You’re wrong, Sec. Karl! Boost Food Production, Support Local Industries!

One of the bureaucracy’s most serious weakness is its inability to make instant adjustments and the lack of flexibility in the face of crisis.

The best proof of this is the announcement by Economic Planning Secretary Karl Kendrick Chua that the Development Budget Coordinating Committee (DBCC), which is composed of the country’s Economic Managers, has recommended a P1.270-Trillion Budget for infrastructure spending in 2022 claiming that this would boost economic recovery.

Obviously, this huge amount which represents about one-fourth of the total proposed budget of P5.024-Trillion will be spent for the touted “Build, Build, Build” Program which includes skyways, freeways, bridges and other major infrastructure projects.

Indeed, under normal conditions and circumstances, a huge infrastructure spending would really boost the country’s economy, especially if these are facilities which promote the free and easy movement of goods and peope.

The problem is we are experiencing abnormal conditions resulting from the economic devastation brought about by the restrictions due to the COVID 19 Pandemic.

Infrastructure spending may create jobs but its cascading effect on other sectors of society is limited.

What should also be taken into consideration is the absorptive capacity or disbursement capability of the agency or agencies which will receive this huge budget.

It must be remembered that in 2020, an estimated P90-B in public works and highways funds were not disbursed, meaning the benefits projected to be gained from the huge funds were not attained.

In these difficult times, what our people direly need are food and jobs, both of which could be generated by supporting local industries.

Instead of excavating still usable roads or constructing concrete islands in the middle of the highways, here are some industries which if supported would create tens of thousands of jobs and ensure sufficient food supply:

1. Compensation Program for the country’s hog raisers whose farms were devastated by the unabated spread of the African Swine Fever. Government must own up and admit that its failure to prevent the spread of the ASF caused the collapse of many hog farms and it is only right that the farmers are compensated;

2. Construction of Small Water Irrigation Systems to boost agricultural production to ensure the country of food sufficiency especially in these unpredictable times. A P100-B allocation for Solar-Powered Irrigation Systems could provide water to 1-M hectares of rice farms and help achieve rice self-sufficiency while boosting the income of farmers and providing jobs to poor rural workers;

3. Support through Grant Fund for Local Industries like Wood Processing, Revival of Mindanao’s Steel Industry, Food Processing Facilities, Regional Food Terminals and Cold Storage Systems and support for Aqua-Culture Production.

These are just some of the industries which if supported by government with even just one half of the money intended for Infrastructure spending as proposed in the 2022 Budget would really create thousands of jobs, generate income opportunities and start inclusive economic growth whose benefits would cascade down to the remotest areas of the country.

This is practical economics which I hope our Economic Managers would consider.

Sorry, Sec. Karl but I have to call you out on this publicly because it seems that the recommendations made by the Mindanao Development Authority (MinDA) during the Mindanao Speaks Up Forum which spelled out the strategies for our economic recovery had not really been given serious attention.

#GovernanceIsCommonSense!

(Image attached shows a captured image of the Inquirer story which featured NEDA Sec. General Karl Kendrick Chua and his statement on the huge infrastructure spending.)