It's the economy, Boss!
Published Jul 19, 2018 12:00 am

Melito Salazar Jr.
The Duterte Administration is set to push through two game-changing enactments, the Basic Bangsamoro Law and the shift to a federalism form of government. Both are seen as the foundations of change promised by President Rodrigo Duterte. The first gives our Muslim brothers the latitude to develop the areas which have been theirs since time immemorial with resources provided by central government as well as their own generating capabilities and the support of the international Muslim community. The challenge will be how to unify the various ethnic groups into a functioning entity for the common good. The track record of previous autonomous regions has not been encouraging as the social indicators were lower than other regions. One also recalls how the ARRM under the presidency of Gloria Macapagal Arroyo had funds unaudited as the Commission on Audit did not dare to venture into those areas and how after the Ampatuan residences were raided huge amounts of cash were discovered. It is said that they had managed government funds as personal funds.
The shift to federalism has been a reaction of countryside local governments to “imperial Manila.” One can understand why Mayor Duterte is fixated on this, recalling the many instances when he may have resented the interference of central government agencies. There are many factors to consider in a federal system that an attempt by the Duterte administration to ram it through the legislature will not be accepted by the Filipino people. More discussions and a nationwide information campaign is needed.
In fact recent surveys show that the majority of Filipinos are against charter change. I place these findings in the context of the present situation of most Filipinos. They are contending with rising prices of essential commodities, increasing transport costs, and continuing increases in tuition and school-related expenses. They are perplexed with the Duterte administration’s focus on Charter change rather than deal with these problems beside rising prices – transport and traffic woes, petty crimes and high profile murders and unresolved salvaging of poor addicts.
They are not content with the explanation of the Duterte administration’s economic managers that all these are caused by rising global prices and the peso-dollar exchange rates. They expect the Duterte administration that has cast itself as a champion for the poor to help them overcome these difficulties immediately. It is pathetic to see some attempts to help that reflect a lack of empathy – in one agency the beneficiaries were lined up to get their P1,500 assistance when an announcement was made that the agency had decided to give a lump sum of P5,000 and they were asked to come back for that amount later. Why could they not have given the P1,500 and then come back later for the difference? It is seen that the increases in excise taxes have contributed to the rising prices. Why is a temporary relief not possible? The tremendous increase in revenue collections should provide some leeway for populist moves.
In the Duterte Administration’s efforts to convince the Filipino people on the need for federalism, rather than deal with the structures and powers, the main issue they should hammer on is whether federalism will bring an improvement in the economic life of the Filipinos. They should dispel that federalism will lead to feudalism with the local elites increasing their wealth while the poor become poorer. They should deal with the fear of businessmen that under federalism there will be an increase in taxes and more regulations at state level. They should reassure the public that federalism will not lead to imposing government offices and that funds will instead be on badly needed infrastructure.
The Duterte administration should realize that – it’s the economy, Boss!
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