RP, South Korea: A study in contrast in antipoverty fight
RP, South Korea: A study in contrast in antipoverty fight
Martin Abbugao, Agence France-Presse, Jeju, South Korea
The riches-to-rags story of the Philippines in contrast to
South Korea's march to first-world status underscores the
importance of the right economic policies and their
implementation, the Asian Development Bank (ADB) said on Monday.
When the Manila-headquartered bank was established in 1966,
the Philippines was second only to Japan as Asia's richest
nation, while South Korea was among the top borrowers.
Nearly four decades later, their fortunes are completely
reversed -- the Philippines is one of Asia's poorest countries
and South Korea is now a key contributor to the bank.
ADB president Tadao Chino said the two countries provided a
study in contrasts in the bank's overarching goal to
significantly reduce poverty by 2015.
The number of people living on less than a dollar a day in
Asia has generally fallen, leading to a better quality of life
and longer life expectancies, Chino said at a news conference at
the close of the ADB's annual meeting in this South Korean resort
island.
However, there are differences among countries and how they
formulate and implement policies and multilateral aid.
"Not all the countries develop at the same rate and that
depends upon the various given conditions (and) environment for
development, and also the effectiveness of the policies and their
implementation," he said.
Chino said the Philippines economy has improved and is
projected to grow between 4.5 and 5.5 percent this year and next,
compared to 4.5 percent in 2003.
"It is not bad but more can be expected," he said.
Chino said there were "complex factors" that inhibit the
inflow of foreign investment as the country is burdened by a huge
budget deficit, low levels of public spending and a lack of
investment in infrastructure.
Financing the deficit keeps interest rates relatively high
which in turn keep investors at bay, he said, adding that the
Philippines' rapid population growth was also an impediment to
growth.
"If there will be major political and economic reforms, then I
think we can expect much higher growth rates ... It will improve
the lives of the people.
"But that all depends upon the government and the people --
how do they make the effort for a better economy. The most
important is to improve the environment for private sector
activities."
Other analysts outside the ADB have cited rampant corruption
as a deterrent to investment in the Philippines.
On the other hand, Chino held up South Korea as a model of
poor countries which had received ADB aid and are repaying them
now by becoming donors.
South Korea put out the red carpet for the more than 3,200
meeting delegates who held meetings at a posh, glass-walled
international convention center that offers a sweeping view of
the ocean here.
Seoul contributed US$113 million to the latest replenishment
of the ADB's anti-poverty fund, which totaled $7 billion to be
disbursed between 2005 and 2008.
"The Korean government has been contemplating ways to return
the valued favors we received through the ADB to fellow member
countries in need of assistance," South Korean Prime Minister Goh
Kun said when he opened the meeting on Saturday.
He said South Korea will establish an "e-Asia fund" to help
poor countries in the region improve their competence levels in
information and communication technology.