Finding Answers
Former Senator
Atty. Joey Lina
Despite the most daunting challenges brought about by the pandemic, many have high hopes the incoming administration would overcome the hurdles and steer our country in the right direction.
With its choices so far on the initial composition of the new Cabinet, the new administration is reaping praises from prestigious business groups like the Philippine Chamber of Commerce and Industry which see competence as a common factor among those who shall form the next economic team.
With seasoned economic technocrats such as Benjamin Diokno, Arsenio Balisacan, Felipe Medalla, and Alfredo Pascual on board, many believe the new administration seems dead serious in the pursuit of excellence as it aspires to develop and grow the battered economy quickly to uplift the lives of those immensely hit by the pandemic.
With these technocrats gaining approval of the largest business groups, it’s likely that the much- desired support of the private sector would come and play a crucial role in economic development.
Sec. Balisacan is correct in saying that “without the private sector, you can’t really expect to go far.” Thus, government working hand in hand with the private sector is of utmost importance in poverty-alleviation efforts.
Also, the need for public-private partnerships is indeed essential. “Partly to address the fiscal bind, we should reinvigorate, reexamine, bring back public, private partnerships, PPP,” he said in an ANC interview.
He’s also absolutely correct in saying that revival of manufacturing is crucial. “The lesson of recent history is that if you have a robust manufacturing sector in the early stages of your development, poverty reduction is so fast and likely sustainable,” he explained.
Indeed, the role of manufacturing in our country’s success was proven in the past. It used to be that in the 1950’s and into the ‘60s, the Philippines was the envy of neighboring countries in this part of Asia, or even in the whole of Asia. We were Number Uno in economic progress and infrastructure.
Those were the good old days when the lifestyle of the average Filipino was superior, when our national pride was at its finest, when the Philippines was the pride of Asia, when our country was among the leading destinations of foreigners, especially the Chinese, seeking greener pastures.
Thus, reviving and strengthening our manufacturing sector must be given top priority to create more employment opportunities and to improve wages to such extent that setting a minimum wage might no longer be necessary amid improved productivity.
Aside from prioritizing manufacturing, our country must also cash in on the so-called “Fourth Industrial Revolution” or “Industry 4.0” that is transforming societies and the way of life across the planet like never before.
“Like the revolutions that preceded it, the Fourth Industrial Revolution has the potential to raise global income levels and improve the quality of life for populations around the world,” wrote Klaus Schwab, founder and executive chair of the World Economic Forum, who labeled modern advances in technology as the new revolution.
“In the future,” Schwab predicted in a 2016 article, “technological innovation will also lead to a supply-side miracle, with long-term gains in efficiency and productivity. Transportation and communication costs will drop, logistics and global supply chains will become more effective, and the cost of trade will diminish, all of which will open new markets and drive economic growth.”
The reality of such prediction can now be seen in the fusion of today’s advances in the so-called “Internet of Things (IoT)” and artificial intelligence (AI), as well as in robotics, 3D printing, genetic engineering, biotechnology, virtual reality, cyber security, data analytics, radio-frequency identification (RFID), and other technologies now becoming indispensable to modern living.
“The possibilities of billions of people connected by mobile devices, with unprecedented processing power, storage capacity, and access to knowledge, are unlimited. And these possibilities will be multiplied by emerging technology breakthroughs in fields such as artificial intelligence, robotics, the Internet of Things, autonomous vehicles, 3-D printing, nanotechnology, biotechnology, materials science, energy storage, and quantum computing,” Schwab said in describing the Industry 4.0 phenomenon.
The speed and depth of the Fourth Industrial Revolution is forcing many countries to rethink development strategies, not only to reap its vast benefits but to avoid getting left behind.
While ASEAN neighbors have done extensive preparations to adapt to new technologies, it is not too late for the Philippines to catch up.
When I was hosting my TeleRadyo program, a guest in 2020 said our government started formulating a 4.0 industry roadmap for agribusiness, automotive, aerospace, electronics and other industries. The roadmap includes plans to establish a learning academy for digital skills and to set up smart factories intended to become shared facilities that can create prototypes and quickly train workers in new technologies.
Many believe the new administration must act quickly to enable the Philippines not only to catch up with other countries, but also be a major player in this part of the world in the pursuit of the new revolution that can bring about enormous benefits in the years to come.
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