This country needs an empowered Department of Economy, Planning and Development headed by a secretary who is accepted and functions as the nation’s chief economic manager.
In a column written shortly before Congress approved a bill replacing the National Economic and Development Authority (NEDA) with a Department of Economy Planning and Development (DEPDev), I expressed the view that the change would make no practical difference because DEPDev was likely to be as inconsequential as NEDA.I agreed that, contrary to the indication of its name, DEPDev would largely be preoccupied with planning and would have little involvement in the management and development of the economy.I believe that my negative expectation has been borne out by DEPDev’s performance since the start of its operations. The new Cabinet department has not figured, or been heard from, in any of the recent events that have had a major impact on the economy.Take the flood control projects scandal. Public-sector investment is one of the key components of the gross domestic product (GDP) growth targets embodied in the Philippine Development Plan, 2023-2028, of which DEPDev is the author and proponent.Not only did the big-time thievery of tax payer funds cause the loss of billions of pesos worth of programmed public-sector investment, but it also disrupted the timetables for the projects relied upon for GDP growth.Because of the enormous disruption caused by the flood control projects scandal, DEPDev denunciatory voice should have been the loudest; but next to nothing was heard from the Secretary of Economy, Planning and Development.Or take the revelation that the rampant issuance of Bureau of Internal Revenue (BIR) letters of authority was being attended by corruption, with BIR examiners pocketing a substantial share of the additional amount raised from taxpayers. Considering that the BIR is the principal source of financing for the Philippine Development Plan, DEPDev should have been heard from in the matter. But, alas, the Secretary of Economy, Planning and Development once more had nothing to say.These and similar situations do not convey a positive impression of DEPDev and its leadership. Instead, they suggest that DEPDev and its leadership think that DEPDev is above it all and should not get involved in the nasty and inconvenient things happening around it.That is not how things should be true. The President of the Philippines, as the Chief Executive, is the chief executor of the country’s laws, decisions and plans, but in real and practical terms, there should be a chief economic manager, someone who will wield the baton that the government orchestra follows. By virtue of his official designation that person is the Secretary of Economy, Planning and Development.But, given the way that the Executive Department is structured, the Secretary of Economy, Planning and Development is not this country’s chief economic manager. He is not, but he should be, the primus inter pares among the Cabinet members heading economy-related departments. The Secretary of Economy, Planning and Development defers to the Secretary of Finance and as the flood control mess has shown, the Secretary of Budget and Management operates as though her department were an independent Kingdom.The best feature – many would say the only good feature – of the earlier part of Ferdinand Marcos Sr.’s martial law regime was that, as far as the Philippine economy’s development was concerned, someone was in charge. That person was the Secretary (later Minister) of Finance, Cesar E.A. Virata. All the members of the economic management team, including such powerful cabinet figures as Vicente Paterno (Trade and Industry) and Gerardo Sicat (NEDA). Vicente Paterno and Sicat and their Cabinet colleagues respected and deferred to Mr. Virata, of course. President Marcos had utmost confidence in Mr. Virata.This country does not enjoy that kind of situation today. That flood control scandal has shown that clearly. There is no Cesar Virata today. What we have (or had, because she is gone) is Secretary of Budget and Management functioning as a one -person economic management team approving releases of billions of taxpayer pesos to unentitled public works contractors.One of the key lessons that the flood control mess has taught the Filipino people is that this country needs an empowered Department of Economy, Planning and Development headed by a secretary who is accepted and functions as the nation’s chief economic manager.(llagasjessa@yahoo.com).
