Philippines on debt row

There’s no such thing as a “whole-of-society” approach in addressing large societal problems. At best, only developed societies or economies have the enabling environment for such a thing to flourish; certainly, never a case in the Philippines.
What explains this is the fact that the government has only two of main functions, namely: 1) as a guardian or 2) as a spender. Again, by every indicator, the bureaucracy is less a guardian and more a spender. The remaining years of the administration will bear this out.
The notion of a “king’s largesse” seems pretty ingrained in the bureaucratic culture across administrations. Nothing on the political horizon tells us that the incumbent leadership will do away with downloading financial assistance to indigents or marginalized sectors of society in terms of safety nets.
When would we realize that all these dole-outs or 4Ps (Pantawid Pamilyang Pilipino Program) hardly moved the needle in government’s national poverty reduction strategy more than they encouraged mendicancy? It’s probably time for someone to throw in the monkey wrench.
Or is this what the phrase “all politics is local” really means? So much of public funds has been allocated for a “list of beneficiaries” one has probably never seen, yet the program continues to be on the table, never mind its hemorrhagic effect on the national budget.
In many ways, the umbilical cord of political patronage is never meant to be cut. In the matter of the state pensions of military and uniformed personnel that was doubled — courtesy of then President Rodrigo Duterte in a quid pro quo — not even the incumbent FM Jr. has thought of changing the rules of the game.
How about the amounts the government shells out for “right-of-way acquisitions” (i.e., Republic Act 10752) for big-ticket infrastructure projects? To think that this has become the condition sine qua non for private sector participation at no cost on its part escapes comprehension.
As reported, the government allocated the equivalent of $167 billion for its budget for 2017-2022 alone. Were all the funds spent in accordance with agreed project timetables?
The Philippines is on debt row, albeit not yet caught in a debt trap, according to topnotch economists.
How well can a government manage a total external debt of $117.9 billion as of end-June 2023, although down by $894 million (or 0.8 percent) from the $118.8 billion as of end-March 2023?
On the other end, the government does nothing but ease the burden on its vaunted partner in national development, namely, the private sector. For instance, the corporate income tax rate will be gradually reduced to 20 percent by 2027. The minimum paid-up capital requirement for foreign retail enterprises has been reduced from US$2.5 million to US$500,000, making it easier for foreign retail companies to engage in the sector.
It also allowed international investors, for the first time, to set up and fully own domestic enterprises (including micro and small enterprises) in the Philippines. Hence, foreign nationals can own an MSME with a minimum paid-up capital of US$100,000 under set conditions.
There’s a continuing stream of enactments coming out of the legislative mill for a legislature that is thought to be a rubber stamp of the executive branch. However, in the face of all these efforts to open up the economy to international investors and foreign direct investments, there remains one overarching concern, viz., corruption and cronyism as a watch point for investors doing business.
Of late, a rehabilitation contract worth P170 billion for the Ninoy Aquino International Airport awaits the winning bidder. It bears watching whether promises are meant to be broken in this significantly huge infrastructure spending.
There is always an attendant evil, if we may call it that, in government having to privatize an international gateway as crucial as NAIA if the benefits sought to be achieved fizzle out.
