Paving the road for economic partners

THE 2nd Philippine Economic Briefing held June 15 in Singapore was the seventh edition of the ongoing roadshow of President Ferdinand “Bongbong” Marcos Jr’s administration aimed at attracting foreign direct investments that would establish long term enterprises that can stimulate and sustain a robust and prosperous economy, which, hopefully, will be inclusive.

The presentations of the Philippine economic team illustrated how the country’s economic performance showed remarkable resilience and dynamism that, despite the deep economic scars caused by the pandemic, the challenges of high inflation and rising debt of government, there is reason for optimism and positive outlook.

Finance Secretary Benjamin Diokno showed how the Philippine’s economic performance continues to be strong as it outperformed other emerging economies in Asia.

Household consumption grew by 6.3 percent and is seen to continue to be a major force for growth while investments grew by 12.2 percent.

Data was presented on the improving labor market, inflation slowing down, and how the normalizing mobility has increased economic activity and resulted in strong fiscal performance. With more tax reforms and systemic digitization to improve tax administration, Secretary Diokno is confident the administration’s growth objectives will be achieved. He assured that stable macroeconomic fundamentals will be sustained with fiscal prudence and agile risk management. Structural reforms will further increase the inflow of investments and volume of trade.

Infrastructure will be a top priority for public investments while the private sector’s will be harnessed for public-private partnerships.

Department of Budget and Management Secretary Amenah Pangandaman spoke of the evident gains as the rising economy pushes forward notwithstanding global challenges and the lingering post-pandemic fallout.

Social services received the bulk of the allocation in the 2023 national budget (P1.8 trillion) while Education, being a top priority, received the largest share. Healthcare has the second largest budget and expectedly lower than pandemic levels. Ongoing concerns in Food Security will hopefully be addressed with the 29 percent increase for Agriculture amounting to approximately P186 billion. Spending on infrastructure will focus on countrywide improvements in physical connectivity. representative of the private sector and reactor, stated it will be the growing consumption economy and increasing investments that will drive Philippine economic growth.

More funding for climate change mitigation and adaptation programs anticipates the damaging effects of increasing extreme weather occurrences.

Unlike in former administrations, there is more funding in Digital Infrastructure but still not enough to catch up with other countries in the region.

The opening of the economy has sparked the rise in opportunities for employment which generates income for consumption.

Prof. Manhit said, “Philippines has a huge consumer base of over 110 million and a population that is young, skilled, and educated. Private consumption buoyed by sustained income growth due to government and private sector investments will be key growth drivers to the growing Philippine economy.”

National Economic and Development Authority Secretary Arsenio Balisacan also emphasized on the expansion and upgrade of infrastructure as a key strategy in the 2023-2028 Philippine Development Plan and development agenda of the government.

The 194 infrastructure flagship projects in the Build Better More program of the Marcos Jr. administration will be funded with an allocation of 5-6 percent of the country’s gross national product which would translate to about US$20-40 billion for each budget cycle.

Financing will be sourced via Official Development Assistance, General Appropriations Act, and Public-Private Partnership.

Appropriately, Secretary Balisacan recognized the private sector as the government’s valuable partner being the driver for growth and innovation and wielding the financial resources, and the technical and managerial expertise that are critical in achieving the government’s socio-economic agenda and enhancing the delivery of public services.

Prof. Victor Andres “Dindo” Manhit, Stratbase Group CEO, Bower Group Asia’s Managing Director, in his speech as

He explained that “robust consumption supported by remittances and improved job opportunities would drive economic growth.” Adding more capital to the local economy are the Philippine diaspora remittances boosting consumer consumption and investments. Based on a recent Pulse Asia survey, President Marcos Jr. has gained the people’s trust and support and has the advantage of strong political capital and a very competent economic team that has concrete plans and solutions to address the country’s most urgent concerns.

The President has the opportunity to harness the talents and assets of government and a very able and willing private sector in executing his administration’s 8-point socioeconomic agenda and the Philippine4 Development Plan 2023-2028 to steer the Philippines to a high velocity track towards sustainable and most of all inclusive growth and prosperity. As survivors of a three-year global pandemic, we must now emerge with the strength and confidence to thrive amid uncertainties and volatilities.

As our government continues to fulfill its duty and mandate to promote and protect our interests as a nation, we must reciprocate by actively participating as responsible citizens contributing the best we can for our collective success.

What will the UN high seas treaty mean for protecting the ocean?

The text specifies that it will apply to waters beyond countries’ exclusive economic zones, which extend to a maximum of 200 nautical miles from the coasts.

It also covers what is known as “the Area,” shorthand for seabed and subsoil beyond the limits of national jurisdiction.

The Area comprises just over half of the planet’s seabed.

The Conference of the Parties will have to navigate the authority of other regional and global organizations. Chief among these are regional fisheries bodies and the International Seabed Authority, which oversees permits for deep-sea mining exploration in some areas and may soon make the controversial move of allowing companies to mine beyond current test runs.

Marine protected areas

Currently, almost all protected marine areas are within national territorial waters.

The treaty, however, allows for these reserves to be created in the open ocean.

Most decisions would be taken by a consensus of the COP, but an MPA can be voted into existence with a three-quarters majority, to prevent deadlock caused by a single country.

One crucial shortcoming: the text does not

It also calls for countries to assess the potential impact on international waters of activities within national jurisdictions that may cause ‘substantial pollution’ or harm the high sea marine environment say how these conservation measures will be monitored and enforced over remote swathes of the ocean—a task that will fall to the COP.

Some experts say satellites could be used to spot infractions. Individual countries are already responsible for certain activities on the high seas that they have jurisdiction over, such as those of ships flying their flags.

Sharing the bounty?

On the high seas, countries and entities under their jurisdiction will be allowed to collect animal, plant, or microbial matter whose genetic material might prove useful, even commercially.

Scientists, for example, have discovered molecules with the potential to treat cancer or other diseases in microbes scooped up in sediment, or produced by sponges or marine mollusks.

Benefits-sharing of those resources has been a key point of contention between wealthy and poorer nations. The treaty establishes frameworks for the transfer of marine research technologies to developing countries and a strengthening of their research capacities, as well as open access to data.

But it’s left to the COP to decide exactly how any monetary benefits will eventually be shared, with options including a system based on specific commercialized products, or more generalized payment systems.

Environmental impact studies

The treaty requires signatories to assess the environmental impacts of planned activities under their control on the high seas before they are authorized in instances when such activities may have more than a minor or transitory effect.

It also calls for countries to assess the potential impact on international waters of activities within national jurisdictions that may cause “substantial pollution” or harm the high sea marine environment.

Ultimately, states are responsible for giving the green light to any potentially harmful activity—a role NGOs hoped would go to the COP, to make controversial approvals more difficult.

The treaty also requires states to publish updates on an activity’s environmental impacts. Approvals can be called into question if unanticipated impacts arise.

Though they are not specifically listed in the treaty, activities that could come under regulation include transport and fishing, as well as more controversial subjects such as deep-sea mining or even geo-engineering initiatives to mitigate global warming. AFP