In the run-up to President Marcos’ State of the Nation Address (Sona) today, several government agencies were busy uplifting the mood among the various audiences keenly awaiting his speech. Among others, minimum wage earners in Metro Manila were given a P35 daily increase, the Department of Agriculture launched the “Bigas 29” project to provide cheaper rice to the poor, and disgruntled health-care workers saw the settlement of their long overdue allowances for services at the height of the pandemic. The President himself traveled to the provinces to inaugurate power and irrigation facilities, distribute land to agrarian reform beneficiaries as well as low-cost housing to the homeless, and extend aid to farmers and fisherfolk affected by the El Niño dry spell.
While these actions may appease a few sectors, the majority of Filipino consumers continue to grapple with the high prices of food items, with very little relief in sight. The easing inflation is a favorite indicator used by economic managers to proclaim that price increases have been going down, but the situation in the real world—in public markets and groceries to be precise—is very much different. For instance, the price of chicken rose to a record high of P250 a kilo last week as many poultry raisers cut production due to losses caused by high input costs.
Lingering problem
The pessimism among consumers was evident in the latest June 2024 Pulse Asia survey released last week, showing that 76 percent of Filipinos disapproved of how the administration addressed inflation. The other areas with high disapproval ratings are interrelated as well, with the same survey noting that government attempts at reducing poverty had a disapproval rating of 51 percent, increasing workers’ pay and fighting corruption (39 percent), addressing hunger (35 percent), and creating more jobs (30 percent). A recent report by the National Nutrition Council also showed widespread food insecurity—which simply means lack of food—with one out of three households experiencing it. Another survey from the Social Weather Stations (SWS) showed around 16 million Filipino families see themselves as poor, with self-rated poverty among Filipino families reaching a high 58 percent as of June this year.
The government actually tried to fix this lingering problem of high consumer prices by easing import controls and lowering tariffs on essential products such as rice, sugar, meat, and poultry. Theoretically, cheap imports should bring down their prices, yet the country’s experience has been to the contrary. The primary reason is the existence of suspected cartels in the different agricultural sectors. So no matter how many cheap imports come in, prices will remain elevated as long as these unscrupulous groups control domestic supply.
Inclusive growth
There are a lot of other expectations confronting the President as he delivers his third Sona. For a cross-section of society and even the business community, pressure is mounting on him to act on the myriad problems involving illegal Philippine offshore gaming operators. For the private sector, it is wishing that the President will certify as urgent 21 pending bills in the legislature it believes are necessary to achieve the “shared vision of inclusive growth through job generation, poverty reduction, and global competitiveness.” While the list is topped by the divisive plan to amend the economic provisions of the 1987 Constitution that seems to have little chance of passing, a number of them are less controversial and workable. The Konektadong Pinoy bill, for example, will eventually lower internet costs for the social-media-crazed Filipinos. The bill promoting digital payments can also curb corruption by mandating the use of digital modes of payment by all government agencies. People in rural islands will similarly benefit from the proposed Satellite-based Technologies Promotion Act since it will help connect communities. Meanwhile, the bill creating an airport authority will help promote travel and tourism.
Topmost priority
Given the long list of “wishes” from the different sectors of society and the economy, prioritization is the name of the game. The President and his administration officials need to look at which of these will have the biggest impact on as many Filipinos as possible. This is not to preclude them from addressing issues such as the growing tension in the West Philippine Sea. But from all indications, bringing down the high prices of basic food items remains the topmost priority. A decisive campaign to stamp out hoarding and the cartels operating in the agriculture sector will be crucial in achieving this, along with programs to improve farm productivity, of course. For the medium to long term, prodding lawmakers to pass key economic bills will also have a profound impact on the overall living condition of Filipinos. Remember that investments create jobs, and jobs alleviate poverty.