The next administration must make the move from a consumer-driven economy to an investment-driven one to cushion the impact of future shocks and crises on the economy.
Thus, said former Bangko Sentral ng Pilipinas (BSP) Deputy Governor for Monetary and Economics Sector Diwa Guinigundo during the Business Agenda for the New Administration forum hosted by the Stratbase ADR Institute (SADRI) last March 8.
Guinigundo highlighted that an investment-led growth has “always been the goal of public policy".
“Investments could also help prepare economies to transition to the post-pandemic world. In particular, investments help alleviate economic scarring from labor productivity loss by helping people get back to work,” Guinigundo said at the forum.
His paper titled “Pursuing an Investment-Led, More Sustainable Economic Growth” was launched during the SADRI forum.
As a means to achieve a more investment-driven economy, Guinigundo also pushed for better collaboration between the public and the private sectors.
“Attracting investments implies the need for a public-private sector collaboration and an interrelated set of policy responses and recommendations that recognizes and cuts through the following: reinvigorating investment performance, role of good institutions, better infrastructure, the digital imperative, green sustainable finance, and the role of legislative measures in attracting investments,” he said.
Furthermore, he is also a proponent of “going green and going digital” to boost investments.
He specifically cites the banking industry which he says the private sector could transform into a digital medium “to reduce transaction costs, improve services, and reduce viral transmission".
“Economic and business activities could also make use of higher levels of investments to make them more sustainable and self-sustaining. It is therefore imperative to implement policy measures that would attract domestic investments, both public and private, as well as foreign,” Guinigundo added.