Press Release
December 2, 2007

Angara realigns DTI budget to promote DOMESTIC, RURAL DEV'PT

"Let's now focus on rural, rather then urban development."

This is what Senator Edgardo Angara said when he realigned the budget of the Department of Trade and Industry (DTI) to focus the department's priorities towards promoting rural and domestic economy in the country.

In this light, Senator Angara has made three major realignments to the DTI's budget, namely, (1) redirecting funding from trade and industry promotion to domestic small and medium scale industries, especially to the rural sector; (2) readjusting the budget away from promoting foreign trade towards promoting domestic industries; and (2) creating an interim office for a Philippine Trade Commissioner.

"With these major realignments, we hope that the DTI now focus its attention and resources on encouraging domestic growth and investments," said Senator Angara, chair of the Senate Subcommittee C on Finance that handles the DTI budget.

According to Senator Angara, developing the domestic economy, especially the rural sector, "is the true mandate of the DTI�If we focus our assistance towards developing the rural economy, then we wouldn't need so much foreign investments. This in turn will make us less hostage from the volatility of the foreign markets," said Senator Angara.

"This assumption has recently been supported by no less than the World Bank, which has acknowledged its fault in neglecting the countryside and agricultural development when giving out aids. Now the bank has realized that assisting countryside development is more effective in poverty reduction, both in terms of impact to poverty alleviation and in terms of cost," said Senator Angara.

Taskforce rural industries

Senator Angara, together with the DTI has formed and identified the budget for the taskforce on technical assistance to rural industries. Composed of various attached agencies under the DTI and with the DTI as the lead agency, this taskforce shall develop and empower the Small and Medium Scale entrepreneurs in the rural areas by providing them with assistance, such as educational and technical assistance.

"The taskforce aims to inject a sense of ownership to the local government units, who have first been wary of expanding domestic industries in their area. It will help the LGUs manage the SMEs themselves," explained Senator Angara.

A strong advocate of rural and agricultural development in the country, Senator Angara believes that reprioritizing the DTI towards rural growth will help more Filipinos.

"Agriculture alone employs 40% of our workforce and contributes to 15% of our Gross Domestic Product," said Senator Angara.

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