PHILIPPINE DEVELOPMENT PLAN 2011-2016
In pursuit of inclusive growth
Philippine Development ForumSofitel Philippine Plaza, Pasay City
26 February 2011
Cayetano W. Paderanga, Jr.Socioeconomic Planning Secretary
National Economic and Development Authority
2February 26, 2011National Economic and Development Authority
Outline of presentation
Philippine economic performance
Constraints to inclusive growth
Key programs and strategies in the Philippine Development Plan 2011-2016
3
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
1951-1960 1961-1970 1971-1980 1981-1990 1991-2000 2001-2009
Real Per Capita GDP growth (%), 1951-2009Selected Asian Economies
Hongkong Indonesia Korea Malaysia Philippines Singapore Taipei Thailand
Low, lagging and uneven growth
Sources: Asian Development Bank (2010); National Statistical Coordination Board (NSCB)
4
High poverty and inequality
Country % of Poor Population 1/ Gini Coefficient2/
China 15.9 (2005) 0.415 (2005)
Indonesia 29.4 (2007) 0.376 (2007)
Malaysia 2.0 (2004) 0.379 (2004)
Philippines 22.6 (2006) 0.440 (2006)Thailand 2.0 (2004) 0.425 (2004)
Vietnam 21.5 (2006) 0.378 (2006)
Sources/Notes 1/UNESCAP 2009 Statistical Yearbook;; based on Below US$1.25 per Day (www.unescap.org/stat/data/syb2009/) 2/ 2010 ADB Key Indicators
5February 26, 2011National Economic and Development Authority
6February 26, 2011National Economic and Development Authority
Why is inclusive growth
elusive?
7February 26, 2011National Economic and Development Authority
Inadequate investmentWhy is inclusive growth elusive?
-4
-2
0
2
4
6
8
10
12
2001 2002 2003 2004 2005 2006 2007 2008 2009
Indonesia Malaysia Philippines Thailand Vietnam
0
5
10
15
20
25
30
35
40
45
50
'94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 H1Indonesia Korea Malaysia Philippines Thailand
Gross Domestic Investment (% of GDP)
Foreign Direct Investment/GDP (in Percent)
Source: WB – World Development Indicators; ADB Key Indicators;
Note: Philippine’s 2010 H1 – from Q1-Q3Sources: ADB-Asian Development Outlook; International Finance Statistics; NSCB
Factors leading to
low investment
o Inadequate infrastructure support
o Gaps and lapses in governance
8February 26, 2011National Economic and Development Authority
Output growth does not lead to employment creation
Labor market fragmentation
Limited information about job and skill availability
Concentration of economic activities to large-scale, capital intensive and highly organized sector
Why is inclusive growth elusive?
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
2006 2007 2008 2009 2010*
China Indonesia South Korea Malaysia
Philippines Singapore Thailand
Comparative Unemployment Rates of Selected Asian Economies
Sources: Asian Development Outlook 2009 (March 2009); Labor Force Surveys, National Statistics Office
(*Starting April 2005, the LFS adopts the new unemployment definition)
9February 26, 2011National Economic and Development Authority
Inadequate level of human development
Declining quality of education
Inadequate services for health security
Inadequate protection from shocks on human capital
Why is inclusive growth elusive?
10February 26, 2011National Economic and Development Authority
Low gains from trade
0
50
100
150
200
250
2001 2002 2003 2004 2005 2006 2007 2008
Hongkong Indonesia Malaysia Philippines
Singapore Thailand Vietnam
Source: WB – World Development Indicators; ADB Key Indicators
Exports/GDP (in percent)
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
0
0.002
0.004
0.006
0.008
0.01
0.012
0.014
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
remittance/gdp tradable-nontradable ratio
Remittance to GDP vs. Tradable/Nontradable
Why is inclusive growth elusive?
11February 26, 2011National Economic and Development Authority
Social Contract with the Filipino People
“A country with an organized and widely shared rapid expansion of our economy through a government dedicated to honing and mobilizing our people’s skills and energies as well as the responsible harnessing of our natural resources.”
12February 26, 2011National Economic and Development Authority
PDP 2011-2016
INCREASE EMPLOYMENT
REDUCE POVERTY
HIGH AND SUSTAINED ECONOMIC GROWTH
EQUAL ACCESS TO
DEVELOPMENT OPPORTUNITIES
EFFECTIVE AND
RESPONSIVE
SOCIAL SAFETY NETS
OUTCOMES
BROAD STRATEGIES
INCLUSIVE GROWTH
Three broad strategiesto achieve inclusive growth...
13February 26, 2011National Economic and Development Authority
High and sustained economic growth
Attain a high and sustained economic growth that provides productive employment opportunities
Broad strategies to achieve inclusive growth
14February 26, 2011National Economic and Development Authority
Equal access to development opportunities
• Better education, primary healthcare and nutrition, and other basic social services
• Equal access to infrastructure, credit, land, technology, and other productive inputs
• Improve governance and strengthen institutions to promote competition
Broad strategies to achieve inclusive growth
15February 26, 2011National Economic and Development Authority
Effective and responsive social safety nets Protect and enable those who do not have the capability
to participate in the economic growth process
Broad strategies to achieve inclusive growth
16February 26, 2011National Economic and Development Authority
Philippine Development Plan &
Medium-Term Philippine Investment Program
Social Contract’s 16-Point Agenda
17February 26, 2011National Economic and Development Authority
Key programs and strategies in the Philippine Development Plan 2011-2016
18February 26, 2011National Economic and Development Authority
Philippine Development Plan 2011-2016
1. Introduction
2. Macroeconomic Policy
3. Competitive Industry and Services Sectors
4. Competitive and Sustainable Agriculture and Fisheries Sector
5. Accelerating Infrastructure Development
19February 26, 2011National Economic and Development Authority
Philippine Development Plan 2011-2016
6. Towards a Dynamic and Resilient Financial System
7. Good Governance and the Rule of Law
8. Social Development
9. Peace and Security
10.Conservation, Protection and Rehabilitation of the Environment and Natural Resources Towards Sustainable Development
20February 26, 2011National Economic and Development Authority
Boosting industry competitiveness to generate more employment
Vital infrastructure and expand logistics chains (Chapter 5 – Infrastructure Development)
Mutually agreed-upon work arrangements (Chapter 2 – Industry and Services)
Key programs and strategies
21February 26, 2011National Economic and Development Authority
Boosting industry competitiveness to generate more employment
Focus on comparative advantage in more labor-intensive activities (Chapter 2 – Industry and Services)
Active trade policy that allows exporters to obtain comparative advantage factors including technological know-how (Chapter 2 – Industry and Services)
Key programs and strategies
22February 26, 2011National Economic and Development Authority
Improve access to financing
Clear credit policy framework and corresponding credit delivery strategy (Chapter 6 – Financial sector)
Public financing programs for MSMEs, cooperatives, etc. (Chapters 3 & 4 – Competitive and Sustainable Agri-Industry-Services sectors)
Key programs and strategies
23February 26, 2011National Economic and Development Authority
Improve access to financing
Credit-access for poor – integrated in a business service package (market matching technical assistance and community organizing) (Chapter 6 – Financial sector)
Regional savings generation through microinsurance, credit surety program, agent banking, use of non-bank financial institutions (Chapter 6 – Financial sector)
Key programs and strategies
24February 26, 2011National Economic and Development Authority
Massive investment in physical infrastructure
Integrated and multimodal national transport and logistics system (Chapter 5 – Infrastructure development)
Key programs and strategies
25February 26, 2011National Economic and Development Authority
Massive investment in physical infrastructure
Public infrastructure financed through better fiscal and efficient budgeting and expenditure management (Chapters 2- Macro policy and Chapter 6 -Governance) Public Private Partnership (Chapter 5 –Infrastructure Development)
Key programs and strategies
26February 26, 2011National Economic and Development Authority
Transparent and responsive governance Transparency and accountability in public transactions – use of
Government Integrated Financial Management Information System, procurement reforms (Chapter 7 – Governance)
Anti-corruption - Whistleblower Protection Law, Amendment of the COA charter, CHRP charter (Chapter 7 – Governance)
Key programs and strategies
27February 26, 2011National Economic and Development Authority
Transparent and responsive governance
Citizen’s access to information and participation in governance (Freedom of Information Bill, NACPA, transparent process in the selection of appointees) (Chapter 7 – Governance)
Enhance role of LGUs (Chapter 7 – Governance)
Key programs and strategies
28February 26, 2011National Economic and Development Authority
Develop human resource through improved social services Adequate and responsive formal education structure and
program (kindergarten+12-year basic education program)
Convergence of 4Ps, KALAHI-CIDSS and SEA-K
National Health Insurance Coverage Program
Communication, education and advocacy campaign for population development and RP/FP Programs
Key programs and strategies
29February 26, 2011National Economic and Development Authority
Complementary Strategies
Stable macroeconomic environment – low inflation and sustainable fiscal position (Chapter 2)
Measures to mitigate potential negative impact of environmental factors (Chapter 10)
30February 26, 2011National Economic and Development Authority
End of armed conflict
Facilitate peace process and improve national security especially in afflicted areas (Chapter9)
31February 26, 2011National Economic and Development Authority
Sentro ang tao sa ating plano
Top Related