THE Duterte administration is drawing up a blueprint that will allow the next administration to roll out more infrastructure projects in poor regions, according to the National Economic and Development Authority (Neda).
In the Philippine Economic Briefing on Tuesday, Socioeconomic Planning Secretary Karl Kendrick T. Chua said the list of priorities is being drawn up together with efforts to address the Covid-19 pandemic and address present issues. The list includes more responsive infrastructure; innovation; Climate Change; and regional equity. The last priority aims to ensure that poor regions see more infrastructure investment under the next administration.
“The National Economic and Development Authority has listed some top priorities which we are working on now, as foundations for the next administration,” Chua said. “For instance, on regional equity, we are working hard to improve the regional distribution of infrastructure.”
Based on a chart Chua shared during his presentation, per capita spending under the three-year rolling infrastructure plan (TRIP) was not as responsive to the needs of poor regions. The chart showed that the Cordillera Administrative Region (CAR) received over P80,000 per capita worth of infrastructure even if the poverty rate there was only around 10 percent.
However, the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM)—where poverty was around 60 percent—received infrastructure investments worth a little over P40,000 per capita.
“This chart gives you the regions of the Philippines correlated with poverty incidents to determine which parts of the Philippines would need further support in terms of infrastructure programs, which are our priorities,” Chua said.
Multiplier
THIS priority is crucial given the multiplier effect associated with construction: a multiplier effect of 2.3 for Output, and 3.9 for Employment, according to Chua.
This means for every peso spent on construction, the country benefits P2.3. In terms of jobs, 3.9 jobs can be generated for every million peso spent in the sector.
Chua said this is the key driver of the Philippine economy’s ability to generate jobs. Infrastructure, he said, has accounted for 1 to 2 percentage points of Philippine economic growth prior to the pandemic.
He noted that in the latest Labor Force Survey, some 4.3 million jobs were recorded in Construction and this is one reason for the strong job creation despite the pandemic.
“Build, Build, Build Program or our infrastructure program will help restimulate the economy and bring back jobs. One of the key drivers of our economy and job creation has been infrastructure given the strong multiplier effects,” Chua said.
The government aims to spend around 5 percent of GDP on infrastructure in the medium term. On average, Chua expects the government to spend 5.3 percent of GDP on infrastructure between 2021 and 2024.
Based on data Chua provided, the government targets to spend 5.8 percent of GDP for infrastructure in 2022; 5.3 percent in 2023; 5.1 percent in 2025.
Digital infra
Apart from physical infrastruc-ture, the government is also keen on completing the registration of 50 million to 70 million Filipinos in the National ID, he said.
Data showed that as of September 2021, some 41.97 million Filipinos have completed Step 1 or the demographic data collection and 28.68 million completed Step 2 or the biometric capture.
Around 1.58 million Filipinos have also completed Step 3 of the National ID, where they are issued PhilSys Numbers and their PhilIDs.
Chua added that some 5.296 million poor Filipinos were also able to create bank accounts after completing Step 2.
“Apart from the infrastructure program, we are focusing on digital infrastructure, and the National ID is one of our highest priorities. The National ID has been given by the President the highest directive to accelerate our project to provide all Filipinos with a valid proof of identity,” Chua said.
Moving forward, Chua said the government is working toward recovering from the pandemic. He assured the government is better equipped to sustain its positive growth in the second quarter.
Image courtesy of Nonie Reyes