Former President and House Speaker Gloria Macapagal-Arroyo envisions the Philippines as a first-world economy.
Arroyo, who made economic development as the centerpiece of her nine-year administration from 2001 to 2010, expressed hope that the Philippines would become an advanced economy or first-world country within this generation.
First world refers to high-income and industrialized nations such as the United States, Japan and Germany. The Philippines is currently ranked as a middle-income economy, but the National Economic and Development Authority predicts that the country would attain the upper middle-income status by 2022.
Upper middle-income countries have gross national income (GNI) per capita of more than $4,000. The next step is advanced or first-world countriesâthose with GNI per capita income of $12,700 or more.
The 38 quarters of economic growth under the Arroyo administration from 2001 to 2010 lifted the country’s per capital income. The Philippines also survived the global financial crisis with stronger finances during her term.
“At that time two-thirds of the world went into a recession, but not the Philippines,â the former president said.
Arroyo said she would like to see the Philippines become a first-world country in her lifetime, replicating the feat of her father, the late President Diosdado Macapagal, whose term saw the Philippines become the second richest Asian nation after Japan.
An economist by profession who studied at Georgetown University in the United States and obtained PhD in Economics from the University of the Philippines, Arroyo introduced various economic reforms that led to strong government finances, low inflation and steady economic growth that averaged 4.5 percent annually, one of the fastest in Southeast Asia.
She introduced fiscal reforms, such as the Expanded Value Added Tax law, which boosted government revenues and ensured fiscal stability for the next administrations. This also laid the foundation for the Philippines to obtain investment-grade rating from the major credit rating agencies.
Fitch Ratings, one of the major credit rating agencies, acknowledged that the âimprovements in fiscal management begun under President Arroyo have made general government debt dynamics more resilient to shocks.â
Arroyo, who seeks to return to Congress representing the Second District of Pampanga province, believes that the development of a new megalopolis, aside from Metro Manila, will help the Philippines attain faster growth in the next decades.
