FILIPINOS will witness today the inauguration of President-elect Rodrigo R. Duterte as the 16th chief executive of the Philippines.

Helping in the quest of the former Davao City mayor for “change” is a new a economic team that will inherit from the Aquino administration an economy that grew by an average of 6.2 percent from 2011 to 2015, according to data from the Philippine Statistics Authority (PSA). Former Socioeconomic Planning Secretary Arsenio M. Balisacan said this was “remarkable,” as this was achieved without resorting to unsustainable borrowings and short-lived portfolio capital.

The increase in the price of consumer goods in recent years had also been tame, according to PSA data. Inflation last year averaged only 1.4 percent, and indications point to the possibility that the rate will not breach 2 percent this year, barring major typhoons or calamities.

However, the new Cabinet will also inherit a deluge of concerns that include traffic congestions; rising cases of criminality and drug abuse; peace and order in the southern tip of the archipelago; jobless growth; poor Internet connectivity; and poverty.
His vow to squarely address these concerns propelled Mr. Duterte to the presidency. Keeping in mind his promise to the nation, the new Philippine President immediately assembled an economic team to help him resolve problems that have hounded the country for decades.

Before they even formally assumed office, the new President’s economic team has already earned praises from business groups, such as the Employers’ Confederation of the Philippines. Businessmen said President Duterte has a “good economic team,” one that is capable of doing the technical work for him.

• CARLOS G. DOMINGUEZ
Secretary, Department of Finance (DOF)

Dominguez was hesitant to accept the position of the Duterte administration’s finance chief. In fact, he had initially rejected the new President’s offer to join his Cabinet.
Lawyer Salvador Panelo, who earlier served as spokesman of Mr. Duterte, said Dominguez declined the offer because of his previous business commitments. The new finance secretary owns the Marco Polo Hotel, and has several other business interests in Davao City. He had also served in the Cabinets of former Presidents Corazon C. Aquino and Fidel V. Ramos.

Dominguez helped craft Mr. Duterte’s 10-point socioeconomic agenda, which was presented to the media during the recently concluded Davao Business Summit. The summit, which was the brainchild of Dominguez, aimed to solicit the business community’s inputs to the new administration’s economic plan.

The finance chief told businessmen that the new administration will review the country’s tax system. Dominguez said the Duterte administration is keen on lowering the income-tax rate so Filipino workers could have more disposable income. The new administration will also look into cutting corporate tax rates, which remain one of the highest in Asean.

“We will definitely review the tax system, initially to update the income-tax brackets and eventually to lower corporate and individual tax rates,” Dominguez said in his speech during the Davao Business Summit.

The new finance chief said the Duterte administration will move away from the chronic underspending seen in recent years. Aside from hiking infrastructure spending, Dominguez said the new government will “invest heavily” in building up the nation’s human capital.

“The DOF should play a role in making our growth more inclusive. This can be achieved by: rethinking our investments incentives; reconfiguring our taxation system to build a robust middle class; and reinventing our trade and tariff policies, so that we may take advantage of free trade without sacrificing the development of our industries,” Dominguez said.

He said part of the economic team’s plan is to develop rural areas and modernize the farm sector. “Farming should no longer be the poverty trap it has been for generations.”

To make it easier for businessmen to set up shop in the country, Dominguez said the new administration is bent on reforming the bureaucracy. He said reforming the bureaucracy will also make the government “more responsive to the needs of its citizens.”

• AMANDO M. TETANGCO JR.
Governor, Bangko Sentral ng Pilipinas (BSP)

The BSP is set to continue setting a cap on the growth of key goods and commodities in the country, as well as help alleviate poverty through financial inclusion.

Two-term BSP chief Tetangco said the country’s central monetary authority will remain committed to maintaining a low and stable growth of prices in the country.

“From the perspective of the BSP, we will continue pursuing our mandate of maintaining an operating environment of low and stable prices and financial stability,” Tetangco told the BusinessMirror.

“We will also be mindful of external developments, as we always have been. We also remain committed to improving financial inclusion, which we see will contribute to poverty alleviation and reducing inequality,” he added.
Inflation, or the rate of growth of key consumer goods in the country, has been within target for six consecutive years—from 2009 to 2014. The central bank missed its target last year, however, due to low prices of oil in the global market.

Inflation in 2015 hit 1.4 percent, falling short of the government’s target for that year at 2 percent to 4 percent. For this year, inflation for the first five months of the year averaged 1.3 percent, but central bank officials have earlier expressed confidence that it will return to normal levels toward the end of the year. This is premised on expectations that oil prices will rise, along with key food items, due to La Niña.

Tetangco said the BSP welcomes Duterte’s economic agenda, saying it has been received well by local markets. But, he said markets will see how this will be implemented.

“The incoming administration’s 10-point program reflects a coherent plan that puts emphasis on the most critical aspects of the economy that should sustain our economy on a positive upward trajectory,” Tetangco said.

“It has been well-received by the market, as it also evokes continuity in core economic policies. What is crucial now is the implementation. And that is what the markets will be watchful of,” he added.

• BENJAMIN E. DIOKNO
Secretary, Department of Budget and Management (DBM)

Incoming Budget Secretary Benjamin E. Diokno said he will review the budget proposal for 2017, which will be submitted to Congress by the Duterte administration sometime in August, to ensure that it is “responsive” to the programs of the incoming administration.

To be reviewed is the proposal already prepared by former Budget Secretary Florencio B. Abad.

Diokno said it might take more than 30 days for the agency to review the budget proposal already prepared by the DBM. However, he said there would still be time to enact the General Appropriations Act before the start of the 2017 fiscal year without resorting to a reenacted budget.

Under the Constitution, the President should submit to Congress within 30 days from the opening of every regular session his proposed general appropriations bill, indicating the budget for expenditures and sources of financing.

Budget Undersecretary Richard E. Moya earlier said the DBM was finalizing the proposal and had already finished all the “technical aspects” of budget prepration. But, he said, the incoming Duterte administration is free to revise the proposal.

The review to be undertaken by Diokno would dwell on the budgets for President Duterte’s pronounced policies, such as the reevaluation of the Conditional Cash-Transfer Program, although the total proposed amount of P3.3 trillion as national budget for 2017 is unlikely to be modified.

Diokno had earlier declared that he is willing to widen the budget deficit to enable the government to raise infrastructure spending to as much as 7 percent of GDP.
Before his appointment as budget chief of the Duterte administration, Diokno had been vocal about raising the value-added tax rate to 15 percent so the government could have more funds to undertake infrastructure projects.

• ERNESTO M. PERNIA
Secretary, Socioeconomic Planning

SOCIOEconomic Planning Secretary Ernesto M. Pernia has not formally laid out his agenda in his first 100 days in office, but he has made it clear that population control will be one of the major development priorities of the new administration.

Pernia said the Duterte administration aims to highlight the importance of the reproductive-health law. He said this will allow the country and individual Filipino households to make greater investments in child care and overall human capital.

“To the extent that economic development is of, by and for the people, population must be at the center of any development plan, strategy and policy,” Pernia said.

He also said increasing investments in human capital will help the country break the “intergenerational transmission of poverty.”

Poverty in the Philippines, according to economists such as those at state-owned Philippine Institute for Development Studies, can be transient or chronic.

Transient poverty is experienced by Filipinos who become poor due to shocks, such as sudden unemployment, disability, sickness, disasters and other similar unforeseen events.

Chronic poverty, meanwhile, is experienced by Filipinos whose parents were born poor and become and stay poor throughout their lives. This is the kind that causes intergenerational poverty, when being poor is passed on to the next generation.

Breaking this “vicious cycle” is the aim of the next administration through a focus on human capital through reproductive health.

“Step up implementation of the Philippine reproductive-health law to enable couples, especially the poor, to have informed choice on the number and spacing of children they can properly care and provide for,” stated the 10th socioeconomic agenda of the Duterte administration.

From 1985 to 2009, Pernia earlier said families with more children saw higher poverty incidence compared to those with smaller family households. Poverty incidence of those with only one child was at 19 percent in 1985 and at 2.9 percent in 2009.

In contrast, Pernia said the poverty incidence of households with nine or more children was at 59.9 percent in 1985 and at 46.4 percent in 2009.

Without family planning and reproductive-health interventions, Pernia said there would also be an increase in the number of poor people, as evidenced by the 2006 and 2009 numbers.

In 2009 there were 23.1 million poor Filipinos and 3.9 million families, more than the 19.8 million poor Filipinos in 2003, or 3.3 million households.
• RAMON M. LOPEZ
Secretary, Department of Trade and Industry (DTI)

The new trade secretary said he intends to continue providing support to the country’s micro, small and medium enterprises (MSMEs). Lopez said his team is currently finding more ways to help MSMEs so they could create more jobs.

Lopez said his agenda will center on the vow of President Duterte to cut poverty in the Philippines and achieve inclusive growth.

“We will support these interventions to grow MSMEs, and build a conducive climate for business. But we’re brainstorming further on what kind of intervention we need to create that climate,” he said earlier.

“We want to improve the presence of MSME goods in the domestic market,” Lopez added.

He said he is keen on taking full advantage of the country’s free-trade agreements via the Asean and two bilateral agreements. Lopez said he wants more MSMEs to have access to export markets.

Prior to his appointment as DTI chief, Lopez served as executive director of entrepreneurship-advocacy group GoNegosyo. He was also vice president and executive assistant to the president and CEO of RFM Corp.

• ARTHUR P. TUGADE
Secretary, Department of Transportation

The new transportation chief has waged war against congestion on all fronts, laying out battle plans for rails, air hubs, seaports and roads.

In his first three months in office, Tugade said he will focus on addressing the regulatory and infrastructure woes that have plagued the sector for years now.

Emergency powers, he added, are needed to mitigate on the short run the transport problems in the capital.

“It is a critical success factor. We can get that for a maximum of two years. If, after two years, and I haven’t done anything to solve the traffic congestion, kick me out of my post,” he said. “Nothing in the emergency powers is capricious.”

Tugade believes the he can get Congress to see the sound rationale behind that power. Still, whether lawmakers approve quickly is a matter of their discretion.

“I believe that we have a lot of comrades that will give attention to this crisis in transportation,” he said.

Still, it having no such power, in the meantime, will not stop Tugade from improving the transport sector during his honeymoon period.

First, he said, he will address the need to settle the issue on rail procurement, ferry construction, and the installation of Internet connectivity in transport hubs, such as airports and seaports.
He will also refuse to handle the issue with old jeepneys with kid gloves.

Tugade added that he will not only focus on transport development in Metro Manila, he will spread it to other key cities, as well.

And although he has a lot of plans to lessen congestion in all fronts, he said commuters cannot expect immediate relief from all the stress that comes with traveling.

“In a problem created by decades of nonmanagement and neglect, don’t expect to be comfortable in 100 days, but we will give it keen attention,” Tugade said.

• ALFONSO G. CUSI
Secretary, Department of Energy (DOE)

The new DOE chief vowed to continue some programs initiated by former Energy Secretary Zenaida Y. Monsada.

“Continuity of programs,” replied Cusi, when asked in an ambush interview about his agenda during his first 100 days as DOE secretary. He did not say which existing programs would be continued, but he hinted that “all other” programs would need to be discussed internally.

“Aayusin muna namin dito,” said Cusi before his separate meetings with the National Electrification Administration, National Power Corp., Power Sector Assets and Liabilities Management Corp., and Philippine Electricity Market Corp. started.

One thing is sure, though, Cusi said he would include on his agenda to keep power rates affordable to consumers. “We’re looking at it from the perspective of the consumer. I am here to lead based on the perspective of the consumer.”

Cusi, who is new in the energy sector, said he would closely assess the people working in the agency before he decides whether to replace them. “Parang basketball team iyan, eh. Titignan mo muna baka hindi naman kailangan palitan,” he said.

Nonetheless, he has lined up a few people whom he would bring with him when he assumes the DOE chief post.

“We still need to assess, but no surprises,” Cusi added.

Cusi is the choice of President Duterte as energy secretary.

Cusi, a former Manila International Airport Authority general manager, served as chief of the Philippine Ports Authority and Civil Aviation Authority of the Philippines during the Arroyo administration.

Earlier, Cusi said he will “strive to do my best to help the Duterte administration achieve electrification of the entire country, ensure reliable, steady and affordable power supply, and work toward greater energy self-sufficiency as part of its agenda of sustained economic growth, social progress and political stability in the next six years.”




• EMMANUEL F. PIÑOL
Secretary, Department of Agriculture (DA)

For the new DA chief, there is a need to go back to basics, and ensure that the agency would prioritize President Duterte’s vow of providing affordable food to Filipinos.

In his first 100 days in office, Piñol said DA officials and employees will be oriented on the road map set by the next administration for the agriculture sector.

Farmers affected by El Niño will be enlisted in a cash-for-work program. They will also be provided with seeds, fertilizers and other farm inputs. Fishermen will be given fishing boats and nets.

The new Cabinet official also plans to conduct a nationwide inspection of irrigation services, dredging of silted dams and provision of shallow-tube wells to secure sufficient water supply for the next rice-cropping season.

In preparation for a possible La Niña, he said the Philippine Crop Insurance Corp. will be directed to provide insurance to farmers in high-risk areas.

“The National Food Authority will also be directed to preposition sufficient rice and food supplies in areas expected to be affected by La Niña,” he added.

The DA, he said, will also immediately launch projects, such as the creation of a Color-coded Agricultural Guide Map and a National Food Consumption Quantification Survey.

The DA is also expected to launch Pagkain Para sa Masa, a project that will establish arroz­caldo-feeding stations for street dwellers in Metro Manila; and Bantay Dagat, a project that will engage the Badjaos in cleaning coastal waters.

He said the DA, together with the DOH, DSWD and the Department of Education, will implement a community-based milk-feeding program, particularly in areas where farmers are involved in dairy production.

“Project-management teams will also be organized in coordination with the local government units of the country’s 10 poorest provinces, to ensure that the DA’s food-production program would also result in poverty alleviation,” he said.

House agenda

Incoming House Speaker Pantaleon D. Alvarez of Davao del Norte said the 17th Congress will prioritize the amendment of the 1987 Constitution, the Juvenile Justice Welfare Act and the revival of death penalty.

“Revising the present Constitution will be the first legislative item in the 17th Congress. We will change the form of the government from republican to federal,” Alvarez said.

He said he is also open to suggestions to amending the economic provisions of the 1987 Constitution.

“When you revise the Constitution you have to change everything, we need to tackle everything, either in constitutional convention or constitutional assembly,” he said.
Alvarez added that the 17th Congress will prioritize the revival of the death penalty to address the increasing drug-related crimes in the country.

He said the next Congress will also amend the Juvenile Justice Welfare Act, or the so-called Pangilinan law.

Alvarez said the next Congress will restore a previous law wherein the minimum age of criminal responsibility was 9.

The previous law provided that a child 9 years of age or under at the time of the offense will be exempt from criminal liability, and will be committed to the care of his or her father or mother, or nearest relative or family friend in the discretion of the court and subject to its supervision.

Alvarez also said he is open to the proposal granting Mr. Duterte emergency powers to solve traffic problems in Metro Manila.

Last week former President and now Lakas Rep. Gloria Macapagal-Arroyo of Pampanga said she would file a bill granting President Duterte emergency powers when the 17th Congress opens its session in July.

Meanwhile, Alvarez said he would ask President Duterte to immediately convene the Legislative-Executive Advisory Council (Ledac) to identify the 17th Congress and Duterte administration economic and legislative agenda.

Alvarez said the council is mandated to determine and recommend socioeconomic development goals and to integrate the legislative agenda with the national development plan.

“As soon as President Duterte takes over and calls for the first Cabinet meeting, we will request the Ledac,” he said.

“We still don’t have an economic agenda for the 17th Congress; I am still waiting for the guidance of the Executive branch. I want to wait for the Ledac meeting to identify our priorities,” he added.

Inauguration

After President Duterte takes his oath of office and the traditional turnover ceremonies in Malacañang, Communications Secretary Herminio B. Coloma Jr. said he will meet with outgoing President Aquino.

After the meeting, Mr. Aquino will ride the presidential car back to his residence in Quezon City, as is customary for outgoing presidents at the end of their terms.

Supreme Court Associate Justice Bienvenido L. Reyes, an Aquino appointee but Mr. Duterte’s fraternity brother, will administer the oath of office to the incoming President.

Officials of the Duterte administration said only 627 persons were invited to the inauguration, in line with the new President’s propensity to keep ceremonies simple, or do away with them altogether.

The presidential inauguration, however, will be separate from the inauguration of Vice President Maria Leonor G. Robredo of the Liberal Party.

At the inauguration, Mr. Duterte is expected to deliver a short speech addressing the nation regarding his policies as President.

After the presidential inauguration, a simple reception for afternoon snacks, catered by Via Mare restaurant, will be served to the guests.

The menu would feature only five local dishes: lumpiang ubod (spring rolls with coconut); pan de sal with kesong puti (white cheese made from unskimmed carabao’s milk); and Vigan longganisa (sausage from Northern Ilocandia) grilled on the spot; monggo soup mixed with smoked fish; and alugbati (malabar spinach) in demitasse cups, fried saba (Carbava banana) slices and durian tartlet.

For drinks, guests will have a choice between homegrown delights pine-mango cooler and dalandan juice.//

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