FOR STUDENTS IN ECONOMIC DEVELOPMENT

2ND SEMESTER AY 2018-2019

 ROLE OF INFRASTRUCTURE IN ECONOMIC
DEVELOPMENT
• INFRASTRUCTURE IS THE BASIC REQUIREMENT OF ECONOMIC DEVELOPMENT.
• IT DOES NOT DIRECTLY PRODUCE GOODS AND SERVICES BUT FACILITATES
PRODUCTION IN PRIMARY, SECONDARY AND TERTIARY ECONOMIC ACTIVITIES BY
CREATING EXTERNAL ECONOMIES
• DEVELOPING INFRASTRUCTURE ENHANCES A COUNTRY'S PRODUCTIVITY,
CONSEQUENTLY MAKING FIRMS MORE COMPETITIVE AND BOOSTING A REGION'S
ECONOMY.
• THE ACCESSIBILITY AND QUALITY OF INFRASTRUCTURE IN A REGION HELP SHAPE
DOMESTIC FIRMS' INVESTMENT DECISIONS AND DETERMINES THE REGION'S
ATTRACTIVENESS TO FOREIGN INVESTORS.
 ROLE OF INFRASTRUCTURE IN ECONOMIC
DEVELOPMENT
• FROM AIR AND MARINE TRANSPORT LINKS, TO GOOD ROADS, TELECOMMUNICATIONS
AND ENERGY GENERATION, ALL ARE NEEDED FOR PROVISION OF RELIABLE SERVICES,
AND TO ENABLE LOCAL BUSINESSES TO GROW AND EXPAND.
• THE QUALITY OF AN INFRASTRUCTURE DIRECTLY AFFECTS A COUNTRY'S ECONOMIC
GROWTH POTENTIAL AND THE ABILITY OF AN ENTERPRISE TO ENGAGE EFFECTIVELY.
• THEY ARE BASIC ESSENTIAL SERVICES THAT SHOULD BE PUT IN PLACE TO ENABLE
DEVELOPMENT TO OCCUR.
INFRASTRUCTURE IN THE PHILIPPINES
“PRODUCTIVITY DEPENDS ON MANY FACTORS, INCLUDING OUR WORKFORCE’S
KNOWLEDGE AND SKILLS AND THE QUANTITY AND QUALITY OF THE CAPITAL,
TECHNOLOGY AND INFRASTRUCTURE THAT THEY HAVE TO WORK WITH
- JANET YELLEN, AN AMERICAN ECONOMIST

• THE PHILIPPINES SUFFERS FROM UNEMPLOYMENT AND POVERTY BECAUSE OF POOR

INFRASTRUCTURE.( PDI.JULY 28, 2018.UNDERSTANDING THE BUILD BUILD BUILD
PROGRAM)
• IN A REPORT BY ACADEMIC RICHARD JAVAD HEYDARIAN FOR FORBES MAGAZINE, THE
JAPAN INTERNATIONAL COOPERATION AGENCY (JICA) FOUND THAT TRAFFIC
CONGESTION IN MANILA, CAUSED MAINLY BY POOR INFRASTRUCTURE, LED TO LOSSES
OF ABOUT P2.4 BILLION IN 2012, AND COULD TRIPLE BY 2030.
 INFRASTRUCTURE IN THE PHILIPPINES
• “SINCE 2011, THE PHILIPPINES HAS BROKEN OUT OF ITS HISTORICALLY MEDIOCRE
GROWTH PATTERN TO FEATURE AMONG THE FASTEST GROWING NATIONS IN THE
[SOUTHEAST ASIAN] REGION,” SAID HEYDARIAN. “BUT THE COUNTRY’S GROWTH HAS
BEEN SHALLOW AND FAR FROM COMPREHENSIVE, LEAVING HIGH LEVELS OF
UNEMPLOYMENT, POVERTY AND HUNGER RELATIVELY UNTOUCHED.”
• “INFRASTRUCTURE IS CLEARLY THE COUNTRY’S ACHILLES’ HEEL.”
 BUILD, BUILD, BUILD PROGRAM
• THE DUTERTE ADMINISTRATION’S MEDIUM-TERM GOAL TO INCREASE
INFRASTRUCTURE SPENDING FROM 5.4 PERCENT OF THE COUNTRY’S GROSS
DOMESTIC PRODUCT (GDP) IN 2017, TO 7.3 PERCENT BY THE END OF PRESIDENT
RODRIGO DUTERTE’S TERM IN 2022.
• TO EFFECTIVELY USHER IN THE GOLDEN AGE OF INFRASTRUCTURE, THE PHILIPPINE
GOVERNMENT WILL SPEND AROUND P8.4 TRILLION (AROUND US$160-200 BILLION)
IN AN INFRASTRUCTURE PLAN CONSISTENT WITH THE MASTER PLAN ON ASEAN
CONNECTIVITY, WHICH AIMS TO FACILITATE FLOW OF CAPITAL, GOODS, AND PEOPLE
NATIONWIDE IN EVERY REGION IN THE COUNTRY.
 BUILD, BUILD, BUILD
• THE SUBIC-CLARK RAILWAY;
• THE NORTH-SOUTH RAILWAY PROJECTS CONNECTING LOS BAÑOS, LAGUNA TO TUTUBAN,
MANILA AND CLARK FREEPORT IN PAMPANGA; AND
• A 1,500-HECTARE INDUSTRIAL PARK IN CLARK, PAMPANGA; AND
• AN EXPANDED CLARK INTERNATIONAL AIRPORT ALSO IN PAMPANGA.
• OTHER PROJECTS WERE:
(A) FOUR ENERGY FACILITIES;
(B) 10 WATER RESOURCE PROJECTS AND IRRIGATION SYSTEMS;
(C) FIVE FLOOD CONTROL FACILITIES; AND
(D) THREE REDEVELOPMENT PROGRAMS.
 BUILD, BUILD, BUILD PROGRAM
• INCLUDED IN THE “BUILD BUILD BUILD” PROGRAM IS THE LUZON SPINE EXPRESSWAY
NETWORK — A 1,040-KM EXPRESSWAY NETWORK WHICH WOULD CONNECT THE NORTHERN
AND SOUTHERNMOST PARTS OF LUZON.
• ALSO PART OF THE “BUILD BUILD BUILD” PROGRAM IS THE MINDANAO GROWTH CORRIDORS
PROJECT, A R25.257-BILLION INFRASTRUCTURE PLAN, WHICH INVOLVES THE CONSTRUCTION
OF EIGHT ROADS IN ZAMBOANGA PENINSULA WITH TOTAL LENGTH OF 277.23 KILOMETERS
AND ADDITIONAL THREE BRIDGES IN THE PROVINCE OF TAWI-TAWI.

• DEVELOP THE BANGSAMORO ROAD NETWORK DEVELOPMENT PROJECT, A MASTERPLAN

INVOLVING THE IMPROVEMENT AND CONSTRUCTION OF A 200-KM ROAD NETWORK COVERING
11 ACCESS ROADS AND BRIDGES CONNECTING ARMM AND OTHER REGIONS IN MINDANAO.
 TRADE POLICY

• TRADE POLICY REFERS TO THE REGULATIONS AND AGREEMENTS THAT CONTROL

IMPORTS AND EXPORTS TO FOREIGN COUNTRIES.
 OBJECTIVE OF TRADE POLICY

• GENERAL TRADE POLICY OBJECTIVES HAVE FOCUSED ON REDUCED PROTECTION,

ACHIEVING A MORE OUTWARD- ORIENTED TRADE REGIME, INCREASED MARKET
ACCESS FOR EXPORTS, AND GREATER GLOBAL INTEGRATION, AIMED AT INCREASING
ECONOMIC EFFICIENCY, COMPETITIVENESS, AND EXPORT-LED GROWTH.
 ROLE OF TRADE POLICY IN ECONOMIC
DEVELOPMENT
• FOREIGN TRADE HAS BECOME MORE IMPORTANT TO OUR ECONOMY IN RECENT
YEARS. EXPORTS AND IMPORTS OF GOODS AND SERVICES HAVE GROWN RAPIDLY. ...
HIGHER EXPORTS AND LOWER IMPORTS ADD TO G.D.P., WHILE REDUCED EXPORTS
AND HIGHER IMPORTS CONTRACT G.D.P.
• COUNTRIES THAT ARE OPEN TO INTERNATIONAL TRADE TEND TO GROW FASTER,
INNOVATE, IMPROVE PRODUCTIVITY AND PROVIDE HIGHER INCOME AND MORE
OPPORTUNITIES TO THEIR PEOPLE.
• INTEGRATING WITH THE WORLD ECONOMY THROUGH TRADE AND GLOBAL VALUE
CHAINS HELPS DRIVE ECONOMIC GROWTH AND REDUCE POVERTY—LOCALLY AND
GLOBALLY.