IMPACTS OF DUTERTES ECONOMIC AGENDA ON PHILIPPINE FOREIGN POLICY

Submitted by: Emmanuel J. Bacud & Genuine Antique, BA POLITICAL SCIENCE IV

Davao City (CNN Philippines) A former agriculture secretary and close friend of presumptive president Rodrigo Duterte on
Thursday (May 12) disclosed the 8-point economic agenda of the incoming administration. In a press briefing in Davao City, Carlos
Dominguez, who is being eyed as the Finance secretary in Duterte's Cabinet, said the economic agenda is wide-ranging from tax
reforms to accelerating infrastructure building to support services for farmers and attracting foreign investments by reducing crime.
He said that while the target economic growth rate is still to be set, the economic agenda is aimed at boosting growth through the
following:

1. Continue and maintain the current macroeconomic policies. Reforms in tax revenue collection efforts
will be complemented by reforms within the bureaucracy of tax collecting agencies.

2. Accelerate spending on infrastructure by addressing major bottlenecks, and maintain the target of
setting aside 5% of the country's gross domestic product (GDP) to infrastructure spending.

3. Ensure attractiveness of the Philippines to foreign investors, and enhancing competitiveness in doing
business in the country. This also means reducing crime to attract investors, and increase security of
businessmen and consumers.

4. Provide support services to small farmers to increase productivity and improve market access. Provide
irrigation and better support services to farmers. Promote tourism in the rural areas.

5. Address bottlenecks in our land administration and management system.

6. Strengthen basic education system, and provide scholarships for tertiary education, which are
relevant to private employers' needs.

7. Improve tax system by indexing tax collection to inflation rate, "to enable those who earn a little to
have more in their pockets."

8. Expand and improve implementation of the conditional cash transfer (CCT) program.

Dominguez said most items on their agenda include the elimination of corruption in accordance with Duterte's election
campaign promise. Duterte's administration will be "vigorous" in prosecuting people who engage in corrupt practices, he said.

ANALYSIS:

The 8-point economic agenda formulated by the transition team of presumptive president Rodrigo Duterte showed a high
manifestation of Consensus-Oriented Foreign Policy. Though Dutertes administration may be perceived as an IRON FIST, the
foreign policies most especially the economic policies to be imposed by his administration are adhering to the
liberal-internationalist orientation- that is being friendly to foreign investors and to boost the GDP at least 5% annually. Dutertee
administration will also implement tax reforms in the country by reducing the income tax to enable citizens to obtain more
earnings in their pocket. This tax reform scheme is obviously leaning to the presence of a more welfarist state (i.e. An ideal liberal
democratic state). Moreover, Dutertes administration will tend to liberalize market access of the small-scale farmers in the
international markets by providing better support services such as irrigation and technological assistance.

Basing also to the 8-point economic agenda, Dutertes administration will also continue the government efforts to subsidize
citizens in the poverty line by continuing the implementation of Condit ional Cash Transfer Program. This scheme will also aid the
acceleration of capital flow within the national economy since the cit izens can acquire at least minimum purchasing power for the
provision of basic needs such as food, clothing, education and medicine.
Submitted to: Dr. Buddy M. Castillo

Faculty-in-charge

Political Science 35 (2:30-3:30 MWF)