In the previous blog post, we focused on the issues of agriculture and education, and why the strategies for both are defective. This time around we will be dissecting the other points made by PFRMJ in his SONA last Monday.
There are actually a few points which are contentious. First is the creation of the Department of Water. There is already the National Water Resources Board. Do we really need to establish a department when aside from the NWRB, there is also the Local Water Utilities Administration, which functions similarly to electric cooperatives with the only difference that they are not cooperatives but government owned and controlled corporations which are engaged in providing potable water supply and sewerage systems throughout the country.
The creation of the Department of Water was recommended by the NEDA as part of the Philippine Water Supply and Sanitation Master Plan. To my mind, if the department to be created is a merger of the two existing agencies then it would be justifiable. The MWSS should also be folded into the department if ony to consolidate all agencies and GOCCs into one organization for coordination and efficiency.
The priority is access to safe and potable water and sewerage systems throughout the country. Believe it or not, even the National Capital Region’s sewerage system is being built by the two concessionaires on a piecemeal basis. The funding for the system has been passed on to the consumers. The water concessionaries never had it so good until Duterte came along and made them toe the line when it came to onerous provisions in their concession agreements.
Next is amendments to the Build-Operate-Transfer Law. This piece of legislation is probably the only one which has been amended the most for the past thirty years.
It was initally crafted to provide the framework to solve the power crisis which began towards the end of the Aquino administration and landed in the lap of the Ramos administration. Since then, it has become the template for PPPs as well.
The problem with PPP as the basis for infrastructure development is the onerous provisions in terms of rate hikes, as in the case of the water concessionaires and toll roads, as against funding through budgetary provision and ODA funds, as was the case with BBB.
During the time of Apo Lakay, the North and South Expressways were built by CDCP under Rudy Cuenca. It was government which operated the expressways not CDCP. If the amendment to the BOT Law would be for the prevention of regulatory capture and more reasonable rates of use then it would be well and good.
The argument of PFRMJ about the principle of user-pay is only valid if there were mass transport systems throughout the country. The problem is there is none and even in the regional hubs, it’s also vehicle-centric.
BOT for mass transport systems can also be a nightmare for government and the commuting public. The best example is MRT-3, which up to now is a convoluted mess of ownership between the MVP Group and the government, through the DBP.
Amendments to the EPIRA, if in favor of the consumers, is a long time coming. EPIRA failed to achieve its goal of providing cheaper electricity to Filipinos. Its end result was the cartelization of the power industry with the abolition of the NAPOCOR, all at the expense of the ordinary Filipino who continues to pay for the stranded costs of the money losing subsidiaries of NAPOCOR after it was broken up.
As far as renewable energy is concerned, the ordinary Filipino’s pocket is still financing the oligarchs because of the feed-in tariff in their monthly Meralco bill. How can it be fair when oligarchs go into the renewable energy business with incentives from the feed-in tariff then make a killing at the stock market when they hold their IPO? We have instant billionaires like the son of Sen. Loren Legarda, the environment-friendly Senator who pushed for these legislation during her term.
Last but not the least is the VAT on online transactions. Marcos shouldn’t be pushed into taxing what the middle class has been earning from since the pandemic began. It’s about time the rich are taxed so perhaps an increase in the VAT rate on the sale of luxury goods is in order since they can very well afford it. Just look at the blatant display of conspicuous consumption on TikTok. There are also the multi-level marketing companies and its members who flaunt their earnings and purchases on the same platform.
Marcos ran on the theme of Babangon Bukas Muli. Is this the continuing theme of his administration? The points he outlined in his first SONA have been well-received not only by ordinary Filipinos but also by the business sector.
The P64 question in the minds of the 31M who voted for his is, is six years enough to see through all of these measures? Marcos mentioned in his inaugural speech that he thinks six years is enough.
However, a growing number of Filipinos are convinced that political structural reforms are the key to unlocking the country’s full potential. Under the 1935 Constitution, a President was allowed two terms of four years each, for a total of eight years. Given the devastation the country suffered in World War II, this wasn’t enough.
It wasn’t until 1965 that there was a focus on infrastructure development, rebuilding what was lost during the war. This was under his father. The first Marcos administration laid the groundwork for the first long-term economic growth strategy with the Constitutional Convention of 1971 which saw the transition from a republican form of government to a parliamentary system.
Since 1987, President’s are allowed only one six-year term. It’s been said that this is too long for a bad President and too short for a good one. Marcos categorically stated that he’s in favor of a federal parliamentary form of government. This is why he ran under the Partido Federal ng Pilipinas.
We don’t see a beeline of lawmakers moving to the PFP because the politicians are aware that the real power is concentrated in Lakas-CMD. The other day, the Koalisyon ng Nagkakaisang Pilipino was launched again. This was the coalition organized for FPJ’s Presidential run. Is Marcos waiting for a power shift before he pursues political structural reform through charter change or a constituent assembly? The problem here is the Senators are reluctant to give up their posts because of the P400M annual budget they receive for their offices and staff.
This is the elephant in the room that Marcos hasn’t addressed yet but has Filipinos waiting for the sign that it is part of the long-term strategy for the country.
The goals set by Marcos’ economic managers aren’t only overarching but actually overreaching. The Duterte administration made headway under the same benchmarks by the middle of its term but it got waylaid in the end by the pandemic. In the present environment, it will take more than six years given the prevailing geopolitical and global economic uncertainties.
Realistically, the magnitude of what Marcos wants to achieve in six years is impossible given the present realities within the government bureaucracy and the need to properly allocate scarce financial resources.
There appears to be a certain element of wariness on Marcos’ part, which is a wonder since he has the mandate. This is the reason why administration supporters are experiencing DWS – Duterte Withdrawal Symptoms.
He may have been the oldest President elected to office but Duterte went about the priorities he set forth like the energizer bunny in the first half of his term.
In the meantime, Filipinos will have to wait for Marcos’ direction. Perhaps it will be clearer come 2023.
コメント