We urgently need to boost our economy

Mayday!

President Duterte sounded the alarm button last week by informing the whole nation that our economy is in “bad shape,” that we are “sinking deeper and deeper” and that we are losing P2 billion per day.

Reuters reported that “Philippine bank lending fell for the first time in more than 14 years in December, reflecting weak consumer and business activity, with the trend expected to persist as coronavirus restrictions remain in place in many parts of the country. Production loans, comprising 87.4 percent of the combined loan portfolio of universal and commercial banks, fell 0.4 percent in December from a year earlier, while consumer loans rose at a much slower pace of 4.4 percent compared with November’s 7.1 percent. The Philippine economy contracted 9.5 percent in 2020, the biggest slump on record.”

Ibon Foundation reported: “According to the Philippine Statistics Authority (PSA), inflation continued to increase to 4.2 percent in January 2021. This is 0.7 percentage point higher compared to inflation in December 2020 and 1.3 compared to the previous year. The January inflation rate is the fastest recorded in 11 months. Prices reportedly increased the most in food and non-alcoholic beverages to 6.2 percent from 4.8 percent in January, with fruits and fish registering the highest increases at 9 percent and 3.7 percent, respectively.”

On Feb. 4, the Department of Finance issued this statement: “Year-on-year, the Philippine economy contracted by 8.3 percent in the final quarter of 2020, bringing the full-year growth to minus 9.5 percent. Unintended economic consequences of the quarantines, the Taal Volcano eruption in the first quarter and the African Swine Flu (ASF) caused the country to back-pedal from an otherwise robust growth trajectory. The eruption of Taal Volcano in the otherwise idyllic tourist spot in Southern Tagalog disrupted economic activities in the immediate areas, the economic powerhouses of Regions IV-A, Central Luzon and NCR, home to 58 percent of the country’s output. The ASF and the series of natural calamities in the final quarter particularly hit agricultural production. The health issues caused by the COVID-19 epidemic likewise continue to pose challenges to economic activities. To sustain growth, the country has to maintain and enhance its capacity, medical or otherwise, to manage the health risks posed by the virus. Such capacity could tilt the odds in what is apparently a life-versus-livelihood dilemma and make it more of a life-and-livelihood dual outcome, but probably at a lesser scale than before under a ‘new normal’ should there still be uncertainties about and risks posed by the virus.”

Bottomline is that our economy is suffering. This is the sad reality. But with the right perspective, planning and efficient implementation of guidelines – there is hope. How does an economy grow? We need to increase our “growth of productivity” – agricultural products, industrial/ factory products, government and private constructions, medical/ pharmaceutical industry, telecommunications, food and beverages, etc. With the increased growth in production we will simultaneously need “growth in the size of our workforce.” The problem is that we are a country that relies heavily on importing goods. Why not start producing our own goods now and limit importation?

We need to support our farmfolk, fishermen and industrial workforce. Let’s start taking the move to “Buy Philippine products” more seriously because this has a tremendous effect on our economy. Stop importing vegetables, rice, fish (that actually may be even coming from our West Philippine Sea). Stop importing face masks and face shields and other COVID related apparel. Instead of giving money away, why not start teaching the people to work for their keep. The government must support business entities that will supply the goods we need and give jobs to the unemployed. Think Philippines!

The National Economic and Development Authority or NEDA must come up with a guide for our local industries. Stop justifying yourselves and making blind excuses for your ambitious growth targets. Action speaks louder than words.

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The problem we face is that our public servants are not working harmoniously. It is very evident that their energies are scattered and worse, all mixed up. How can we get out of the abyss if we don’t work together?

Another glaring feature of this administration during this pandemic is that instead of calming us and making our lives feel safer, we seem to be antagonized with unecessary actions and pronouncements that have been made. Take for example this “Child Car Seat Law.” Why highlight it now when minors are not even allowed to go out? Susmariosep!

The Child Car Seat Law being implemented now has been thrown to us at such a wrong time. This will be another added expense for Juan dela Cruz who just lost his job. And in a country that has tremendous traffic jams, a car seat is the least of our priorities. Ours is a country where babies are held by their mothers or yayas inside a car. In countries with car seat laws, most often it is only the driver and the baby in the car, cruising along an autoban or an interstate highway.

I have nothing against car seats, but I have something against the timing of the implementation of the law. Why now? Why now when minors are not even allowed by the IATF to leave their homes and when every child is stuck at home and not even allowed to go to school?

Even the former senator JV Ejercito, the principal sponsor of the Child Safety in Motor Vehicles Act, has said that authorities should “hold in abeyance” the implementation of the law during the pandemic. Anyway, the children have to be home. There is no school. Supposedly they are not traveling so it becomes moot and academic.

Land Transportation Office (LTO) deputy director for Law Enforcement Roberto Valera said that they will not apprehend motorists who will violate the mandatory child car seat law within six months. They will prioritize first the educating of drivers and parents by distributing flyers regarding the requirements of the law. On the other hand, the DOTr has also said that they will postpone the full enforcement of the law during the pandemic as it finalized enforcement protocols for the law. Why not study your announcements before you make them instead of withdrawing them after the public has already reacted to them in a frenzy. You are just creating more chaos and panic.

May I suggest that government get its act together on our COVID-19 issues and concerns before implementing new laws that are unreasonable during this time?