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40 Years of the modernization of the Philippine economy

THIRTY HAVE PASSED

Enrique Aboitiz Mendieta

Under the supervision of Romy Bernardo

I add this reference to Romy not to praise him but to enhance my credibility as an amalgamator of information and thoughts. This is not complete. Its intent is directional.

 

THE NEXT TEN YEARS WILL MAKE ALL THE DIFFERENCE IN THE WORLD BECAUSE OF ITS EXPONENTIAL NATURE AND OPPORTUNITIES BRING US TOWARD A TRILLION DOLLAR ECONOMY AND OUT OF POVERTY.

IN TEN YEARS, WE CAN BE A COUNTRY AND AN ECONOMY THAT REALLY MATTERS.

STRUCTURAL CHANGE – THE CHANGES NECESSARY TO HELP MARKETS WORK MORE EFFICIENTLY WITH THE GOAL OF CREATING JOBS THROUGH INVESTMENT AND GROWTH.

CHANGES TO THE WAY GOVERNMENTS WORK, BUT WITH A SENSE OF PERMANENCY AND DIFFICULT TO REVERSE.

 

PRESIDENT CORAZON AQUINO 

  • Structural – Neutral: Restoration of Democracy, which is the least worst form government. We would not have it any other way.
  • Structural – Negative: A Constitution that cannot realistically be amended because it cannot be amended as a whole. In a world of continuous change, it is a fixed constitution. Those that formed the constitution had very little understanding of the future.
  • Structural – Negative: A Constitution that was anti-poor as it did not allow the cosmopolitanization of our economy by hoarding certain activities for Filipino citizens. Not allowing land to be sold to foreigners keeps local citizens from releasing the value of their land for other activities. That which is anti-tourism is anti-jobs and, therefore, anti-poor. The same goes for retail – we prevent the best retailers in the world from doing business here. The same also goes for mining – the best miners in the world are not Filipinos.
  • Structural – Negative: CARP – Our agrarian reform is anti-agriculture and anti-poor. Agricultural property was the source of wealth in the 1800s. Today, agriculture needs intelligence and capital to thrive. We have damaged our coconut industry, weakened our sugar and rice industries, and kept our people on the land with policies that were not clearly thought through, instead of going to the cities and into industry with policies that were not clearly though through. We see through the years that it kept being extended, causing uncertainty in land ownership, which in turn served as an impediment to mobilizing investments in the agriculture sector. Without collateral, credit became more difficult and more expensive.
  • Structural – Positive: The beginning of privatization of power and ports.
  • Structural – Positive: Introduced VAT to broaden the tax base. It is a faulty VAT, but it is a start.
  • Structural – Positive: Introduced Wage Boards that lifted pressure for a national minimum wage.
  • Structural – Positive: Beginnings of trade and foreign exchange liberalization, which was fully implemented by FVR.

 

PRESIDENT FIDEL RAMOS 

  • Structural – Positive: Full implementation of trade and foreign exchange liberalization .
  • Structural – Positive: Continued privatization of telecom, bases, power and expressways, MRT 2, Water/MWSS, PAL, Petron, PNB, National Steel, PASAR, PhilPhos, and national shipping.
  • Structural – Positive: Oil deregulation.
  • Structural – Positive: PEZA Zones were introduced.
  • Structural – Negative: Ruling against reclamation.

 

PRESIDENT JOSEPH ESTRADA

  •  Structural – Positive: Introduced small-town lottery?????

 

PRESIDENT GLORIA MACAPAGAL

  • Structural – Positive: Removal of national power subsidies.
  • Structural – Positive: Expanded VAT, reducing deficit by 2% of GDP.
  • Structural – Positive: Privatization of most NPC and Transco.
  • Structural – Positive: Start of privatization of PAGCOR through the establishment of Entertainment City.
  • Structural – Positive: Strong Republic Nautical Highway & Skyway 2, Subic expressway, and TPLEX.
  • Structural – Positive: Started CCT.

 

PRESIDENT BENIGNO AQUINO III

  • Structural – Positive: Privatization of Mactan Airport, LRT 1, Daang Hari, Calax, Skyway 3, NAIAX, and the signing of the sin tax into law.
  • Structural – Negative: Serious weakening of the institutions – AMLA and the Supreme Court – by very serious abuses of power.
  • Structural – Positive: Expanded CCT to a national level.
  • Structural – Positive: Connector Road awarding started.

 

PRESIDENT RODRIGO DUTERTE

  • Structural – Positive: Connector Road awarding completed
  • WHAT HE MUST DO:
    • FIND A WAY TO AMEND THE ECONOMIC PORTIONS OF THE CONSTITUTION WITHOUT OPENING IT UP.
    • ELIMINATE CARP AND SHUT DOWN DAR AND NFA.
    • FREE UP RICE TRADING.
  • WHAT HE MUST DO:
    • Tax Reform – for Infrastructure – and to increase infrastructure from under 3% historically to 5%, and then to 7% of GDP by 2022.
    • New NAIA – Privatize or G2G – for tourism
    • Airports of South – Privatize – for tourism
    • Clark Terminal – for tourism
    • Transco Mindanao-Visayas Connection – 1 Grid
    • Bridge 3 Mactan to address Cebu traffic
    • Extend SLEX towards Bicol – for long-term logistics
    • C6 to address Manila traffic
    • C5 Skyway to alleviate Manila traffic
    • Establish a national I.D. system for efficiency in providing public service and public support without leakages, including CCT, healthcare and tax exemptions. It is infrastructure needed to accelerate inclusion.
    • HOW DO WE FIX OUR COURT SYSTEM SO THAT WE HAVE PROPER RULE OF LAW?
    • National Power Privatization – Complete it
    • NGC – Adjust the functions to ensure that it invests where it should, that it does not favor related parties, and that it provides the necessary reserve power.

At the end of 2022, we will see what has been achieved.