DESPITE the recent slowdown in inflation, the National Economic and Development Authority (Neda) still believed high commodity prices still pose a threat to the country’s socioeconomic recovery from Covid-19.
In the Mindanao Development Forum (MDF) last Thursday, Neda Secretary Arsenio M. Balisacan said inflation, including in Mindanao, has already started a downward trend. This augurs well in achieving the 2-percent to 4-percent inflation target of the Bangko Sentral ng Pilipinas (BSP).
However, domestic issues such as constraints in local food production and importation policies, the spread of animal diseases, and supply chain disruptions remain threats that could increase commodity prices.
“High inflation poses a significant threat to full recovery, especially from the economic and social scars inflicted by the Covid-19 pandemic,” Balisacan said. “Broadly, uncontrolled commodity price increases hinder economic progress, human development, and poverty reduction.”
The government’s newly created Economic Development Group (EDG), co-chaired by the Department of Finance (DOF) and the Neda secretaries, met for the first time last Wednesday to discuss pressing economic issues.
The EDG identified the potential impact of the impending El Niño crisis, slow global economic growth affecting the country’s trade performance, and the efficient implementation and consistent monitoring of high-priority government projects as among the country’s challenges.
In order to address high inflation, the Department of Agriculture and Neda proposed preparatory activities to adequately equip, prepare, and assist farmers in coping with the looming El Niño phenomenon.
Examples of these activities include retooling and strengthening the government’s disaster response, conducting weekly monitoring of local field conditions, conducting regional assessments, ensuring adequate buffer stocks, and promoting early planting for the dry season in water deficit areas.
The government will also create dashboards of relevant socioeconomic and sectoral statistics that will be instrumental in providing timely recommendations and policies related to importation and measures to address high food inflation in the country.
These are expected to serve as a “single source of truth” to expedite data processing in government and to foster harmonization of initiatives across agencies.
“We remain hopeful that this declaration will continue, but we must remain vigilant. Our commitment is to bring down inflation rates to within the 2 percent to 4 percent target by the fourth quarter of 2023,” Balisacan said on Thursday.
Mindanao focus
AT the MDF, Balisacan also shared the government’s efforts in Mindanao, particularly on peace and security through the Philippine Development Plan (PDP).
In the PDP, Balisacan said, the government is committed to support the smooth and complete transition of the Bangsamoro government by providing assistance to the Bangsamoro Transition Authority in various areas.
These areas are institution building, personnel development, economic management, fast-tracking of normalization and transformation programs, and strengthening intergovernmental relations mechanisms between the national and Bangsamoro governments.
“These strategies, in partnership with our local and international development partners, are crucial for sustaining the gains of the peace process, especially in achieving social and economic development in conflict-affected communities,” Balisacan said.
The government will also focus on improving connectivity in Mindanao through the expansion of infrastructure projects.
Out of the 194 infrastructure flagship projects (IFPs) recently approved under the Marcos administration’s Build-Better-More program, Balisacan said Mindanao is home to 51 IFPs, accounting for about a quarter of the total projects.
Balisacan said the infrastructure projects include roads and bridges, urban transport, air, maritime, and rail infrastructure. There are also a number of agriculture-related projects such as irrigation, flood management, water supply projects, post-harvest facilities, and logistics.
The Neda Secretary noted that infrastructure played a critical role in supporting the island group’s rapid growth and its sustained contribution to our food and agriculture sector.
This is mainly because Mindanao regions account for 38 percent of the country’s gross value added in agriculture, forestry, and fishing. Balisacan said key commodities such as bananas and pineapples, grown in Mindanao, also account for a significant share of the country’s agricultural exports.
“In support of our food security agenda, the Mindanao Inclusive Agriculture Development Project, valued at P6.6 billion, was approved by the Neda Board earlier this year as one of the high-impact infrastructure projects,” Balisacan said.
“This project aims to enhance agricultural productivity, resilience, and market access for organized farmers and fisherfolk across selected ancestral domains in all regions of Mindanao,” he added.
EDG matters
THE EDG also discussed updates on the monitoring system for the country’s infrastructure flagship projects (IFPs) under the government’s Build-Better-More program.
The group also discussed the development of high-frequency monitoring systems for priority budget items, other government projects, and agriculture matters, and the proposed policy responses and contingency plans for addressing the impact of El Niño.
Neda said it is currently developing a public dashboard for the IFPs to enhance transparency and accountability among implementing agencies. The dashboard will also help in identifying and addressing bottlenecks and constraints that may hinder the timely implementation of the projects.
Currently, the Department of Transportation tracks the progress of major transportation projects with respect to their right-of-way acquisition and construction, while the Department of Public Works and Highways monitors the progress of strategic projects related to traffic decongestion, seamless and inclusive connectivity, and sustainable and resilient communities.
Meanwhile, the Department of Trade and Industry also emphasized the need to bolster efforts in developing domestic industries by addressing constraints to production and developing a strong, innovative export ecosystem to accelerate growth amid a challenging global economic outlook.
In a sectoral meeting held last March, President Ferdinand R. Marcos Jr. approved the creation of the EDG to assist the Executive Branch in harmonizing, coordinating, complementing, and synergizing the efforts that will ensure the country’s rapid, inclusive, and sustained growth. The EDG is expected to provide the President its recommendations on the various issues discussed.
Representatives and principals from other member government agencies were present, including the Presidential Management Staff, the Departments of Trade and Industry, Budget and Management, Agriculture, Public Works and Highways, Transportation, Information and Communications Technology, Energy, Science and Technology, Tourism, Interior and Local Government, and Labor and Employment.
Image credits: Nonie Reyes