Growth gains didn’t trickle down.

By Amando Doronila, Philippine Daily Inquirer
May 7, 2012

Philippine economic performance during the past decade came under close scrutiny at the annual meeting of the Asian Development Bank (ADB) and was found wanting.

The shortfalls were most pronounced in the slow economic growth, weak job creation, a large infrastructure spending gap and wide income inequality.

ADB President Haruhiko Kuroda set the tone of the examination by spelling out in his opening statement the Asia-Pacific region’s economic prospects as a key focus of the meeting. He said the Asian Development Outlook (ADO) 2011 report indicated the region should be able to maintain its growth momentum despite trouble elsewhere in the world.

The report forecast a healthy gross domestic product (GDP) of 6.9 percent for developing Asia and Pacific in 2012, and 7.3 percent in 2013. The Philippines is lagging behind in this yardstick, posting a mere 3.7 percent growth in 2011, down by half of its stellar 7-plus percent GDP growth in 2010.

The ADB’s forecast marred optimistic estimates by Philippine economic officials at the annual meeting. They expressed optimism that the economy would expand by 5 to 6 percent in 2012, higher than its growth in 2011.

Socioeconomic Secretary Cayetano Paderanga said in a press briefing that the government’s infrastructure expenditures were on track and economic indications were looking “good”—but not so good, in the eyes of ADB experts. Kuroda said the region still faced “significant challenges,” high among which was the issue of rising inequality.

“Unfortunately, while the region has made remarkable progress in reducing poverty, the benefits of growth have yet to reach several millions  of Asians who continue to struggle on less than $1.25 a day,” Kuroda said.

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