Quantcast
Latest Stories

MV Pangilinan: Allow private sector to actively help end poverty

By ,

A top businessman on Wednesday called on Malacañang to include the private sector in mapping out fresh antipoverty programs as lawmakers blamed income inequality for chronic poverty amid robust economic growth.

Manuel V. Pangilinan, chairman of the Philippine Long Distance Telephone Co., said the government should allow the private sector to take an active role in ensuring that economic growth was shared and enjoyed by all classes.

“The imperative is inclusive, not exclusionary, growth. Business and government need to work together to identify areas that offer the higher levels of employment and income to our people—agriculture and tourism, for instance,” Pangilinan said.

Work in progress

Malacañang said eradicating poverty in the country was “not an overnight thing.”

President Aquino’s spokesman, Edwin Lacierda, largely blamed the high level of poverty incidence on the lackluster performance of the agricultural-fishery sector.

“But again, this (defeating poverty) is not overnight. This is a work in progress and hence, for that reason, we also need support from both houses of Congress,” Lacierda said.

He also said the NCSB report was already dated. “These are all historical data. So the survey … the press conference on the poverty incidence was (based) on the first semester of 2012,” he said, but added:

“We have already identified the areas where we need to improve on: in the agricultural sector.”

Pangilinan added that government should provide the guidance, encouragement and rewards. “Business should mobilize the resources for development. The franchise to inclusive growth is not the exclusive province of either business or government—neither can accomplish it alone,” he said in a text message.

Pangilinan was reacting to the report of the National Statistical Coordination Board (NSCB) on Tuesday that poverty incidence had remained unchanged since 2006 amid high economic growth. The NSCB said poverty incidence in the first semester of 2012 was 27.9 percent, “practically unchanged” from the same period in 2009 (28.6 percent) and in 2006 (28.8 percent).

Trickle down doesn’t work

“Even if we build all the infrastructure that we need, only the rich and educated will benefit the most because they will know how to use them properly and productively, unlike the poor and uneducated,” said Sen. Ralph Recto in a text message.

He said only the educated class or the entrepreneurs and professionals would benefit from economic growth, leading to income inequality and the rich getting richer and the poor poorer.

“Trickle down really does not work. High growth even leads to greater inequality even when it brings significant numbers out of poverty,” said Akbayan Rep. Walden Bello.

Recto said the government had the tools to break the paradox: Higher spending (specifically in education) and taxation.

Recto pointed out that expanding the middle class would also help in spreading the wealth across all classes. “We must allow for more private sector investments in infrastructure, factories and food production to create more jobs and build the middle class. Government does not create jobs. It is the private sector,” he said.

He said the country needed to grow at a faster rate of at least 10 percent for a long period of time to reduce poverty to less than 10 percent by 2020.

To spur agri growth

Both Bello and Recto said that the centerpiece antipoverty tool of the government, the conditional cash transfer program, had been helpful. Bello said the results would be felt in the medium to long term.

Lacierda said the challenge was to spur growth in agriculture to create more jobs, increase production and ensure that the production translates to a greater income for farmers since the bulk of the population was still in the agricultural sector.

Looking at the bright side, Lacierda noted that private investments had increased, and that public infrastructure spending in 2012 was around P250 billion.

Reacting to the NSCB data, Norio Usui, senior country economist for the Asian Development Bank, said on Wednesday that the government must solve the problem of jobless growth if it hoped to reduce poverty.


Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Economy , Manuel V. Pangilinan , Philippines , Poverty , Poverty Alleviation




Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
  1. Gigi Reyes back to face charges
  2. Enrile chief aide back in PH ‘to face charges’
  3. In the know: Gigi Reyes
  4. SC suspends proctor in 2011 bar exams
  5. Senator Pimentel backs German think tank’s stand vs dynasties
  6. Bar proctor suspended for photographing test papers
  7. Collector Danny Garcia says Inquirer worth more than news
  8. Meteor shower to light up PH skies
  9. What Went Before: Enrile denies Gigi Reyes was ‘other woman’
  10. Henares on Pacquiao bashing: I did not start this
  1. Kim Henares needs a reprimand, says Cayetano
  2. Suspect in Vhong Navarro mauling tries to leave PH
  3. More legal woes for Cedric Lee
  4. ‘No real progress in PH if dynasties not dismantled’
  5. ‘Mom, I love you,’ says text from student on sinking ferry
  6. Fr. Suarez says last Mass on Easter before returning donated land to San Miguel
  7. Enrile chief aide back in PH ‘to face charges’
  8. Massive infra spending set
  9. Henares on Pacquiao bashing: I did not start this
  10. I’ll follow my conscience on Estrada, says JV Ejercito
  1. KL confirms Malaysian Airlines Flight MH370 ended in Indian Ocean
  2. MRT passengers pass the hat for 6-year-old Ashley
  3. Rookie, lady cops lauded for quick response to MOA heist
  4. Malaysia averts another air tragedy; pilot lands troubled plane safely
  5. Revilla says he was joking; Lacson stands by his story
  6. Revilla ‘consulted’ Lacson on how he evaded arrest
  7. Police rule out foul play in Helena Belmonte’s death as boyfriend is ‘traumatized’
  8. Cudia, dismissed for lying, got 99% in conduct
  9. Model Helena Belmonte wished ‘to slash her wrist and hope to die’
  10. Hammer-wielding robbers cause chaos at Philippines’ Mall of Asia
Advertisement

News

  • Healing priest invites political leaders to join ‘prayer for nation’
  • Tagle: Christ’s resurrection a message of hope to faithful
  • Aquino vows to intensify anti-corruption drive further
  • Unease in Vatican over cardinal’s luxury flat—report
  • Nepal calls off search for missing guides on Everest—official
  • Sports

  • Wawrinka beats Federer to win Monte Carlo Masters
  • Rain or Shine grabs No.4, sends Ginebra to 8th
  • Red-hot Alaska rips injury-depleted San Mig Coffee
  • Pacquiao courtesy call to Aquino set for Monday
  • Nick Calathes suspension a reminder of supplement risk
  • Lifestyle

  • Kristo gathers 100 artists
  • ‘Magkabilaan’ concert at Peta celebrates 20-year dance partnership
  • Philippine novelist wins US book award amid cancer and ‘Yolanda’
  • Taboan 2014 in Subic: A movable, moving literary feast
  • Drawings at Stephanie
  • Entertainment

  • Solenn in shorts
  • Unmerry mix of attention-calling moves on ‘Mini-Me’ TV tilts
  • Persistence pays off for The 1975
  • Special section in LA fest for Filipino films
  • The Way They Like It
  • Business

  • BDO seen keen on bidding for Cocobank
  • Bataan freeport investment pledges up 1,302%
  • Golden Week
  • Bourse to woo Cebu stock mart investors
  • Supper power
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Epiphany
  • Unpaid creditor vs distressed debtor
  • Moving on
  • From culinary desert to paradise
  • Response to China: ‘Usjaphil’
  • Global Nation

  • Japan presents $57-B ‘dream plan’ to solve Metro congestion
  • Tim Tebow’s charity hospital in Davao seen to open in 7 months
  • OFW died of Mers-CoV in Saudi Arabia, says family
  • Aquino, Obama to tackle US pivot to Asia during state visit
  • Asia seeks Obama’s assurance in territorial spats
  • Marketplace
    Advertisement