A MASSIVE upgrade of the country’s information and communications technology (ICT) infrastructure and the modernization of the Philippine agricultural systems should be among the pillars of the government’s reform agenda in the post-coronavirus disease (Covid-19) recovery, the Bangko Sentral ng Pilipinas (BSP) chief said.
Addressing the Makati Business Club in an online conference on Friday, BSP Governor Benjamin Diokno said the government must focus on four critical structural reform imperatives in trying to recover from the global pandemic.
These four key reforms are the modernization of the country’s health system, “massive” upgrade of ICT infrastructures, the modernization of Philippine agriculture and supply chains and the development of a highly skilled and resilient work force.
“The structural reform imperatives I have outlined are outside the ambit of BSP. Yet they have a profound impact on the realization of the BSP’s policy thrusts,” Diokno said. The BSP’s primary mandates are keeping price growth stable, promoting financial access and creating an environment for robust economic growth.
Diokno said in post-pandemic, the country needs to modernize its health system to ensure efficient public health infrastructure and resilient crisis preparedness framework. Among his policy recommendations include giving incentives for the use of science and technology in health policy decision-making.
“It would require overhauling of health-care supply chain management. The government must also initiate the formulation of a national preparedness and response framework for disease outbreaks and pandemics, taking into account coordination gaps across different levels of government,” he said.
The governor also highlighted the need for a massive upgrading of the ICT infrastructure system and processes, saying technology will play a “pivotal role” in the production and delivery of goods and services in the post-Covid world.
“Digital technology will also be critical in enabling simpler and more efficient transactions with government agencies. Business transactions such as online retail, online banking, online medical consultations, and digital payments, will increasingly become a necessity. All these need to be supported by a safe and reliable digital infrastructure system with robust and dependable cybersecurity protection,” the governor said.
“Digital technology is also key to strengthening the government’s monitoring and evaluation systems for policy responses and actions. Without these capacities, governments may not adequately assess how its policies affect the people and risk having the vulnerable bear a disproportionate burden of the consequences,” he added.
In a recent press briefing, Diokno highlighted the BSP’s milestones in its digital payment initiatives including government electronic payments, the use of QR Codes through QR Ph, the disbursement of the Social Security System’s Small Business Wage Subsidy (SBWS) through PesoNet, and the conversion of 4Ps accounts into interoperable transaction accounts.
Digital innovations across the board are also expected to aid the modernization of the Philippine agricultural system, the governor said.
“For example, an efficient logistics system for agriculture facilitates the transport of agricultural inputs including farm equipment and machinery to farmers to keep food production uninterrupted. Consequently, it will ensure that farm produce reaches the markets and are made available to Filipino consumers and provide Filipino farmers their rightful share in the gains from production,” he said.
The BSP chief also said it is crucial to “future-proof” the Filipino workforce by encouraging the development of a highly skilled and resilient work force through a stronger educational system, sustained upskilling and adequate health protection.
According to the United Nations, the Philippines has one of the youngest labor forces relative to other Southeast Asian countries and the rest of the world. The median age of Filipinos is estimated to be 25.7 years old in 2020, younger than the expected median age of 30.9 years old globally.
The Philippines’s favorable demographics has been a bright spot among global investors.
Image credits: AP