EDITORIAL - Sustaining economic growth

Organizers of the 23rd World Economic Forum on East Asia have declared that holding the regional event in Manila is a vote of confidence on the Philippines. Similar gestures of confidence have also been manifested by other groups, with the Philippines being rated investment grade by all the major international credit rating agencies.

Much of the confidence can be attributed to the focus of the Aquino administration on good governance and the fight against corruption. The United Nations, the World Bank and other groups have recognized corruption as one of the biggest hindrances to economic growth. Corruption prevents fair and open competition, turning away investments that are needed to create decent employment.

The WEF on East Asia is being held as the pork barrel fund scandal continues to rage. The corruption scandal is raising concern about the sustainability of reforms, as even officials and political allies of the daang matuwid administration are implicated in the mess.

The answer to such concerns is to build the reforms into systems and procedures, with measures to enforce compliance, so that these will survive leadership changes and the vagaries of politics. Reforms cannot be sustained if their implementation is dependent on personalities. The Aquino administration must spend the remainder of the President’s term building capabilities and strengthening the institutions that will ensure the sustainability of reforms to promote transparency and accountability. The wang-wang mentality cannot return as soon as the Aquino presidency ends.

The good news about the Philippines is being trumpeted at the WEF on East Asia. When the forum ends today, the nation must come away with a firmly rooted belief that economic growth can be sustained and made equitable only if there is no backsliding on reforms. This is true whether in disaster mitigation and prevention, which now emphasizes resilience, or in the battle against corruption.