CLOSING REMARKS SEC. ARSENIO M. BALISACAN (as delivered by NEDA Deputy Director General Margarita Songco) 1ST REGIONAL COMPETITIVENESS SUMMIT

Secretary Domingo, Undersecretary Panadero, Mr. Luz, Ms. Steele, colleagues from the government and guests from the private sector, ladies and gentlemen, good afternoon.

I am honored to be here today, and I thank the National Competitiveness Council for inviting the NEDA to this summit.

Today, we witnessed the efforts of the NCC, together with the Regional Competitiveness Council, bear fruit with the release of the First Local Competitiveness Index. 

This initiative is not only timely but critical in the country’s efforts to attract investments and encourage development in the countryside. Currently, 62% of the entire country’s economic growth is concentrated in Metro Manila, CALABARZON, and Central Luzon.  Achieving inclusive growth therefore demands development in the periphery through integration of the lagging areas or regions with the fast-growing, leading areas or regions of the country.  

Spreading economic growth to the regions will provide alternatives to investors who would be able to take advantage of the resources and unique attributes offered by different regions.  For the people, it would mean better opportunities for employment, and having the ability to provide for a better life for their families. This also give people more chances to contribute to the development of their community and their country. This is why increasing competitiveness and attracting investments to the regions are so crucial in our drive to generate employment and reduce poverty in rural areas.

Based on first semester 2012 poverty estimates, poverty incidence is highest in the Autonomous Region Of Muslim Mindanao, SOCKSARGEN, Eastern Visayas and Zamboanga Peninsula. On the other hand, poverty incidence is lowest in the National Capital Region, CALABARZON, and Central Luzon. In 2011, fifty seven percent (57%) of establishments and sixty five percent (65%) of employed were concentrated in these areas.  In the following year, fifty-six (56) percent of new business name registrations came from these regions. 

We need an impetus that will encourage new businesses to open in areas where development is most needed. The index will contribute to this, as it gives local government units the information to properly direct their efforts to specific areas. As other centers of development are created, we encourage growth not only in these regions but in the whole country.  We hope to contribute to these efforts by spearheading the formulation of Area Development Plans (ADPs), which aim to transform less developed but resource-rich areas into globally competitive areas.  The ADPs have identified specific areas based on natural economic units or natural-resource boundaries that shall be given focus to boost development in the farthest areas of the country.

The PDP, 2011-2016 and the various regional development plans have also identified priority industries which are seen to have the highest growth potentials and can generate the most jobs.  For the remaining Plan period, more emphasis will be given to employment generating sectors such as manufacturing, agriculture, tourism, IT-BPO, agri-business, and housing. Infrastructure projects have been programmed to support growth in these industries in the peripheral regions. 

The index will also build on the government’s efforts to increase the country’s ranking to the top 1/3 of the Ease Of Doing Business Report by creating a better business environment, among other initiatives.  As of the first quarter of 2013, 926 local government units (LGUs) or fifty-seven (57) percent of all 1,634 LGUs in the country have streamlined their processes and reduced the time to register businesses to 5 days for new applications and 10 days for renewal. Likewise, the Philippine Business Registry has reduced average processing time to register businesses to 30 minutes. 

As local governments use the Index as a tool to identify areas that need support and implement targeted programs that will make it easier to conduct business across the countryside, it will create a ripple effect that will have an impact on all areas of the economy. 

This afternoon only marks the beginning of the work that each of us needs to do to increase the country’s competitiveness.  When these efforts reach fruition, we would have worked together not only to increase our ranking in the report, but more importantly, to provide our people with the opportunities to change their circumstances. In so doing, we will make inclusive growth not only a goal, but a reality.

Thank you and have a good afternoon.