The likelihood of Philippines joining the ranks of first-world countries may no longer be a dream but may become a reality within this generation.
Former president and House Speaker Gloria Macapagal-Arroyo said she hopes the country would become an advanced economy just like its status during the term of her late father, President Diosdado Macapagal.
At that time Philippines was the second richest Asian nation after Japan.
Arroyo, who is running for another term as congresswoman of Pampanga, recalled that under her administration as president, the country experienced 38 quarters of economic growth.
The Philippines was only among the handful countries that survived the global financial crisis which was due to the strong finances it had during her term as chief executive.
"At that time two-thirds of the world went into a recession, but not the Philippines,” she said.
It will be recalled that Arroyo made economic development the centerpies of her administration from 2001 to 2010. She expressed hope that the country would become an advanced economy or first world country within this generation.
First world refers to high-income and industrialized nations such as the United States, Japan and Germany. The Philippines is currently ranked as a middle-income economy, but the National Economic and Development Authority predicts that that the country would attain the upper middle-income status by 2022.
Upper middle-income countries have gross national income (GNI) per capita of more than $4,000. The next step is advanced or first-world countries—those with GNI per capita income of $12,700 or more.
Arroyo said she would like to see the Philippines become a first-world country in her lifetime, replicating the feat of her father, the late President Diosdado Macapagal, whose term saw the Philippines become the second richest Asian nation after Japan.
An economist by profession who studied at Georgetown University in the United States and obtained PhD in Economics from the University of the Philippines, Arroyo introduced various economic reforms that led to strong government finances, low inflation and steady economic growth that averaged 4.5 percent annually, one of the fastest in Southeast Asia.
She introduced fiscal reforms, such as the Expanded Value Added Tax law, which boosted government revenues and ensured fiscal stability for the next administrations. This also laid the foundation for the Philippines to obtain investment-grade rating from the major credit rating agencies.
Fitch Ratings, one of the major credit rating agencies, acknowledged that the “improvements in fiscal management begun under President Arroyo have made general government debt dynamics more resilient to shocks.” Arroyo believes that the development of a new megalopolis, aside from Metro Manila, will help the Philippines attain faster growth in the next decades.
She is pushing for several infrastructure projects to support the rise of Pampanga Golden Triangle as the next megalopolis in Luzon. She earlier tapped renowned urban planner Felino Palafox Jr. to draft the Pampanga development that would involve building new roads, mass transit systems and regional transport networks.
The former president envisions Pampanga to be a well-connected province to attract more investments and economic activities. "For industries to be able to thrive and new economic opportunities and investments to materialize, transportation access is one of the major considerations and factors for development," she said.
"When completed, Pampanga Megalopolis will become a jewel in Southeast Asia," Arroyo said.