AYALA Corporation and the University of the Philippines (UP) School of Economics in cooperation with the Ayala Business Club of Cagayan de Oro held a regional roadshow in Cagayan de Oro City last Friday (March 15) at Seda Centrio to share the strategic research paper entitled Towards Inclusive Capitalism in the Philippines by Dr. Raul Fabella, National Scientist and professor emeritus of the UP School of Economics.
Fabella in his paper dispels the notion that capitalism is necessarily anti-poor particularly citing as examples the remarkable achievements of China in reducing poverty and fostering greater social inclusion following its adoption of market-oriented reforms and the integration of pro-poor services in the normal business operations of big conglomerates.
In the Philippine context, he underscored how conglomerates have also contributed to improve social provision and inclusion in various fields such as telecom, water provision, tertiary education and through corporate social responsibility (CSR) initiatives.
He contended that even as the country is hampered by weak institutions, the private sector – by widening its sphere of operations to include activities that were hitherto traditional public services – is able to help improve social welfare and promote greater social coherence in the Philippines.
This is especially important in light of the Philippines’ unusual development path which he called “development progeria” characterized by growth dynamics (largely observed in industrial economies) which have been mainly service sector-led resulting in less inclusive outcomes than with growth trajectories that are manufacturing-led. He believed that such a development path per se would be unsustainable unless more inclusive outcomes are achieved by exploring opportunities for greater private-public sector cooperation. PR