Adopt Measures To Protect Economy Vs. Foreign Capital Flight, Bro. Eddie Urges Government

Bangon Pilipinas lone senatorial candidate Eddie Villanueva on Sunday urged the government economic managers to institute measures to protect the economy against the possibility of capital flight, following warnings from an international credit ratings agency.

Villanueva said the government should take heed of Standard and Poor’s word of caution for the Philippines and other emerging markets in the Asia-Pacific region on the potential reversal of the recent surge in portfolio investments in the local stock market once the United States and European economies recover.“The government should put in place safeguards that will protect our economy from the sudden outflow of foreign hot money. Let's learn the lessons of the 1997 and 2008 financial crises, where hot money, or portfolio investments, was the primary culprit,” Villanueva said.

Focus on attracting solid investments in agriculture
“We should be reminded that any investment in the Philippine stock market can go out as quickly as they came in.”

Villanueva said the government should focus more on attracting more solid investments in the agricultural sector which holds the biggest potential for a sustainable base for economic development.

He noted that the Philippines is an agricultural country and majority of the population – including many poor Filipino households or the sagigilids – belong to the agricultural sector, and that new investments in this sector which directly translates to more jobs and higher incomes for the country’s agricultural workers.

“We should invite more direct investments in agriculture both from foreign and domestic sources in order to build an economy that will concretely benefit our country by providing real jobs and, at the same time, shielding us from the volatility of hot money easily leaving our shores,” Villanueva said.This will also serve to accelerate the recovery of the country’s agricultural sector which has lagged against regional neighbors in recent decades, he added.

Villanueva said government policies that will encourage organic food production, food security, and production of materials for clothing and shelter using agricultural and forestry by-products will provide a much-needed boost to the sector.

Incentives for agriculture sector
The government should also consider giving subsidy for farm implements, work on lifting tariff and customs fees for farm equipment and machineries, and explore the possibility of extending other funding assistance for farmers and farmers’ cooperatives.

Further, the government should also review its policies on the importation of agricultural products and other trade commitments to ensure that the country’s farmers are protected from unfair global trade, Villanueva said.

“By putting agriculture at the center of the government’s economic agenda, we will not only develop a solid base for economic growth and ensure food security for our people, but we will also bring the country back on the global map as a producer of one of the most vital commodities in the world, which is food,” Villanueva said.