The May 4, 2007 advertisement of the Black and White movement says we are losing to the economies of Vietnam, Cambodia, Laos, and Bangladesh. It cites comparative data on the growth rates of gross domestic product (GDP) and exports, the level of foreign direct investments, and the gross domestic investment rate.

Let’s focus on the key issue of GDP. The average for 2001-2006 was pulled down by the political crisis of the last administration that led to People Power II. As a result of the crisis and the May 2001 rebellion, GDP growth in 2001 was only 1.8 percent. The economy recovered slowly, posting growth of 4.4 percent in 2002, and 4.9 percent in 2003. It would be fairer to judge the economy minus the crisis hangover effect. The GDP growth rates were 6.2 percent in 2004, 5.0 percent in 2005, and 5.4 percent in 2006. That averages 5.33 percent, which is quite respectable.

But isn’t that lower than the growth rates posted by Vietnam, Cambodia, Laos, and Bangladesh? The flaw is that the argument does not consider the base. As a simple example, the GDP growth rate of the United States in 2006 was only 3.4 percent. Does it mean that the United States economy is losing to that of the Philippines? No, for America’s GDP is much larger than ours. Growth rates tend to slow the larger the base.

It is more useful to compare the GDP level of the Philippines with that of the others. For example, the GDP of the Philippines is twice that of Vietnam, a country of roughly equal population size.

2006 GDP levels

Philippines           $ 116.90 billion

Bangladesh         69.02

Vietnam                48.26

Cambodia                   6.60

Laos                          2.77

To say that we are losing to Vietnam, Cambodia, Laos, and Bangladesh is plain wrong.

The best index of comparison is GDP per capita in purchasing power terms or PPP. This refers to making adjustments for differences in prices across countries.

2006 GDP per capita (in PPP)

Malaysia              $12,700

Thailand              $  9,100

China              $  7,600

Philippines              $  5,000

Indonesia              $  3,800

Vietnam              $  3,100

Cambodia                $   2,600

Bangladesh             $  2,200

Laos                      $   2,100

(Source: CIA: The World Factbook)

President Gloria Macapagal-Arroyo witnessed today the signing of a power supply agreement between Masbate Electric Cooperative (Maselco) and D.M. Consunji, Inc. (DMCI) Holdings which signalized the turnover of the National Power Corporation-Small Power Utilities Group (Napocor-SPUG) generation service in Masbate to DMCI.

Dr. Elpidio Lim of Maselco and Herbert Consunji of DMCI Holdings signed the agreement at Malacaņang’s Rizal Hall, which was also witnessed by Energy Secretary Raphael Lotilla, Napocor President Cyril del Callar and National Electrification Administration head Editha Bueno.

The Maselco-DMCI Holdings agreement will provide a more reliable and affordable supply of electricity to more than half a million residents of Masbate, according to the Department of Energy.

During the same occasion, the President also ceremonially switched-on the electrification of 128 rural barangays of Masbate that would benefit 18,000 households in 17 municipalities.

She was joined by Paris Manila Technology Corporation (Pamatec) chief executive officer Hubert Aboville, Lotilla, Del Callar, Bueno and French Ambassador Gerald Chesnel.

Under the agreement, DMCI will supply 13 megawatts of dependable capacity to Maselco 24 hours a day using hybrid technology with a minimal electricity cost at P7.07 per kilowatt hour, almost half of the Napocor current generation cost of P12 per kilowatt hour.

Maselco hopes to service the entire Masbate customer base of 560,000 people, who at present rely on just eight megawatts of electricity per day.

The power supply agreement is in line with the Private Sector Participation Program (PSP) in the small island grids, apart from electricity provision in the remotest and off-grid barangays in the country.

Citing improved economic indicators and the dedication of a leader to grow the economy, the private sector led by the Philippine Chamber of Commerce and Industry (PCCI) and the country’s development partners and donors have signified their "enthusiasm and interest" in continuing to be partners of the national government in pursuing development projects that would further improve the economy and eradicate poverty.

In their response to the call of the government for more private sector and business community participation in the "ready-to-go" infrastructure projects that would spur development and economic growth in the five super regions development plan of President Gloria Macapagal-Arroyo during the 2^nd National Government Infrastructure Forum held today at the Shangri-La Hotel in Makati City, the PCCI and the development partners and donors expressed their "continued support" to the economic development of the country.

PCCI Chairman Ambassador Donald Dee said the improved macroeconomic indicators have "made investors look at the Philippines."

While noting that the government funding for infrastructure has doubled at present compared to 10 years ago, Dee said the government, in partnership with the private sector, must allot more funds for infrastructure projects.

Stressing that vital infrastructures have to be in place to further grow the economy and thus eradicate poverty, he urged the government for more coordination in the infrastructure planning and implementation.

He specifically called for the strengthening of the roll-on, roll-off (Ro-Ro) nautical highway as the Ro-Ro "is part of all of these infrastructure projects," referring to infrastructure projects lined up by the government for the development of the country’s five super regions.

"There is a lot of work coordination that has to be done. The PCCI offers its support," Dee said as he committed that the 98 local chambers could be used, with "warm bodies to help you."

United States Agency for International Development (USAID) Mission Director Jon Lindborg stressed "urgency in terms of the implementation of the many development projects in the Philippines" to finally propel the economy that has many potentials to be globally competitive.

"Two years since I’ve been here, I’ve seen progress," he said as he noted that there are "many constraints and challenges" in the implementation of infrastructure projects.

Among these is the issue on privatization, where he noted "bureaucrats should not be in business usually."

Lindborg said "the stakes are high" but there are three things he wants the government and the private sector to put in mind: first, without infrastructure, no economy grows; second, without infrastructure, no poverty reduction; and third, infrastructure is so important in economic growth but there is also the need to devote time and effort in the soft infrastructure for progress which is peace and security.

"The critical approach is to ensure transparency, fair competition and sanctity of contracts," he said.

President Gloria Macapagal-Arroyo has a "sense of urgency and priority" in completing all the infrastructure projects that she outlined in her 2006 State-of-the-Nation Address (SONA).

This was revealed by Presidential Management Staff (PMS) Director General Cerge Remonde as he presided in today’s 2^nd National Government Infrastructure Forum at the Shangri-La Hotel in Makati City.

"In all our Cabinet meetings, I always report on the infrastructure status as head of the Infrastructure Monitoring Task Force (IMTF), which only shows the kind of urgency, priority that the President gives to infrastructure projects," Remonde stressed.

Three infrastructure projects have been completed since the holding of the 1^st National Government Infrastructure Forum in October 2006, while 19 other projects are expected to be completed nationwide this year.

This "good news" on the government’s medium-term infrastructure program was shared during today’s forum, with Remonde identifying the finished projects as the Maasin Port and the Lucena Port Passenger Terminal Building, which were completed in December 2006; and the New Iloilo Airport Development Project, which was completed last March.

"The improvement of the Maasin Port will enhance the port’s services through the provision of wider operational area while the new passenger terminal building of the Lucena Port will ensure the safety, security and convergence of passengers," Remonde explained.

The PMS head added that "with the completion of the New Iloilo Airport, Panay Island now has an international standard airport that will boost economic activity and tourism in the island."

On the other hand, 26 priority infrastructure projects in the Luzon Urban Beltway are now being implemented. These projects are "geared towards making the super-region a globally competitive industrial and services center, where the movement of goods, services and people is seamless," Remonde said.

Also presented in the forum were "ready-to-go" projects "still in need of funding," including the "remaining 84 projects and other infrastructure projects critical to the attainment of each super region’s development goals."

Among these projects is the Laiban Dam in Tanay, Rizal which the National Economic and Development Authority (NEDA) Board recently approved for implementation. The dam is expected to supply 1,200 million liters of water per day, aside from generating 25 megawatts of electricity.

The project will be funded through an Official Development Assistance (ODA) from the Chinese government. Further geological investigation of the project area is scheduled to begin in the second quarter of this year.

Remonde noted that the "convergence of the national government, business community, private sector, and the local government units in that fruitful event (the first forum) jumpstarted a multi-sectoral effort to implement infrastructure projects that aim to spur economic development and further improve the lives of the Filipino people."

The PMS head stressed that the agency is ensuring that "these projects have sufficient funding and are completed according to specifications and schedule." On the other hand, feedback and suggestions solicited from various sectors are "certainly crucial to ensuring that projects are implemented with efficiency, effectiveness and transparency," he said.

"We want to ensure that projects are on schedule, above-board, done well and in the most cost-effective manner," the PMS chief added.

President Gloria Macapagal-Arroyo led the ceremonial switch-on today of the 39,955 energized barangays nationwide, marking the 95.26 percent level of barangay electrification by the administration as of the first quarter of the year.

The energized barangays include Barangay Balimbingan in Tukuran, Zamboanga del Sur, whose electrification was made through the efforts of the Department of Energy (DoE) with the Alliance for Mindanao Off-Grid Renewable Energy (AMORE) program.

AMORE is a cooperative program of the United States Agency for International Development (USAID).

Witnessing the ceremonial switch-on held at Malacanang’s Rizal Hall were US Ambassador Kristie Kenney, Energy Secretary Raphael Lotilla and National Electrification Administration head Editha Bueno.

Lotilla said that rural electrification has significantly improved during the Arroyo government where 39,955 out of the 41,945 barangays nationwide have been provided access to electrical services, leaving only 1,990 barangays still to be energized until 2008.

During the brief rites, Zamboanga del Sur power recipients Eustaquio Codiniera, Marita Etao and Edwin Catallan expressed gratitude to the President for the new power supply services in their areas.