UNLIKE the country’s economic managers, Sen. Manuel Villar Jr. promises an annual economic growth of 7 percent to 8 percent in the next six years if he wins the presidential race in May 2010."We must start a sustainable economic growth for our country, 7 percent to 8 percent, I think, is a decent objective consistently in maybe, six years. To me, it can be done. Other countries have done it. Why can’t we do it?" Villar said.
Villar’s forecast is overly optimistic, considering an official projection of a growth of 2.6 percent to 3.6 percent in 2010 from an estimated growth rate, as measured by gross domestic product, of 0.8 percent to 1.8 percent this year.
The International Monetary Fund is forecasting a GDP growth of 2.25 percent for the country in 2010.
The last time the country posted a 7 percent growth was in 2007, at 7.2 percent.
GDP is the total value of goods and services sold and rendered in a country within a given period.
Villar said with a decent economic growth rate, foreign investors will start rethinking priorities and take a second look at the Philippines for their investment expansion.
"Things have to be done very quickly so that we can impress the foreign investors and show them that things are happening in our country very quickly. We must be able to impress them Year 1," he said Friday at the Manila Overseas Press Club night.
Villar said he plans bidding out big-ticket economic projects during the first months of his term, even inviting civil society and the Church to supervise the bidding process.
"You open all the bids, televise it, invite everybody to examine all of the projects to be bidded out, let them scrutinize everything, ask questions and then on television, open the bidding," he said.
Comparatively, neighbor Malaysia has been growing 6.3 percent since 2007; China 13 percent in 2007 to 9.1 percent last year; Taiwan, 6.6 percent in 2007 to 3.5 percent in 2008; Singapore, 7.7 percent to 1.2 percent in 2008; and Indonesia, 6.3 percent in 2007 and 6.2 percent last year.
Villar said the 7-8 percent GDP growth rate would be tough to accomplish during the first year but with improved tax collection and approval of pending revenue measures to bridge the deficit gap, the growth target could be achieved in the succeeding years.
This year, the economy is seen to grow in the range of 0.8 percent to 1.8 percent of the GDP from the original projection of 3.7 percent to 4.4 percent, or before the onslaught of the global economic crisis.
Last year, the economy posted a growth 4.6 percent.
Villar said his presidency will focus on making agriculture sector as the main growth driver of the economy.
He noted that 70 percent of the population is in the agriculture sector, which he said could be harnessed by ridding agencies and institution managing the agriculture sector of gridlocks and corruption.
"If you want to very quickly address poverty, you must focus on agriculture. It is also one of the most corrupt departments. So if you can focus on addressing that problem, then you will have some excess to spend on agriculture," he said.
He said the first immediate task is to fund the repair of agriculture facilities such as irrigation systems instead of spending on new ones.
Villar said more funding should be allocated to the agriculture and also by fully utilizing the AFMA (Agriculture and Fisheries Modernization Act) whose P20 billion funding has not been implemented.
The AFMA or known as Republic Act 8435 as later amended as RA 9281 in 2004 was originally passed by Congress in 1997 to serve as the framework for modernizing agriculture and ensuring food security.
But its funding requirement of about P17 billion a year has not been religiously allocated since 2006.
"If we are to address poverty immediately despite our increase in fiscal deficit, the agriculture should be given highest priority," he pointed out.
The agriculture sector is seen to post a modest growth of 0.5 percent to 1.5 percent this year from the earlier projection of 1.5 percent to 2.5 before storm "Ondoy" and typhoon "Pepeng" brought havoc to the country’s farmlands.
Villar also said he expects the deficit to widen between P300 billion and P350 billion this year.
"The next president should immediately give the highest priority to this, of bridging this gap. We are recovering from the economic crisis, yes and no, but the next president has no time to practice. He has to start; he has to hit the ground running Day 1. He must know how to manage the country," he said.
Source: http://www.malaya.com.ph/11032009/news/news2.html
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