Raising productivity.

MOST of us are so focused on the short term that we often forget what the economic aspect of progress really entails: That it is all about raising productivity.

The daily headlines feature stories about banking and finance, and generally about those issues connected with interest rates, the peso-dollar exchange rates, prices and wages. Since we are in the Philippines, we are also fed our daily fare of business scandals and controversies.

All these are great attention-grabbers. Important as they all are, still their relevance is limited mainly to today and tomorrow. Next week's headlines are different, and the top stories of today are soon relegated to the background and eventually forgotten.

But one issue that never goes away, although hardly any one focuses on it day to day, is the rise of productivity. It is really what long-term economic progress is about. It is the foundation of any real, solid achievement for any economy.

Thus, any National Road Map that leads us to what we shall have achieved by 2030 should feature it prominently. Indeed, it is a major strategic objective that we should put up front.

And what does the rise in productivity entail?

It entails whatever is necessary to secure an increase in our capacity to produce goods and deliver services. It is equated with our efficiency and effectiveness to come up with, offer, and provide to any and all takers of economic goods, i.e. those goods and services that would be of value to anyone willing to pay for them.

It is, then mainly about efficiency and effectiveness, and everything that has anything to do with boosting these consistently upwards. It may require technology, organization, drive and motivation, financial and other types of expertise, openness to and good relations with potential customers and clients, wherever they may be.

First and foremost is the environment created to foster the spirit of enterprise and risk-taking. Risk-takers need enough space for maneuver, creativity, and daring. That space has to be widely open, and it should allow for enormous rewards for success as well as punishments for failure.

Then the market of products and services should be big and dynamic so competing producers and suppliers can thrive and drive each other up the productivity scale. It does not pay to limit and bottle up markets. On the contrary, expanding and opening up markets can put various economies on a roll.

Access should also be open to resources with which to make investments
and deploy the appropriate technology and organizational systems, wherever they can be obtained. Indeed, investments need to be made continuously, and the resources for making them should be available on an open, competitive basis.

A level playing field with clear and simple rules that are enforced; big enough markets where goals can be scored; more than enough resources with which to secure the equipment and the talent to engage in competitive play: These are the fundamental requirements for productive capacity to sustain its rise and for productivity to keep rising.

These requirements we must meet, therefore, in order for us to achieve one of our strategic objectives under the economy.