ReInventing Philippines Inc.,

The Soviet Union, former Eastern Europe, China, Latin America, and  India experimented with various forms of communism and socialism in order to redistribute wealth more equitably.  They failed.

This philosophy of redistribution is anchored on the thinking that people are entitled to their share of the pie, and therefore have created the fundamental policy of taking from Peter to give to Paul.  However, the growth of the Philippines the last 50 years have been limited to 3 to 4 percent.  At this rate of growth, and especially if the population is growing 2-3 percent as well,  no amount of redistribution will lift people out of poverty, and we have failed as well.

According to Arthur Okun, whose saying has become known as Okun’s law, GDP growth of 3 percent will not be able to lower the unemployment rate.

The experience of the 4 tigers ( Hong Kong, Singapore, South Korea, Taiwan) , SouthEast Asia and lately of China and India have shown us that when the GDP is growing faster than 7%, then it is like a tide that lifts all boats.   The wonder of China’s economic growth is not only that it created millions of millionaires, but that it lifted a few hundred million people out of poverty.

Philippines should adopt a policy of fast growth, and should do what it can to insure the competitiveness of its industries, by insuring that the cost and ease of doing business is competitive, and remove all hindrances to growth.

It is great to talk about justice or land reform, but above all else, we need to grow…. Fast!  The number 1 priority should be to lift people out of poverty and the only proven way is to grow the pie by focusing on positive sum strategies, not zero sum policies.