A RESOLUTION DIRECTING THE COMMITTEE ON TRADE AND COMMERCE TO CONDUCT AN INQUIRY, IN AID OF LEGISLATION, ON THE NATIONAL CONVERGENCE STRATEGY AND POLICY FOR ADDRESSING OBSTACLES TO ENTERPRISE DEVELOPMENT TOWARDS THE URGENT REALIZATION OF JOBCREATING, BROAD-BASED GROWTH THAT BENEFITS ALL FILIPINOS

WHEREAS, the Philippines has been recognized globally as Asia’s “rising star” and I . “breakout nation” because of its strong economic performance and high growth amidst the global economic slowdown, outpacing all other Asian countries, including China, during the first quarter of 2013;

WHEREAS, the country continues to experience high unemployment and poverty rates, despite its high and fast-paced growth, and the strong economy continues to be exclusive and beneficial to only a few;

WHEREAS, the most pressing challenge to government today is how to effectively leverage the country’s growth momentum to positively impact on the lives of the majority of the Filipinos, who are in dire need of decent jobs, sustainable livelihood and income opportunities;

WHEREAS, the President’s 2013 State of the Nation Address has articulated the present government’s commitment to achieving inclusive growth in the country, and recognizes that job creation is key to translating high growth to sustained and broad-based growth;

WHEREAS, studies show that job creation for inclusive growth can be greatly facilitated by the promotion of enterprise development, particularly through strategies and programs to encourage the development of micro enterprises, small and medium enterprises (SMEs), and inclusive businesses particularly in the country side, where most of the poor are situated;

WHEREAS, research has revealed that one of the most significant barriers to enterprise development is the poor regulatory environment for doing business in the country, as reflected in the Philippine’s low ranking of 138th place among the 150 economies surveyed in the World Bank’s Ease of Doing Business Index in 2013;

WHEREAS, another major barrier to enterprise development, especially for SMEs, is the lack of access to credit and financing, given the restrictive, conventional, collateral-based requirements of banks and limited financing alternatives;

WHEREAS, other challenges encountered by SMEs include lack of access to markets, lack of technology support, poor incentives, and poor investments in infrastructure especially in the countryside;

WHEREAS, there is a need for government, the private sector, development partners and concerned citizen groups to coordinate and ensure a convergence of efforts and strategies to address these concerns and overcome the challenges that have hampered enterprise development in the country.

NOW, THEREFORE, BE IT RESOLVED, as it is hereby resolved by the Senate of the Philippines to direct the Committee on Trade and Commerce to conduct an inquiry, in aid of legislation, on the national convergence strategy and policy to overcome the obstacles to enterprise development towards the urgent realization of job-creating and broad-based growth that benefits all Filipinos.
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