After the disappointing performance of our students in the 2022 Programme for International Student Assessment (PISA) report – a subject of a previous column (Creative Thinking, 20 June 2024) –now comes our country’s dismal ranking in the 2024 World Competitiveness Yearbook.
The abovementioned report by the Switzerland-based Institute of Management Development (IMD) placed the Philippines as the least competitive country in Southeast Asia. In addition, we ranked second to the lowest (13th out of 14) across the Asia-Pacific region.
Four (4) competitive factors have been identified by the IMD, namely, economic performance, government efficiency, business efficiency and infrastructure.
I shall tackle the importance of infrastructure development in our economic growth and competitiveness in today’s column.
For many years, poor infrastructure has been a major constraint to our economic growth.
However, now that we emerge as one of the fastest-growing economies and investment hubs in Southeast Asia, we recognize the economic returns of expanding and upgrading our public infrastructure to drive our economic growth.
Ramping up our infrastructure helps in the growth of businesses and industries. Movement of people and goods would become more efficient resulting in connectivity of leading and lagging regions. Ultimately, this would translate to more and better jobs contributing to improved standard of living for our people.
The Marcos Jr Administration has set 5-6% of the country’s Gross Domestic Product (GDP) on infrastructure program every year until 2028. For 2024, it is set at 5.6% of GDP, according to the Development Budget Coordination Committee.
In addition, the Marcos Jr. Administration has identified 185 Infrastructure Flagship Projects (IFPs), with a total value of more than P9 Trillion. These IFPs under the Build Better More Program, according to the National Economic and Development Authority, serve to identify high-impact infrastructure projects that require immediate government support to ensure its implementation.
Three IFPs have so far been completed since President Ferdinand R. Marcos, Jr assumed the highest office, namely, the Samar Pacific Coastal Road Project, the Integrated Disaster Risk Reduction and Climate Adaptation Measures in Pampanga Bay Project, and the Flood Risk Improvement and Management Project for the Cagayan de Oro River.
We expect more IFPs to be fast-tracked with the issuance of Executive Order No. 59 last April 2024, simplifying the permitting process for IFPs by limiting the number of required signatories on documents, among others, apart from improving ease of doing business and promoting government efficiency.
For April 2024, state infrastructure spending jumped to P118.9 Billion from P87.3 Billion in the same period last year, according to the latest national government disbursement performance report of the Department of Budget and Management.
The 36.2% increase was due largely to the Department of Public Works and Highways’ implementation of infrastructure projects, such as the construction, repair and rehabilitation of roads, bridges, and flood control structures; and the construction of administrative, hospital, and multi-purpose buildings.
Let us, therefore, get the job done and work doubly hard to sustain our growth momentum, realize the vision of Bagong Pilipinas, and join the ranks of competitive countries in the region.
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Dennis Ting is a former director at the Department of Budget and Management.
