Greed, failures feed pain

Greed, failures feed pain | Daily Tribune

It was largely the result of President Ferdinand Marcos Jr. not taking seriously the problems that cropped up due to the ongoing Middle East crisis, according to economist and Ibon Foundation executive director Sonny Africa, when he guested on yesterday’s Straight Talk online show.

Marcos declared a state of national energy emergency, but has so far failed to take the strong steps that the emergency powers allow.

He has not cut oil taxes, imposed a price freeze, or taken direct control of pricing to shield consumers. The mismanagement reveals a deeper problem: The absence of a serious industrial policy and a continued faith in liberalization, privatization and deregulation, all of which are outdated in the face of current realities.

Other nations acted faster. Vietnam, Cambodia and others suspended fuel taxes in March to blunt the impact of global price spikes. The Philippines did not.

The direct impact of the lack of a resolute policy is April inflation was at 7.2 percent, hundreds of thousands of jobs were lost between February and March, and economic growth slowed even more.

The millions of poor households, already vulnerable, are hit the hardest. Some of the middle class are sliding backward, which Africa estimated at two million Filipinos falling into poverty.

When prices rise without relief, the pain is real and immediate. Over the longer term, the failure runs deeper.

For decades, the country has pinned its hopes on foreign investments and open markets to drive development.

Record inflows of over $100 billion last year were directed mostly at manufacturing. Yet the manufacturing sector has shrunk to its smallest size in 80 years, which is not surprising.

Africa said that much of such investment was confined to special economic zones to take advantage of the cheap labor, tax incentives and location. These new businesses serve their own global supply chains, not the goal of building strong, rooted domestic industries.

China, in contrast, grew rapidly by enforcing targeted industrial policies, protecting strategic sectors and directing investment toward national priorities.

Even the United States is now moving to strengthen its own industrial base to compete with China, while the Philippines sticks to the old playbook of import-dependent development.

Economic development built on fragile foundations is bound to crack under pressure. The Philippines continues to expose itself to external shocks because it has failed to strengthen the industries and institutions that could cushion ordinary Filipinos from the global instability.

When global oil prices surge, it is consumers who immediately absorb the pain through higher transport, electricity, and food costs. When foreign investors pull back or redirect capital elsewhere, local jobs, production and industrial capacity suffer.

A well-built house requires a strong foundation, but the government continues to lean heavily on foreign capital while neglecting domestic industries. The result is an economy that remains exposed, reactive and perpetually vulnerable to crises beyond its control.

The shortcomings of the administration are becoming increasingly difficult to dismiss as rising prices continue to erode incomes, taxes remain burdensome and decisive intervention has been lacking.

Economic resilience cannot be achieved with rhetoric, ceremonial investment announcements and short-term subsidies. It requires political will, disciplined governance and policies designed to strengthen the nation’s productive capacity.

Marcos must move beyond safeguarding his own political interests and those of his allies.

Ordinary Filipinos are already carrying the cost through their daily sacrifice, shrinking purchasing power and growing economic insecurity.

Leadership is not about slogans or optics but decisive actions taken when citizens need protection most.