'Make growth work for the poor'--Hofman

MANILA, Philippines - If they really want the Philippines to catch up with its high-income neighbors in the East Asia and Pacific region, presidential aspirants should prioritize policies that allow economic growth to be shared by all sectors of society, a World Bank official said Monday.

World Bank country director Bert Hofman said future leaders should not only work on providing a level playing field for businessmen but also on giving social protection to the poor and marginalized sectors.

Citing a study conducted by the World Bank, he said these things helped China, Taiwan, Thailand, Hong Kong, Japan, Indonesia, and South Korea record average growth rates of 7% or more for a period of at least 25 years.

"What I find striking from the insights of policymakers in rapidly growing countries is their focus on inclusive or shared growth," he told members of the Foreign Correspondents Association of the Philippines (FOCAP).

"The nature of growth actually matters for the speed of growth. More inclusive growth that benefits all makes it easier for policymakers to argue for the reforms that are needed to accelerate growth," he added.

Infrastructure, governance

Hofman said the Philippines has managed to maintain macroeconomic stability amid the global slowdown, which was driven mainly by strong remittance inflows.

He said, however, that a lot more needs to be done.

For one, he said there are still several bottlenecks to a conducive investment climate such as insufficient infrastructure and poor governance.

"More consistency in policies and their implementation and enforcement would benefit the Philippines' investment climate," Hofman said.

"While improvements in these areas are difficult to achieve, credible commitment to more consistent policies should be high up in the agenda for any government, and actions that reinforce such commitment would be much welcomed by the business community," he added.