Is the government of President AQUINAS conducive to business activities? Assess the business environment during his 3 years in office. Will his call for “Audit an Dana” in Governance and Public Administration spell magic for its economy? Compare this environment with that of Papa’s nine year stay in power. Site suggestions/strategy which you think could lead Philippine Business and Economy a haven of Investment climate in the future. ANSWER: As President Benign S.
Aquinas Ill assured that Philippines will remain conducive to business, the country’s economic strides haven’t escaped notice, toting the Philippines is now rated investment grade for the first time in history by three major credit rating agencies. The economy grew by a remarkable 7. 8 percent in addition to countless other indicators of economic growth. As companies continue to reap the benefits Of the Philippine economic revival, he expects the companies to also share the fruits of their hard works not only through philanthropic activities but also by setting the good example as citizens who fulfill their obligations.
However, the pork barrel scam happening in the Philippines because of unscrupulous politicians, . K. A. Public servants, who instead of servicing the needs and aspirations of the people are working for their own selfish ambitions, sadly, this puts doubt now the much touted slogan of Pony calling for a “audit an Dana” or the straight path in his governance as militant groups have filed plunder complaints against Aquinas, members of his Cabinet and businesswoman Janet Limit Napoleons before the Office of the Ombudsman.
Unfazed about the accusation and even daring the opposition to go ahead and file impeachment charges against, Aquinas painted even a gloomier picture when he recently valued that it was worst during Gloria MacDougal Arroyo’s administration-Referring to Arroyo’s administration, during his speech before the Brotherhood of Christian Businessmen and Professionals, Aquinas claimed the pork barrel scam is but a “symptom” of a bigger scheme to capture public funds.
In his upcoming third State of the Nation Address (SONS), President Benign Aquinas Ill will surely attempt to highlight how the Philippine economy has improved under his watch to show how his administration is an improvement over its predecessor. Pres. Aquinas will bring to the fore opposed economic successes such as the 6. 4% first quarter growth in gross domestic product (GAP), increased budgets for social services, expanded coverage of the conditional cash transfers, and progress under the Public- Private Partnership (APP) program.
The president may also highlight the country’s so-called creditor nation status with the International Monetary Fund (MIFF). The SONS may also be an occasion to boast about more Filipinos being lifted from poverty, more lands distributed to farmers, and additional living allowances for workers. The reality behind the so-called gains must however be assessed before concluding that the Aquinas administration has indeed been the much-sought change following former Pres. Arroyo’s legacy of corruption and erosion of the people’s general welfare.
Nearly ten years of the Arroyo regime saw an unprecedented rise in joblessness and poverty, growing inequality, eroding domestic production and fiscal troubles all anchored on a chain of policies that catered to local and foreign business interests. Like the Arroyo administration, the Aquinas government has refused to reverse any of the illiberal policies that have caused such damage to the economy. These policies have kept the Philippine economy underdeveloped and are designed to suit the needs of the domestic elite and foreign business rather than of the Filipino people.
The entrenchment of globalization policies that have made the Philippine economy up for grabs by local and transnational firms cannot be downplayed. The removal of trade barriers has resulted in the unabated importation of cheap goods including those which the country can produce. The Philippines now has among the lowest tariffs in Asia. Ender Quoin’s term, quantitative restrictions on the importation of rice are set to be lifted in accordance with commitments under the World Trade Organization (WTFO).
The government has also become even more liberal towards investments in agriculture, industries and services. Like Arroyo, Aquinas has not questioned the globalization spree since way back in the early ass until the first years of the new millennium. Key industries such as banking shipping telecoms and airlines were opened-up to foreign investors and crucial people’s utilities such as water and power ere privatized. Philippine power and water rates are among the highest in Asia while the ordinary Filipino suffers less affordable and accessible basic utilities.
Quoin’s centerpiece APP strategy will only aggravate the inimical effects of prevarication as the private sector further takes over social services as well. Like Arroyo, Aquinas explicitly refused to reverse the oil deregulation law which sanctioned historic oil price hikes that drove up the prices of other basic commodities, burdening the people all the more. Aquinas also would not nod the 12% value added tax (VAT) on oil which Arroyo instituted.
Moreover, his administration continues to implement the Electric Power Industry Reform Act (Appear), which after a decade of implementation has made power rates in the country among the most expensive in Asia. Following the tradition of Arroyo and the administrations before it, the Aquinas government keeps debt service as the top item in terms of budget allocation while social services remain wanting and replete with cuts in important sub-items such as operating expenses and capital outlay.