Towards a More Resilient Phillipines!

 Towards a more resilient Philippines

It’s been 3.5 months since we got stuck within our homes. The effects of COVID-19 can be felt all around us‒daily news blaring with statistics, families worried about going hungry, citizens anxious to go back to normal, and a Philippines that is struggling to keep its economy afloat. As with major world events, this is a big turning point in human history. When the next generations look back, they will judge us by how we fared in fighting this pandemic. 

 

We are feeling the brunt of COVID-19. The recent World Bank forecast expects 2020 Philippine GDP to contract by -1.9%. Experts are also saying that it will take at least a year before we see our economy rebound back to pre-COVID levels.

No economic sector has been spared. Industry (31% of GDP) has largely stalled and is only now getting back on its feet. Agriculture (9%) is struggling with lower demand for exports and local consumption due to reduced purchasing power. Our biggest GDP contributor, services (60%), has been badly hit. We are seeing mass layoffs and closures in tourism, hospitality and aviation. Remittances are drying up as thousands of overseas Filipino workers (OFWs) are repatriated while business process outsourcing companies (BPOs) are grappling with disruptions to their operations and the threat of closures among the companies they serve.

To move beyond the current crisis and to safeguard the hopes and dreams of the Filipino people, we must revisit our country’s ability to self-sustain by looking internally. We need to revisit our economic value chains, reassess where gaps are, and make strategic investments accordingly. To this end, I’d like to contribute my thoughts on six areas.

 

Healthy living

As the World Health Organization (WHO) says, “Health is a fundamental human right”. In the current situation, people need assurance that they are safe and secure and that they have access to the resources they need to keep them that way. To this end, the messaging on health issues must be explicit, clear and most importantly, based on hard scientific facts and evidence. Steps must also be taken to make health more accessible through affordable healthcare and cheaper medicines. Information campaigns should be designed to educate the public on how to keep themselves healthy through proper diets and good lifestyle choices.

 

Knowledge and education

A well-educated population is critical to our country’s future—this is why the quality of and access to education need to increase. While we’ve shifted towards online learning models, limited internet access, outdated (i.e., not virtual-ready) teaching modules and inadequate education support systems (e.g., mentors and educational technology) greatly impact their effectiveness.

 

Inadequate education support systems would probably be the most difficult to address due to socio-economic and geographic constraints. “First-generation” students from poorer families, for example, who are struggling with lessons would have no one to turn to for questions, and this may demotivate them from even learning at all. Hence, limited resources may be better spent towards upskilling teachers to better conduct virtual classes and providing subsidized internet for teachers and students.

 

Sustainable electrification

We are on track to meet our goal of universal electrification by 2022. This is welcome news indeed, but our energy mix is something that we urgently need to revisit. Our CO2 emissions have jumped by 256% since 1990. This is expected to rise if the Philippines continues its trajectory of relying on non-renewables such as coal and oil.

 

While efforts have been made to incentivize the development of alternative energy sources, we are facing difficulties in ramping them up. One such incentive is the Feed-in-Tariff (FiT) incentive for renewable energy producers, which is slightly losing traction with investors due to allowance cuts. Regardless of the ongoing debates on the cost and benefits of renewable energy, what is clear is that the Philippines needs to implement policies that would further incentivize the production of cleaner and cheaper renewable energy in the long run.

 

Strategic infrastructure & IT

Connectivity is king these days. We need to accelerate the creation of physical and digital pathways by building roads and setting up more cell sites to foster development and promote active collaboration between our 2000 inhabited islands. This would help in decongesting overcrowded Metro Manila and redistributing wealth towards other parts of the country. In addition, strategic IT investments must be made to accelerate and optimize the delivery of government services (e.g. national ID system).

 

Support local

To generate the funds needed for inclusive growth, let us support agriculture and industry by buying Philippine-made products. Buying local means we get to keep money circulating within our economy and give back to our local producers, motivating them and giving them the resources to scale up and reinvest in R&D and technology.

 

In agriculture, this means increased higher yields, more resilient crops and livestock, better agricultural technologies and improved distribution capabilities. Not only do these investments pay themselves off, they’re also accompanied by an economic multiplier effect that will reinvigorate our agricultural sector and address the issue of food security.

For industry, this means higher-tier, value-adding capabilities and more cost-efficient green technologies in local manufacturing, thereby making goods more affordable and accessible and stimulating economic activity in the other sectors as well.

Moreover, I’d like to emphasize that these investments would create jobs. More jobs translate to higher average family incomes and a brighter quality of life for Filipinos. This further creates an impetus for our people to really stay and contribute towards the local economy.

 

Hope springs ever eternal. If there’s one quality that marks the Filipino people, it is resiliency. We’d been colonized, had to rebuild our cities, suffered under terrorism and dictatorship, fended off economic recessions, and fled from our homes in the face of calamities.

 

Sa dami ng pinagdaanan natin, ngayon pa ba tayo susuko? (With all that we’ve been through, do we have to give up now?) Now, more than ever, we must exemplify the bayanihan (concerted effort) spirit and unite as one people. In the midst of COVID-19, we must all look forward, continue fighting, and never give up!

 

 

 

 

 

 

References:

 https://www.pwc.com/ph/en/business-unusual/dreaming-of-a-more-sustainable-and-resilient-philippines.html