Solita Collas-Monsod, broadcaster, economist, writer and Minister of Economic Planning of the Philippines (1986-1989), in her Get Real column in Philippine Daily Inquirer (March 21, 2020)
Summary by Alejandro Reyes (Photo credit: Shubert Ciencia)
The three requirements to deal with the Covid-19 crisis successfully are a well-prepared health system, good governance and social capital. Working together, they will flatten the curve of the rise of the disease, preventing our healthcare system from being overwhelmed and minimizing the economic and social impact, especially for the poor.
The government needs to have targeted policy responses instead of a general “divide-by n: approach” in which everybody gets an equal share. It has announced a 27.1-billion-peso (US$527.5 million) financial package, of which 24 billion pesos (US$467 million) are for economic and social costs. This is about 0.13 percent of GDP. Australia’s stimulus package is 0.93 percent of GDP, while in the US, their proposed package is 4.7 percent of GDP.
The Asian Development Bank (ADB) worst-case scenario for the impact of Covid-19 on the Philippines is a drop of 1.7 percent of GDP and a loss of 730,000 jobs. The government’s rescue package allocates 2.8 billion pesos (US$54.5 million) to farmers and fisherfolk, with a maximum 25,000 pesos per borrower. That means the fund will accommodate 112,000 borrowers. According to the agriculture census, the Philippines has about 5 million farmers and fisherfolk.
If the Philippines is to get through the crisis without hurting the poor badly, the government has to go back to the drawing board and find a better way. It has thanked the tycoons and oligarchs for cooperating with the government. They should be acknowledged, but remember that they are giving from their excess, not from their substance. They will make less profits, but they will not be losing.
Are you the kind of Filipino who thinks not of “me” but of “we”, gives of your substance even though it hurts, and does not seek glory?