The country’s finance chief stressed the critical role of a robust agriculture sector in having a sustainable and inclusive economic growth, as well as supporting poverty alleviation in the long term, according to a statement released by the Department of Finance (DOF) yesterday.
“If we achieve our objective of making the agricultural sector more vibrant, more organized and more productive, I think it will have a significant impact on the (reduction of the) poverty incidence of the Philippines,” said Benjamin Diokno, DOF secretary.
Diokno said the agriculture industry was not working in the past, with fluctuating and almost negligible contribution to the economy. He also noted the high poverty incidence in the agriculture sector.
Based on previous performances of the economy, sustained growth will help drive poverty incidence rate reduction, he added.
“Before the crisis, the Philippine economy was growing between 6 to 7 percent and, in fact, we were close to our original target of reducing poverty to around 14 percent in the country by the end of President Duterte’s term, but of course the virus — the pandemic — intervened,” he said.
“We were not able to do that, but we are back to where we want to be. Maybe by the end — that’s the promise of (President Ferdinand Marcos Jr.) — by the end of his term, 2028, we will cut poverty incidence in this country to single digit — to 9 percent,” Diokno said.
According to Diokno, the agriculture industry is also crucial for the development of the agri-business sector that has an impact on manufacturing.
He cited the high cost of the country’s agricultural products and basic needs as the reason for the continued high dependence on the importation of commodities.
In earlier interviews, he said the government will continue importation until domestic production increases.
Marcos, who has taken leadership of the Department of Agriculture, said in his first State of the Nation Address the agricultural sector will be “one of the main drivers of our push for growth and employment.”
Meanwhile, Diokno said another key driver of economic growth are foreign direct investments that would enable the introduction of new technology.
“When all the foreign direct investments that we are expecting finally come in, then, really, we will achieve our target of 6.5 to 8 percent (gross domestic product growth) towards the last five years of the Marcos administration,” he said.
Another strategy of the government under its Medium-Term Fiscal Framework is digitalization to promote easier business transactions and support micro, small and medium enterprises.
“If we become a digital economy, poor Filipinos, using their cellphones, can transact business and they can do a lot of things with digitalization. Plus, government efficiency will improve. They can just pay their taxes in their app on their smartphone,” the finance chief said.
Diokno also cited the mining sector as having a great potential for supporting economic growth, especially with the high world metals prices.
He said the government will focus on ensuring that all sectors, such as agriculture, industry and services, are growing.
“With agriculture, mining and then industry and services all growing, then we can actually lift a lot of people out of poverty,” Diokno said.
