Philippine Government development plans targeted GDP growth in the 7-8% range when the global economy was growing robustly.25 Economists and political leaders are confident that high growth is again possible with better governance, modern infrastructure, and much higher domestic and foreign investment. We suggest the GRP organize a Special Experts Group comprising leading economists, businessmen and senior government leaders to recommend key reforms that will help the economy recover and grow at least 9% by the middle of the next presidential term.
- The new Philippine admnistration should consider adopting as a major high priority policy goal doubling the GDP growth rate to 9 percent and adopt and implement a plan to achieve this within 3 years. This has to be supported by a clear long-term industry policy.
- Job creation by the private sector should receive extremely high priority, to reduce unemployment and underemployment by 50% and to give Filipinos more alternatives to working abroad.
- FDI should be targeted to reach over US$ 7 billion26 a year in 3-4 years. FDI should also be measured in terms of job creation and exports (products and services) generated.
- An export target of US$ 100 billion27 in 5-6 years should be set, with more diversified exports and new markets.
- Adequate funds should be made available for international promotion of Philippine exports inwards investments and tourism, medical, travel and retirement programs.28
- A significant share of remittances should be channeled into productive investments in the domestic economy through bonds and other funds.
- Double funds available for physical and social infrastructure, civil service quality improvement, investment, tourism and trade promotion, and other growth-promoting expenditures through less waste in government spending, more effective tax collection, and selectively increasing the Expanded Value Added Tax (EVAT), before other taxes.
- Public and private sectors should organize a Special Experts Group comprising economic, business, labor, and government leaders to recommend key reforms to make the economy grow at least 9%.
- The current Medium-Term Philippine Development Plan (2004-2010) targeted 7.0-8.0% GDP growth for 2010. The economy achieved 7.2% GDP growth in 2007.[Top]
- US$ 7.5 billion is 2.5 times the net FDI in 2006 and 2007.[Top]
- US$ 100 billion is double the value of exports in 1987 and assumes a 20% rate of increase from 2010.[Top]
- Department of Trade and Industry (DTI) launched a new Philippine Investment Promotion Plan in mid-2010 to coordinate the efforts of 11 investment promotion agencies (IPAs). However, no additional budget for promotion was announced.[Top]