Managing disaster and controlling the political clans from dominating certain localities are crucial for the region to prosper.

Presidential spokesman Harry Roque yesterday said Malacañang welcomes all inputs, whether positive or negative, that make the debates on the proposed Federal form of government healthy.

Roque was reacting to criticisms from several business groups and some of President Rodrigo Duterte’s own finance managers on what they claimed will be the negative impact of Federalism on the country’s economy.

The business groups on Sunday claimed several provisions in the proposed charter are ambiguous in the division of revenues and expenditures between the regional and federal governments if Federalism pushes through. Representatives of the groups also fear fiscal deficits beyond the projections by the President’s economic managers.

“President Duterte is aware of these discussions and concerns. He said the issues are not insurmountable,” Roque said. “We’re hoping the legislators who will tackle Charter change will also consider the position of the business community.”

Earlier, Finance Secretary Carlos Dominguez, Budget Secretary Benjamin Diokno and Socioeconomic Planning Secretary Ernesto Pernia raised concerns about the economic impact of the draft charter to the country.

“We want these kinds of discussion,” Roque said. “We want people to think deeply about the proposed change in the Constitution and their ramifications. We welcome inputs from all members of society.”

A Consultative Committee (ConCom) member, Prof.Edmund Tayao, however, asked Malacañang to issue a definitive statement for a stronger push for the administration’s Federalism agenda.

“We’re waiting for a categorical statement (from the Palace). We’ll appreciate a statement on how they’d want us to proceed (with Federalism),” Tayao said.

The Department of Interior and Local Government (DILG), meanwhile, said Federalism will end the snail-paced economic developments in far-flung provinces.

A Federal government will bring wider bureaucratic and economic power to the local governments better than the presidential form where limited governmental powers have been devolved to the local government units, the DILG said.

Assistant Secretary Jonathan Malaya, DILG spokesman, argued that “when power is brought down to the region, the regional government will gain enough foothold to streamline development projects and programs to benefit the Eastern Visayas’ economy.”

President Duterte is aware of these discussions and concerns. He said the issues are not insurmountable.

Enough federal power will ensure that the “regional growth will not be hampered by the national government’s bureaucracy,” Malaya, said.

Malaya noted that the economy in Eastern Visayas posted its fastest recorded growth at 12.4 percent in 2016.

But this was stopped in 2017 when its gross regional domestic product slumped to 1.8 percent, far below its 5.2 to 5.7 percent target range indicated in the Eastern Visayas Regional Development Plan 2017-2022, he said.

He explained that the “contraction was due to declines in electricity, gas and water supply, construction and mining and quarrying, all of which dragged down the growth of industries in the region.”

“Eastern Visayas is constantly fraught with disasters that storm through the region, causing backlashes in developments. Another factor hindering the influx of investors is the question of peace and order,” he said, adding: “the region is notorious for political wars suddenly erupting in different areas.”