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43rd WORKSHOP MEETING OF HEADS OF NPOs
18-20 February 2003, Manila, Philippines

Inaugural Address

by Dr. Eduardo T. Gonzalez
President, Development Academy of the Philippines

Mr. Takashi Tajima, Secretary General of the Asian Productivity Organization, Hon. Renato de Rueda, Undersecretary of the Department of Environment and Natural Resources, Excellencies, distinguished delegates:

In behalf of the Development Academy of the Philippines, I am very pleased to welcome you to the 43d Workshop Meeting of Heads of the National Productivity Organizations.

Hosting this important event is always an honor for us. And I hope that the unique spirit of Filipino hospitality will stoke up your determined efforts in charting new directions for the NPOs in the next two years.

Asia is a heterogeneous regional setting of nations with differing sizes, levels of development and governance systems. Some are generally more endowed with managerial capacity and systems, and farther along the route to liberalization. By contrast, the transition economies of Asia still have much to learn in terms of productivity and quality and are behind in the path toward open and competitive societies.

As a group, APO member countries are an increasingly important force in the world economy. Their collective weight in global economic activity has been rising. Southeast Asia for example, is fast-growing, next only to East Asia: the average annual growth rate of its GNP as a bloc is nearly 6 percent; that of its GNP per capita about 4 percent. That is about three times the record of the OECD countries between 1990 and 1998.

Many of these nations have embraced trade liberalization as a means to progress. Some, like Singapore, Thailand and Malaysia have become benchmarks in key areas with characteristics of global public goods, including poverty reduction, health care and education. Asian countries invest selectively in priority areas such as information technology, biotechnology, and worker training, in the process transitioning to fully networked, knowledge-intensive economics.

Many parts of Asia are also being carefully watched, because of their exposed weaknesses in the areas of financial stability, protection of environmental commons, and movement of capital. Thus, increasing reliance on exports (at a time when global trade is contracting and domestic demand continues to be stagnant) makes Asia highly vulnerable to a global economic downturn.

Most of the Asian nations are part of a broader set of middle-income countries, which have become important suppliers of global public goods. They are crucial in any collective action to address market failures in the production of such goods as growth and productivity, knowledge management, and good governance, all of which have considerable potential benefit for the regional and international community. In most of Asia, progress in productivity and quality improvement is needed in order to recover the momentum for broad- based and equitable growth, and to forestall another financial crisis.

In the next two days, our task is to strengthen the supply of global public goods in the Asian region by reviewing and evaluating the recent productivity movement efforts and formulating plans that will enable our governments, firms and civil society organizations cope with the rapid socio-economic changes taking place in Asia and around the globe.

Certainly there will be many external and internal issues that will surface in each country. In the case of the Philippines, our external challenge is to keep up with the fluctuations in the global market where we depend heavily, Within our borders, we need to win the confidence of investors to raise the currently low volume of investment that is necessary for the country's development.

The Philippine government has recently shifted its focus in economic planning from the dominantly macroeconomic and demand side to the macroeconomic and supply side, thus putting productivity enhancing measures at center stage.

With this new perspective, we are all the more encouraged to strengthen our efforts to promote and institutionalize productivity and quality to specific economic sectors - agriculture, small and medium enterprises, service sector and the public sector.

For the NPO in the Philippines, the challenge now is to promote a productivity driven economic growth - where there is a culture of efficiency, quality, and excellence as we pursue national, sectoral, firm, community and household economic and livelihood efforts. Along with this are our other thrust areas that we consider equally significant to boost our social and economic progress. These are sustainable human development, knowledge management, transparency and accountability in governance, democratic reforms and education for excellence.

So much about what we will do.

Despite the threat of war in the middle east and the sluggish global economic performance, our work must continue. Our goal is to make sure no country is left behind, and no country is barred from moving ahead.

In closing, I would like to wish you a harmonious, fruitful and productive discussion for this workshop, which I now open.

Thank you and mabuhay!

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