Despite the Philippines’ positive outlook as “Asia’s rising star” given the country’s robust macroeconomic fundamentals over the past six years, the ordinary Filipino has yet to feel its trickle-down effect.
Enter President Rodrigo Duterte, the tough-talking seven-term mayor of Davao City who campaigned on a platform of implementing genuine change that aims, among others, to make economic growth more inclusive.
Duterte said he would spend P18 billion yearly to support start-ups, made up mostly by micro, small and medium enterprises (MSMEs), with each region getting P1 billion.
He said small businesses are forced to get financing from the loan sharks because there is no institutionalized government agency.
To address this, the country’s 16th President said the Department of Trade and Industry should be in charge of loan assistance to MSMEs.
Duterte also said he would discontinue the agrarian reform program because it has not benefited businessmen or farmers.
He added that the Comprehensive Agrarian Reform Program has caused more agricultural lands to become less productive because farmers are not able to develop their lands for lack of resources.
On top of that, he promised to allocate as much as P30 billion as health assistance to poor families living in the poorest provinces.
“There should be at least, one doctor per barangay. I will make sure that government doctors will be compensated for their service,” Duterte said.
Duterte’s incoming Finance Secretary, Carlos Dominguez, noted that the millions of Filipinos who voted for Duterte did so because the present economic numbers have not eased their lives.
“Our people did not vote for change because the economic numbers are good. They voted for change because the good macroeconomic numbers did not translate to a better life for all,” Domingue said.
“It is not enough to say that the economy is growing. We have to create measures which will show how economic growth will bring more meaningful lives for our people,” he added.
Bureaucratic reform will also be pushed to ensure ease of doing businesses and for the bureaucracy to better respond to the needs of the citizens.
“Our economy can move to a higher growth rate, but to achieve that we need a bolder pump priming plan to initially involving more headroom. The incoming economic team will not be timid nor shy. We will deliver not only peace and order, but an economy which is inclusive,” Dominguez said.
And Duterte, who has been judged by many for his tough talk and use of profanity, has promised businessmen, in particular, and Filipinos, in general, of a metamorphosis – from the so-called “Punisher” of Davao City to a leader of the entire nation who will bring about inclusive growth.
“Relax,” said the chief executive in a recent meeting with business leaders. “I am not the man I am portrayed to be by some.”