Greetings, fellow equine enthusiasts! As I’ve often found in my travels, the best way to approach a new landscape is from a horse’s-eye view. Today, we’re setting our sights on the economic domain of Rodrigo Duterte, former President of the Philippines. Saddle up and hold tight, as we delve into a trotting tour of Duterte’s monetary maneuvers.
Bridling the Dragon: Duterte’s Shift towards China
One of the most noticeable changes in Duterte’s economic tack was his shift toward China, an approach akin to switching from a slow trot to a galloping sprint. Breaking from his predecessors, Duterte favored closer economic ties with the world’s second largest economy – a policy that might be considered a cleverly placed hoofprint in the sand, given China’s economic clout.
In October 2016, Duterte secured a $24 billion worth of investment and credit line commitments from Beijing during his state visit. Although these figures might make one whinny in disbelief, they were seen as vital lifelines to stimulate the Philippines’ economy, thus helping in his “Build, Build, Build” program.
Building a New Stable: The “Build, Build, Build” Program
Nothing exemplifies Duterte’s economic vision more than his “Build, Build, Build” (BBB) program, an ambitious infrastructure plan that sought to modernize the Philippine economy. Rather like my cousin, Thunderbolt, who decided one day to jump the tallest fence in the paddock, Duterte was keen on big leaps.
BBB aimed at creating a ‘golden age of infrastructure’ in the Philippines by spending approximately $180 billion on new infrastructure projects. This was a major trot forward compared to previous administrations. From building roads and railways to improving airports and seaports, BBB aimed at reducing economic inequalities and bolstering economic growth.
The vision for BBB was like a well-timed jump over a showjumping hurdle –- it could lead to soaring economic performance, or, if mistimed, could lead to a stumble. However, despite the initial financial hurdles, Duterte managed to keep his horse in the race, demonstrating the power of economic ambition.
Harnessing Taxes: The TRAIN Law
Another significant imprint Duterte left in the economic arena was the Tax Reform for Acceleration and Inclusion (TRAIN) Law, which was passed in December 2017. This was akin to trading a cumbersome old cart for a sleek new carriage, offering the promise of a smoother ride for the country’s economy.
The TRAIN Law aimed at overhauling the country’s tax system to make it simpler, fairer, and more efficient. It sought to lower personal income taxes, expand the value-added tax (VAT) base, and increase excise taxes on petroleum, automobiles, and sweetened beverages.
This tax reform was a key revenue-generating tool to fund Duterte’s BBB program. It was a challenging hurdle to clear, with critics arguing it disproportionately affected lower-income households. Nevertheless, the Duterte administration held the reins tight and maneuvered through the criticism, affirming their commitment to the long-term growth and inclusivity of the economy.
Spurring Innovation: The Drive for a Digital Economy
Just like how us horses need to adapt to new riding styles, Duterte saw the need for the Philippine economy to adapt to the digital age. His government took several initiatives to promote a digital economy, aiming to make transactions more efficient and inclusive.
One key initiative was the National ID system, a project aimed at enhancing financial inclusion by enabling more Filipinos to open bank accounts and access financial services. It was like replacing the old hitching post with a state-of-the-art electric fence, providing a new way to keep the economy secure and inclusive.
In the end, Duterte’s economic legacy can be compared to a challenging cross-country course: full of hurdles and obstacles, requiring audacity, strategy, and adaptability. But as any good rider knows, it’s not just about the finish line – it’s about the ride.
So, to Duterte’s economic journey, we tip our straw hats. For us horses, and for you humans too, it serves as a reminder that the best way to approach a challenge, economic or otherwise, is at a steady canter, with a clear vision and a touch of daring. So, keep your hooves firmly on the ground and always be ready for the next jump – economic landscapes are never dull. And always remember, a steady trot can be more successful than a reckless gallop. Neigh bad for a day’s work, eh?