Quiz 1 – Governance of a country’s debt

1. Do you agree with the Philippine government’s strategy of borrowing heavily to finance
the economy’s recovery from COVID 19? Explain.
 I disagree with the Philippine government’s strategy of borrowing heavily to “finance
the economy’s recovery from COVID-19” because of the questionable priorities they
implement which did not have its huge progressive impact on the country’s
economy until to this day.
2. What other options do you think a country has to develop its economy other than
borrowing?
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3. How do you think the governance of a country’s debt can be improved? In the
perspective of politics, since politicians who are in power make decisions on how much
to borrow and the terms of the debt, sometimes they insufficiently consider its long-
term effect to the country’s citizens. Since the ultimate decision maker (the President,
Prime Minister, etc) usually would be in power for a few years whereas the country
continues to pay for its debts for decades.
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4. What lessons do you think the Philippines should learn from the Greece debt crisis to
avoid similar problems?
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5. Increasing sovereign debts are normal especially with the current situation. However,
the adage “we can’t just keep on borrowing” is an ominous reminder from countries
who have defaulted from their debts. If you have the power, what controls would you
put in place in our government, economy, and society to avoid problems that may come
with an unmanageable level of debt? Be creative.
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