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Delivery of Russian vaccine expected as early as September

PRESIDENT Rodrigo R. Duterte said he expects to take delivery of coronavirus vaccine shots from Russia soon.

In a speech on Monday evening, Mr. Duterte said he was overjoyed that Russia had offered to send the Philippines COVID-19 (coronavirus disease 2019) vaccines.

“They said they will give us vaccines,” he said in Filipino. “They never mentioned charging for them.”

Mr. Duterte said he would volunteer to get injected in public, adding that he has “huge trust” in the Russian vaccine.

He said the Russian vaccines could come by September or October, adding that the Philippines would have a “COVID-free December.”

Russia has developed the first vaccine offering “sustainable immunity” against the coronavirus, President Vladimir Putin announced on Tuesday.

“This morning, for the first time in the world, a vaccine against the new coronavirus was registered” in Russia, he said during a televised video conference call with government ministers.

Mr. Duterte also said China would prioritize the Philippines once it finds its own vaccine against the coronavirus.

The Department of Health (DoH) reported 2,987 new coronavirus infections on Tuesday, bringing the total to 139,538.

The death toll rose to 2,312 after 19 more patients died, while recoveries increased by 280 to 68,432, it said in a bulletin.

DoH said there were 68,794 active cases, 92% of which were mild, 7.2% did not show symptoms, and less than 1% each were severe and critical.

Of the new cases, 1,510 came from Metro Manila, 398 from Cavite, 144 from Laguna, 135 from Iloilo and 119 from Cebu, it said.

The agency said 1,290 new cases were reported in the past three days, while 1,697 were reported late.

Seven of the 19 patients who died were from Metro Manila, six from Central Visayas, three from Calabarzon, and one each from the Ilocos region, Western Visayas and repatriates. More than 1.7 million individuals have been tested.

The Department of Health on Monday said it has allotted P2.4 billion for coronavirus vaccines in its budget for next year but it could change depending on the price. — Vann Marlo M. Villegas

Gov’t to bring home 1,000 migrant Pinoys from Qatar — DoLE

THE Department of Labor and Employment (DoLE) will bring home more than 1,000 overseas Filipino workers (OFWs) from Qatar starting Wednesday.

Three chartered flights for 1,062 OFWs had been arranged by the government’s Doha, Qatar Philippine Overseas Labor Office, Labor Secretary Silvestre H. Bello III said in a statement on Tuesday.

The agency said the first batch of 354 distressed Filipino workers would fly home on Wednesday.

The two other flights will be on Aug. 19 and 26, and will bring home 354 OFWs each.

The Labor department said 2,327 OFWs had been repatriated from Qatar amid a global coronavirus pandemic.

The virus has sickened 20.3 million and killed about 740,000 people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization.

About 13.2 million have recovered from the virus, it said.

The government has allotted P5 billion more to help OFWs affected by the global coronavirus pandemic, according to the Labor department.

President Rodrigo R. Duterte approved the release of the fund for the repatriation of migrant Filipinos and other aid, Mr. Bello said on Sunday.

The agency said the P5 billion would be released to the Overseas Workers Welfare Administration (OWWA), which is in charge of facilitating the return of OFWs.

The OWWA also pays for the COVID-19 (coronavirus disease 2019) tests, accommodation of overseas workers under quarantine and their return to their home provinces.

The Labor department earlier said its P2.5-billion emergency fund for OFWs had been depleted. The fund helped about 250,000 OFWs but the agency received half a million applications for aid. — GMC

Regional Updates (08/11/20)

LRT-1 operator cuts over 100 jobs due to low ridership

LIGHT RAIL Manila Corporation (LRMC), the private operator of LRT-1, is letting go of over 100 employees or about 20% of its workforce due to a significant drop in ridership amid the coronavirus pandemic, the company’s spokesperson said. Jacqueline Gorospe, LRMC corporate communications head, told reporters via Viber on Tuesday that the reduction of LRMC’s workforce was triggered by the 90% drop in LRT-1’s ridership. “LRMC management has been closely monitoring the COVID-19 (coronavirus disease 2019) pandemic situation from the start and has been taking appropriate measures, balancing its financial position while looking after its team members,” she said. “However, as LRMC has scaled down operations during the quarantine period and deferred some projects, the company recognizes the need to optimize human resources by reducing the size of its workforce. This will aim to right-size the organization to better suit the current and future business conditions, as well as maintain stability while navigating through the uncertainty of this global crisis,” she added. The workforce reduction takes effect Sept. 15. The company said all affected employees will receive separation benefits as well as training on alternative livelihood and investment as well as mental health support. LRMC is the consortium composed of Ayala Corp., Metro Pacific Light Rail Corp., and Macquarie Infrastructure Holdings (Philippines) Pte. Ltd. Metro Pacific Rail is a unit of Metro Pacific Investments Corp., one of three Philippine subsidiaries of Hong Kong’s First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., maintains an interest in BusinessWorld through the Philippine Star Group. — Arjay L. Balinbin

New Metro Manila price list for farm, fishery products out

THE DEPARTMENT of Agriculture (DA) has released a new suggested retail price (SRP) list for basic farm and fishery goods sold in Metro Manila wet markets. In a virtual briefing Tuesday, DA spokesperson Noel O. Reyes announced that Agriculture Secretary William D. Dar signed Administrative Circular No. 10, which adjusts the prices of select food products amid Metro Manila’s return to stricter lockdown protocols. The products covered include imported rice, pork, eggs, and sugar, among others. “We urge sellers in markets, talipapas, and palengkes selling these products to follow the newly adjusted SRP list,” Mr. Reyes said. The list may be accessed at www.da.gov.ph/wp-content/uploads/2020/08/ac10_s2020.pdf. — Revin Mikhael D. Ochave 

WVMC laboratory in Iloilo closed after staff tests positive for COVID-19; regional hospital in Bacolod at full bed capacity

THE ILOILO City-based Western Visayas Medical Center’s (WVMC) laboratory, one of the accredited facilities for coronavirus disease 2019 (COVID-19) testing, has been temporarily closed starting Aug. 11 after one of its staff has been confirmed to be positive of the virus. “The WVMC Integrated Laboratory including the (COVID-19) Sub national laboratory are undergoing decontamination following the confirmation that one of its medical laboratory technologists is COVID-19 positive,” the hospital’s management said in a statement. Operations will resume “the soonest that decontamination process is completed and our personnel is safe to serve the public.” Aside from WVMC, there are five other accredited COVID-19 laboratories in the Western Visayas Region. Two are government-owned, the CLMM Regional Hospital and the TLJ Provincial Hospital. The three others are private, one located in Iloilo City and two in Bacolod City. Meanwhile, the CLMM (Corazon Locsin Montelibano Memorial) hospital in Bacolod City has suspended the admission of COVID-19 patients as all its 74 allocated beds are now occupied. “The hospital has already reached its full bed-capacity allocated for… patients who are in moderate to critical condition,” said Medical Center Chief Julius M. Drilon in a statement on Monday. The CLMM hospital is also postponing the reopening of its out-patient services, which was supposed to resume Aug. 12, except for those undergoing chemotherapy.

Cagayan de Oro offers isolation facilities to Iligan COVID-19 patients

CAGAYAN DE Oro Mayor Oscar S. Moreno has offered the city’s isolation and treatment facilities for use of mild coronavirus patients from Iligan City to avoid overwhelming the region’s referral hospital. “We don’t want a situation in which the national government will have to send their people to Iligan City similar to what happened in Cebu City and even Zamboanga City. We want to avoid a surge in COVID-19 cases that would overwhelm Northern Mindanao Medical Center (NMMC) and result in a region wide lockdown that would make life harder for the people of Cagayan de Oro,” Mr. Moreno said in a briefing on Aug. 10. The hospital is located in Cagayan de Oro. As of Aug. 9, the Northern Mindanao region recorded 729 coronavirus disease 2019 (COVID-19) cases, with 333 active, 384 recoveries, and 12 deaths. Majority of the active cases in the region are returning residents at 283, who are under treatment as outpatients. Among locals, Iligan City has the highest number at 29, of which 16 were recorded from Aug. 3-9. NMMC liaison officer Bernard Julius Rocha, meanwhile, said they are further upgrading their facilities in anticipation of more patients once the national government lifts the flight ban in Metro Manila.

Cell tower pending applications down to 428; 1,502 approved

SOME 428 applications for cell tower permits remain pending with local governments this year, while 1,502 have been approved, Interior Secretary Eduardo M. Año said late Monday after meeting with President Rodrigo R. Duterte.

“Ang natira na lang po ay 428 na pending application at ito po ay babantayan namin para siguradong hindi po magtatagal dahil sa lumang sistema, 241 days, 19 permits at saka 86 document requirements (What’s left now are 428 pending applications and  we are closely monitoring them to make sure they don’t take excessively long because under the old system, tower approvals took 241 days, 19 permits, and 86 documentary requirements),” Mr. Año said at a video briefing before the government’s coronavirus task force.

He said that the applicants are “Touch Mobile, Globe Telecommunication, Smart Communication, and Dito Telecommunity Corp.” and that the Local Government Units (LGUs) with pending applications totaled 80 – 55 provinces and 25 cities.

Local-government approvals have been identified as a key source of delay by telecommunications companies, which are trying to improve tower numbers to raise the standard of service in the wireless market.

Mr. Duterte said in the meeting that waiting over 200 days for a permit approval is “unacceptable,” according to the transcript of the briefing.

The President in his annual address to Congress threatened telecommunications companies with expropriation of service standards do not improve, but in a subsequent meeting with industry officials, the LGUs were identified as a bottleneck.

Last week the Anti-Red Tape Authority (ARTA) said it will deem as approved all tower permits that take longer than seven days.

ARTA derives its authority from Republic Act (RA) No. 11032, or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018.

The law sets for government agencies approval deadlines of three working days for simple transactions, seven working days for complex transactions, and 20 working days for highly technical applications.

In applying the seven-day standard, ARTA appears to have classified tower applications as “complex transactions” and signaled its intent to enforce the provisions of RA No. 11032. — Gillian M. Cortez

BoC container-scanning yields P72B in revenue

THE Bureau of Customs (BoC) said expanded container-scanning capacity has generated P72.685 billion in duties and taxes arising directly from the issuance of 93 warrants of seizure and detention in the seven months to July.

In a statement Tuesday, the BoC said the number of containers scanned during the period rose to 244,040 from 181,382 a year earlier.

The BoC has 124 x-ray machines as of last month.

“The x-ray scanners are expected to enhance the capability of BoC in detecting smuggled and… misdeclared items, undervalued goods, undeclared goods,” it said.

It said advanced x-ray machines allow for faster and non-intrusive inspections.

“The BoC, through the XIP (the X-ray Inspection Project), ensures the public that it will continue to design measures to ease customs operations, minimize unnecessary delays and enhance trade facilitation,” it said.

The bureau collected P50.07 billion last month, beating its target by 5.03%. However, the year-to-date collections of P303.13 billion were short of the P314.3-billion target.

The BoC collection target for the year was trimmed to P542 billion from the original pre-pandemic goal of P730 billion, in anticipation of a severe economic downturn. — Beatrice M. Laforga

Agriculture dep’t aims to double value of farm and fishery exports to Canada

THE Philippines aims to export more farm and fishery products to Canada with a target of doubling the value of such shipments over the medium term, the Department of Agriculture (DA) said.

In a virtual call with new Canadian Ambassador to the Philippines Peter MacArthur on Aug. 7, Agriculture Secretary William D. Dar said that an agreement has been reached to expand areas of agricultural cooperation and partnership in potato and dairy production, food logistics and markets, and agroforestry, among others.

“We wish to improve our balance of trade with Canada in succeeding years by selling more Filipino products like coconut water, virgin coconut oil (VCO), pineapples, mangoes, and melons,” Mr. Dar said.

Mr. MacArthur said that Canada is ready to assist the government in building producers’ markets, enhancing food supply logistics, and implementing an agro-forestry program that will benefit indigenous communities.

According to the DA, the Philippines exported around $98.8 million worth of farm and fishery products to Canada in 2019.

Coconut products led all exports at $23.8 million, followed by pineapple, dried guava, mango, and mangosteen amounting to $10.3 million, and fish products such as tuna and bangus worth $9.4 million.

“With about one million Filipinos residing and working in Canada — representing 2.7% of that country’s 37.7 million population, according to latest estimates — demand for various Philippine food products is expected to grow,” the DA said.

The DA said that in 2019, Canada exported $192 million worth of food products to the Philippines.

Frozen pork and offal amounted to $57.3 million, followed by deboned meat, ham, and other meat products $20 million, potatoes $11.6 million, and pig fat $6.7 million.

Mr. Dar said the first phase of adaptation tests for eight Canadian potato varieties were completed in Buguias, Benguet province while the second phase will start in October.

“If the adaptation trials succeed, yielding quality and cost-efficient potatoes (compared with)  traditional varieties, Cordillera farmers could subsequently produce their own seed instead of relying on imports, and produce in commercial quantities for both table and processing use,” Mr. Dar said.

The potato trial is a joint project of the DA’s Cordillera Administrative Region high-value crops development program, Canada’s Prince Edward Island Potato Board, and the Canadian Embassy. — Revin Mikhael D. Ochave

Pandemic to hit low, mid-level workers hard — ADB

THE pandemic will affect some parts of the labor market more severely, worsening conditions for the low and medium-skill segments just as employers are embarking on their digital transformations, the Asian Development Bank (ADB) said.

In a policy brief, the bank said the pandemic will polarize the labor market, pushing workers into lower-paying jobs, with the exception of those at the very top of the skills ladder.

“Without conscious effort and effective policies, therefore, the unequal impact of COVID-19 on jobs will hit the most vulnerable individuals and communities. They will continue to face greater risks of unemployment, financial losses, and health hazards, exacerbating socioeconomic inequalities and undermining inclusive growth efforts,” the ADB said.

While job polarization is widespread in advanced economies due to the automation of routine work, the ADB said developing countries should also prepare for disruptions as they too start automating while job offshoring activity slows.

Post-COVID-19, it said the digital transformation of the workplace will likely accelerate after offices encountered work-from-home by necessity and learn to integrate it into their operations.

“However, as digital transformation accelerates, job polarization and displacement of middle-skill workers are raising concerns about income polarization, inequality, and inadequate social protection,” it said.

It said there could be a “significant reallocation of jobs” in the coming years, highlighting the need for more training programs and better labor policy as the trends favor the more highly-skilled.

In low- and middle-income countries, automation and increased reshoring of jobs may put those working in the service sector at risk, it said.

Meanwhile, less-skilled workers are at “greater risk” as more companies are projected to increase their reliance on robots and other technologies.

The ADB said “informal workers are at particular risk” especially those employed in the sectors hardest hit by the pandemic such as manufacturing, wholesale and retail trade, transportation and storage, and accommodation and food service.

It also said most women, youth and rural workers have it worse as they account for a large percentage of the informal economy, some have less education, receive lower wages, and “are also often overrepresented in low-skill services.”

Aside from the unequal starting points for various sectors, the ADB said the digital divide in developing countries may also widen between rich and poor, urban and rural, young and old, and men and women.

“The gap in digital readiness and various forms of the digital divide can have longer-term and lasting impact on inequality among individuals and in social groupings and countries,” it said. — Beatrice M. Laforga

Power demand falls after return to strict lockdown

PEAK electricity demand “drastically” declined in the first week of August after Metro Manila and adjacent provinces returned to a stricter form of lockdown, known as modified enhanced community quarantine (MECQ), due to mounting coronavirus infections.

In the July billing period, the quarantine, coupled with the start of the rainy season, tempered average power demand in the Wholesale Electricity Spot Market compared to June, according to the Independent Electricity Market Operator of the Philippines (IEMOP).

“Historically, mataas ang July (July is typically high-demand). But because of this continuous lockdown, medyo tempered ang demand natin (demand has been tempered),” IEMOP Chief Operating Officer Robinson P. Descanzo told reporters in a virtual briefing, Tuesday.

Average demand last month was 10,135 megawatts (MW) at P2.08 per kilowatt-hour (kWh), compared to July’s 10,174 MW and P3.19/kWh.

However, this further went down upon the imposition of the modified enhanced community quarantine at the start of August.

“Peak demand drastically dropped (by) about 700 MW,” the official said, citing the decrease to 11,533 MW on Aug. 4 from 12,229 MW recorded on July 27.

Electricity usage by businesses declined with establishments running at half of their capacity.

Still, the lockdown had “minimal” impact on the system’s average demand on a weekly basis, to 9,425 MW from 9,472 MW.

On a year-on-year basis, maximum demand declined by 3.4% or 424 MW. If a relaxed form of quarantine continues until December, a year-on-year reduction in demand of between 300 to 400 MW will be sustained monthly, Mr. Descanzo said.

After the lockdown is lifted, peak demand may rise by around 500 MW, “and that will be sustained towards the Christmas period because of the other economic activities expected in that period,” he added.

Meanwhile, the spot market’s supply increased to 14,027 MW last month representing an improvement over the past three months.

Metro Manila, Bulacan, Cavite, Laguna, and Rizal reverted to MECQ until Aug. 18. — Adam J. Ang

USAID launches P1.1-B Philippine environmental sustainability project

Philippine corals 10
PHOTOS COURTESY OF DR. WILFREDO Y. LICUANAN

THE United States Agency for International Development (USAID) said it launched a P1.1 billion biodiversity project for the Philippines.

In a statement, USAID said the five-year project aims to assist the Philippine government in improving its management of natural resources and boosting public and private environmental investment.

USAID said it will work with the Department of Environment and Natural Resources (DENR) and the Bureau of Fisheries and Aquatic Resources.

RTI International, a US non-profit, will lead the implementation of the project, alongside the Center for Conservation Innovations, Forest Foundation Philippines, Internews, Zoological Society of London, and the Resources, Environment, and Economics Center for Studies.

USAID Philippines Mission Director Lawrence Hardy II said the project will support the country’s efforts to conserve its biodiversity while increasing livelihood opportunities for Filipinos dependent on natural resources.

“Effective conservation management and measurement of the value of natural resources contribute to the Philippines’ economic development and environmental resilience,” Mr. Hardy said.

DENR Undersecretary Juan Miguel T. Cuna said that the DENR is looking forward to the partnership with USAID.

“We welcome the opportunity in advancing our goals of environmental sustainability and strengthening DENR’s capacity to combat environmental criminals, enhance the adaptive capacities of communities against natural disasters, as well as improve the economic conditions of affected local people,” Mr. Cuna said.

USAID said it has given more than P5 billion worth of assistance to the Philippine government to conserve biodiversity and protect its landscapes and seascapes. — Revin Mikhael D. Ochave

UK to provide best-practices input for e-commerce IP rules

warehouse
MORGUEFILE.COM

THE intellectual property office has signed a partnership with the British embassy in Manila to tap UK expertise in intellectual property enforcement for e-commerce.

The Intellectual Property Office of the Philippines (IPOPHL) signed a memorandum of understanding (MoU) with the embassy, which will share best practices to help develop e-commerce regulation.

The intended beneficiaries are small businesses in the consumer and creative industries, which can use their intellectual property assets to access financing, IPOPHL said in a statement Tuesday.

The UK will fund the hiring of consultants, IPOPHL said.

“This MoU will complement our ongoing efforts in activating more policies within government and campaigns within the whole of society toward making e-commerce safer and more sustainable to business,” IPOPHL Director General Rowel S. Barba said.

“This MoU can also bring positive outcomes in enabling businesses to extract the most from their IP assets, from using them to access financing and to build their competitiveness in various markets.”

The partnership, according to IPOPHL, supports the development of data collection in intellectual property enforcement under the IP Rights Action Plan of the Association of Southeast Asian Nations (ASEAN).

“This MoU signing marks the continued implementation of policy support and technical assistance of the United Kingdom (UK) to the Philippines through the UK Prosperity Fund ASEAN Economic Reform Programme,” British Ambassador to the Philippines Daniel Pruce said.

The project will be supported by the £1.2-billion (P77 billion) UK Prosperity Fund, which backs economic growth in its partner countries. — Jenina P. Ibañez

Virtual notarization

Going through reportedly the world’s longest lockdown because of COVID-19, from easing up and back to further restricting quarantine measures, it would seem that this pandemic has brought both the good and bad out of this government. As the confirmed COVID-19 cases in the Philippines recently breached the 100,000 mark, making the country the number one in Southeast Asia in number of cases, questions whether the government is doing enough swirl around.

It cannot be denied, however, that the government implemented some measures and continues to innovate policies to adapt to the new normal.

And one laudable and unorthodox policy implemented by no less than the Supreme Court of the Philippines is the 2020 Interim Rules on Remote Notarization of Paper Documents (“Rules on Remote Notarization”), which effectively amended certain provisions of the almost-two-decade old notarial rules, specifically on personal appearance before the notary public.

Under the Rules on Remote Notarization, paper documents or instruments with handwritten signatures or marks may be notarized using videoconferencing facilities. With this recent development, the traditional required practice of persons personally appearing before the notary public to have their documents or instruments notarized now becomes a thing of the past. As long as one has the necessary devices and a stable internet connection, notarization can be done in the comforts of one’s own home — doing away with the stresses of social distancing, the wearing of face masks and shields, and crossing border control traffic; ultimately aiming to eliminate unnecessary travel.

Personal appearance before the notary public can be done through videoconferencing facilities, for both the principal and his or her witnesses. Videoconferencing facilities include Webex, Zoom, Google Meet, Microsoft Teams, and other similar web conferencing platforms. More informal platforms for videoconferences, such as the Facebook Messenger application, may even be used, as long as the participants can see, hear, and communicate with each other, and confirm competent evidence of identity to each other in real time.

The following general guidelines are to be followed under the Rules on Remote Notarization:

a.) The principal shall cause the delivery of the instrument or document requiring notarization to the notary public by personal or courier service. The instrument or document must be integrally complete, bear the signature of the principal and witnesses, and be placed in an envelope sealed with the initials of the principal.

b.) Together with the instrument or document, the principal and the witnesses, not personally known to the notary public, shall provide two copies of any competent evidence of identity to the notary public.

c.) The principal shall also submit to the notary public a video clip showing that he or she actually signed the instrument or document delivered. The submission may be made together with the instrument or documents by storing the same in a compact disc (CD) or universal serial bus (USB) or by sending the video clip by electronic mail or any other means of digital communication.

d.) Upon receipt of the instrument or document, the notary public shall schedule a videoconference with the principal and the latter’s witnesses. During the videoconference, the notary public shall require the principal to confirm his or her identity, including his or her location, and require the principal to affix his or her signature on a blank piece of paper within full view of the notary public, for signature comparison, among others.

The Rules also require that the notary public, as well as the principal and his or her witnesses should be within the territorial jurisdiction of the notary public’s commission during the videoconference. And, for notaries public, they are required to take photographs and screenshots of the videoconference to serve as proof that the principal and his or her witnesses appeared before the notary public.

The adoption of this new rule conforms with the fast-paced and technology-driven work environment. As a result, it eliminates possible delays and bottlenecks in document execution brought about by the traditional concept of personally appearing before notaries public, especially considering restrictions on movement of persons during this time of pandemic. Undoubtedly, this simple yet innovative measure adopted by the Supreme Court uses pre-pandemic technologies and applications. This means that it would have been possible to implement these rules even before the crisis; the pandemic only pushed policymakers to adopt newer and better policies.

Amidst too much negativity during this pandemic, it would surely help ease the anxiety to recognize small victories such as this. Indeed, kudos to the Supreme Court!

This article is for informational and educational purposes only. It is not offered as and does not constitute legal advice or legal opinion.

 

Philip James C. Todoso is an Associate of the Cebu Branch of the Angara Abello Concepcion Regala & Cruz Law Offices (ACCRALAW).

pctidoso@accralaw.com

Why public institutions matter in pandemic and non-pandemic times

The Philippines is at a critical juncture in its history as the COVID-19 virus continues to wreak havoc on our health and economy. Last week, the Philippine Statistics Authority reported that gross domestic product (GDP) dropped by 0.7% during the first quarter and 16.5% during the second quarter of 2020. The announcement confirmed the country’s descend into economic recession given two consecutive quarters of negative growth.

The last time the GDP sank dramatically was during the dying years of the Marcos regime when GDP dived by 10.5% during the first quarter of 1985. The economic crisis under authoritarianism was fomented by the unchecked exercise of executive discretion, widespread crony capitalism, and the absence of strong public institutions for rules-based governance which drove investors away.

A key role of public institutions is to level the playing field in both political and economic competition. Institutions enable the effective application of rules, constraints and incentives that govern the behavior of actors in a system. To function well, institutions should be able to exercise independence from particularistic interests in society. It is important for them to maintain their integrity, transparency and accountability. In the Stratbase ADRi forum on “Continuing Political Development Towards a Better (New) Normal: Making Public Institutions Matter” last week, Dr. Ronald Mendoza, Dean of the Ateneo School of Government, emphasized that power in politics and economics, when left in the hands of the few, can lead to abuse and failure.

The prevalence of captured institutions and abuse of power brought the economy to its knees during the authoritarian years. The unimaginable amounts of money wasted in corruption at that time was fueled by what Dr. Belinda Aquino, Asian Studies Emeritus Professor of the University of Hawaii, referred to as the politics of plunder. The restoration of democracy in 1986 brought hope that the reinstitution of a system of checks and balances, independent media, and rule of law would provide a better environment for the economy to grow. While corrupt practices have persisted, they have been moderated by the presence of oversight audit, legislative, and executive bodies. While political clans have remained, they must compete in regular electoral exercises.

It has taken more than two decades to establish credible institutional mechanisms to regain investor confidence in the Philippine economy. According to Dr. Mendoza, these required slow, painstaking moves for reforms that were pushed and carried over across the single-term presidential administrations. Among the crucial reforms were the creation of an independent Central Bank, the installation of a Competition Commission, the setting up of an effective fiscal and treasury system, building strong checks and balances, and oversight provisions in public procurement, public-private partnership tenders, and government-owned and controlled corporation activities.

The results of these reform efforts were certainly worth the wait. The legacy of the authoritarian years that saw a decrease in GDP per capita after 1982 lingered for two decades until 2003 when the same GDP per capita level was reached and higher levels registered in the succeeding years. GDP growth rates averaged at more than 6% for the past five years. The pursuit of a judicious borrowing and disciplined repayment program over the years earned the country a good sovereign credit rating.

The steady growth rate of the economy now grinds to a halt with the vicious COVID-19 pandemic. Many countries, including the Philippines, call for emergency authority and funds for the executive to swiftly and efficiently respond to the health crisis. As huge public funds are now being allocated and used to address the health crisis and deteriorating economic conditions, it is important that institutional safeguards for transparent and accountable governance, checks and balances, and strong audit and legislative oversight are in place.

Institutional reforms to prevent the excesses of the authoritarian years and create a level economic playing field should be defended. In addition, there is a need to pass more legislation to improve transparency and accountability in governance, including the Freedom of Information Act, the Budget Modernization Act, and the Whistleblower’s Protection Act.

Sustaining the efforts to level the economic playing field will need deep reforms that will level the political playing field. For Dr. Julio Teehankee, Professor of International Studies of De La Salle University, these require the passage of long-overdue legislation on anti-political dynasties, political party reform, and campaign finance reform. In the absence of these measures, personality-based politics continue to be the norm. Political parties should be strengthened as representative institutions to aggregate interests, produce evidence-based policies, and foster adherence to rules-based governance. The passage of these legislative bills would go a long way to enhance the circulation of new leaders and ideas in our democratic system. Deepening the reforms in leveling the political and economic playing field are critical in making public institutions matter in pandemic and non-pandemic times.

 

Dr. Francisco A. Magno is a Trustee and Convenor of the Right Governance and Open Governments Program, Stratbase ADR Institute

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