Overview of Arangkada Advocacy and Introduction of Keynote Speaker Mr.

Takashi Ishigami President, Japanese Chamber of Commerce and Industry of the Philippines President and CEO, Marubeni Philippines, Inc. Secretary Balisacan, other distinguished guests, corporate and business association sponsors, other delegate friends of Arangkada, my name is Takashi Ishigami, and I am president of the Japanese Chamber of Commerce and Industry of the Philippines. It is a great pleasure to welcome Secretary Balisacan to deliver the second Keynote Address at the Third Anniversary Arangkada Forum with the theme More Reforms = More Jobs! Arangkada Philippines was published in December 2010 by the Joint Foreign Chambers based on recommendations by 300 Philippine and foreign investors to encourage the expansion of Seven Big Winner sectors through rapid, inclusive, and sustainable economic growth. Arangkada Philippines has become a reference document for policies and programs for business and economic reform as well as research. Since mid-2011 over 86,000 unique visitors from 169 countries have viewed the Arangkada website with over 325,000 page views. Mr. Secretary, the JFC has been privileged to meet with you and NEDA senior staff on several occasions, and we appreciate NEDAs openness to the analysis and recommendations in Arangkada. We find numerous instances where Arangkada advocacies are reflected in the Philippine Development Plan and thank NEDA for being one of our most important partners in improving the policy foundation for higher economic growth. At todays forum we released the Third Anniversary Assessment of the status of the implementation of 462 recommendations contained in Arangkada. The assessment
The Arangkada Philippines Project (TAPP) www.arangkadaphilippines.com

American

Australian-New Zealand

Canadian

European

Japanese

Korean

Philippine Association of Multinational Companies RHQs/RoHQs

was made by 31 private sector experts has been distributed here today and on the website www.arangkadaphilippines.com. The 2013 assessment results are quite encouraging. We believe they will support increased foreign direct investment, which has doubled to $4 billion in two years, and is building momentum. The 2013 assessment rates all recommendations on the basis of their degree of progress, including backward movement. In summary, 73% of the recommendations have either started, made substantial progress, or been completed, while 27% have not. In the 2012 assessment the comparable figures were 64% and 36%, respectively. And in 2011 they were 51% and 49%. In 2012 we shared with the forum keynote speaker President Aquino our opinion that we share a goal to increase the 51% majority-are-moving rating of the Arangkada recommendations and reduce the 49% minority-are-not rating. That is precisely what has happened over the last two years, moving up from 51% to 73% underway. We ask you to inform the president of this positive news. We have also seen good results in the solid improvements of the Philippines in closely-watched global rankings. This morning NCC Co-Chair for the provate sector Bill Luz explained an ambitious target of moving into the top third in global ranks by 2016. Such ambition inspires us and we hope will motivate the entire country. We believe the Philippines is only beginning to catch up with its more developed neighbors. Malaysia, Thailand, and Indonesia overtook the Philippines in per capita income and inclusive growth some time ago. One important factor in their growth not present in the Philippines is high FDI levels. There seems to be no debate that the impressive 7.2% GDP growth in 2013 has been insufficiently inclusive and inadequately job creating.
The Arangkada Philippines Project (TAPP) www.arangkadaphilippines.com

American

Australian-New Zealand

Canadian

European

Japanese

Korean

Philippine Association of Multinational Companies RHQs/RoHQs

We recommend that NEDA review the Arangkada recommendations that are rated as Not Ongoing or Backward/Regression and consider what steps can be taken to move these over to the positive side. We see such weaker ratings in the sections on Airports, Seaports, Mining, and Tourism. Inclusive growth can be accomplished through more and better jobs created by the private sector, and the role of the government is to fully enable the private sector in this regard. So far this has not sufficiently happened, as shown by the low level at 21% of fixed capital formation in the country, which should be closer to 30%. Most of the reforms that will further enable the private sector to create these jobs are discussed in the Philippine Development Plan, Arangkada, the World Banks Creating More and Better Jobs, and elsewhere. We support government efforts to implement these reforms but recommend a faster pace. Allow me just to mention a few reforms that would have positive effects: (1) speeding up PPP implementation, (2) modernizing airports, (3) developing domestic economic export zones to host labor-intensive light industry in poorer regions, (4) reducing non-working holidays, (5) reducing restrictions on foreign investment, and (6) cutting uneeded taxes, fees, and rules that burden businesses. This is a very short list. Many more are discussed in the assessment. The pace of reform should not just continue but should accelerate to assure that growth will be high, inclusive, and sustainable. There is no guarantee in any country that a successor administration will be committed to reform. The Philippines has experienced backsliding in governance before. If inclusive growth occurs, the world will continue to notice the Philippines as its old image of a weak economy with persitent poverty is replaced with that of a rising tiger and an empowered people with more and better jobs.

The Arangkada Philippines Project (TAPP)

www.arangkadaphilippines.com

American

Australian-New Zealand

Canadian

European

Japanese

Korean

Philippine Association of Multinational Companies RHQs/RoHQs

Our second keynote speech on Strategies of the Administration to Achieve Inclusive Growth could not be more timely. Dr. Arsenio Balisacan is Socioeconomic Planning Secretary and Director-General of the National Economic and Development Authority (NEDA). Secretary Balisacan has long been one of the countrys top economists and a recognized expert in Asia on poverty, food security, agriculture and rural development. Immediately before moving to NEDA in May 2012 he was Dean of the School of economcis at the Univerisyt of the Philippines. Mr. Secretary, we greatly look forward to your Keynote Address.

The Arangkada Philippines Project (TAPP)

www.arangkadaphilippines.com

American

Australian-New Zealand

Canadian

European

Japanese

Korean

Philippine Association of Multinational Companies RHQs/RoHQs