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Accelerating Socioeconomic

Development through Social

Businesses

Arsenio M. BalisacanSecretary of Socio-Economic Planning

Social Business Summit 2013

GK Enchanted Farm Village University. Bulacan Philippines

03 October 2013

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GK Enchanted Farm - Bulacan, PhilippinesSocial Business Summit 2013


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Inclusive growth

Growth that reduces poverty,

including achievement ofMillennium Development Goals

Higher economic growth for 2011-

2016

Growth that generates mass

employment

Plan Vision:

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Transparent, accountable and

participatory governance

Poverty reduction and

empowerment of the poor and

vulnerable

Rapid, inclusive and sustained

economic growth

Just and lasting peace and the rule

of law

Integrity of the environment and

climate change mitigation and

adaptation

Promote transparent and responsive

governance

Develop human resources through

improved social services and protection

Achieve stable macroeconomic

environment

Boost competitiveness in productive

sectors

Improve access to financing

Invest massively in physical infrastructure

Advance peace process and guarantee

national security

Ensure ecological integrity

Social Contract PDP 2011-2016

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Source: NSCB

The Philippine economy sustained robust growth in SI 2013

2.8

6.8 5.47.6

1.4

10.6 9.97.1

0

2

4

6

8

10

12

Agri, Fishery

and Forestry

Industry Manufacturing Services

Growth Rate (%)

2012 SI 2013

6.6 12.2

-3.2

8.9 5.35.315.3

27.3

-7 -0.7-10

0

10

20

30

Household

Final

Consumption

Gov't Final

Consumption

Capital

Formation

Exports Imports

2012 SI 2013

Supply Side

Demand Side

2012 SI 2013

GDP

Growth

6.8% 7.6%

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6.8-7.2%Unemployment Rate

6.8% (2012)

7.6% (SI 2013)

Real GDP Growth

20.3% (2012)

20.8% (SI 2013)

Fixed Capital as ratio to

GDP

Unemployment rate7.0% (2012)7.3% (ave. of LFS2013 Jan, Apr &Jul round)Underemployment rate20.0% (2012)19.8% (ave. Jan, Apr & Jul 2013)

27.9% (S1 2012)28.6% (S1 2009)Poverty Rate

Where are we now?

PDP 2011-2016 Targets

7-8%Gross Domestic Product

22%Investment/GDP ratio

Poverty Incidence down to16.6%

We are on track with respect to our economic targets;

the present challenge is to improve social outcome targets.

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64.08.9

12.8

14.3NCR, Reg III and IV

Other Luzon

Visayas

Mindanao

2011

2012

First Semester Poverty Incidence Among

Population

(in percent)

Source: National Statistical Coordination Boar

d

28.8 28.6 27.9

16.6

0

5

10

15

20

25

30

35

S1 2006 S1 2009 S1 2012 FY 2015

64.08.9

12.8

14.3

64.18.8

12.7

14.4

More needs to be done to achieveinclusive growth and reduce poverty Regional Gross Domestic Product(in percent)

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Source: Labor Force Survey, National Statistics Office

We need to generate more and better jobs.

7

20.3

7.3

19.8

0

5

10

15

20

25

Unemployment Rate (%) Underemployment Rate (%)

Ave. 2012 (January-July) Ave. 2013 (January-July)

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Good governance has proven to be an effective platform upon

which strategies should be implemented.

Macroeconomic (fiscal, financial, external) and political stabilityfuels positive expectations that lead to growth.

Economic growth is necessary but not sufficient for poverty

reduction.

Growth strategies need to have spatial and sectoral dimensionsto ensure inclusivity.

Disasters can negate the gains and even push back development.

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Lessons Learned:Midterm Assessment of PDP 2011-2016 Implementation

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Guiding Principles

Efficiency (catalytic; government intervention facilitates and

not substitutes for private action)

Equity (broadening opportunities through connectivity, human

capital investments)

Feasibility (doable within the Plan period)

Desired Outcomes

Rapid increase in employment opportunities to significantly

reduce the stock of unemployed persons

Significantreduction in poverty incidence to come as close as

possible to the MDG

9

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POSITIVE ACTION with Spatial and Sectoral Dimensions

Equalize development opportunities, Improve resilience

POSITIVE ACTION with Spatial and Sectoral Dimensions

Equalize development opportunities, Improve resilience

Boost

competitiveness

Improve access

to financing

Macroeconomic Stability(fiscal, monetary, external, financial)

Science,

technology ,innovation

Science,

technology ,innovation

Education and

skill set of the

workforce

Education and

skill set of the

workforce

InfrastructureInfrastructure

InvestmentsInvestments

Rapid and sustained growthRapid and sustained growth

JobsJobs

Marketdemand

Marketdemand

REDUCED POVERTY ,

MASSIVE EMPLOYMENT CREATION

National

Securi ty

Ecolog ica l Integri ty

Good

Governance

(Secureproperty rights,

Efficient

regulation,

Transparent

and

accountable)

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Hence we will do more to pursue inclusive growth.

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We need to reduce the cost of doing business to enhancethe investment climate

Reduce the cost of doing business

Quality infrastructure

Streamlining of registration and licensing procedures Implementation of programs and projects that address bottlenecks

Strengthen the contribution of construction and utilities in line with the

infrastructure development program (i.e., transport and power)

Diversify manufacturing:

Strengthen other subsectors

Diversify exports

Promote higher value chain subsectors

Strengthen link with agriculture (agri-industry)

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For the long term:

K to 12 Program

Pantawid Pamilyang Pilipino Program In the medium term:

PESO and skills registry

Better partnership with industry with respect to

curriculum design TVET programs

Human capital investments are needed to increaselabor productivity and boost competitiveness

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Social businesses can:

Provide opportunities for employment and livelihood for thepoor

Link the poor with different market players throughout thesupply chain

Help mobilize resources of the private sector in attaining socialgoals

For example:

For poverty reduction: provision of credit to the poor For health: production of affordable but high quality

medicine

How can social businesses contribute to inclusive growth?

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Social business as employer and supplier of goods and services

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The government will continue to promote socialenterprises and social businesses.

Streamlining business procedures and processes

Improving peace and security conditions

Upgrading knowledge and skills

Engaging in policy dialogue with business, basic

sectors, local government

.

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Growth is inclusive if the poor not only benefit from

it but also contribute to it. Social businesses andsocial enterprises help make this happen.

Arsenio M. Balisacan

Secretary of Socio-Economic Planning

Social Business Summit 2013

GK Enchanted Farm Village University. Bulacan Philippines

03 October 2013

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Arsenio Balisacan: NEDA