Debt, ROWA, China

Since large societal issues began to rise to the surface, it might require from the leadership undivided attention. All the purely ceremonial activities that have preoccupied the President in recent weeks probably have little bearing on solving, for example, three central concerns, viz., 1) the ballooning debt service; 2) right-of-way issues; 3) negative externalities of a rising China.

One of the cardinal rules of budgeting is for government to promote its socio-economic objectives based on a yearly financial plan. How well government has managed its fiscal resources vis-a-vis local borrowings and external obligations for this year alone is one for Ripley’s Believe It or Not. Worse, the leadership has no other recourse but to incur more debt if only to bridge the budget deficit.

For another, it makes one wonder whether indeed the private sector is the true engine of growth in the country. Take the case of right-of-way issues that confront the government, going from bad to worse, that otherwise allow private project proponents to shy away. And the policy logic is simply that the latter have no obligation to initiate a fiscal pathway that would avoid delays in the infrastructure work chart. 

It seems that the President has a penchant for signing executive orders and administrative orders, as the case may be. Signed on 25 March, Administrative Order 19 mandates an inter-agency committee to streamline ROWAs (right-of-way acquisitions). How many funded mandates consisting of road projects were effectively stalled due to ROW issues? The think-tank Congressional Policy and Budget Research Department went as far as to propose the creation of a Special Court to expedite expropriation cases.

Officialdom has made great strides portraying the case of a rising China in an entirely different light. There’s no doubt that mainstream media is made an effective tool to drum up support for the narrative that the administration peddles to the viewing universe. 

Perhaps, to disabuse our minds, we can take stock of the fact that China’s rise in the 21st century is centered on global governance through institutional reform and institution building precisely to advance norms or principles that ensure prosperity and equality among nations. 

By the manner the Philippine government reacts to whatever is happening when a government contingent approaches the BRP Sierra Madre is axiomatic of the Philippines not adhering to China’s multilateral institutions (i.e., Belt and Road Initiative, Asian Infrastructure Investment Bank, etc.) nor could it consider itself one of like-minded nations in China’s global governance strategy.

To embrace US hegemony in the new world order isn’t the best of options, either. On the other hand, neither does China’s active role in transforming the global geography consistent with Chinese national interests present a preferential option. Scholars consider multilateral institutions as effective means to tip the global power balance in China’s favor. This probably explains what Organski (1968) considers a “revisionist challenge to the existing US-led liberal order.”

To side with a longtime ally, namely, the US, is preponderantly a case of path dependence, as if there cannot be any other choice on the menu of major power dynamics. In other words, are we putting revered principles of maritime boundaries and resources, territorial integrity and sovereignty, national defense and security in the same box?

There’s something about China’s articulation of “reforming the global governance structure and supply its governance deficits” (Li, 2019). For instance, China’s Belt and Road Initiative dovetails with China’s grand goal of building a “Community of Shared Future” which simply means a common development in the world. So, how bad is that?

It has become a familiar scene for ships and aircraft from major powers — waterborne and airborne — to sail and fly over the disputed West Philippine Sea in the mistaken belief that this will scare China and frustrate its role in this major power competition. 

Indeed, there are existing global governance deficits that China is in the best position to supply than any other power. Is China’s rise offensive?