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ADB: BPO “not enough” to Alleviate PH Poverty

by: Sarah Joson

Monday, April 23, 2012 | Outsourcing News |

The latest report from the Asian Development Bank states that in order for the Philippines to maximize economic growth potential, the government should look into manufacturing and not business process outsourcing (BPO).
 

Volume of jobs created by BPO segment not sufficient

Norio Usui, ADB’s senior country economist and author of the report “Taking the Right Road to Inclusive Growth,” said the volume of jobs created by the BPO segment is not sufficient, as it only accounts for 1 percent of the country’s entire labor force and is favourable only for college graduates.  He adds that for a more comprehensive growth in different areas of the country’s economy, the manufacturing sector should be developed more.

The study likewise highlighted that strategies and plans for the industrial sector should be reinforced, and employment opportunities should be provided for undergrads as well.

Moreover, Usui stated that among the countries in Asia, the Philippines is the only one that has a declining industrial base. In fact, the sector’s contributions to the country’s GDP dropped from 39 percent in 1980 to 32 percent in 2009.

Meanwhile, Kunio Senga, ADB’s director-general for Southeast Asia, said that even with the bullish growth posted by the services sector, issues regarding poverty and unemployment still plague the country.

The ADB believes that in order for the country to recover from poverty, more export products should be developed and the business environment should be made more attractive for investors.


Source:
http://www.manilastandardtoday.com/

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