THIS WEEK sees the annual United Nations General Assembly to be held in New York. The focus of the Assembly is to examine the Sustainable Development Goals (SDGs) which were established in 2015 with a view to full implementation by 2030.
The SDGs are a spin-off from the Millennium Development Goals (MDGs) established in 2000 with the aim of achieving targets by 2015.
For example, the MDG for poverty was to reduce it by 50 percent by 2015. In the case of the Philippines, this meant that the target was to reduce poverty from 33 percent of the population in 2000 to 16.5 percent in 2015. We did not achieve this target although poverty was reduced somewhat.
The SDG for poverty is to reduce it by a further 50 percent of the 2015 target by 2030. This means to reduce poverty to only 8.25 percent in 2030. An ambitious target which, sadly, is unlikely to be met. We are making program, but only slow progress, towards poverty reduction.
***
Another MDG which has been carried forward by the SDG program is the introduction and furtherance of quality education. The basic idea is to have a 100 percent completion rate for elementary education. This UN goal is also reflected in our Constitution which enjoins parents to ensure that their children complete at least Grade 6 level. Unfortunately, only about two-thirds of our students successfully complete grade school.
I believe it is essential to find out why one-third of our students drop out before grade school completion. Anecdotal evidence suggests that difficulties in attending school due to challenges in the journey between home and school are a significant factor. How is this problem solved? Would it help if there were more schools so that the average journey length is reduced?
***
The Philippines strategy is to develop infrastructure via the “build, build, build” program. Failure by Congress to reach agreement on the 2019 budget before the end of 2018 has resulted in this program, and therefore economic growth, to be reduced. This is regrettable but at least Congress is now recognizing that it is vital that the 2020 budget should be approved on time.
A challenge faced by the economic growth rate is the inefficient “trickle down” process. This means that the poor do not benefit sufficiently from our high growth rate.
This brings us back to education and its pre-eminent importance in reducing poverty. This is recognized by many parents who understand that education is often an efficient way of avoiding the poverty trap.
***
The enormous project proposed by San Miguel Corp (SMC) and approved last week by the Transportation Secretary Arthur Tugade gives cause for optimism about our economic future.
The project, to build a P745 billion (equivalent to about P7,000 for every man, woman, and child in the Philippines) international airport complex in Bulacan (about 50 km northwest of Manila). This shows confidence in our future.
The long-term goals are enormous. It is a question, however, as to when they will be achieved. For example, it is predicted that the airport will attract 30 million foreign tourists a year (when?). This is enormous compared to the 7.4 million who came last year.
SMC will control the airport over a 50-year concession period and is seen to boost the economy by P900 billion a year.
Several years ago, when under the public private partnership (PPP) scheme, the government was looking to the private sector to fund developments to Bacolod-Silay airport to the tune of around P20 billion. Reportedly, however, the private sector would not have control over aspects such as airport taxes and the project was never implemented.
Does this mean that SMC will have full rein to impose increases in airport taxes at Bulacan?/PN
