Development of resource-based sectors to fuel economic growth – PCCI

MANILA, Philippines — The government should push for the development of resource-based sectors such as mining and pursue agrarian reform as these are seen to help drive economic growth.

During the forum for the Philippine Development Plan (PDP) conducted by the National Economic and Development Authority for the private sector, Philippine Chamber of Commerce and Industry (PCCI) president George Barcelon said there is  a need for the government to focus on key areas and implement programs to bolster economic growth.

He said the government should reinvigorate resource-based sectors such as oil exploration and mining.

“We have one of the biggest resources of minerals that we have not really tapped,” he said.

In addition, he said the government should pursue agrarian reform to increase the productivity of the agricultural sector.

“Our productivity in agriculture will not improve if the farmers are limited to one and a half hectares. We need to have agrarian reform,” he said.

While the government has focused on attracting foreign investments mainly in services and manufacturing, he said it is about time to encourage firms to invest in agriculture, especially as the country imports food items.

“We import a lot of agricultural products for our needs. So, there is a concern on food dependency. The market is here. Why not invite people who want to invest in the agriculture sector?” he said.

University of the Philippines (UP) School of Economics professor Renato Reside said in a separate webinar the country should further develop the agribusiness sector given risks such as high inflation and climate change.

“We need to develop the agribusiness sector further because of the following looming conditions on the horizon,” he said.

By developing agribusiness, he said the country would be able to reduce the inflation risk moving forward.

He said developing agribusiness would lower food prices, alleviate supply constraints and insulate the country against future shocks.

Reside also said there is a need to further develop agribusiness as climate change threatens to damage agricultural production.

To develop agribusiness and improve agricultural production, he said among the ingredients is to improve connectivity to markets, storage and post-harvest facilities, mechanize processes and improve seeds.

He said this would also involve applying research and technology to the production process, climate-proofing the process, improving land use planning and tapping opportunities presented by cooperatives.

In addition, the government can work with UP and other universities to enhance productivity of yields, product quality, and lower unit costs of production.

Reside said improving agricultural productivity would likewise entail strengthening business conditions through ease of doing business and reducing regulatory and legal business risks.

Barcelon said the government should also focus on enhancing education, addressing climate change, as well as improving the health care system.

He said the private sector would be willing to work with the government in programs to promote economic growth.

The NEDA is conducting a forum on the PDP, which serves as the government’s overall guide for development for the next six years, to gather inputs from stakeholders.

Following the sessions with the youth and private sector, the NEDA is set to hold a PDP forum with planners on Sept.23.