Date: May 19, 2009
Time: 09:30 am - 5:00 pm
Venue: Peninsula Manila, Makati City.
Social Market Economy: A Viable Development Option for the Philippines?
The world is in the midst of a gripping financial crisis. Many think that because of the failures of the dominant economic system, a rethink of the Philippine development model is in order. Many countries like ours are in the same process –asking themselves, “What worked, and what didn’t?” This is one question that the AIM Policy Center, together with the Konrad Adenauer Stiftung, brought before its various constituencies during the forum on “SOCIAL MARKET ECONOMY: A Viable Development Option for the Philippines?” held last May 19, 2009 at the Rigodon Ballroom of the Peninsula Manila in Makati City.
The social market economy principle, introduced by German Chancellor Konrad Adenauer and Minister of Economic Affairs Ludwig Erhard in the 1950’s to the 1960’s, is credited for the “German economic miracle” post WWII. As Erhard articulates, “Self-responsibility, personal initiative, and private property are some of the essential traits of social market economy. This social order reconciles personal freedom, equal opportunities, and growing wealth with the social progress generated by employment. Practicing social market economy may be defined as the effort to link freedom and order, and consequently achieve a greater degree of justice.”
The forum featured no less than Dr. Dieter W. Benecke, a German economist and renowned social market economy expert. He reiterates the basic principles of social market economy are individual achievement spirit and personal responsibility, SOLIDARITY of the society, and SUBSIDIARITY of the state. Following his presentation were reactions from top Filipino economic thought leaders such as Atty. Ma. Lourdes Sereno, executive director of the AIM Policy Center, who tackled the compatibility of the social market economy with the Philippine constitution; Dr. Emmanuel de Dios, dean of the UP School of Economics, Dr. Joseph Lim of the Ateneo de Manila University, Dr. Rene Ofreneo, former dean of the UP School of Labor and Industrial Relations, and Dr. Josef Yap, president of the Philippine Institute for Development Studies.
Following the lectures and reactions, Dr. Benecke answered questions from the floor. In the afternoon, three workshops engaged the participants profoundly. These were workshops on 1) social market economy vis-à-vis Philippine labor laws, institutions and environment which was led by Dr. Ofreneo; 2) social market economy vis-à-vis Philippine capital markets and tax system led by Dr. Lim and Atty. Victorino Mamalateo, former assistant commissioner of the BIR; and 3) social market economy as enabling environment for business led by Atty. Sereno and Mr. Alberto Lim, executive director of the Makati Business Club.
The results of the workshop were integrated during the plenary session. Dr. Patricia Lontoc of the Asian Institute of Management (AIM) acted as master of ceremonies, Dean Victoria S. Licuanan of AIM welcomed the audience, and Mr. Klaus Preschle of the Konrad Adenauer Foundation imparted the opening remarks. Distinguished personalities who attended the event include Mr. Francis Manglapus, former DILG Undersecretary Lito Lorenzana, and former ASEAN Deputy Secretary-General Dr. Wilfrido Villacorta.
The international publication, “Social Market Economy Principles and Implementation: Economic Policy from A to Z,” was also launched. Better known as the “SME Encyclopedia,” the book has been translated to various languages to explain the social market economy principle to the world on the 60th anniversary of Germany’s Basic Law (Constitution) that embodies the said socio-economic model.
The AIM Policy Center received a call for future social market economy activities and further collaboration with some participants that a strategic directions meeting with Dr. Benecke took place just two days after the forum.
