Good governance driving inclusive growth

May 9, 2025 l Business World

I urge my fellow citizens to participate in the Philippine national elections by wisely casting your votes for candidates who share your values and will advocate for national issues important to you. It is our right and responsibility as citizens to elect officials who will guide our country toward a more equitable future. After all, in the words of Thomas Jefferson, “We do not have a government by the majority. We have government by the majority who participate.”

In previous columns, I have discussed the tremendous economic opportunity in the Philippines, with our young, growing population driving consumer spending for the next 40 to 50 years. At the same time, we continue to face global macroeconomic headwinds. In the 2024 World Competitiveness Ranking by the Institute of Management Development, the Philippines ranked 52^nd out of 67 economies and 13^th out of 14 Asia-Pacific economies. The time is now for our leaders and future leaders to implement policies and mechanisms to help the Philippines navigate these volatile times and become more globally competitive.

First and foremost, economic growth must be inclusive and broad-based so that all sectors of society will benefit. Inclusive growth directly tackles poverty reduction by creating better economic opportunities that translate into a stronger, more vibrant economy. The Philippine Development Plan 2023-2028 highlights this importance; however, an April 2025 survey of the Social Weather Stations showed that self-rated poverty rose, with 15.5 million families estimated to be self-rated poor. This is 15.5 million families too many, and we must elect a government that works for all Filipinos instead of the interest of a select few.

Second, good governance, transparency, and honest officials are vital in creating a stable business environment and attracting local and foreign investment. These reduce the risk of corruption that takes funds away from important projects that benefit society and instead enriches only a few. FINEX and other organizations like the Makati Business Club and the Management Association of the Philippines signed a statement calling for a transparent and accountable budget process in response to what President Marcos called a “sub-optimal” 2025 National Budget. The bicameral committee reduced allocations for programmed, priority projects of the government, instead reallocating funds to lower value local infrastructure projects and types of unconditional cash transfers. These projects are rife with corruption and enable pork barrel politics. The budget must be safeguarded, especially funds for essential public services such as healthcare and education. We must elect officials who uphold the standards of integrity, candidates who are beyond reproach, and candidates who have not had allegations of graft or corruption levied against them.

Department of Budget and Management (DBM) Secretary Amenah Pangandaman was the keynote speaker at a FINEX General Membership Meeting. She shared the DBM’s plans to ensure accountability in budget disbursements while inviting FINEX to participate in the Philippine Open Government Partnerhsip. She also stated that transparency and accountability are at the forefront of the DBM’s Agenda for Prosperity.

We also have to continue improving the ease of doing business to make the Philippines a competitive destination for investment. In 2023, the World Bank ranked the Philippines 95^th out of 190 in terms of ease of doing business. Government reforms, such as the Ease of Doing Business and Efficient Government Service Delivery Act of 2018 and the formation of the Anti-Red Tape Authority, are steps in the right direction, especially as excessive bureaucracy also incentivizes corruption to facilitate transactions.

My economic wishlist is much longer and centered on electing public servants who will authentically serve the public. It includes developing long-term solutions to our energy and water problems, strengthening our agricultural sector, making our education system more globally competitive, incentivizing foreign investment, and negotiating trade agreements with like-minded partners. The task is daunting; we need the right leaders to get us there. Your vote is key in electing our leaders, so participate by voting wisely and supporting candidates who will work for the best interest of our nation.

***The views expressed herein are his own and do not necessarily reflect the opinion of his office as well as FINEX. For comments, email eaquahiansen@phinma.com.ph. Photo is from Pinterest.