This action might not be possible to undo. Are you sure you want to continue?
PUBLIC-PRIVATE PARTNERSHIP CENTER
/ Services / Knowledge Management / PPP in the News / President-elect Duterte’s 8-point economic agenda
President-elect Duterte’s 8-point economic
May 16, 2016 - The Daily Tribune
Now it can be said. President-elect Duterte was swept into the presidency not on the
strength of his economic agenda but on the promise of law and order and the eradication
of the drug menace in the country. He was elected President largely due to his reputation
as a punisher and, at the same time, as a compassionate mayor — in direct contrast to
the slow-moving, inept, and uncaring Aquino administration.
Unsurprisingly, his 8-point economic agenda came rather belatedly. Overall, it is doable
and comprehensive. As stated, I can raise many issues regarding its details, but I expect
that will come after his full economic team is named, and the overall strategy for
managing the reform is revealed.
Below are my random notes on Duterte’s 8-point agenda.
1. Continue and maintain the current macroeconomic policies. However, reforms in tax
revenue collection [within the Bureau of Internal Revenue (BIR) and the Bureau of
Customs (BoC)] the bureaucracy of these tax- collecting agencies.
Uncertain. I don’t know what macroeconomic policies will be continued and maintained. If
it refers to the low interest rates and low inflation rates, then the low interest rates are
more the achievement of the independent Central Bank, not the Aquino administration.
The low inflation rates is more due to the low cost of borrowing money (thanks to the
Global recession) and the sharp fall in oil prices (of which the Aquino administration
deserve no credit).
I disagree that the contractionary fiscal (expenditure-tax) policy should be continued and
maintained. Past and future growth could have been faster had the Aquino administration
allocated and spent more money for public infrastructure. For the last six years, the
outgoing administration has underspent close to a trillion pesos.
I agree that the efforts of the Bureau of Customs have to be stepped up.
Smuggling is at its historic heights.
2. Accelerate infrastructure spending by addressing, among others, major bottlenecks in
the private-public partnership (PPP) program. Maintain the target of setting aside five
percent of the country’s gross domestic products (GDP) to infrastructure spending.
Agree. But public infrastructure spending should not be limited to PPP programs. There
are many capital projects, especially in the countryside, which are not susceptible to
capital-intensive PPP arrangements. For a labor-surplus economy like the Philippines, the
government should put equal emphasis on many small- and medium-sized projects. They
create a lot of jobs and they are faster to implement.
The public infrastructure target of five percent of GDP should just be the beginning. It
should be as high as seven percent by the end of 2022.
the leakage has to be plugged. 6. Strengthen our basic education system and provide scholarship for tertiary education which are relevant to the needs of private sector employees. not minor tinkering. Improve the income tax system to enable those who earn little to have more money in their pockets. and enhancing competitiveness (i. it requires massive public infrastructure investment (farm-to-market roads. high-yielding seeds and investment in research and development. its overhead cost is much too high. The sector is expected to contract by a negative single digit this year. in turn. by creating a parallel organization to administer the program. fertilizer. Agree.. agriculture grew by a measly average of 1.3. it is taking more money from individuals and firms now than before. not on political connection. 7. FDIs. If done.2 percent) last year. . unlike footloose capital or “hot” money. not individual.6 percent and was practically flat (0. They also bring with them new technology which. But for this to happen. improve their market access. titles. would improve the competitiveness of the economy. 5. There are many ways to improve the CCT program. Address the bottlenecks in our land administration and management system. Conditionally agree. 4. Agree. A majority of land owned by agrarian reform beneficiaries is in the nature of collective. Expand and improve implementation of the conditional cash transfer (CCT) program. 8. create jobs — in agriculture manufacturing and services. irrigation facilities including small water impounding projects). agriculture should grow by at least 3 percent every year. Pursue a genuine agricultural development strategy by providing support services to small farmers to increase their productivity. there are many undeserving participants who are in the program. Through inflation. There are many deserving beneficiaries who are outside the program while. Ensure attractiveness of the Philippines to foreign direct investments by addressing restrictive economic provisions in the Constitution and our laws. First. The existing tax structure is close to two decades old. Scholarship should be provided on the basis of academic performance and needs. “ease of doing”) the economy. Under the Aquino administration. Given an annual population growth of about 2 percent. Strengthening the basic education system is also a way of providing better foundation for technical-vocational and college work. The cold reality is that unemployment is highest among college-trained and college graduates. Agree. and develop the agricultural value chain by forging partnership with agribusiness firms. Tax breaks for big firms continue to proliferate.5 neighbors. The World Bank notes that a big chunk of land in the Philippines is untitled. Agree. Second. The Philippine tax system requires a comprehensive overhaul. This implies a mismatch between what the education system produces and what the economy needs. Titling of untitled land should be the focus of the next administration. Agree. The existing income tax system is uncompetitive compared to our Asean. it would bring about much needed capital in the rural areas. at the same time.e.
The 8-point economic program is an excellent start. But the devil is in the details. In the next few days and weeks. and sequencing of reforms. Finally. This new set-up will enhance fiscal responsibility of both national and local officials. Inc. Contact Us . 16 May 2016 By Benjamin Diokno Share this: Facebook Twitter Pinterest LinkedIn Google Tumblr Email PPPC Partners Asian Development Bank (ADB) Association of Southeast Asian Nations (ASEAN) Australia – Department of Foreign Affairs and Trade (DFAT) Global Affairs Canada Japan International Cooperation Agency (JICA) Foundation for Economic Freedom (FEF) Private Sector Partners AMCHAM Philippines Australia Philippines Business Council European Chamber of Commerce of the Philippines Makati Business Club Management Association of the Philippines Philippine Constructors Association. the timing.Third. and will give the latter partial ownership of the program. but the administration of the program would be shared with local authorities. He should identify the men and women who will carry out the program. Here’s an alternative arrangement: DSWD may continue to identify the recipients through scientific survey methods. Mr. were totally shut out of the CCT program. to which social welfare programs have been devolved. he should reveal the strategy for managing the reform process. The unelected Department of Social Welfare and Development (DSWD) officials are lording it over the elected local authorities. Duterte’s team should put flesh and blood to its skeletal 8point framework. local authorities.
gov. Vision and Mission Governing Board What is PPPGB? Legal Framework PPPGB Officers PPPGB Circulars and Issuances PPP Center Officials Organizational Structure Services Project Management and Development Legal Policy Formulation and Advocacy Project Evaluation Project Monitoring Capacity Building Knowledge Management PPP Center Operations Manual Reports Internal Procurement Career Opportunities PROGRAM What is PPP Program Overview Historical Background PPP Processes Legal and Regulatory Frameworks Other Pertinent Laws and Issuances Awards and Citations PROJECTS Pipeline of Projects Projects Database Virtual Data Room PDMF Facility Overview Operating Windows Oversight and Management PDMF Process Projects Panel of Consulting Firms Resources PDMF Opportunities Contact PDMFS SERVICES Project Management and Development Projects Selection Criteria Procurement Process Legal Policy Formulation and Advocacy Policy Briefs and Technical Papers Project Evaluation Project Appraisal and Approval .ph HOME ABOUT PPPC o o Mandate. Trunk Line:(632) 709-4146 Email: info@ppp.
REPUBLIC OF THE PHILIPPINES o Official Gazette o Office of the President o Official Directory . Project Monitoring Past PPP Projects Capacity Building Training Modules Learning Series Knowledge Sharing Series LGU PPP Strategy Local Capacity Building Institutions Internship Program References Knowledge Management Media Releases PPP in the News Multimedia Events Publications Speeches and Presentations INVESTOR’S CORNER Market Snapshot Investment Opportunities Doing Business in the Philippines Generic Preferred Risks Allocation Matrix (GPRAM) CONTACT US FOLLOW US All content is public domain unless otherwise stated.
o Official Calendar EXECUTIVE o Office of the President o Office of the Vice President o National Economic and Development Authority o Department of Agriculture o Department of Education o Department of Finance o Department of Health o Department of Public Works and Highways o Department of Transportation and Communications LEGISLATIVE o Senate of the Philippines o House of Representatives JUDICIARY o Supreme Court o Court of Appeals o Sandiganbayan o Court of Tax Appeals o Judicial Bar and Council .