Philippine Ambassadors, Consuls General discuss Sustaining a Robust Economy
 and Harnessing Economic Diplomacy with Top Government Officials 

22 March 2007 — The First Policy Consultations with Heads of Posts had a strong and productive start on 21 March 2007 with comprehensive discussions on the Philippine economy and the utilization of economic diplomacy to sustain the country’s growth and improve the welfare the Filipino people.  

The policy consultations ongoing at the Renaissance Hotel in Makati were organized by the Department of Foreign Affairs to set the policy directions and promotion priorities of the Department for the next three years, and involve the participation of 71 Philippine Ambassadors and Consuls General from around the world.  

Foreign Affairs Undersecretary for International Economic Relations Edsel T. Custodio opened the forum on “Sustaining a Robust Economy” with a presentation prepared by Presidential Chief of Staff Joey Salceda on the “Six Years of Uninterrupted Growth and the Economic Strategy of the Arroyo Administration.”  Key Targets identified by the report were the Reduction of Poverty incidence from 27% to 17%, Gross Domestic Product growth of 6% to 8% in 2007, and a Balanced Budget in 2008.  

The report cited the country’s positive macroeconomic, fiscal and financial market performance and outlook, as well as the “Three-Year Growth Surge” plan of the administration to increase GDP growth to 9% by 2009.   

The drivers of growth were identified as increased public, foreign and domestic investments on the demand side, and the agriculture, services, housing and property, tourism, mining, and domestic and export market manufacturing sectors on the supply side.  

National Economic Development Authority Director General Romulo L. Neri reviewed the country’s recent economic gains.  These included the Philippines’ credit upgrades, low inflation rate, and consolidated fiscal position. Secretary Neri cited good macroeconomic policies and purposeful reforms as principal reasons for the nation’s excellent performance.  

The country’s development agenda, according to Secretary Neri, calls for increased private investments, competitive and vigorous enterprises, and export and foreign exchange reserves.  Policy measures include regulatory reform in critical sectors, increasing infrastructure spending, developing the countryside through super-regions, and eliminating corruption and promoting good governance.  

To achieve the economic targets, Secretary Neri said the DFA must continue to seek markets, attract investments, explore partnerships, and disseminate positive information about the country.   

“Our goal is to build on our economic strength and spread the gains to those who need it most” Neri said.  

Discussions on “Harnessing Economic Diplomacy” began with an address by Department of Trade and Industry Secretary Peter B. Favila on the partnership between the DTI and Philippine foreign service posts in promoting business and investments in the country.  He cited in particular the 31 Philippine Trade and Investment Centers located in 21 countries that serve as the focal point for the Philippines’ efforts abroad.  The Secretary also mentioned the cooperation between the Philippine Embassies and Consulates and the Center for International Trade Expositions and Missions to develop more Philippine enterprises in such areas as food, furniture and e-services.  

Secretary Favila likewise called on the Philippine diplomats to focus on the successful conclusion of the World Trade Organization Doha Round, the organization of trade missions in their jurisdictions, and close networking with key decision makers in the public and private sector.  

“Help open doors and clear the way for us”, said Secretary Favila.  

The economic importance of the mining sector was subsequently highlighted by Environment and Natural Resources Secretary Angelo T. Reyes and Chamber of Mines President Benjamin Philip Romualdez.   

Secretary Reyes outlined the enormous potential of the Philippine mining industry and the country’s competitive advantage in terms of strategic location and quality human resources.  He emphasized, however, that the Philippines adheres strictly to a policy of responsible mining, particularly with respect to environmental and social protection.   He called on the Philippine Foreign Service to be the critical link in generating foreign investments in Philippine mining and to correct perceptions of irresponsible practices in the country.       

“It would be desirable if you can showcase the huge potential of Philippine mining, and emphasize the maturity and development of our policies” said Secretary Reyes.  

Mr. Romualdez, for his part, cited the $700 million in direct investments in the Philippine mining industry over the last three years.  “And this is just the tip of the iceberg” according to Romualdez. “In 2007 alone, we stand to receive an additional $440 million in investments.   These investments need to be nurtured, monitored and encouraged”, through the foreign service posts.  

He added “We can help in poverty reduction, but we cannot do it without your assistance.”  

The vital energy sector was also represented, with Energy Secretary Raphael P.M. Lotilla updating the Heads of Posts on the Philippine energy agenda and goals.  The Philippines, he stated, aims to achieve 60% energy independence by 2010 and to implement important, fair and competitive power sector reforms.  To this end, Secretary Lotilla mentioned the diversification of energy sources, supply contingency arrangements, and the launching of the next Philippine Energy Contracting Round.  Finally, he called on the Philippine Foreign Service to help develop the country’s renewable energy potential through private investments.  

The Policy Consultations with Heads of Posts will continue until March 23, with discussion panels on Public-Private Partnership for Global Competitiveness, Forging a Just and Lasting Peace, Promoting Philippine Culture for National Development, and Promoting and Protecting the Welfare of Overseas Filipinos.  END

/jay

(Home)