Page 1

Accelerating Socioeconomic Development through Social Businesses

Secretary of Socio-Economic Planning Social Business Summit 2013 GK Enchanted Farm Village University. Bulacan Philippines 03 October 2013
Social Business Summit 2013
GK Enchanted Farm - Bulacan, Philippines

Arsenio M. Balisacan

Page 2

Plan Vision: Inclusive growth

Higher economic growth for 20112016 Growth that generates mass employment Growth that reduces poverty, including achievement of Millennium Development Goals

Social Business Summit 2013

GK Enchanted Farm - Bulacan, Philippines

Page 3

Social Contract
Transparent, accountable and participatory governance

PDP 2011-2016
Promote transparent and responsive governance

Poverty reduction and empowerment of the poor and vulnerable Rapid, inclusive and sustained economic growth

Develop human resources through improved social services and protection

Just and lasting peace and the rule of law Integrity of the environment and climate change mitigation and adaptation

Achieve stable macroeconomic environment Boost competitiveness in productive sectors Improve access to financing Invest massively in physical infrastructure Advance peace process and guarantee national security Ensure ecological integrity

Social Business Summit 2013

GK Enchanted Farm - Bulacan, Philippines

Page 4

The Philippine economy sustained robust growth in SI 2013

Growth Rate (%)
2012 SI 2013
2012 SI 2013 7.6%

Supply Side 12 10 8 6 4 2 0

2.8 1.4 Agri, Fishery and Forestry 30 20 10 0 -10

6.8

10.6 5.4

9.9

7.6 7.1 Services SI 2013

GDP Growth

6.8%

Industry

Manufacturing 2012

Demand Side

6.6 5.3

12.215.3 -3.2

27.3 8.9 -7 Exports Capital Formation 5.3 -0.7 Imports

Source: NSCB

Household Gov't Final Final Consumption Consumption

Social Business Summit 2013

GK Enchanted Farm - Bulacan, Philippines

Page 5

We are on track with respect to our economic targets; the present challenge is to improve social outcome targets.

PDP 2011-2016 Targets

7-8%
Gross Domestic Product

22%
Investment/GDP ratio

6.8-7.2%
Unemployment Rate

Poverty Incidence down to

16.6%

Where are we now?

6.8% (2012) 7.6% (SI 2013) Real GDP Growth

20.3% (2012) 20.8% (SI 2013) Fixed Capital as ratio to GDP

Unemployment rate 7.0% (2012) 7.3% (ave. of LFS 2013 Jan, Apr &
Jul round)

Underemployment rate 20.0% (2012) 19.8% (ave. Jan, Apr & Jul 2013)

27.9% (S1 2012) 28.6% (S1 2009)

Poverty Rate
GK Enchanted Farm - Bulacan, Philippines

Social Business Summit 2013

Page 6

More needs to be done to achieve inclusive growth and reduce poverty

First Semester Poverty Incidence Among Population (in percent)
35 30 25 20 15 10 5 0
12.8 8.9 64.0 14.3

Regional Gross Domestic Product (in percent)

14.3
2011

12.8 28.8 28.6 27.9 8.9 16.6 64.0

2012

14.4
NCR, Reg III and IV Other Luzon Visayas Mindanao

12.7

8.8

64.1

S1 2006

S1 2009

S1 2012

FY 2015

Source: National Statistical Coordination Board

Social Business Summit 2013
GK Enchanted Farm - Bulacan, Philippines

Page 7

We need to generate more and better jobs.

Ave. 2012 (January-July) 25 20 15 10 5 0 Unemployment Rate (%)
Source: Labor Force Survey, National Statistics Office

Ave. 2013 (January-July) 20.3

19.8

7.3

Underemployment Rate (%)

Social Business Summit 2013

GK Enchanted Farm - Bulacan, Philippines

Page 8

Lessons Learned:

Midterm Assessment of PDP 2011-2016 Implementation

Good governance has proven to be an effective platform upon which strategies should be implemented. Economic growth is necessary but not sufficient for poverty reduction.

Macroeconomic (fiscal, financial, external) and political stability fuels positive expectations that lead to growth. Growth strategies need to have spatial and sectoral dimensions to ensure inclusivity.

Disasters can negate the gains and even push back development.
8
Social Business Summit 2013
GK Enchanted Farm - Bulacan, Philippines

Page 9

Guiding Principles
Efficiency (catalytic; government intervention facilitates and not substitutes for private action) Equity (broadening opportunities through connectivity, human capital investments) Feasibility (doable within the Plan period)

Desired Outcomes

Social Business Summit 2013

Rapid increase in employment opportunities to significantly reduce the stock of unemployed persons Significant reduction in poverty incidence to come as close as possible to the MDG

GK Enchanted Farm - Bulacan, Philippines

Page 10

Hence we will do more to pursue inclusive growth.

REDUCED POVERTY , MASSIVE EMPLOYMENT CREATION National Security POSITIVE ACTION with Spatial and Sectoral Dimensions Equalize development opportunities, Improve resilience Rapid and sustained growth
Jobs Investments

Ecological Integrity

Market demand

Good Governance (Secure

property rights, Efficient regulation, Transparent and accountable)

Science, technology , innovation Education and skill set of the workforce

Boost competitiveness

Improve access to financing

Infrastructure
Social Business Summit 2013

(fiscal, monetary, external, financial)

Macroeconomic Stability

10

GK Enchanted Farm - Bulacan, Philippines

Page 11

We need to reduce the cost of doing business to enhance the investment climate
Reduce the cost of doing business Quality infrastructure Streamlining of registration and licensing procedures Implementation of programs and projects that address bottlenecks Strengthen the contribution of construction and utilities in line with the infrastructure development program (i.e., transport and power) Diversify manufacturing: Strengthen other subsectors Diversify exports Promote higher value chain subsectors Strengthen link with agriculture (agri-industry)

Social Business Summit 2013

GK Enchanted Farm - Bulacan, Philippines

Page 12

Human capital investments are needed to increase labor productivity and boost competitiveness

For the long term:

In the medium term:

K to 12 Program Pantawid Pamilyang Pilipino Program

PESO and skills registry Better partnership with industry with respect to curriculum design TVET programs

Social Business Summit 2013

GK Enchanted Farm - Bulacan, Philippines

Page 13

How can social businesses contribute to inclusive growth?

Social businesses can:

Provide opportunities for employment and livelihood for the poor Link the poor with different market players throughout the supply chain Help mobilize resources of the private sector in attaining social goals For example: For poverty reduction: provision of credit to the poor For health: production of affordable but high quality medicine

Social Business Summit 2013

GK Enchanted Farm - Bulacan, Philippines

Page 14

Social business as employer and supplier of goods and services

Social Business Summit 2013

GK Enchanted Farm - Bulacan, Philippines

Page 15

The government will continue to promote social enterprises and social businesses. Streamlining business procedures and processes Improving peace and security conditions Upgrading knowledge and skills Engaging in policy dialogue with business, basic sectors, local government
.

Social Business Summit 2013

GK Enchanted Farm - Bulacan, Philippines

Page 16

Growth is inclusive if the poor not only benefit from it but also contribute to it. Social businesses and social enterprises help make this happen.

Arsenio M. Balisacan
Secretary of Socio-Economic Planning

Social Business Summit 2013 GK Enchanted Farm Village University. Bulacan Philippines 03 October 2013
Social Business Summit 2013
GK Enchanted Farm - Bulacan, Philippines