Why economic centralism is bad for economic development

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Since its inception in 2011, the EDD has accounted for only P40.4 billion (R55.8 billion) or 53% of government procurement, a far cry from the government procurement needed to create vibrant local production and manufacturing industries. Picture: iStock
Since its inception in 2011, the EDD has accounted for only P40.4 billion (R55.8 billion) or 53% of government procurement, a far cry from the government procurement needed to create vibrant local production and manufacturing industries. Picture: iStock

VOICES

The government’s purchasing power is, of course, huge because of a relatively small and largely undiversified economy. The latest figures show that the government continues to be the single biggest buyer in the domestic economy, followed by the mining industry.

As commendable as trying to support the operations of local producers and manufacturers and reducing the import bill in the process may be, the answer whether the EDD will prove to be the best way to support the growth of local producers and manufacturers and ensure they play a role in economic diversification is debatable.

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