Think tank urges PHL shift to investment-led economy

POLICY experts from a major think tank urged the administration of President Ferdinand “Bongbong” R. Marcos Jr. to hasten country’s shift to an investmentbased economy.

Prof. Victor Andres Manhit, founder and CEO of the Stratbase group, said the economic consequences of the pandemic needs to be squarely addressed as 77 percent of Filipinos rate themselves as poor from a recent Pulse Asia survey.

“There is enough legal framework to move from a consumptionbased economy to an investment-led growth,” Manhit noted. “But we need sound fiscal management to attract local and foreign investment.”

Stratbase also underscored governance is key to attracting investments and achieving sustainable long-term economic growth after the havoc caused by the pandemic, and the new administration must, first and foremost, address the issues—soaring prices, low wages, poverty, jobs and corruption—that Filipinos deem most crucial in their everyday lives.

Dr. Francisco Magno, Trustee of The Stratbase Institute, said there are many ways for the government to develop integrity—specifically, passing laws such as the E-government

Act, Freedom of Information law, and amendments to the civil service code.

He also said Sustainable Development Goals (SDG) must be localized: “This would involve the creation of smart, inclusive, and resilient local government units that rely on open data and governance innovations that address demand for better public services.”

Cal ix to chi ki am co, president of the Foundation for Economic Freedom, said three sectors need to be given priority: agriculture, forestry and energy, with laws needing amendments to reflect the challenges of the times.

Zy-za Nadine Suzara, Executive Director of the Institute for Leadership, Empowerment, and Democracy, said the country also has to work on increasing the absorptive capacities of agencies in the bureaucracy so that they could implement programs as envisioned.

“Without a strong commitment to good governance and anti-corruption, it will be difficult to achieve expenditure results, fiscal sustainability, and better yet, meaningful development outcomes for our country,” she said.

“Fiscal policy will only benefit society if it is contingent on addressing democratic deficits,” she said, adding civil society must reclaim that space and participate in democratic governance. This way, fiscal policy will benefit not just the elite and the politicians but various sectors of society as well.

Meanwhile, Dr. Ronald Mendoza, former Dean of the Ateneo School of Government, said the Marcos administration must put a great balancing act of its priorities to lift the country out of the economic doldrums.

Nevertheless, Mendoza saw some good signs during the recent State of the Nation Address (SONA) of Marcos, like the Land Use Law and increased efficiency in the public sector, but there was also a signal of increased spending, and higher investments in other areas.

“What that will result in, likely, is a challenge for balancing priorities as well as a drive to improve governance, particularly in tax collection as well as in spending efficiency, lessening leakages, and focusing spending on key areas,” he said.

Dr. Julio C. Teehankee, Full Professor of Political Science and International Studies and Former Dean of the College of Liberal Arts, De La Salle University, proposed that the Marcos administration begin “minimal practicable results, working up to the more complex and widespread changes.”

Specifically, Teehankee said, the administration should revisit the notion of political parties, the conduct of elections, and ultimately and if done correctly, a change in the constitution.

Dr. Imelda Deinla, convenor of Boses Pilipinas, showed the Philippines’s dismal performance in the World Justice Project, where it ranks 102nd out of 139 globally, 13th out of 15 regionally. For her, Filipinos should check its executive, because not doing so can lead to impunity, violence, and a lack of accountability.

Stratbase Trustee and former International Criminal Court Judge Raul Pangalangan said many of Marcos’s proposed reforms might require constitutional change.

“Once again we might see a constitutional change attempt as a mechanism to lift term limits or otherwise pave the way for the continuation of the incumbent in power,” Pangalangan said.