Inclusive growth still attainable within Duterte term — Arroyo

MANILA, Philippines — The Philippines can still achieve inclusive growth before the end of the term of the Duterte administration, House Speaker Gloria Macapagal-Arroyo said.

Arroyo said the administration should continue to pursue reforms even if they may appear to be painful and unpopular, citing her experience in pushing for the expanded value-added tax (EVAT) law when she was president.

When she started her administration in 2001, the poverty rate was 39 percent, now President Duterte’s economic managers are working on reducing it to 14 percent by 2022.

“That (poverty reduction) will be a cumulative contribution of three successive administrations – mine, President Noynoy’s (Benigno Aquino III) and President Duterte,” Arroyo told The STAR.

She said the present and the immediate past administration all had prudent economic policies.

She recalled her implementation of the EVAT resulted in 38 quarters of uninterrupted growth and spared the country from recession when two-thirds of the world was in recession during her term as president.

She said Duterte’s emphasis on peace and order is setting the stage where big and small businesses can thrive and therefore create jobs “that would allow inclusive growth.”

“Look at Pampanga and Cavite – you drive one hour to the north, you drive one hour to the south and the progress is evident,” Arroyo said.

She said her focus as leader of the House of Representatives is to make sure the administration’s legislative agenda is achieved, including the passage of the Rice Tariffication Bill.

She said fiscal reforms are going to be the basis for the next stage of the country’s growth, providing for the infrastructure requirements for the next stage of economic progress. 

She said she feels for the people reeling under rising prices of goods and prodded the government to make sure the effects of inflation are cushioned by social programs.

Arroyo advised economic managers to keep close watch over the country’s fiscal health, particularly its deficit, noting the EVAT help restore the country’s investment ratings.

“I should say that my philosophy should always have an eye on fiscal strength and should always be ready to do what is necessary in order to maintain fiscal strength. After all fiscal strength is the bedrock of any healthy economy,” she said.