Angelina S.

Lao BSSW 1-1 Purposive Communication 19 November 2021

Quandary: Reopen the economy or stay this way?

The Philippines had a steadily growing economy before the pandemic. Measures
prolonged by the government to fight COVID-19 caused the gross domestic product to
shrink by 9.6 percent last year, according to the Philippine Statistics Authority.
The country's unemployment rate surged to a record level during the height of a total
lockdown in April 2020. We incurred losses amounting to ₱4.3 trillion also last year, the
National Economic and Development Authority said. That amount is so immense it can
fund the operation of the government for a whole year. These numbers paint a state of
the economy never seen before. This saw lawmakers look for measures to sustain
the Philippines' recovery. Once again, members of Congress thought of charter
change – this time seeking to remove restrictive economic provisions from
the Constitution. They believe this "is critical to support our economy's recovery from
COVID-19." Where do we go from here?

In so far as this 'economic cha-cha' is concerned, I am for it. To begin with, the
Foundation for Economic Freedom is for the move. FEF is a public advocacy organization
composed of both current and former government officials, which signifies that there were
plans long ago to do such undertaking and that the pandemic is not taken advantage of
for such thing to prosper and happen. The need for the country to have an 'investment-
led growth' has greatly increased as consumption is down due to COVID-19, FEF added.
This is evidenced by a decline in Household Final Consumption Expenditure for three
consecutive quarters last year. Second, resigned Socioeconomic Planning Secretary
Ernesto Pernia said opening the economy for foreign participation is crucial to regional
and global competitiveness. This is manifested in the downtrend of the Government
Efficiency Ranking for the past four years. The GEF evaluates how encouraging public
policies are for competitiveness. To put context, Marikina 2nd district Representative
Stella Quimbo pointed to International Monetary Fund data saying Vietnam is seen to
surpass us in terms of GDP per capita. Third and lastly, reopening the Philippines to
foreign investments through charter change like this can help accelerate and ensure
recovery from the COVID-19 pandemic. In fact, there have already been figures of what
can we expect once the country succeeds in this constitutional amendment. Albay 2nd
district Representative Joey Salceda said foreign direct investments may increase by
₱330 billion on average per annum. The Philippine GDP may rise by 1.8 percent on top
of its annual growth as well. Above all, an average of 660,897 new jobs per year may be
available for Filipinos, especially those displaced during this economic downturn.

The Philippines remains in uncertainty as the economy has to return to its pre-
pandemic level yet. And a factor that leaves recovery in limbo is the Constitution's
restrictive economic provisions. Unemployment, albeit reduced is still elevated at
8.9 percent as of September 2021. The government's economic managers no longer
expect the country to grow at a rate they initially estimated this year. Having said this, we
live in a quandary – should we reopen the economy, or stay this way until things get better
on their own? Given the numbers and information I inserted herein, I think we should
reopen and not stay this way pretending to be okay. The economy dictates the overall
health of a nation and its condition collectively affects us, regardless of status or wealth.
It's true the pandemic may soon be over but concerns on restrictive provisions of
the Constitution will continue to haunt us, hence the repeated attempts to do charter
change.

References:

PSA Releases Annual Revisions of the National Accounts of the Philippines. Philippine
Statistics Authority. https://psa.gov.ph/content/psa-releases-annual-revisions-national-
accounts-
philippines?fbclid=IwAR3QdyH1_x8uI8kXoDPSlQI4PzrBFHufTaKR5nr23xO0feUo-
TEEs4P-XPQ

Valencia, C. (2020, June 6). Amid ECQ, jobless rate hits record 17.7%. The Philippine
STAR. https://www.philstar.com/headlines/2020/06/06/2018952/amid-ecq-jobless-rate-
hits-record-
177?fbclid=IwAR1jRoPlWO4qu5B49M1rjS8E70MyCb5qSVskVD_IabUYYDZNRpkDrAY
6gAM

COVID-19 PANDEMIC TO COST PHP 41.4 T FOR THE NEXT 40 YEARS – NEDA.
National Economic and Development Authority. https://neda.gov.ph/covid-19-pandemic-
to-cost-php-41-4-t-for-the-next-40-years-
neda/?fbclid=IwAR3RBUmylijFAgMf5tuqSo7igOxoFKzrHKhW8x9WcOcFEU02XFSpX1
3WR84

Atienza, K. A. (2021, January 11). House prioritizes economic ‘Cha-cha’. BusinessWorld.

https://www.bworldonline.com/house-prioritizes-economic-cha-
cha/?fbclid=IwAR3bSiPPb4PZyKGSu7xUaIUEZFHtpPp2Q4szvFZupVUDwYlOzkPmSv
xZ__A

Magkilat, B. (2021, January 8). FEF supports changes in economic provisions of

Constitution but …. Manila Bulletin. https://mb.com.ph/2021/01/08/fef-supports-changes-
in-economic-provisions-of-constitution-
but/?fbclid=IwAR3tP1mz5xk_sNOHesrbpoh3Ts59gYG7gjjlY6hSeJVQV0sXl9lbqMrvqjI

GDP growth rate drops by 16.5 percent in the second quarter of 2020; the lowest starting
1981 series. Philippine Statistics Authority. https://psa.gov.ph/content/gdp-growth-rate-
drops-165-percent-second-quarter-2020-lowest-starting-1981-series

The Philippines records a GDP growth rate of -11.5 percent in the third quarter of 2020.
Philippine Statistics Authority. https://psa.gov.ph/content/philippines-records-gdp-growth-
rate-115-percent-third-quarter-2020

Philippine GDP posts -8.3 percent in the fourth Quarter 2020; -9.5 percent for full-year
2020. Philippine Statistics Authority. https://psa.gov.ph/content/philippine-gdp-posts-83-
percent-fourth-quarter-2020-95-percent-full-year-2020

Lawmakers, experts split over economic Cha-cha in House debate. CNN Philippines.
https://cnnphilippines.com/news/2021/1/13/congressmen-experts-constitution-
economic-provisions-debate.html?fbclid=IwAR2ANB15MF2ijdaiK4_6LfewHD3aropsB-
yfE55J7f1mbwMRQKCkKw_PuYM
FF2021-44: PERFORMANCE OF THE PHILIPPINES IN THE 2021 WORLD
COMPETITIVENESS YEARBOOK. Congressional Policy and Budget Research
Department. https://cpbrd.congress.gov.ph/2012-06-30-13-06-51/2012-06-30-13-36-
50/1343-ff2021-44-performance-of-the-philippines-in-the-2021-world-competitiveness-
yearbook?fbclid=IwAR1vRuXbpW9l1_qzOlWymjQoJZVQSEts-
8b6fGE8VYsY1BqNNBmX0opv_m8

Dela Cruz, J. M. (2021, February 18). Shall we dance? It’s Cha-cha time again, but is
Constitution just a fall guy for failure?. BusinessMirror.
https://businessmirror.com.ph/2021/02/18/shall-we-dance-its-cha-cha-time-again-but-is-
constitution-just-a-fall-guy-for-failure/?fbclid=IwAR1bVwxNU-
YSfNwSMc49xmwEIzwRj2NV8fy2D-mY09aX6VJq8bHQCyusQ3E

Unemployment Rate in September 2021 is Estimated at 8.9 Percent. Philippine Statistics

Authority. https://psa.gov.ph/content/unemployment-rate-september-2021-estimated-89-
percent

Rosales, E. F. (2021, August 19). Government cuts growth target on heightened virus
risks. The Philippine STAR.
https://www.philstar.com/business/2021/08/19/2120948/government-cuts-growth-target-
heightened-virus-risks