Wazzup Pilipinas!?
The dream of propelling the Philippine economy to an 8-10% growth trajectory lies not in more spending or borrowing—but in slashing red tape and unleashing the full power of a streamlined government.
At a high-stakes forum organized by the Anti-Red Tape Authority (ARTA), leading economist Ronilo Balbieran issued a sobering yet impassioned call to action: Fixing the country’s tangled web of regulatory and bureaucratic processes is the key to transforming the Philippine economy into an unstoppable growth engine.
Balbieran, a Senior Economist at the University of Asia and the Pacific (UA&P) and a digitalization and policy expert at the REID Foundation, didn't mince words. "If we have a better streamlined government, we can actually reach 8% GDP growth. The magic number is 8 to 10 percent, sustained for 8 to 10 consecutive years,” he declared. “That’s what China achieved—and that’s how they lifted 300 million people out of poverty.”
The Circular Flow of Prosperity: A Vision for the Nation
Speaking to reporters on the sidelines of the forum, Balbieran mapped out a powerful economic equation: Ease of Doing Business (EODB) = Investment Creation = Job Generation = Income = Consumption = Sustained Growth.
“If you facilitate the creation of businesses and investments—if you make it easy for them to register, operate, and grow—then actual jobs are created. That leads to real income, more consumption, and a circular flow of income. That’s how you jumpstart a sustainable economy,” he explained passionately.
But, he warned, this cycle is fragile—and it collapses when government becomes a bottleneck instead of a bridge.
"The money won’t circulate if the government is not facilitative, not responsive, not streamlined. We are talking about a systemic flaw in how we support, or rather slow down, business and investment."
Construction: A Microcosm of Bureaucratic Bottlenecks
Balbieran pointed to the Construction sector as a textbook example of where the system both shines and stumbles.
“We’re happy that the Philippine Contractors Accreditation Board (PCAB) license is now fully automated. You can secure it in as little as four hours, or up to four days depending on the type. That’s a win,” he acknowledged.
But the praise quickly turned into frustration: “Once you get that license, you still face a gauntlet of permits—local construction permits, building permits, quarry permits, not to mention the mayor’s permit and all tax filings.”
He continued, “Imagine how much time and opportunity is lost. There’s a massive demand for housing. A big backlog. Resorts and hotels are booming. Would you really want your investors to spend months—waiting?”
Synchronization: The Missing Ingredient
The challenge doesn’t end with individual sectors. Balbieran underscored that the Philippines cannot afford a fragmented approach to development.
“You can’t expect manufacturing to grow if the energy sector isn’t ready. Manufacturing depends on power. If energy investments lag, then you’re holding back the entire ecosystem.”
He stressed the need for government-wide coordination and planning: “All sectors must grow simultaneously. All investment plans must be aligned and synchronized. Otherwise, we can’t scale at 8 percent. We’ll remain stuck in mediocrity.”
A Race Against Time
Balbieran’s outlook isn’t hopeless—it’s urgent. He believes that with political will, digitalization, and consistency, the Philippines can lay the foundation for 8% growth within five to six years. But the clock is ticking.
“If these reforms are pursued systematically and relentlessly, we can achieve this in the first half of the next administration,” he said. “But we must act now. Delay means derailment.”
The Bottom Line
Balbieran’s message is clear: the Philippines is not short on talent, demand, or opportunity—it’s suffocating under inefficiency. The real enemy of progress is the system itself.
If the government dares to reimagine itself as an enabler rather than an obstacle, then an era of unprecedented growth is within reach. But if red tape continues to choke business before it breathes, then 8% growth will remain just that—a dream.
The future of Philippine prosperity may depend not on what we add, but on what we finally choose to cut.
Ross is known as the Pambansang Blogger ng Pilipinas - An Information and Communication Technology (ICT) Professional by profession and a Social Media Evangelist by heart.
