Inclusive Growth

“Bayanihan Economy” Key to Achieving Inclusive Growth — Sen. Bam Aquino

Speaking at the Corporate Social Responsibility (CSR) Expo of the League of Corporate Foundations (LCF) on July 5, Sen. Bam Aquino talked about how a “bayanihan economy” can help the Philippines achieve inclusive growth.

The term “bayanihan economy”, coined by former NEDA Director Dr. Cielito Habito, speaks of an economy where “all players work together toward a shared goal of uplifting the lives of all.”

According to Aquino, who was pointing to a classic visual depiction of rural folk lifting a nipa hut as a display of bayanihan, “You don’t know anymore if the guys lifting the house are the owners, their neighbors, or are passersby who offered to help. In bayanihan, everyone has a role to play.”

A former social entrepreneur who has won local and international awards for his micro-enterprise program Hapinoy, Aquino identified possible interventions that can help the Philippines move closer toward a “bayanihan economy.” These are:

1. Micro-finance. According to Aquino, there are currently around 4.5 million micro-finance borrowers in the country. “But the current capacity of microfinance institutions can accommodate another six million borrowers, which means that through micro-finance we can have six million more potential micro-entrepreneurs who can lift their families out of poverty.”

2. Social enterprise development. “Social enterprises are the missing middle, connecting large corporations and small communities,” Aquino said. Citing his experience in developing the Hapinoy program, Aquino said that the willingness to help of large companies is there but the capacity to reach the community is sometimes unavailable. He also added, “The role of social enterprise is to make sure that these communities and companies get to talk and work together.”

3. MSME development. Aquino cited the large contribution of micro- and small enterprises (MSMEs) to the Philippine economy, pointing out that 92 percent of all businesses in the Philippines are micro-enterprises that largely belong to the informal sector, while only seven percent belong to the small and medium category. “Sadly, MSME’s don’t get enough support from the government.” One of his priority bills, Aquino said, is to help create a more “enabling environment” for MSMEs “beyond entrepreneurial training.”

“More MSMEs are able to provide more employment than large corporations,” the first-time lawmaker added as another reason for helping boost MSMEs.

4. Youth entrepreneurship. “Youth unemployment is one of the largest problems not only of youth in the Philippines, but also in the entire world,” Aquino pointed out.

On first two days of the 16th Congress: Sen. Bam Aquino in Zambo del Norte For Consultation on Inclusive Growth Agenda

Sen. Paolo Benigno “Bam” Aquino IV spent his first two days as senator in Zamboanga del Norte, one of the poorest provinces in the Philippines, as part of a series of stakeholder consultations on his proposed inclusive growth policy agenda.

Part of the lawmaker’s itinerary in Zamboanga del Norte included a meeting with local business groups, where they discussed pressing needs such as power and water supplies, among others; a meeting with Dipolog City LGU; and the 100th Adlaw sa Dipolog celebrations.

According to Aquino, he began his term with local consultations to ensure that legislation he will file will be “people-centered and stakeholder-driven.

“We want to aggressively pursue an inclusive growth policy agenda, to help the national government fulfill its commitment to end poverty. This is why we decided to begin our term by visiting one of the poorest provinces in the Philippines. We want to hear out their concerns and see how the LGUs and the national government can work together to solve poverty.”

Aquino ran on a campaign of education, employment and enterprise support in order to promote inclusive growth and end poverty. Prior to being elected into the Senate, Aquino headed a social enterprise that helped boost the incomes of poor women and families through micro-enterprise development.

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