Economic diplomacy

Even before taking up the post of Philippine Ambassador to Washington, D.C., we have already been assisting our economic team, headed by Finance Secretary Sonny Dominguez, in promoting the Duterte administration’s economic development program. 

During the special preview of the “Dutertenomics Forum” in April last year at the Conrad Hotel at the Mall of Asia with select guests and some members of media who were invited, I found the presentations to be very promising. The government displayed its political will in crafting an ambitious infrastructure program anchored on President Duterte’s socioeconomic agenda that included speeding up inclusive growth and transforming the economy to make it pro-poor as well.  

In effect, I simply continued what I have been doing before accepting my current government post. During my first year as ambassador, I met with key officials of Washington and US legislators, and engaged with members of the US business community as well as think-tanks and other organizations to showcase the Philippines as a dynamic investment destination that offers a competitive environment for trade and business in the Asia Pacific region.

In the coming year, we hope to be able to hold several economic forums for the economic team especially this April during the Spring Meetings of the International Monetary Fund and the World Bank Group in Washington, D.C. 

The IMF projects, a 6.6 percent economic growth outlook for the Philippines by 2019, while the most recent statement by the World Bank says the Philippines “remains one of the fast-growing economies in the East Asia and the Pacific Region” with the adjusted growth projections at 6.4 percent in 2018 and 6.5 percent in 2019 to reflect recent economic trends. The World Bank also sees a positive growth direction in terms of sustainability and inclusiveness.

International credit ratings agency Fitch Ratings – which reaffirmed the country’s investment grade credit rating – also said the outlook is stable and that growth prospects continue to be favorable with the GDP (gross domestic product) expected to expand by 6.6 percent for both 2019 and 2020.    

My diplomatic colleagues in ASEAN (Association of Southeast Asian Nations) are also promoting their respective economic programs, looking more at the prospect of cooperation rather than competition as the vision is for seamless economic integration to present Southeast Asia as an attractive destination, offering a single market and production base in the eyes of potential global investors.

The sixth largest economy in the world with a combined GDP of close to $3 trillion, ASEAN is powered by a population of over 600 million people – majority of whom are young – and is projected to become the world’s fourth largest economy by 2030. 

As noted by HSBC’s Matthew Lobner, the fast-growing region that is “hiding in plain sight” is “worth a serious look as a location to manufacture in, source from and sell to, despite the downturn in global emerging markets over the past few months.” Taken together, the 10 member nations of ASEAN form an economic powerhouse whose combined GDP exceeds that of other nations such as the UK, France and India, Lobner noted.

It is gratifying to know that our messages regarding the potential of the Philippines as an attractive place for business have been resonating, with US-Philippines Society co-chairman Ambassador John Negroponte expressing appreciation for the positive stories regarding Philippine economic growth, with emphasis on strategic cooperation on bilateral and transnational issues, and prospects for increased trade and investment.

Jim Fatheree, the former vice president for Asia at the US Chamber of Commerce, also noted the longstanding ties between the Philippines and the United States, with American companies optimistic about new market opportunities and encouraged by the continued progress on economic reform. The passage into law of Republic Act 11032, also known as the Ease of Doing Business and Efficient Government Delivery Act, was a welcome development because it was the right step toward finally solving the decades-old problem of bureaucratic red tape as it reduces the processing time for business transactions in government offices. 

During several meetings in California including one with the board of trustees of the World Affairs Council of Northern California, we shared the efforts of the government to transform the economy and ensure that growth is both equitable and inclusive in order for change to be truly meaningful for Filipinos. We also told them about the diverse opportunities for investment and the industries that show promising growth such as the services sector and the IT/business process management industry.

We capped the year with a high-level luncheon meeting on Dec. 19 organized by the Potomac Exchange headed by its president, Katherine Moss,  and a select group of senior executives from US global companies that have been doing business in the Philippines for many years (see photos in This Week on PeopleAsia at the Allure section of the Philippine STAR today).  

I’m looking forward to working with the members of the Duterte economic team who are doing their part in giving out information about the Philippines and the investment opportunities that are available. PeopleAsia magazine came out with a special issue that had Finance Secretary Sonny Dominguez, Transportation Secretary Art Tugade, Economic Planning Secretary Ernesto Pernia, Public Works Secretary Mark Villar, Budget Secretary Ben Diokno, and Bases Conversion Development Authority president Vince Dizon on the cover, with the “Build, Build, Build” agenda of the government as the core message. 

Undoubtedly, we will be able to use this special magazine issue in promoting the Philippines and giving potential US investors a better perspective on the infrastructure and economic development programs in our country.

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