President Rodrigo Duterte has been under fire lately for his statements on the bible and the way the world was created in the holy scripture. He has also kissed a married South Korean lady on stage, while being on state visit in South Korea. So, there is never a dull moment in the life of Duterte. However, before be goes into to deep into the ignorance of faith and lack of understanding of gender equality from the President. Both deserves scrutiny. From I know, both has been discussed and also tarnished Duterte in Rappler and everywhere else. All of that is deserved. He should show respect to the faith and its origin, as well as other shows respect each other faith. Secondly, you should never misuse power to gain sexual advances, that is just wrong and should be condemned.
However, this piece is not about that, this is about how the man who has insulted bible and the other gender recently. Should be more careful with his words. When your discussing the stupidity of the bible. Maybe, should be more careful with throwing that around. That being said, he cannot be as wise, when all the economic signs of late is dire. There is nothing in the recent days and the collected effort that lights hope for the economic situation. These are all reports, that shows the signs of weaken state and also, needs of a serious boost. If they are planning to revive the Peso and the economy in general.
Philippine Statistic Authority on the 7th June 2018 states that from last year, the wholesale price of the well-milled rice has gone up by 6,63 %, the same commodity in the retailers has also risen in price, that has gone up 5,58 %. This is huge amount of money, when it is concerning the staple food, that most eats to every meal, every single day. That means the people are paying more for the same.
Heydarian writes on foreign investments in the Philippines: “During the first half of 2017, there was a 90% year-on-year drop in new investment pledges from $1.45 billion to $141 million. During Duterte’s first year in office, South Korean investments plunged by 93%, while American investment dropped by 70%. Meanwhile, the ranking of the Philippines in the global corruption index hit a five-year low in 2017. During the first quarter of 2018, new investment pledges dropped by 38% on a year-on year basis, reaching the lowest level since 2010” (Richard Heydarian – ‘More Duterte fallout on the Philippine economy’ 21.06.2018 link: https://asia.nikkei.com/Opinion/More-Duterte-fallout-on-the-Philippine-economy)
Xinhua states: “MANILA, June 19 (Xinhua) — The Philippines is planning to issue about 1 billion U.S. dollars worth of Samurai bonds this year, the country’s finance department said in a statement released in Manila on Tuesday” (…) “”This year, we are also planning to issue around 1 billion U.S. dollars worth of Samurai bonds,” Dominguez told Japanese businessmen. Dominguez did not give other details of the planned yen-denominated bond float in his speech, but he has said earlier that the government will proceed with it by September or October this year” (Xinhua – ‘Philippines plans to issue 1-bln-USD Samurai bond’ 19.06.2018, link: http://www.xinhuanet.com/english/2018-06/19/c_137265039.htm).
Bilyonaryo states this: “The peso has lost a big chunk or P3.29 over the last six months to 53.28 to $1 last week from 49.99 as of end-2017 making it the weakest currency in the region. Since Duterte’s entry in Malacanang, the peso has dropped 14 percent from 46.86 to $1” (Bilyonaryo – ‘PH peso is Asia’s worst performing currency; even Duterte admits economy in the ‘doldrums’’ 24.06.2018, link: http://bilyonaryo.com.ph/2018/06/24/ph-peso-is-asias-worst-performing-currency-even-duterte-admits-economy-in-the-doldrums/
There is a worry when the prices of rices goes up that, together with a weakened peso. Both are proving that imports of rice will be more expensive, and not only hit the consumers who needs to pay more for the same commodity. Combined with the losing interest of foreign investments, that short-fall is planned to be undermined by government bonds, which is state created short-term debt to cover the deficit created by the lack of investments. All of this is short-term efforts to cover the stop of funds from abroad. Adding more bonds, will also mature more of the previous bonds and add the collected debt of the Republic. This is not sound economics, but more punching more holes in the bag and hoping the rice doesn’t go out to fast.
The ones losing the citizens of Philippines who will pay for the economic progress or lack of thereof, with a weak currency, higher prices on staple food and also more state debt. That is why I want a President who creates all of that, to respect God a little bit more. Because he cannot be so wise, if he is in-charge of the rising prices of rice, devaluing the currency and adding more government debt. While doing so, scaring away foreign investors and trying to take out more debt to cover the shortfall. That is the only thing it looks like. When the government plans to add the same amount as they are losing in investments. This is a way of getting fresh funds and foreign currency into the market, but not generating more revenue directly.
Time for Duterte to get his focus straight, as KPMG states: “For example, even if government expenditures are below program, they will still be at magnitudes well above those in the past. Foreign grants help, but the country does not depend on them to grow today and those that it lost could be replaced with aid from other countries like China and Japan who are willing to give and are already doing so. At worst, these risks, if they occur, could bring GDP growth down to a still lofty six percent or so average in this decade. In summary, the Philippines will remain among the region’s fastest growing economies even if many of these risks were to occur and is on track towards significantly reducing poverty and strengthening the domestic market over the medium-term. The present leadership has smartly placed the stewardship of the country’s economy at the hands of well intentioned and bright managers bent on pursuing rational policies and carrying on from past successes” (IT Report: Philippines – 2018 Investment Guide by KPMG in the Philippines, P: 15, 2018).
So all hope aren’t lost, but the Philippines and the President should be aware of the policies put forward. They are risking the future, today as they are moving forward. The decisions made are vital and crucial for how the prices, inflation, growth and if the currency even will be worth something abroad. Even if some numbers are going up, all of them aren’t and some are more worrying. As the prices on food and others are rising to. So the growth is eaten up before it is felt, while the state isn’t acting within reason.
So please Duterte, look into the measures and into the economic landscape. Let the people of faith be and respect woman. Please start to look at some of the parts thta are not working. Find out the reasons why the Peso is weak, the rice more expensive and the foreign investors are not arriving. Government Bonds isn’t the solution, that is short-term fix, but not a steady economic policy, which would bring stability to the currency, rising inflation and the prices in general. Therefore, the value of the growth is lost in the deep dark hole of inflation, added prices and weak currency. Peace.