Beating the Challenges Toward Sustainable Growth of National & Local Government

1. BEATINGTHE
CHALLENGES
TOWARD
SUSTAINABLE
GROWTHOF
NATIONAL &LOCAL
GOVERNMENT
ALDRIN P. ATIENZA, MBA

2. HOWHAPPYARE
YOUTODAY?
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3. • Bachelor Of Science in
Commerce Major in Economics
• University of SantoTomas
• Masters in Business
Administration
• National Cheng Kung University
• Sales & Marketing Manager
• Plastimer Industrial Corporation
• Instructor
• University of SantoTomas
ABOUTME
 Motivational Speaker
 Entrepreneur
 Ekonomista
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4. WHATIS
SUSTAINABILITY?
THE ABILITY TO BE MAINTAINED AT A CERTAIN RATE OR LEVEL.
"THE SUSTAINABILITY OF ECONOMIC GROWTH"
page 4

5. WHATDOESITTAKE
TOBESUSTAINABLE?
page 5

6. 3PRINCIPLES
THERE ARE 3 PRINCIPLES OF SUSTAINABILITY
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Economic Environmental Social

7. 3Pillars ofSustainability
Economic
requires that a
business or
country uses
its resources
efficiently and
responsibly
Environmental
means that we
are living
within the
means of our
natural
resources
Social
ability of
society, or any
social system,
to persistently
achieve a
good social
well being
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8. 1.Continue and maintain current macroeconomic policies,
including fiscal, monetary, and trade policies.
2.Institute progressive tax reform and more effective tax
collection, indexing taxes to inflation.
3.Increase competitiveness and the ease of doing business.
4.Accelerate annual infrastructure spending to account for 5% of
GDP, with Public-Private Partnerships playing a key role.
5.Promote rural and value chain development toward increasing
agricultural and rural enterprise productivity and rural tourism.
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DUTERTEnomics:Build,Build,Build

9. 6. Ensure security of land tenure to encourage investments, and address
bottlenecks in land management and titling agencies.
7. Invest in human capital development, including health and education
systems, and match skills and training.
8. Promote science, technology, and the creative arts to enhance
innovation and creative capacity.
9. Improve social protection programs, including the government's
Conditional CashTransfer program.
10.Strengthen implementation of the Responsible Parenthood and
Reproductive Health Law.
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DUTERTEnomics:Build,Build,Build

10. page 10

11. Interest Rates
leading to inflation
Increased Government
spending may lead to
Inflation
Increased Borrowing and
Government Debt
Klein &
IssuesRelatedtoEconomicGrowth
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12. WHATISTHE
ONGOING
INFLATIONRATE?
A DRASTIC INCREASE SINCE 2016…
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13. page 13

14. • “DEMAND-PULL” Inflation
• Although there are numerous factors
affecting inflation, the increase in the
aggregate demand may cause inflation.
• The Build, Build, Build program may
create a Multiplier Effect due to its
increased spending leading to increased
output (Blanchard & Leigh, 2013)
• Although “INFLATION” seems to have a
negative implication, it may also create
positive impacts such as increased
wages and increased spending (spend
now to avoid possible increase in prices
later).
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IncreasedGovernmentSpendingmayleadtoInflation

15. GOVERNMENT
SPENDINGBUDGET
WHERE IS THE GOVERNMENT GETTING THEIR BUDGET FOR
THEIR INVESTMENTS?
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16. DOMESTICDEBT
MONEY OWED TO LENDERS WITHIN THE COUNTRY

17. FOREIGNAID
JAPAN IS PHILIPPINES’ LARGEST PARTNER FOR
OFFICIAL DEVELOPMENT ASSISTANCE

18. • Current Government Debt: P7.8Trillion
• Internal Debt = P5.25Trillion (67.3%)
• External Debt = P2.55Trillion (32.7%)
• 7% higher than total debt of 2018
• Duterte administration emphasizes the ODA and tax reform as a financial source of
large-scale infrastructure development plan by the government (Ito, 2019)
• Target spending requires P8.4Trillion until the year 2022
• Switch from Private-Public Partnership (PPP) to Official Development Assistance
(ODA)
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IncreasedBorrowingandGovernmentDebt

20. page 20

21. • Prime Minister Mahathir warned Pres. Rodrigo
Duterte in dealing with the Chinese Government.
• It is important to learn from other countries such as
Sri Lanka, Kenya, Malaysia, Indonesia, and more…
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Fairwarningsfromothercountries…

22. HOWWILLTHE
GOVERNMENTPAY
FORLOANED
MONEY?
INCREASE CONSUMER SPENDING BY
PROVIDING AN ATTRACTIVE INTEREST RATE
BUT IN TURN CAUSES INFLATIONARY EFFECTS
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23. • In support with the BUILD, BUILD, BUILD
program BSP has foreseen to see a steady
interest rate of 3%
• Though it may cause inflationary measures, it
may still be sustainable due to improved supply
conditions.
• This will also attract consumers to borrow
money in order to respond to rising global oil and
food prices (BSP Q1 Report, 2019)
• The BSP observed that overall prospects for
domestic activity continue to be firm, supported
by a projected recovery in household spending
and the continued implementation of the
government’s infrastructure program.
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Lowerinterestratesattractsconsumerspending

24. WHATCANWE
DOTOSUPPORT
SUSTAINABLE
GROWTH?
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25. 3Pillars ofSustainability
Economic
requires that a
business or country
uses its resources
efficiently and
responsibly
Environmental
means that we are
living within the
means of our natural
resources
Social
ability of society, or
any social system, to
persistently achieve a
good social well
being
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27. 1.Empower the LOCAL GOVERNMENT UNITS
2.Increase exposure of LOCAL GOVERNMENT UNITS to
FOREIGN AID
3.Decrease REDTAPE and improve COSTS OF DOING BUSINESS
4.Increase awareness to numerous financial institutions and ease
of borrowing for business
5.Improve public image of the expansionary fiscal policies by the
government.
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Ourpoliciesshouldfocuson…

28. Aldrin P. Atienza, MBA
+639171696923
aldrinpatienza@gmail.com
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