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Philippines: More business groups back economic managers’ call to weigh cost of federalism

  • Aug 15, 2018

MANILA, Philippines — Several business groups joined the call of Philippine economic managers for fiscal prudence, more dialogues and a well-considered approach in the proposed shift to federalism.

Last Sunday, seven business groups expressed support to the country’s economic managers who ruged the Congress to weigh the costs and risks involved on the proposed shift from a unitary to a federal system of government.

On Tuesday, 19 more organizations joined the call including:

  • Alyansa Agrikultura
  • Asia Pacific Real Estate Association
  • Bankers Association of the Philippines
  • Foundation for Economic Freedom
  • Institute of Corporate Directors
  • Investment House Association of the Philippines
  • Judicial Reform Initiative
  • National Real Estate Association
  • Organizations of Socialized Housing Developers of the Philippines
  • People Management Association of the Philippines
  • Philippine Constructors Association
  • Philippine Institute of Certified Public Accountants
  • Philippine Women’s Economic Network
  • Semiconductor and Electronics Industries in the Philippines Inc.
  • Shareholders’ Association of the Philippines
  • Subdivision and Housing Developers Association
  • Tax Management Association of the Philippines
  • UP School of Economics Alumni Association
  • Women’s Business Council Philippines

“We encourage full, open, and dispassionate dialogues on this proposed shift in form of government, keeping in mind its long-term impacts on future generations of Filipinos. As always, the business community stands ready to work with our political and economic leaders to bring about sustained and inclusive economic growth in the country,” the groups said.

In its initial statement, the business groups cited reports of alarming cost if the government would undergo the shift to federalism.

The National Economic Development Authority warned that the cost would reach P130 billion while state-run think tank Philippine Institute for Development Studies said it would cost P72 billion.

The groups also expressed concern over the fiscal deficit, which is estimated to reach 6.7 percent of the gross domestic product. This would be way beyond the 3-percent target of the country’s fiscal managers.

Such fiscal imbalance may have an effect on the economy and the Duterte government’s “Build, Build, Build” infrastructure program, the groups said.

Earlier this week, presidential spokesperson Harry Roque said President Rodrigo Duterte would consider the inputs of business groups on federalism.

“This is, of course, an input that the president will consider. And we’re hoping that the legislature (that) will tackle charter change will also consider the position of the business community,” Roque said on Monday. — Patricia Lourdes Viray

Source: https://www.philstar.com/business/2018/08/15/1842814/more-business-groups-back-economic-managers-call-weigh-cost-federalism#Fd35Lo7c1YK4FhGT.99