Jeffrey Sachs, director at Columbia University’s Earth Institute, said the debate should not be between manufacturing and business process outsourcing (BPO).
“I’m sure for a country with the size and diversity of the Philippines, the need is for a diversified economy. It will not be services or manufacturing. It’s gonna have to be services and manufacturing, no question,” the economics professor said.
His statement from a PDI news article dated May 7, 2012.
“In general, a well-run country in the middle of the fastest-growing region of the world should be able to take advantage of that,” said Sachs, who was in town for the Asian Development Bank annual meeting.
On the spillover effect, Sachs noted that soaring wage costs in China had basically reduced surplus labor from the countryside “from a flood to a trickle.” As China now had to upgrade its technological focus, Sachs said a lot of labor-intensive capital was moving to other countries.
“In general, China’s growth is a benefit for the Asian region because things will readjust so that there will be job creation in some sectors in the Philippines responding to either the Chinese market or replacing China in their markets and we see some of these happening now,” he said.
For the full report visit:
Even before the first ADB delagate arrived for the 45th ADB Annual Conference in Manila, ADB officials have been talking to the media about their recommendation for inclusive growth: Walking on two legs of services and manufacturing.
This recommendation was clearly articulated during the Annual conference from May 2 to 4 in numerous speeches by no less than the ADB President Haruhiko Kuroda. In his opening speech he said:
“Widening the manufacturing base beyond electronics will create much-needed jobs, promote inclusive growth and help reduce the persistent poverty,” – Kuroda
“By fully exploiting its favorable demographics and strategic location in the heart of Asia, the Philippines can transform its economy to one of sustainable and inclusive growth that benefits all,” – Kuroda
Source: Philippine Star, May 2, 2012