Ramon Aboitiz Foundation holds economic crisis forum
November 13, 2009, 01:10:03 pm by RAFI WebMaster
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Ramon Aboitiz Foundation holds economic crisis forum
Economist Fernando Fajardo offers tips on what to do during this time of economic crisis to fellow Cebuanos, including Roberto E. Aboitiz, President of the Ramon Aboitiz Foundation, during its Understanding Choices Forum last July 10, attended by LGUs, business, academe and other sectors.
The Ramon Aboitiz Foundation held an Understanding Choices Forum on “Mitigating the Impact of the Economic Crisis: What can we do in Cebu?” last July 10 at the Eduardo Aboitiz Development Studies Center, also the organizer of the event.
The half-day forum discussed the background of the global financial crisis; its impact to the international, national and local economies; and mitigating measures Cebuanos can take to lessen its impact.
Maybridge Asia, Inc. Chairman and Management Association of the Philippines Manager Joey Bermudez presented the genesis of the crisis, citing unpaid debts from housing, commodities and financial assets loans as the cause.
Bermudez said that, as of November 2008, there has been a $30 T reduction in stock market capital worldwide, coupled with people unemployment and bankruptcies.
This has led to decelerating remittances and weakened foreign direct investments and, thus, decreased purchasing and investing powers.
University of San Carlos Economics Professor and Cebu Business Club Executive Director Fernando Fajardo delved on the crisis’ impact to the Philippines, especially to Cebu, disclosing the decrease of gross domestic product (GDP) growth of 0.4% during the first quarter of 2009; with agriculture, manufacturing, trade, and private industries experienced a down of -6.3% this year from Jan-April 2008.
Bermudez, however, said that, despite a low level of public and private investments and shaky pre-need industries and rural banks, the asset bubble of the Philippines is smaller compared to those in the First World countries.
He added that the country’s banking system’s measures of consolidation and balance sheet strengthening as well as proceeds from the eVAT would help us recover from the crisis if it hits us full blast.
To mitigate the crisis’ impact, Fajardo advised that Cebuanos should not just think on how to survive but on how to thrive during and after the crisis, by being an entrepreneur and not just an employee.
Bermudez concurred to this by recommending the promotion and strengthening of small-medium enterprises (SMEs) and micro-enterprises, which would not only address unemployment but also encourage investment.
Fajardo further suggested that the education system should provide for vocational trainings, while Bermudez proposed that government could fund the education of children whose parents had lost their jobs.
Fajardo commented on the LGUs lack of political will to plan and implement projects and policies that could raise productivity and support local businesses; Bermudez raised the idea of the financially sound to mainstream in the banking world to raise private capital to fund their own investments.
The Understanding Choices Forum is a venue for different sectors in society to be provided with information as well as the opportunity to voice their ideas or interact with the speakers on societal issues, as aid in making decisions and setting directions for their sectors.