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Friday, March 29, 2024

Careful with federalism

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If there is one thing clear in the debate on the need to shift from the unitary to the federal form of government, it is the fact that the consultative committee did not have finance and economics experts among them.

I agree with economic managers Finance Secretary Carlos “Sonny” Dominguez and Socio-economic Planning Secretary Ernesto Pernia that federalism would have a negative impact on our fiscal policy.

President Duterte and the proponents of federalism should listen. Aside from the effect on fiscal policy, some 95 percent of the 1.46-million government employees stand to lose their jobs.

With that many jobless people on the streets, law and order would be a nightmare!

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Secretary Dominguez told the Senate deliberating the P3.757-trillion national budget for 2019 that he was confused over the draft submitted by the consultative committee, specifically on sharing of resources between the national government and the federated states. Credit ratings will “go to hell,” he said.

And who do you think will shoulder the huge cost that comes with this exercise? We taxpayers, of course, will be burdened with additional taxes.

With the powerful business groups led by the Philippine Chamber of Commerce and Industry, the Makati Business Club, the Management Association of the Philippines, the Financial Executives Institute of the Philippines, Employers’ Confederation of the Philippines, and Cebu Business Club throwing their support behind the economic managers, President Duterte should at least pause and listen.

Congress, which will have to push Charter change so the country could move toward federalism, should now stop. There are warning signs that we are not ready.

We should take into consideration the fact that it will be Dominguez, Pernia and Budget Secretary Benjamin Diokno who will be implementing the economic and fiscal provisions of the new form of government. When we hear them warning us about the effects of federalism, we should take their word for it.

I think we can now regard federalism as dead in the water. As I said, even time is against it.

***

I have long advocated the creation of a permanent government agency under the Office of the President to replace the National Disaster Risk Reduction and Management Council, an ad hoc body under the Department of National Defense.

While the NDRRMC has been devolved to local government units, it is still a unit that only goes into action when disaster strikes.

Thus, when President Duterte stated in his State of the Nation Address that he wants the creation of a Department of Disaster Resiliency, I said: “It’s about time.”

The new department can absorb the NDRRMC, the Climate Change Commission and all other agencies in charge of relief, rescue and rehabilitation after disasters.

Every year, we have flooding here in Metro Manila, and landslides/ mudslides in the countryside. The need for such an agency gets more critical every year.

We have been needing this department, with its own budget allocation and permanent personnel for a long time!

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There are many proposals to minimize the gridlock at Edsa but nothing has worked so far.

Now comes this idea of the Metro Manila Development Authority to ban vehicles with just the drivers in them on Edsa. Will it work?

First, there are so many heavily tinted vehicles. Second, it’s only the middle-class car owners who will suffer because the rich have their drivers with them.

There are fears that the situation will encourage some to organize themselves as passengers-for-hire. The danger here is that the practice could end up in crime. There are people you just cannot trust.

The only solution, I believe, is strict enforcement of the law.

Banning provincial buses from Edsa is a good idea. The problem, however, is the lack of terminals at the outskirts of Edsa.

I guess we all just have to grin and bear it.

***

The entry of nearly P7 billion worth of shabu through Customs is no longer surprising. Shabu from China, Taiwan and Malaysia have been coming in regularly not only through Customs but through our porous borders. This, despite President Duterte’s bloody war on drugs.

As I have been saying, so long as there is demand for illegal drugs, the supply will come from syndicates and cartels.

The problem is that the drug problem is being treated like a law-and-order issue. It’s not—is a health issue, first and foremost.

I bet that until the last day of the President’s term, the drug problem will persist.

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