TWO senators on Tuesday offered options for resolving the Duterte administration’s dilemma on saving the sinking economy and responding to Covid-related risks.
Noting that the Philippine economy is “definitely in bad shape,” Senator Panfilo Lacson lamented that “the situation is made even worse by the difficult choice between addressing health-related problems and the sinking economy.”
Lacson cited as “a classic example” the National Economic and Development Authority (Neda) recommendation to President Duterte to allow children 10 years old and above to go out of their homes with their parents, as Neda studies show 50 percent of the economy is driven by family activities outside the home.
“It was a very sound Neda suggestion that was initially given due course but recalled immediately, instead of first considering a middle ground that would have accomplished both—like closely supervised or monitored family outings,” the senator noted.
Pointing out that “policy decisions play a vital role in striking a balance between long-term implications on the economy and the immediate effects on our people’s health concerns,” Lacson added, “the right decisions will chart our path towards a sustainable ‘new normal,’ and pull us out from [the] pits of social and economic distress, and shape a safer and more resilient society.”
‘Sinking’ economy
In a separate statement, Senate Minority Leader Franklin Drilon warned that the “sinking” Philippine economy is likely to “create more serious problems.”
He added that, “failure to address the Philippines’s sinking economy immediately could create more serious consequences, including increase in crimes, extreme poverty, hunger, joblessness.”
Prodding the government’s economic managers to lay down a comprehensive and realistic plan to address the weakening economy, the opposition lawmaker suggested they can also “throw a lifeline to the poor and the most vulnerable sectors amid these trying times.”
The opposition senator admitted he shares President Duterte’s dim view of the economic situation. “I agree with the President that the Philippine economy is ‘sinking and sinking.’ It is a grim reality that we have to face. I am extremely alarmed by the continued decline of our economy and the rising inflation. Let us face it as a nation,” added Drilon.
President Duterte on Monday night, in his weekly address to the nation, admitted that the Philippines is “sinking deeper and deeper,” losing P2 billion a day due to Covid-19.
Drilon recalled that the Philippine economy suffered the worst economic contraction after World War II of 9.5 percent in 2020 due to the ongoing coronavirus pandemic, noting that “inflation in the country continues to rise, which was further aggravated by the typhoons that hit the country in the last quarter of 2020.”
The senator added: “The question now is, what do our economic managers plan to do? The people would want to see a clear plan to address our worsening economic situation.”
Moreover, the Minority Leader asserted that “the primary concern should be to protect the poorest and the most vulnerable sectors of the economy.”
“We must throw a lifeline to the poor who are having difficulties to cope with the effects of the pandemic and inflation. Unfortunately, the 2021 national budget provides too little for the poor,” the lawmaker pointed out.
Drilon stressed the need for the Duterte government to improve its pandemic response, citing findings of Australia-based think tank Lowy Institute that ranked the Philippines 79th
out of 98 countries in terms of ability to fight the Covid-19 pandemic.
At the same time, the senator suggested that “we must work on increasing the people’s confidence in the government’s Covid-19 vaccination program.”
Added Drilon, “Again, our ability to win the fight against the pandemic largely depends on the success of our vaccination program…. The sooner we are able to implement a successful Covid-19 vaccination drive, the faster our economic recovery would be.”
Red tape, corruption
He prodded the Duterte government to “be more aggressive in addressing red tape and corruption in the country,” citing a decline in the latest Corruption Perception Index wherein the Philippines slipped down to 115th place while retaining its poor score of 34, with 100 points being the best.
Congress, meanwhile, should “give top priority” to measures that will aid the government in handling the pandemic, provide for fast economic recovery and institute fiscal discipline, asserted the senator.
Drilon said, “Congress should devote its limited calendar days on legislation that will directly benefit the economy and uplift the lives of the Filipino people. Because if Congress fails to address these urgent problems in the remaining months of the second regular session, then it will be harder to attend to these when election season kicks in.”