A credibility crisis?

AT this time of the year, at the onset of what has been called the longest Christmas season in the world, Filipino consumers would usually be brimming with optimism, regardless of their economic circumstances.

A consumer survey taken in August, however, showed consumers turning pessimistic about their lives.

According to the survey, the overall consumer confidence index fell to negative territory, or (-) 7.1 percent, during the third quarter after eight consecutive quarters of positive sentiment.

The culprit for this pessimism? Rising prices. Survey respondents attributed their pessimism to expectations of further increases in the prices of basic commodities and increased household expenses without any commensurate increase in pay or income.

Consumer optimism for October to December also dropped to 3.8 percent from 8.7 percent. They are also less hopeful about 2019, with optimism falling by half, to 13 percent from 23.1 percent.

“Similar to the current quarter, respondents cited expectations of higher prices of goods, low salary or income, and the rise in expenditures as reasons for their less upbeat outlook for the near term and the year ahead,” the survey said.

If this were any ordinary survey taken by a private survey firm, Malacañang and its supporters would be raising a ruckus over bias, misleading questions, and even the falsity of the results.

But this survey was taken by the Bangko Sentral ng Pilipinas (BSP).

The BSP has been regularly monitoring consumer outlook using three indicators – the country’s economic situation, the family’s financial situation, and the family’s income. According to the BSP, consumer confidence declined across these three indicators.

Anyone who goes to the public market or the supermarket will attest to the astronomical leap in prices of basic goods, primarily vegetables, fish, and rice. These are common staples on an average Filipino family’s table.

One cannot ignore the people lining up for cheap NFA rice, more so the frustrated look in their faces when told they can only buy three or five kilos. If memory serves, the last time we had long lines for rice was during the Marcos regime.

But if you read the statements of senior government officials, there is no reason to panic. Everything is just fine.

In a nutshell, these officials have assured us that the spikes in prices are a mere “hiccup.” Prices are rising because Filipinos now have more disposable income as a result of tax reforms, thus higher demand. There is no shortage of affordable rice, we have tons of rice arriving. As some observers noted, it seems that some government officials are out of touch with reality. These statements also gloss over the inefficiency and incompetence of some government officials.

The National Food Authority (NFA) is a case in point.

The mismanagement of the agency is so glaring and revolting, yet the current head is not being held accountable because of his supposed closeness – according to some observers – to some ranking officials.

Aside from accountability, something has to be corrected in government’s handling of the public uproar over high prices. It needs to be more transparent and upfront with the public. Otherwise, government would eventually face a bigger crisis: a crisis of credibility.

When government is seen as insensitive to the plight of the poor, when spin replaces hard policy decisions, when incompetent and inefficient political appointees are not even given a slap on the wrist, then one cannot begrudge the public if they become pessimistic about their lives and disenchanted with government.

Some government officials promised two years ago to make the country selfsufficient in rice within two years. They need to explain why commercial rice is so expensive and NFA rice scarce. Government pledged to improve the lives of the people, yet food prices are rising. The public wants to know why. And the answers must be direct, not evasive. They must be honest answers.

There is nothing wrong in admitting that a problem exists, or saying that mistakes have been made. The public will appreciate the honesty. They would even be more appreciative if corrective measures are implemented and accountability is enforced.

Administrators must also trust that the public will be willing to do its share in addressing a national problem. They can always appeal to the public’s sense of civic duty. All that is needed is honesty.

But the first step in solving a problem is acknowledging the existence of a problem. When government even refuses to admit that a problem exists, we are reminded of the popular phrase: “Houston, we have a problem.”