Ayuda republic?

SUCCESSFUL nations are built around three core drivers: economic growth, social development and political stability. Further, other key factors contribute to its success: strong institutions, education and human capital, innovation and entrepreneurship, natural resources, infrastructure, political stability, and openness to trade.

Coming from Covid, it has always been said that we cannot go back to business as usual; hence, we needed a plan, and we needed to roll out and pursue the same without much hiccup. Alas, the past 19 months have been neither here nor there. The issue now is to pursue constitutional change, a diversion to our economic woes. Unfortunately, the mode being pursued, a people’s initiative (PI), treats Filipinos as stupid that they need to be bought in order to sign on to PI. Just like elections where vote buying has been rampant every cycle, the people are being treated like herds that can be bought for a fee to obtain the required 3 percent signatures per district.

We talk of FDIs as if that is the solution. Whatever happened to the price of electricity? We cannot attract investors when we have the most expensive power in Asean. Our electricity prices “stood at P9.86 per kilowatt-hour (kWh), while Singapore is at P10.15/kWh. Meanwhile, Malaysia has the lowest price in the region at P1.42/ kWh.” How about opportunities? When a million Filipinos leave the country, per the International Labor Organization (ILO), opportunities are more seen outside the country. What is the post-Covid economic plan? We have Ambisyon 2040, but what are the elements to reach Ambisyon 2040?

Is the Philippines a welfare state then, post-Covid? A welfare state is where a state plays a key role in the protection and promotion of the economic and social well-being of its citizens. It is based on the principles of equality or opportunity, equitable distribution of wealth, and public responsibility for those unable to avail themselves of the minimal provisions for a good life. A welfare state typically includes provisions for universal healthcare, education, provisions for the elderly, unemployment insurance, and other social security benefits. The aim of the state is supposedly to create more economic equality and ensure a basic standard of living for all citizens, often through redistributive taxation and various social services.

Per data from the Philippine Statistics Authority (PSA), based on the Family Income and Expenditure Survey (FIES) in 2021, “poverty incidence among population, defined as the proportion of Filipinos whose per capita income cannot sufficiently meet the individual basic food and non-food needs, was recorded at 18.1 percent. This translates to around 19.99 million Filipinos who lived below the poverty threshold of about P12,030 per month for a family of five. The subsistence incidence, defined as the proportion of Filipinos whose income is not enough to meet even just basic food needs, slightly increased to 5.9 percent in 2021. It was estimated that a family of five needs at least P8,379 per month to meet their basic food requirements.” Among families, around “3.50 million families, or 13.2 percent, were considered poor in 2021. On the other hand, the subsistence incidence among families was observed at 3.9 percent, which is equivalent to 1.04 million poor families below the food poverty line.” Clearly, the focus of government should be on the 19.99 million poor and the cost of living which impacts the subsistence incidence.

At the onset of the pandemic, cost became a key concern as governments remained uncertain if they could afford funding to cover all vulnerable households in the country. The Philippine government was quick to enact the “Bayanihan to Heal As One Act” in March 2020 as a measure to reallocate, realign and reprogram national budgets toward health and social protection. A total of nearly P200 billion ($3.9 billion) was allocated to the social welfare department for the provision of ayuda. However, several distribution issues marred the program. What is actually the state of the lists of these three ayuda?

Under GAA 2023, there was the continuation of the Pantawid Pamilyang Pilipino Program (4Ps), a pro

gram that started under President Arroyo and was institutionalized under President Aquino 3rd. Then, medical assistance for the poor, a free ride program, scholarships for students, subsidies for drivers and operators, and cash assistance for the farmers and fishermen. Assistance to Individuals in Crisis Situation (AICS), Tulong Panghanapbuhay sa Ating Disadvantaged/ Displaced Workers (Tupad), and Medical Assistance to Indigent and Financially-Incapacitated Patients (MAIP) are now the names being bandied about on ayuda. Three agencies administer these funds: DSWD, DoLE and DoH.

Then, under GAA 2024, another fund has been added — P60 billion for the Ayuda sa Kapos ang Kita (AKAP), which will provide a one-time P5,000 cash payment to 12 million poor and low-income households, and P30 billion for Tupad plus P23 billion for the Assistance to Individuals in Crisis Situation (AICS). The subsidies are on top of the P112.8 billion earmarked to pay for the cash transfers to 4.4 million households under the Pantawid Pamilyang Pilipino Program, or 4Ps.

With all the ayuda, why is poverty increasing from 16.7 percent in 2018 to 18.1 percent in 2021? Imagine if all these ayuda are put together to serve the purpose of helping out MSMEs. Of 1,109,684 total businesses in the country, 99.59 percent (1,105,143) of business establishments are MSMEs.

Apart from the cost of electricity, government should look at the purchasing power of the peso. As of 2023, the purchasing power for all income households was at 0.87 centavos, while for the bottom 30 percent, it was at 0.86 centavos. If the state deals with purchasing power, then it should also look at minimum wage.

The most important point is for government to deal with corruption, which this administration’s initiative showed to all. Then, get Congress to liquidate their funds not by certification and finally rein in greed that has crept into doing business in the country. Let’s create more opportunities for Filipinos than those already with enormous powers.