#MINDANAO

A few business leaders from the island reacted to my May 15, 2023 column on the Mindanao economy’s 2022 Gross Regional Development Product (GRDP). One of the assertions is that this growth would have been higher if inflation had been lowered sooner. Higher growth would have ensured a wider spread of economic activity that would have allowed even more employment and opportunity. While this inflation has been slowing down in the last two months, it is still above the desired two to four percent range. This target is a band that fosters sustained economic growth for the growing populace because it allows sufficient consumption to buy the products and services produced by businesses. This causes businesses to expand, creating more opportunities for financial institutions to fund their growth. When inflation is too high, higher prices hamper consumption and business growth is slower.  This is bad for businesses. Moreover, in many surveys, inflation that is too high means that prices are high. This is an important political issue for Filipinos. The performance of leaders is often judged on their capability to manage inflation and keep it at acceptable levels. Knowing this, the recent announcement of an interagency committee among government agencies to address inflation will face important challenges. Apart from the short-term measures that can be proposed to lower inflation, this group will need to propose long-term solutions to keep inflation within the allowable bands until 2040, the benchmark year for us to achieve the coveted increases in GDP per capita under the Ambisyon Natin 2040 vision of the NEDA. In a consumption-driven economy such as ours, managing inflation is key to achieving this desired socio-economic target.

Davao goes global

Recent business news from the King City of the South shows an upbeat business sector brimming with confidence brought by the launch of its newest property development, the Davao Global Township. It is a 20-plus hectare development in the area once occupied by the Matina golf club. It opened to a rousing, well-attended weekend market last May 27 that featured live music and food stalls showcasing the best of Davao’s culinary masters. This and other master-planned communities will provide the work-live and play environment for interested investors, returning Dabawenyo balikbayans, and the next generation of Davao residents.

Connectivity index rating

I support the creation of a connectivity index rating. This is a measure of how strong internet connectivity is in different areas of the country. Being an archipelago with many far-flung municipalities and communities, internet connectivity can be inconsistent. This makes communication difficult. As someone who frequently runs webinars for remote trainees from across the country, issues in internet connectivity can significantly affect the conduct of our training activities, causing some participants to lose their connections and miss out on important content. Intermittent internet also hampers online transactions. With the increase in digital banks and financial technology platforms, many residents in remote areas can now access more affordable financing and conduct vital activities such as payments and fund transfers. However, intermittent internet can affect their capability to properly consummate such transactions, causing potential problems. The same is true for government transactions, such as applying for permits and availing of services that require filling up online forms. Weak signals sometimes make it difficult for users to enter information on the fillable online forms in the portals, prompting frequent resets. The rating can also provide transparent feedback on areas that are underserved and prompt opportunities for better service. I am therefore interested to see the details of how this rating system will be developed.