MANILA, Philippines – With a more stable economy, the Philippine government should now focus on “future-proofing” programs such as improvement of living standards and of skills for the long-term, the National Economic and Development Authority (NEDA) said.

In the last Philippine Development Plan (PDP) 2017-2022, NEDA said the Philippines is “no longer weighed down by an unmanageable fiscal deficit” and is “more secure in its political legitimacy.”

It also said strong macroeconomic fundamentals have protected the country against disruptions caused by natural calamities and weakness in the global economy.

“The larger fiscal space created has enabled government to support the provision of public goods and services, stimulate private ventures, finance social programs to reduce poverty, and widen economic opportunities for the citizenry,” the agency said.

But future-proofing the economy has not been at the forefront of national conversation because past administrations were more preoccupied with stabilizing the economy and political situation, NEDA said.

The six-year electoral cycle also imposes a short term development planning that coincides with the term of elected officials.

“Plans and programs are often arbitrarily terminated and replaced to suit the preferences of incumbents to the detriment of continuity,” NEDA said.

The agency said the focus should now be on improving living standards in line with economic growth since this entails long-term planning because of the amount of time and effort it takes to address social problems.

“It is important to have a long-term perspective because securing the means for improving people’s lives, which ought to be the metric for gauging economic progress, is not a one-off event. Many of the problems requiring government action involve a combination of social, economic, and institutional processes that take years to produce the desired results. This endeavor requires sustained effort and persistence,” it said.

As the world economy changes and the country struggles to keep abreast of developments, NEDA said the country needs to equip the youth with the skills necessary for survival in the world’s increasingly technology-driven and knowledge-intensive economy.

“The world is constantly changing. As problems are solved, new ones emerge. The rate at which current knowledge becomes obsolete is also increasing,” it said.

“How are Filipino businesses preparing to compete with the rest of the region and the world? What types of skills will be required and where will they come from? These forward-looking questions above have not been at the center of the national conversation,” it said.

The new PDP is the first medium term economic blueprint to be anchored on a 25-year vision of transforming the country into a predominantly middle-class society with a per capita income of $5,000 by 2022 and by 2040, enjoying secure and comfortable lives free from financial hardship and having the time and resources to enjoy leisure.

06 March 2017
By Czeriza Valencia