MANILA – Arsenio Balisacan, the Secretary of the National Economic and Development Authority (NEDA), stressed the importance of maintaining robust economic fundamentals and strong partnerships to foster inclusive growth in the Philippines. Speaking at the Temasek Distinguished Speaker Lecture at the Lee Kuan Yew School of Public Policy in Singapore, Balisacan highlighted the significance of collective action in promoting rules-based, beneficial policy responses.
The lecture series serves as a vital platform for sharing insights with the public policy community. Balisacan discussed several megatrends influencing regional and global development, such as increasing inequality, rising protectionism, the growing use of industrial policy to drive disruptive technologies, and the high costs associated with transitioning to sustainable energy amidst climate change.
These trends, according to Balisacan, are shaping the policy landscape for open trade and investment, impacting the development of emerging economies in Asia, including the Philippines. He noted that while these megatrends present challenges, they also offer new opportunities for growth if addressed strategically with both immediate and forward-thinking policies.
Balisacan emphasized that the Philippines could capitalize on its economic momentum from the past two decades by enhancing its economic resilience. He advocated for diversifying the economy beyond consumption and services, improving the investment climate, expanding presence in regional and global markets, and implementing structural reforms to enhance market operations in key sectors.
To sustain productivity growth, Balisacan suggested that the Philippines should embrace technology and foster innovation. He pointed out the need for significant investment in human capital to leverage these technologies effectively. Balisacan also highlighted the potential of the country’s migrant networks to support capacity building and technology transfer, especially in the digital age, and called for policies to encourage the return of talent and strengthen connections between academia and industry.
Furthermore, Balisacan underscored the necessity of strengthening partnerships with traditional allies, like-minded countries, and ASEAN middle powers, focusing on trade, investment, and development cooperation, particularly in the context of ongoing trade wars and the climate crisis. He emphasized that such partnerships are more critical than ever for smaller, open economies navigating the tensions between economic giants.