Private sector urged to invest in rural development

MANILA, Philippines - The National Economic and Development Authority (NEDA) is urging the private sector to invest more in rural areas to help spur growth outside of urban areas.

Socioeconomic Planning Secretary Ernesto Pernia said the private sector has a big role in contributing to economic growth in the provinces through job creation, promotion of innovation, provision of skills training, delivery of quality health services and providing additional financing through public-private partnerships.

“Our partners in the private sector play a big role in the development process and thus in realizing our vision for the country, the AmBisyon Natin 2040. We need to start working outside of urban centers, however, and tap the potential of fringe regions,” Pernia said in his keynote address during the recently-held 8th Regional Development Council-Private Sector Representatives’ (RDC-PSR) National Convention in Panglao, Bohol.

Pernia said the hallmark of the administration’s socioeconomic agenda is rural and regional development to reduce poverty and inequality across the regions.

“This is why the new PDP (Philippine Development Plan) 2017-2022 employs a National Spatial Strategy (NSS). The NSS describes geographic challenges, as well as opportunities for economic growth,” he said.

Under the NSS, the country wants to maximize the benefits of scale and agglomeration economies, connecting settlements to form efficient networks, and making vulnerability reduction an integral part of development.

This year’s RDC-PSR Convention, which ran from June 21-23 bears the theme “Beyond 20/20: Defining the AmBisyon Natin 2040 Vision.” The convention is held every year to strengthen the role of the private sector in regional development.

The country’s new medium-term development plan aims to transform the country into an upper middle-income economy by 2022 through rapid poverty reduction in rural areas.

By 2022, the Philippines is envisioned to become an upper-middle income economy, growing by seven percent to eight percent annually.

Overall poverty rate is targeted to decline from 21.6 percent in 2015 to 14 percent by 2022. Poverty incidence in rural areas is targeted to decrease from 30 percent in 2015 to 20 percent in 2022.

Most of the big-ticket infrastructure projects pipelined for implementation are connective infrastructure meant to facilitate the movement of goods, manpower and investment in the provinces.

Thousands of infrastructure projects collectively valued at P157.44 billion will be rolled out in the country’s poorest region under the reinstated Three-Year Rolling Infrastructure Plan for 2018 to 2020.