Lack of teamwork among Pinoys a factor in sluggish economy - PIDS

The lack of social cohesion or teamwork among Filipinos may be the reason why the Philippine economy has failed to reach its potentials, the chief of a government think tank said. In a statement on Friday, Josef Yap, Philippine Institute for Development Studies president, said the apparent social division in the country exacerbates its lackluster socio-economic conditions. The suggestion was made in a recent forum jointly organized by the PIDS and the Asian Development Bank. With ADB’s downward revision of the Philippine economic outlook, Yap said that cultivating “teamwork" among the people may lead the country out of its development maze. ADB forecasts a revised Philippine economic growth for 2011 to be 4.7 percent, from its original 5.0 percent forecast, and 5.1 percent for 2012, from 5.3 percent. Despite higher consumption and stronger private investment, the country’s economy, according to ADB, will not grow as expected since exports significantly fell with the continued economic uncertainty in major industrial countries. Norio Usui, ADB senior economist, attributed the downward revision partly to weak government spending. Nareej Jain, ADB’s Philippine country director, on the other hand, remained optimistic about the country’s economic outlook, saying that a 4.7-percent growth should not be underrated because it is still a positive indication. He noted, however, that the country needs to improve its performance, especially in social services delivery and reduction of poverty, to achieve its development goals. Meanwhile, explaining the reasons for the country’s lackluster economic performance, Yap identified a number of factors that impede the country’s economic development. He said that lack of entrepreneurship and inadequate physical infrastructures encumber the economy. He further added that weak institutions that give rise to chronic problems in governance also affect the country’s economic performance. Moreover, Yap said that the government’s difficulty in addressing market failures has led to a narrow industrial base. Likewise, the seeming failure to provide more equitable access to basic social services has exacerbated the poverty situation. Beyond these factors, Yap also offered an alternative analysis to the country’s development puzzle. He said that the country lacks “social cohesion" which he believes is integral in solving and addressing the country’s development challenges. Social cohesion or collective action is “building shared values and communities of interpretation, reducing disparities in wealth and income, and generally enabling people to have a sense that they are engaged in a common enterprise, facing shared challenges, and that they are members of the same community". Thus, a cohesive society works toward the well- being of all its members by minimizing inequities, marginalization and exclusion. Yap further articulated that social cohesion is essential for institutions to function effectively. He further stressed that a cohesive society forges trust which is the non-legal foundation of the market economy. Thus, unity and trust improve the quality of institutions and help sustain economic growth and development. The PIDS-ADB forum coincides with the 2011 Development Policy Research Month (DPRM) celebration. DPRM aims to provide a means of promoting and drawing nationwide awareness on the importance of policy research in national development. - CMA/OMG, GMA News