The Asian Development Bank (ADB), the country director for the Philippines mentioned last Wednesday that the Philippines is one of the good examples of countries taking path of development from an agricultural economy to one that is largely supported by services.
Neeraj Jain said at a briefing, that the traditional path is to move from agriculture to industries and then to services.
“This is happening amid the revolution in telecommunications in the Philippines, and experts are now raising the question of whether economies like these are conducive to growth that is inclusive or employment-friendly,” he said.
Also, the ADB official said that the Philippines financial market would need to acquire long-term instruments to help government efforts in encouraging investments in infrastructure.
He stated that improved infrastructure would help efforts in the Philippines to move up to higher value-added activities, particularly the manufacturing and services sectors.
An example that Jain said as an example for the better infrastructure is that it can help in the push for the business process outsourcing sector to develop service offerings other than voice-based call centers.
He said longer-term loans had to be made available for undertakings such as public-private partnership (PPP) projects.
Funding for PPP
“Banks are now providing (loans) that mature in 10 or 12 years,” he said, adding that longer intentions will provide a greater boost to infrastructure projects.
The ADB announced last month the funding support for the PPP initiative “to help sustain the positive reform momentum.”
On the other hand, Australia, through the means of the Australian Agency for International Development, has set aside $15 million for the project development and monitoring facility (PDMF) that the ADB administers. The amount was on top of the $7 million provided to the facility last year.
Jain said the additional fund would mean that the PDMF would be able to support the preparation of more PPP projects than what was previously expected as doable.
With the additional fund, it is estimated that at least 12 PPP projects would be implemented or ready by 2016, more than twice the government target of five projects by the end of 2013.