study and act on programs developed for the welfare of the family including educational programs on reproductive healthcare, laws governing them, responsible parenthood programs, and on financial and family planning initiatives.

Metro Manila dominance

It was explained that if swift and methodical action was taken to implement properly the planned agenda, it will lay the foundation of a balanced society flourishing steadily and acting to reduce inequality, enhance prosperity and induce economic growth in society, Pernia stated in may this year when he was appointed to the coveted post.

His observations on matters of economic importance are well received and given the utmost importance by top businesses and governments too; he recently published his findings about the spread of economic benefits of metro manila to the adjoining areas confirming that this phenomenon was indeed real; the discussion paper was the subject at the U. P. School of Economics.

It was his inference that, though the benefits of Metro manila spread to adjacent regions in the peripheries of metros, the economic strength of those areas also makes a difference to the extent of spread with the poorer regions not able to absorb the benefits as much as financially better regions. Thus, it noted that the prosperity of the adjoining areas decides the amount of benefits absorbed resulting in unequal spread at different areas.

He also indicated that he will be studying this phenomenon closely to make adjustments so that the growth of all the regions is matching; in effect, a balanced approach in this matter will surely ensure that: