Beyond the growth figures
Fitch Ratings finds the country’s fiscal performance disappointing. The Australian government reports that the Philippines lags behind its Asian neighbors in poverty reduction and economic progress, based on certain economic indicators. Filipinos who have been overseas do not need special reports to realize that their country is being left behind by many of its Asian neighbors. The proof is evident in the efficiency of public service, the emergence of a large middle class, and in the quality of infrastructure including modern airports and well-paved roads.Share prices went down to their lowest in four weeks yesterday in reaction to the Fitch assessment, which could affect the agency’s rating of the country’s credit worthiness. Meanwhile, Australia’s bilateral overview, prepared by its Department of Foreign Affairs and Trade, compared Philippine economic performance over the past 30 years with that of its neighbors in East and Southeast Asia. The report noted that in poverty reduction, the Philippines has been overtaken by South Korea, Taiwan, Thailand, Indonesia for a certain period, and China.
Those 30 years include about half of the Marcos era, when massive corruption and dictatorial policies brought the country to the brink of ruin. But Filipinos cannot keep blaming Ferdinand Marcos for current ills. The damage inflicted by the dictatorship could have been repaired with reforms to strengthen fragile democratic institutions following the 1986 people power revolt. Instead reforms have been stubbornly resisted, especially those that seek to promote transparency — an indispensable component in good government, which in turn is needed to eradicate poverty. The result is that poverty alleviation has moved slowly, aggravated by persistent inequality in the distribution of wealth, as the Australian report has noted.
The economy is one bright spot that the administration likes to crow about amid continuing political discord. But economic growth will be truly impressive once its benefits are enjoyed by the masses. This is the challenge facing the Arroyo administration as it embarks on its final three years.
