MANILA, Philippines--Albay Governor Jose Clemente “Joey” Salceda gave his former boss, President Gloria Macapagal Arroyo, a dismal score of 7 out of 10 in terms of lifting the economy.

In an interview with Karen Davila on ANC’s Headstart on Monday, Arroyo’s former economic adviser said “there is growth but there is no equity…Ibig sabihin, yung poverty hindi bumaba. Pero kung mas importante sa iyo equity, siguro 6 lang.”

Growth does not only mean a higher gross domestic product (GDP), but this should also translate to lifting the poor from poverty, he said.

“The president should lead…Ang role mo dito ay paangatin ang GDP beyond 7.3%, and consistently para mahatak ang mahirap,” he said.

While the economy consistently grew over the last 34 quarters, the average GDP was only at 4.4%, he said.

“Ibig sabihin, halos kinakain lang ito ng population growth ito,” he added.

What the Arroyo administration lacked was “allocative efficiency” or the quality of its expenditures, he said.

Cash-transfer

To be fair to the Arroyo administration, it has been consistent in implementing several good policies, he said.

He noted, however, there was still lack of execution.

Besides health and education, it did not focus much on its conditional cash transfer program, he said.

“Leadership will be defined as putting the entire economy on a higher plane. Otherwise, kailangan mo i-rebalance ang economic policy para sa unang putok ng growth, mapupunta agad sa mahirap,” he said.

Brazil now enjoys a better adjusted economy because of its so-called “conditional cash transfers”. The goal of the fund is to bring to school the children and provide them a better education than their parents.

Salceda explained that the poorest 10% Brazilians are now enjoying a 9% increase in per capita income.

In the Philippines, poverty is very chronic, he said.

“Halos 78% ng mahirap 30 years ago ay mahirap pa rin ngayon. It will take you 37 years para makalabas sa poverty cycle,” he said.

No new taxes

Aquino does not even have to introduce new taxes to survive, he said. Add to this the fact that there are about P3 trillion worth of domestic investments moving around, he said.

“Kaya! Kung umiikot yun P3 trillion [domestic investment rate] because of improved confidence in government, aangat kaagad ang economy,” he said.

Salceda, who will weigh-in in terms of advising Aquino, said he will only push for sin taxes as a social policy of sorts.

“You look at tobacco or liquor taxes not because of what these will bring in, but what it prevents by way of social costs. Kasi gumagastos tayo ng P49 billion para sa mga tobacco-related diseases,” he said.

Salceda also said Aquino’s economic team would be relevant in achieving the economic reform goals.

He said former National Economic and Development Authority (NEDA) director-general Cayetano Paderanga and former Finance Secretary Cesar Purisima should go back to their old jobs. Aquino supposedly has the same plans to bring back both to the government.