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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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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.
8
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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