Economist reacts to The Huffington Post blog: PHL leader must focus on economic reforms

The Philippines needs a leader that will support economic reforms to transform robust economic growth from hollow achievements to one that trickles down even to the lowest member of the social strata, an economist said Tuesday.

 

"It's a political issue. We cannot do the economic reforms unless we have a leader that supports that," University of Asia and the Pacific (UA&P) economist Vic Abola told GMA News Online.

 

This is in reaction to the article "Philippines' City of Illusions: Time for an Economic 'EDSA Revolution" posted on The Huffington Post.

 

The author, Richard Javad Heydarian, noted that the Philippines has been growing above average rates and is home to several of the world's biggest shopping malls.

 

But other important indicators – like underemployment, poverty and inequality – are "far from impressive," the writer said, noting that the "Philippine political system is still dominated by a dynastic-celebrity-media complex."

 

"This is why the Philippines needs (genuine) democracy more than ever and an economic version of the 1986 EDSA People Power Revolution," Herderian said.

 

To an extent Abola agrees that the Philippines needs political changes as the current system engenders the problems that continue to weigh on the faster-paced growth of the economy in the past couple of years.

 

Last year, the Philippine gross domestic product (GDP) grew by 6.1 percent, maintaining its position as the second fastest growing economy in Asia next to China. 

 

In 2013, the Philippine economy grew by 7.2 percent.

 

There are economic priorities that are already on the table which just needs to be acted upon more vigorously, Abola noted.

 

"There are economic reforms that are needed. The Makati Business Club, chambers of commerce, Foundation of Economic Freedom have made those quite clear," he said.

 

The economist said removing some of the constitutional limitations on foreign investments, liberalizing rice importation, strengthening of the agriculture sector, and developing the necessary infrastructure are some of the most import economic reform badly needed by the Philippines.

 

"If we have a more enthusiastic champion, we could have had much better success to bring about rapid growth and better distribution of income," Abola said. – VS, GMA News