The country is back on the radar of foreign investors, President Aquino declared upon his return the other day from the World Economic Forum in Switzerland. Even before he was invited by the WEF to address a session on fighting corruption at the annual event, the President already had reason for optimism.
Economic growth figures in the past two years and steady improvement in the country’s credit rating reflect sound management. Business confidence has been consistently high since the President assumed office, and the stock market keeps setting new record highs. Clearly, the administration of daang matuwid or straight path is doing something right.
The country, however, is still waiting for all the good news to translate into solid investments – the type that our neighbors are getting at levels that are about 10 times greater than what the Philippines has so far managed to attract. These are the types of investments that generate jobs attractive enough to lure back the millions of Filipinos who have found it necessary to go overseas to make a decent living. These are jobs that would stop the continuing flight of the nation’s human capital.
Because of the low level of these types of investments, critics of the administration say its economic gains are largely window dressing. The President has often said he wanted to leave as his legacy an environment where the average Filipino will feel no need to leave his own land for decent employment. That environment is a work in progress.
Over the past years, investors have brought to the attention of the government the factors that are driving away business to the nation’s more competitive neighbors. The President is aware of these factors and can act accordingly. Due to various reasons, investors are leaving some of the country’s neighbors. The Philippines must not miss the opportunity to attract these businesses. Returning to radar screens is not enough; there must be sufficient follow through. Investors must put their money in the Philippines, and commit to stay for the long term.
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Source: Editorial, The Philippine Star, 29 January 2013
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