IBON: Reliance on PPPs won’t help grow GDP

If the government wants to reach its targeted gross domestic product (GDP) growth of 7.3 percent for 2011, simply relying on programs like private-public partnerships will not do the trick, a militant think-tank said Monday. In a statement on its website, IBON Foundation also described as “slow" the Philippines’ first-quarter GDP growth of 4.9 percent, which the National Statistical Coordination Board reported Monday morning. “The target of 7.3 percent for this year," IBON said, “is unlikely to be reached or sustained if all the government is banking on are PPP-driven infrastructure, multi-million cash dole outs, global economic recovery, and the supposed ‘business and consumer’ trust in government." Noting the “limited" multiplier effects of PPP projects as well as cash transfers, the think-tank challenged government “to build domestic economic momentum by addressing job generation and creating conditions for strong domestic industry and agriculture." Earlier this month, the Palace said it expects Philippine competitiveness to improve with the roll-out of PPP projects next year. A flagship program of the Aquino administration, PPP initiatives refer to the collaboration of private investors with government agencies and institutions in building infrastructure — roads, hospitals, and airports — with the private entities usually getting the rights to run the finished projects for a given period. Govt still bullish In reaction to the GDP report, the President meanwhile expressed optimism that the country’s economic growth will improve in the second quarter. “Ang paniwala namin, mapa-pump prime natin lalo na sa second quarter," said President Benigno Aquino III in an interview with reporters after the launch of the United Nations decade on biodiversity in Malacañang. Aquino explained that the first-quarter economic growth had been affected by the unrest in the Middle East and the tragedy in Japan. But the President noted, “Itong first quarter, huwag nating kalimutan na maraming pagbabagong ginawa." IBON, on the other hand, said the government’s supposed confidence is “exaggerated and is of little impact." The think-tank added that the global economy is not recovering and even risks another downturn, with the United Nations acknowledging that the world will experience more sluggish economic growth in 2011. — Amita Legaspi/PE/VS, GMA News