group 1 labor productivity rev1

Group 1

Joanne, Mandy,

Grace & Shirlyn

LABOR LABOR PRODUCTIVITYPRODUCTIVITY

MEASURESMEASURES

LABOR LABOR PRODUCTIVITYPRODUCTIVITY

MEASURESMEASURES

Outline of Presentation

1. Statistics defining the labor

market and RP labor

Productivity

2. Government initiatives

DEFINITIONDEFINITIONDEFINITIONDEFINITION

Labor productivity refers to the Labor productivity refers to the amount or quantity of output amount or quantity of output produced by a given quantity of produced by a given quantity of labor input.labor input.

COMPUTATIONCOMPUTATIONCOMPUTATIONCOMPUTATION

Gross Domestic ProductLABOR PRODUCTIVITY = ------------------------------------

No. of Employed Persons

PHILIPPINE LABOR FORCE

(April 2004)

84.0MTotal Population

31.0MLess than 15 yrs. old

53.0M15 yrs. old & above

16.5MNot in Labor Force

36.5MIn Labor Force

36.5MIn Labor Force

5.0MUnemployed

31.5MEmployed

16.1MWage & Salary

11.7MOwn-Account

3.7MUnpaid Family Members

Philippine Labor Force

(April 2004)

PHILIPPINE WORKFORCE

Workforce

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Workforce

PHILIPPINE GDP

GDP

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

GDP

RP Labor ProductivityRP Labor Productivity1995-2005

At Constant 1985 Prices

28,000

29,000

30,000

31,000

32,000

33,000

34,000

35,000

36,000

37,000

38,000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Y E A R

Labor

Pro

duct

ivit

y (P

hp)

Labor Productivity, GDP & Labor Productivity, GDP & WorkforceWorkforce

1995-2005At Constant 1985 Prices

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Labor Productivity

Workforce

GDP

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

NCR CAR I II III IV V VI VII IX XI XII XIIIVIII X ARMM

PHIL

RP Labor Productivity By Region

1999-2003 (Average)At Constant 1985 Prices

Comparative Labor Productivity - Asia

2000-2005At Constant 1985 Prices

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

55,000

2000 2001 2002 2003 2004

Singapore

Malaysia

Thailand

Indonesia

Philippines

Korea

China

Cambodia

Vietnam

Labor Productivity, Selected Asian Countries 1997-2003 (Average)At Constant Prices in US Dollars

Country

Japan

Singapore

Korea

Malaysia

Thailand

Indonesia

RP

Average Productivity

40,631

39,857

17,805

5,717

2,184

521

734

How RP Compares

55 x

54 x

24 x

8 x

3 x

(- 41%)

-

Labor Productivity in Selected ASEAN Labor Productivity in Selected ASEAN CountriesCountries

At Constant US DollarsAt Constant US Dollars1998-20021998-2002

SingaporeSingapore

MalaysiaMalaysia

ThailandThailand

IndonesiaIndonesia

PhilippinesPhilippines

19981998 19991999 20002000 20012001 20022002 Ave.Ave.

38,40938,409

5,4005,400

2,0642,064

535535

768768

39,80639,806

5,7565,756

2,3572,357

603603

810810

38,7238,72

5,9105,910

2,2552,255

526526

778778

37,81337,813

5,8015,801

2,0562,056

1,5491,549

645645

44,56744,567

n.a.n.a.

2,1902,190

1,7651,765

670670

39,85739,857

5,7175,717

2,1842,184

996996

734734

Population (in Million) vs. GDP (in Billion US$)Population (in Million) vs. GDP (in Billion US$)

SingaporeSingapore 44 92929292

MalaysiaMalaysia 2323 90909090

ThailandThailand 6262

7676 75757575

122122122122

IndonesiaIndonesia

201201 153153153153

PhilippinePhilippiness

Productivity Comparison:Productivity Comparison:RP vs. Selected ASEAN RP vs. Selected ASEAN

CountriesCountriesThe value of the output of the average Filipino worker in 8 hours:

• Can be done by a Indonesian worker in 11 hours and 18 minutes

• Can be done by a Thai worker in 2 hours and 42 minutes

• Can be done by a Malaysian worker in 1 hour

• Can be done by a Singaporean worker in 10 minutes

CountryCountry 20012001 20022002 20032003

JapanJapan 99 99 99

HongkongHongkong 2424 2323 2626

SingaporeSingapore 2626 2525 2828

KoreaKorea 2727 2727 3030

BruneiBrunei 3232 3232 3131

MalayasiaMalayasia 5656 5959 5858

ThailandThailand 6666 7070 7474

PhilippinesPhilippines 7070 7777 8585

Sri LankaSri Lanka 8181 8989 9999

ChinaChina 8787 9696 104104

VietnamVietnam 101101 109109 109109

IndonesiaIndonesia 102102 110110 112112

Human Development Index of Human Development Index of Selected Asian CountriesSelected Asian Countries

Why Are We Lagging Why Are We Lagging Behind?Behind?

Productivity growth critically depends on:

• Investment climate

• Improvement in quality of worklife

• Job enhancements

Why Are We Lagging Why Are We Lagging Behind?Behind?

Investment climate comprises:

1/ Macro fundamentals – social and political stability,macroeconomic stability, economic openness andCompetitive markets

2/ Governance and institutions – transparency andefficiency in regulation, taxation and legal system;Strong and well-functioning financial sector; labormarket flexibility and skilled labor force

3/ Infrastructure – transportation, telecommunications And power and water supply

Investment Climate and GrowthInvestment Climate and GrowthGross Capital Formation (as % of GDP)Gross Capital Formation (as % of GDP)

Higher rates of capital formation have fueled Higher rates of capital formation have fueled productivity and economic growthproductivity and economic growth

GDP per capita growth rates: selected Asian countriesGDP per capita growth rates: selected Asian countries

RP appears least favorable in terms of wage rate RP appears least favorable in terms of wage rate relative to labor productivityrelative to labor productivity

RP with lowest GDP per capita growth and RP with lowest GDP per capita growth and slowest poverty reduction – early to late slowest poverty reduction – early to late

1990s1990s

RP’s Investment Climate in PerspectiveRP’s Investment Climate in Perspective

Ease of Entry and Exit Procedures – Ranking out of 102 countries, 2003Ease of Entry and Exit Procedures – Ranking out of 102 countries, 2003

RP ranks 2RP ranks 2ndnd to worst out of 102 countries in to worst out of 102 countries in irregular payments in public contracts and irregular payments in public contracts and

business costs of corruption, 2003business costs of corruption, 2003

RP ranks 2RP ranks 2ndnd to worst out of 102 countries in to worst out of 102 countries in irregular payments in public contracts and irregular payments in public contracts and

business costs of corruption, 2003business costs of corruption, 2003

1 Big Mac1 Big MacIn MinutesIn Minutes

1 Kg. of 1 Kg. of ricerice

In MinutesIn Minutes

1.1. TokyoTokyo2.2. Hong KongHong Kong3.3. TaipeiTaipei4.4. SingaporeSingapore5.5. Kuala LumpurKuala Lumpur6.6. SeoulSeoul7.7. ShanghaiShanghai8.8. BangkokBangkok9.9. ManilaManila10.10. JakartaJakarta11.11. MumbaiMumbai12.12. KarachiKarachi

1010131318182121252528283030505062626767112112132132

8813131212111110103838292925252525202096964646

Working time required to buy…..

Hourly Hourly PayPayNetNet

Hourly Hourly PayPay

GrossGross

Annual Annual IncomeIncome

1.1. TokyoTokyo2.2. TaipeiTaipei3.3. SeoulSeoul4.4. SingaporeSingapore5.5. Kuala LumpurKuala Lumpur6.6. Hong KongHong Kong7.7. BangkokBangkok8.8. ShanghaiShanghai9.9. ManilaManila10.10. JakartaJakarta11.11. MumbaiMumbai12.12. KarachiKarachi

64.164.144.244.240.040.037.237.233.833.828.728.715.015.018.318.314.514.512.912.910.710.710.810.8

66.066.048.648.640.240.239.239.238.038.033.733.718.818.818.018.016.316.315.515.512.512.512.412.4

74.774.758.658.648.548.543.743.743.843.842.042.021.521.519.119.120.320.318.018.015.715.715.115.1

Domestic Purchasing Power

Gross PayGross PayPer hourPer hour

US $US $

Taxes, Taxes, DeductionsDeductions

Per hourPer hourUS $US $

Gross Gross PayPay

Per hourPer hourUS $US $

1.1. TokyoTokyo2.2. Hong KongHong Kong3.3. TaipeiTaipei4.4. SeoulSeoul5.5. SingaporeSingapore6.6. Kuala Kuala

LumpurLumpur7.7. ShanghaiShanghai8.8. BangkokBangkok9.9. JakartaJakarta10.10. ManilaManila11.11. KarachiKarachi12.12. MumbaiMumbai

17.6017.608.008.008.308.307.907.906.906.903.703.703.303.301.801.801.701.701.401.400.900.900.800.80

4.004.001.001.001.401.402.002.001.501.500.600.600.900.900.100.100.200.200.200.200.100.100.100.10

13.6013.607.007.006.906.905.905.905.405.403.103.102.402.401.701.701.501.501.201.200.800.800.700.70

Gross and Net hourly pay

Working Working Hours Per Hours Per

YearYear

Paid Vacation Paid Vacation Days per Days per

YearYear

1.1. Hong KongHong Kong2.2. MumbaiMumbai3.3. TaipeiTaipei4.4. KarachiKarachi5.5. ManilaManila6.6. SeoulSeoul7.7. BangkokBangkok8.8. JakartaJakarta9.9. Kuala LumpurKuala Lumpur10.10. SingaporeSingapore11.11. ShanghaiShanghai12.12. TokyoTokyo ParisParis

2,3982,3982,3472,3472,3272,3272,3022,3022,3012,3012,2702,2702,1842,1842,1752,1752,1522,1522,0562,0561,9581,9581,8641,8641,5611,561

88252513132727141420201010111117171414131316162626

Working hours and vacation days

Taxes and social security contributions

Taxes and SSTaxes and SSAs % of Gross As % of Gross

WageWage

1.1. ShanghaiShanghai2.2. SeoulSeoul3.3. TokyoTokyo4.4. SingaporeSingapore5.5. TaipeiTaipei6.6. ManilaManila7.7. Kuala LumpurKuala Lumpur8.8. MumbaiMumbai9.9. Hong KongHong Kong10.10. KarachiKarachi11.11. JakartaJakarta12.12. BangkokBangkok

2727252523232121171716161616131312121111101044

Source: Fortune Magazine, January 20, 2003Source: Fortune Magazine, January 20, 2003

““If we stay where we are, our cheese is going to be taken away.”If we stay where we are, our cheese is going to be taken away.”

- Lee Hsien Loong, Singapore’s Deputy prime minister on China- Lee Hsien Loong, Singapore’s Deputy prime minister on China

“ “China is the new reality. Anybody who thinks the economic China is the new reality. Anybody who thinks the economic models that worked for us in the 20 years before China was part models that worked for us in the 20 years before China was part of the world economy will work in the 20 years after – they’re just of the world economy will work in the 20 years after – they’re just dreaming.”dreaming.”

- Koh Boon Hwe, Chairman, Singapore’s Ariline- Koh Boon Hwe, Chairman, Singapore’s Ariline

Adjustments made by neighboring Asian countries to the new Adjustments made by neighboring Asian countries to the new reality:reality:

Taiwan:Taiwan:

Shipped its high tech industry to the mainland where Shipped its high tech industry to the mainland where labor is cheaplabor is cheap

Those who opted to stay engaged in importing lower-cost Those who opted to stay engaged in importing lower-cost workers from places like the Philippines.workers from places like the Philippines.

Japan:Japan:

Not just make things in China, they’re stepping up efforts Not just make things in China, they’re stepping up efforts to sell to China marketto sell to China market

Adjustments made by neighboring Asian countries to the new Adjustments made by neighboring Asian countries to the new reality:reality:

Singapore and Malaysia:Singapore and Malaysia:

Government planners try to climb to the value chain into Government planners try to climb to the value chain into knowledge-intensive industries like biotech, design, and knowledge-intensive industries like biotech, design, and software developmentsoftware development

Hongkong:Hongkong:

Officials bet a Disney theme park slated to open by 2006 Officials bet a Disney theme park slated to open by 2006 will boost tourism – an area already dominated by will boost tourism – an area already dominated by mainland Chinese especially now that quotas on how mainland Chinese especially now that quotas on how many can come into the territory have been scrapped.many can come into the territory have been scrapped.

Adjustments made by neighboring Asian countries to the new Adjustments made by neighboring Asian countries to the new reality:reality:

South Korea and Thailand:South Korea and Thailand:

To compensate weak US demand, they are redirecting To compensate weak US demand, they are redirecting exports to China and boosting sales to their consumers.exports to China and boosting sales to their consumers.

As a formidable rival (after five years since Asia’s financial As a formidable rival (after five years since Asia’s financial crisis):crisis): 7 to 8 percent annual growth rate7 to 8 percent annual growth rate

Export surged to 21% last year to $322 billion thereby Export surged to 21% last year to $322 billion thereby making it the largest exporter of goods to the US.making it the largest exporter of goods to the US.

Per UN estimate China took in about $50 billion in FDI’s Per UN estimate China took in about $50 billion in FDI’s – more than the rest of Asia combined– more than the rest of Asia combined

It is already the world’s dominant manufacturer of It is already the world’s dominant manufacturer of textiles, shoes and toystextiles, shoes and toys

It is also gaining swiftly in the production of computer It is also gaining swiftly in the production of computer components, telecommunication devises, and other components, telecommunication devises, and other electronic goods that have been a mainstay of growth in electronic goods that have been a mainstay of growth in many Asian economiesmany Asian economies

The Dongguan Heat:The Dongguan Heat:

An hour’s drive up the Pearl River from Hong KongAn hour’s drive up the Pearl River from Hong Kong

Decade ago, a patchwork of rice paddies and vegetable Decade ago, a patchwork of rice paddies and vegetable fieldsfields

Now a manufacturing megalopolis with more than 20,000 Now a manufacturing megalopolis with more than 20,000 factories and migrant army of 5.5 million peoplefactories and migrant army of 5.5 million people

Workers:Workers:

Make an average of $100 a monthMake an average of $100 a month

About 3 in 4 are women in the early 20sAbout 3 in 4 are women in the early 20s

Labor is plenty that there is no need for employees to Labor is plenty that there is no need for employees to trouble with applicants lacking perfect visiontrouble with applicants lacking perfect vision

Effect in Japan:Effect in Japan:

Sanyo launched a production at a $30 million Sanyo launched a production at a $30 million factory in Haier’s home in Qingdao to build factory in Haier’s home in Qingdao to build compressors for Haier’s refrigeratorscompressors for Haier’s refrigerators

September, Nissan dealt with Dongfeng Motor September, Nissan dealt with Dongfeng Motor Group & build up 900,000 cars and trucks a year in Group & build up 900,000 cars and trucks a year in China by 2010China by 2010

Toyota signed a deal with First Auto Works to build Toyota signed a deal with First Auto Works to build 400,000 cars400,000 cars

Philippines is being left behind. We need to work together to reverse this trend.

Role of Private sector: Main engine of economy, create investments and employment, increase productivity, create wealth.

Role of government: Create conducive environment for productivity.

DOLE initiatives

1. On developing capacity of informal sector and vulnerable workers

• Strengthen entrepreneurial capabilities

• Set-up demonstration projects

• Encourage employers’ assistance

2. On Employment

a. Modernizing the Labor Market Information System

• Strengthen coordination with LGUs

• Make PESOs main mechanism for employment services

• Make available alternative job search devices

b. Apprenticeship and Employment Program

DOLE initiatives

2. On Employment

a. Modernizing the Labor Market Information System

• Strengthen coordination with LGUs

• Make PESOs main mechanism for employment services

• Make available alternative job search devices

b. Apprenticeship and Employment Program

DOLE initiatives

3. On Workers’ Protection

a. Wage Fixing

b. New Labor Inspection Framework

• With 200 workers or more – Self Assessment Checklist

• With 10-199 workers – For Inspection

• With less than 10 workers – TAVs

DOLE initiatives

4. On Labor Relations

a. Industrial Relations Adjustments

b. Speedy resolution of cases

• Department Order No. 40-03

• Indexing of Labor Case Decisions/ Templating

• Arbitral Awards

DOLE initiatives

5. On Productivity Improvement

• WISE

• OSH

• ISTIV

DOLE initiatives

“Don’t merely do your best; do whatever is necessary to get the job done.”

Sir Winston Churchill

The National Wages and Productivity Commission (NWPC) and the Regional Tripartite Wages and Productivity Boards (RTWPBs) were created on July 1, 1989 with the enactment by the Philippine Congress of Republic Act 6727, also known as the “Wage Rationalization Act.”

The National Wages and Productivity Commission (NWPC) and the Regional Tripartite Wages and Productivity Boards (RTWPBs) were created on July 1, 1989 with the enactment by the Philippine Congress of Republic Act 6727, also known as the “Wage Rationalization Act.”

Fix minimum wages on regional, provincial, and/or industry levels

Promote productivity improvement and gainsharing

Fix minimum wages on regional, provincial, and/or industry levels

Promote productivity improvement and gainsharing

The NWPC and RTWPBs have the following major mandates:The NWPC and RTWPBs have the following major mandates:

R.A.R.A.67276727

To ensure a decent standard of living for workers and to improve their productivity

To ensure a decent standard of living for workers and to improve their productivity

The NWPC envisions a highly productive and justly compensated Filipino workforce

The NWPC envisions a highly productive and justly compensated Filipino workforce

OPERASYON

PAW S

PAPAGPAPATUPAD NGGPAPATUPAD NG

WWASTO ATASTO AT

IITINALAGANGTINALAGANG

SSAHODAHOD

PRODUCTIVITY AWARENESS PROGRAM

PRODUCTIVITY AWARENESS PROGRAM

Proactive Approach to Addressing Challenges

Department of Trade and Industry

Investment and Trade Promotion Structural Challenges

A.A. Integrating Philippine economy into the domestic Integrating Philippine economy into the domestic and global supply chain (geographically and source and global supply chain (geographically and source of income)of income)

B.B. Enabling SMEs to be competitiveEnabling SMEs to be competitive

C.C. Strengthening enforcement of competition and anti-Strengthening enforcement of competition and anti-trust policytrust policy

A. Integrating the Philippine Economy

1. Fix domestic trade linkages1. Fix domestic trade linkages• Intra-inter-province transportation system (e.g., Intra-inter-province transportation system (e.g.,

inter-island shipping, air transport, rail system)inter-island shipping, air transport, rail system)• Domestic telecom systemDomestic telecom system

2.2. Course/guide investments into the countrysideCourse/guide investments into the countryside• Reduce cost of doing business in rural areasReduce cost of doing business in rural areas• Improve efficiency of distribution channelsImprove efficiency of distribution channels• Strengthen rural finance systemStrengthen rural finance system

3. Pursue vigorously “clustering strategy”. To …

build competitiveness and productivitybuild competitiveness and productivity accelerate SME developmentaccelerate SME development disperse economic activities to the countrysidedisperse economic activities to the countryside

National clustersNational clusters:: Wood-basedWood-based - Microelectronics- Microelectronics Food-basedFood-based - Machinery / tool and die- Machinery / tool and die ICTICT

4.4. Maintain support for key intermediate industriesMaintain support for key intermediate industries• Packaging, Petrochemicals, Shipping, TelecomsPackaging, Petrochemicals, Shipping, Telecoms

A. Integrating the Philippine Economy

Priority Trade and Investment Areas

1) E-Services ( IT enabled services)1) E-Services ( IT enabled services) 2) Micro Electronics2) Micro Electronics 3) Motor Vehicle Parts and Components3) Motor Vehicle Parts and Components 4) Wearables4) Wearables 5) Home Furnishings5) Home Furnishings 6) Construction Materials6) Construction Materials 7) Giftware and Holiday decor7) Giftware and Holiday decor 8) Food Products8) Food Products 9) Marine Products9) Marine Products10) Organic and Natural Products10) Organic and Natural Products

B. Enabling SMEs to be Competitive

Financing/Micro-financingFinancing/Micro-financing E-BusinessE-Business Simplified business proceduresSimplified business procedures Improved business environmentImproved business environment Special initiatives (e.g., BIMP-EAGA, Subic-Clark Special initiatives (e.g., BIMP-EAGA, Subic-Clark

Area Development (SCAD), competitiveness Area Development (SCAD), competitiveness survey, National Business Registrysurvey, National Business Registry

C. Strengthening Enforcement ofCompetition and Anti-Trust Policy

National and comprehensive competition National and comprehensive competition policypolicy

Fair Trade CommissionFair Trade Commission

NEC Telecom Software Phils: software for network and telecom management systems

JGC Phils: engineering, procurement, construction management services

APTi (Toshiba): firmware and device drivers

Fujitsu: application software and middleware

Canon Information Technologies Phils. Inc.:

computer hardware design and proto typing

Tsukiden Group: Computer Software LSI Design, R&D

Japanese firms outsourcing in RP

U.S. firms outsourcing in RP

America-On-Line: technical and billing support

Arthur Andersen: custom software

Barnes & Noble: inventory management; on-line purchases

Bechtel: Engineering design

Caltex: finance & accounting support

Citibank: systems development & support

Fluor Daniel: regional design work

James Martin: software development

Procter & Gamble: accounting services

European firms outsourcing in RP

Societe Generale de Surveillance (Swiss): data processing

International Red Cross (Swiss): business process outsourcing

Alitalia (Italian): business process outsourcing

MEDIUM TERM PHILIPPINE DEVELOPMENT PLAN

2004-2010

National Economic and Development AuthorityNational Economic and Development Authority

THE BASIC TASKSTHE BASIC TASKS

“The basic task of our Medium-Term Philippine Development Plan for 2004-2010 is to fight poverty and build prosperity for the greatest number of Filipino people. We must open up economic opportunities, maintain socio-political stability, and promote good stewardship --- all to ensure a better quality of life for all our citizens. We will focus on strategic measures and activities that will spur economic growth and create jobs. This can only be done with a common purpose to put our economic house back in working order.”

-President Gloria Macapagal-Arroyo

Economic Growth & Job Creation

EnergySocial Justice &

Basic NeedsEducation & Youth

OpportunityAnti-Corruption &Good Governance

Fight poverty and build prosperityfor the greatest number

Trade & Investment

Agribusiness

Environment & Natural Resources

Housing Construction

TourismInfrastructure

Fiscal Strength

The Financial Sector

Labor

Energy Independence

Power Sector Reforms

Responding to BasicNeeds of the Poor

National Harmony:Automated Elections

National Harmony:The Peace Process

National Harmony:Healing the Wounds of EDSA

Basic Needs:Peace and Order

Rule of Law

Education

Science &Technology

Anti-Corruption

Bureaucratic Reforms

Culture

Responsive Foreign Policy

Constitutional Reforms

Defense AgainstThreats to National Security

THE BASIC TASKSTHE BASIC TASKS

(10-Point Agenda)(10-Point Agenda)

1. Creation of ten million jobs (including support for 3 million entrepreneurs and development of 2 million new agribusiness land)

2. Education for all of school age (including putting a computer in every high school)

3. Budget Balance4. Decentralization of development through

network of transport and digital infrastructure5. Power and water supply throughout the country6. Decongestion of Metro Manila7. Development of Clark and Subic as the most

competitive service and logistics center in Southeast Asian region

8. Automated elections9. Peace to Mindanao and all insurgency areas 10. Just closure of divisive issues from EDSA 1,2 and

3

1/ Emerging forecast is 6.2 % for 2004. The inflation target for 2 005 has also been revised upwards to 5-6 percent.2/ Preliminary

20042004 20052005 20062006 20072007 20082008 20092009 20102010GDP Growth (%)GDP Growth (%) 4.9-5.8 4.9-5.8

1/1/

5.3-6.35.3-6.3 6.3-7.36.3-7.3 6.5-7.56.5-7.5 6.8-7.86.8-7.8 7.0-8.07.0-8.0 7.0-8.07.0-8.0

Investment-to-GDPInvestment-to-GDP// 20.120.1 20.320.3 21.421.4 22.522.5 24.124.1 25.825.8 27.727.7Exports of goods and Exports of goods and services ($Bn)services ($Bn)

43.143.1 47.447.4 52.352.3 58.258.2 65.465.4 74.374.3 84.384.3

NG Deficit/GDPNG Deficit/GDP (4.2)(4.2) (3.6)(3.6) (2.9)(2.9) (2.0)(2.0) (1.1)(1.1) (0.2)(0.2) 0.00.0CPSD/GDP CPSD/GDP 2/2/ 6.76.7 6.06.0 5.35.3 4.64.6 3.93.9 3.03.0 1.01.0Inflation (%) Inflation (%) 1/1/ 4.0-5.04.0-5.0 4.0-5.04.0-5.0 4.0-5.04.0-5.0 3.0-4.03.0-4.0 3.0-4.03.0-4.0 3.0-4.03.0-4.0 3.0-4.03.0-4.0

THE MACROECONOMYMACROECONOMIC TARGETS

1/ Average of January, April, July 2004 surveys2/ Fighting target is to reduce poverty incidence by half from 28.41% in 2000 (34% based

on population). Poverty incidence targets are based on population growth forecast of 1.93% in 2005-2010and 2.11 in 2000-2005 from 2.34 % in 2000-2005

20042004 20052005 20062006 20072007 20082008 20092009 20102010

Net Job CreationNet Job Creation

(in thousand) (in thousand) 1/1/12401240 1029-1029-12561256 1263-1263-15271527 1380-1380-16691669 1502-1502-18211821 1594-1594-19451945 1695-1695-20812081

AgricultureAgriculture 203203 290-290-331331 298-298-340340 297-297-342342 309-309-355355 321-321-370370 320-320-371371

IndustryIndustry 234234 174-174-212212 249- 249- 291291 265-265-312312 299-299-351351 333-333-391391 366-366-431431

ServicesServices 803803 565-565-713713 717- 717- 896896 818-818-10161016 894-894-11141114 941-941-11841184 1009-1009-12791279

Unemployment Rate Unemployment Rate (%) (%) 1/1/ 12.112.1 11.911.9 11.611.6 11.111.1 10.410.4 9.79.7 8.98.9

Poverty IncidencePoverty Incidence

(% of Families) (% of Families) 2/2/25.6925.69 24.3524.35 22.9322.93 21.6121.61 20.3120.31 19.0419.04 17.8817.88

Subsistence IncidenceSubsistence Incidence 14.9514.95 14.1014.10 13.4213.42 12.8712.87 12.3112.31 11.7611.76 11.3011.30

THE MACROECONOMYTHE MACROECONOMYMACROECONOMIC TARGETSMACROECONOMIC TARGETS

MDGs are also likely to be ahieved with the successful implementation of the Plan.

References :

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