Contributing to the economic vision for the Philippines

Last Sept. 25, during a general membership meeting of the Management Association of the Philippines, Undersecretary and Chief Economist Domini Velasquez of the Department of Finance (DOF) gave a presentation on the economic vision of the President Marcos administration, with additional comments from another Finance Undersecretary Rolando Tungpalan and from former Socioeconomic Planning Secretary Ciel Habito.

We shall soon have a smaller meeting with Finance Secretary Ralph Recto that will discuss, I assume, how the private sector can contribute to raising more resources without increasing tax and debt burdens, improving the vision, and successfully implementing it for the “ultimate goal to reduce poverty incidence.”

During the open forum, I briefly mentioned two potential sources for generating increased revenues—our natural capital and our science and technology capability. These are related areas that require investments now because all the areas identified by DOF as priorities for infrastructure development will need technologies—from simple basic tools to complex advanced systems. Our usual response to this need is “technology transfer”—we buy finished products from other countries.

Some leading countries on technology innovation now compete with China or they work with other countries to manufacture technological products from available human and natural capital in such countries that also need those products.

‘Technology transformation’

The Philippines can be one of those countries. When I shared that idea with a British friend, he said “You will keep the poor in labor jobs.” No! Those human and natural capital forms cannot be just low-cost or low-quality. They must be available, with good quality.

I firmly believe that we have the needed quantities for those capital forms. But we must invest NOW to bring out their best qualities through “technology transformation” that can be done in our country where we also need the products to be manufactured.

That requires collaboration at the level of knowledge— advanced knowledge from the technology innovation leader and knowledge to be further enhanced in our country through our combined research and development (R&D) and manufacturing efforts.

On natural capital, we now have the new Philippine Ecosystem and Natural Capital Accounting System Law that I introduced in this column last July 1. For example, on energy, we are now using our natural capital, mainly natural gas, solar and wind. But we need to work with a technology innovator partner to design or co-design further how to best use our natural capital and how to manufacture with our trained human capital the technological systems that are appropriate to our needs and of other countries.

We must also identify and account for our other natural capital assets, especially our vast water resources that constitute four-fifths of our territories, the subject of Beacon Expo 2024 of the Maritime League that will be held on Sept. 30 to Oct. 3 at the SMX Convention Center in Pasay City.

On human capital, we have recognized education as a priority to develop it. But we must do more than build schools and related facilities. We must create awareness, interest and passion among our students for science and technology (S&T) that can help produce our needed technologies—in addition to other subjects, including those that can help develop their values. That is the mission of the Philippine Foundation for S&T (PFST), which former Science and Technology Secretary Fortunato dela Peña now chairs after the late MAP Life Member Meneleo Carlos served as board chair and source of support with his family for years.

PFST’s mission is challenging because whenever I conduct a quick survey of what courses our high school students will take up after their graduation, many students find S&T courses like math boring and tough to learn. About 60 percent plan to take up “Crim,” meaning criminology. They think Crim gives secured financial future because police persons earn well.

To achieve its mission, the PFST set up the Philippine Science Centrum (PSC), our country’s first science museum. It also developed mobile museums, the PSC Traveling Exhibits. These museums make learning S&T phenomena, principles and applications interesting and fun.

The stationary PSC is now looking for a permanent site, while the traveling exhibits have visited over 400 local communities nationwide. PFST has also developed a simple “Chemistry in a Box” kit for doing chemistry experiments, with the help of Balik Scientist Professor Corazon Salumbides.

Practical applications

The latest project of PFST is its “STEM (Science, Technology, Engineering and Math) on the Go.” PFST and its fabrication arm produced the mobile exhibit set for Tawi-Tawi, Sulu, Basilan, and Lamitan City in Bangsamoro Autonomous Region in Muslim Mindanao (BARMM). The exhibit set and teacher training program are focused on K-12 learning competencies in science, math and their practical applications. It aims to inspire students to pursue a STEM track during their senior years in school and work thereafter.

But more work has to be done and sites covered because the latest assessment conducted by the Organization for Economic Cooperation and Development for 15-year-old learners ranked the Philippines as 77th out of 81 countries globally on reading, mathematics and science.

PFST is a nongovernmental organization that receives grants from a few donors and in-kind help from teachers and other groups. The “STEM on the Go” program is funded by a grant from Department of Science and Technology while the Ministry of Basic and Higher Technical Education and Ministry of Science and Technology at the regional level, and the local government units of those BARMM sites provide support to the program.

I hope DOF will add to their strategies for generating financial resources the increased accounting and development of our natural capital through R&D projects and use of both our natural and human capital through technology transformation.

We have already a pool of scientists and engineers who can help do them. Since children grow up fast, we can increase that pool by investing not only in school infrastructure but also in programs that will nurture young Filipinos’ creativity and interest in S&T. These additions can generate revenues and other benefits for our country’s continuing sustainable development.

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The author, an engineer-economist, is MAP’s Life Member and convener-chair of Climate Action and Sustainability Alliance, board director of some organizations including the Asian Institute of Journalism and Communication, Asiapro Foundation, Business for Sustainable Development, PFST, SEABED Inc., and South-South Cooperation Council for SD in Colombia.