Philippine's Launches New ED Plan

The National Economic and Development Authority (NEDA) recently unveiled the government’s “roadmap” to reduce poverty in the country to below 20 percent by 2009.

According to NEDA chief and Socioeconomic Planning Secretary Romulo Neri, the Medium-Term Philippine Development Plan (MTPDP) takes off from the ten-point agenda of President Arroyo by assessing the current macroeconomic situation and identifying the so-called fighting targets, which include a 7 to 8-percent domestic growth by 2009 and 2010, a 28-percent investment to gross domestic product ratio, and a balanced budget by 2010. Neri added that the plan targets a $50-billion plus exports by 2007 as well as 1.7-million annual job creation by 2009.

“With the successful implementation of this plan, we are also likely to achieve the country’s commitments to the millennium development goals of the United Nations,” said Neri during the MTPDP’s soft launching attended by media. The chief economist noted that the plan stresses vigorous support for some three million micro, small and medium enterprises and agribusiness, as they are the most efficient generators of jobs in terms of jobs to investment ratio.

The NEDA chief added that a key strategy for job generation is the development of two million new lands for agribusiness which is expected to generate two million new jobs and enhance the productivity and incomes of Filipino farmers who comprise a large portion of the country’s poor.

The NEDA chief noted that while the agriculture sector has exceeded production targets, the sector remains uncompetitive due to the high cost of inputs such as fertilizer, chemicals and seeds, large post-harvest losses, and the disruption of extension services due to devolution. Neri said that under the plan, the government will move to make food plentiful for the people at reasonable prices.

“Institutional and regulatory reforms will reduce the price of inputs such as fertilizers, pesticides and seeds. Logistics support to raise distribution efficiency and shorten the supply chain will reduce transport costs and marketing margins,” declared Neri.

The soft launch of the MTPDP came shortly after the draft was presented to President Arroyo and her Cabinet where NEDA was instructed to ensure that the draft would reflect various agency priorities. President Arroyo earlier stressed that the MTPDP follows a “bottom-up,” rather than a top-down approach since the plan’s strategies are based on her consultations and experience during here 3 1/2 years of stint as head of state.

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