President Ferdinand Marcos Jr. delivers his 3rd State of the Nation (SONA) | Photo via PCO
His Excellency President BongBong Marcos (PBBM) said during his third State of the Nation Address (SONA), “The hard lesson of this last year has made it very clear that whatever current data proudly banning our country as among the best-performing in Asia means nothing to a Filipino who is confronted by the price of rice at 45 to 65 pesos per kilo.”
One could not agree more. Unless PBBM has lost touch with reality, “best-performing” statistics truly mean nothing unless they translate to the lives of the average Filipino, in fact, with the below-average Filipino or those on the fringes of survival, those who live on ‘pagpag’ and the generosity of relatives or strangers.
The Gross Domestic Product (GDP) reflects the entire economy, including the total goods and services. When massive infrastructure projects are undertaken, these, too, become part of the GDP. Every peso is part of the GDP. But when billions of pesos are in the hands of the very few and account for a disproportionate majority of all GDP, the lesser among Filipinos are left to scour through garbage for both food and livelihood.
Rice is Php 23 – 46 per kilo in Vietnam – a country that fought a war with the mightiest army in the world for 20 years. With self-inflicted insult and injury, the Philippines will import rice from Vietnam for five years. The International Rice Research Institute (IRRI) is in the Philippines. Yes, Vietnam is a communist country, but the Philippines does not have to be a communist country to achieve self-sufficiency in rice. It’s been done before- circa 1977-1978.
PBBM went on to say, “Sa kabila ng mga hamon na ating kinakaharap, nasaksihan natin ang pinakamataas na ani ng palay sa bansa nitong nakalipas na taon. Pumalo ito sa lagpas dalawampung milyong tonelada — ang pinakamataas na ani mula pa noong 1987”. It is noteworthy that the population of the Philippines in 1987 was 58 million, when rice production totaled 6 million metric tons. In 2024, it is projected to be 23 million metric tons of palay, roughly 13 million metric tons of rice, but there are now 115 million Filipinos. Neighboring countries, for one reason or another, seem to achieve greater productivity while Filipinos remain laggards.
PBBM said, “Kaya patuloy nating sinusuportahan ang sektor ng agrikultura, upang mapabilis, mapadali, at mapalakas ang produksyon — mula sa pagpunla, pag-ani at paghuli, hanggang sa pagbiyahe at pagbenta — at upang maiwasan din ang pagkasira ng mga produkto.” The solution lies in incentivizing the farmers through vertical integration – removing middlemen as much as possible – from nursery, planting, harvest, drying, storage, logistics straight from farm to table.
PBBM also said, “Para naman sa mga mangingisda, mahigit limandaang milyong fingerlings at tatlong libong mga bangka ang naipamahagi. Nakakatulong din ang mga ginawa at inayos na mga fish ports at cold storage upang masuportahan ang kanilang industriya.
Bancas? Why not Barko? Bancas, instead of organizing marginal fisherfolk into cooperatives, much like the jeepney modernization program, enables higher income through the purchase of commercial fishing vessels, ownership of cold storage facilities, and logistics capacity, offering a path for the sea-to-table control of access instead of relying on middlemen who gobble up the lion’s share of profits. For example, total West Philippine Sea fishing production among 300,000 Filipino fishermen in the area translates to a measly Php23,000 per fisherman per year. It is time to capacitate our fishing industry, at least envision a fleet of fishing vessels comparable in size to foreign maritime militias and coast guard that seek to harass them – rendering them less vulnerable to water cannons.
PBBM also acknowledged rampant smuggling as one issue plaguing entire industries. Using commercially available “airbags” that cost around Php1,000 each at the source for rice importations should deter would-be smugglers and hoarders.
“The State of the nation is hopeful not because the government is adequately responsive but because Filipinos are, by nature, hopeful people. However, the political elite must recognize that no people in human history have ever exhibited an inexhaustible tolerance for suffering.”
Likewise noteworthy is the Php 57B worth of certificates of condonation for farmers. Agriculture, en toto, accounts for around 6% of GDP. This writer commends PBBM for this decision. However, it was equally disappointing that the ‘Bagong Bayani’ of the country, the Overseas Filipinos, both contract and migrant, received nary a mention in terms of equitable access to such financial benefits – at most the sector will require 10% of what was provided to farmers – around Php6B – to capitalize the Overseas Filipino Bank (OFB) and transition ownership to overseas Filipinos and finally transfer the providential Overseas Workers’ Welfare Administration (OWWA) Trust Fund to the OFB.
If the government somehow considers this transition and capitalization undeserved, perhaps as a last resort, the government may consider the capitalization a bridging loan. All this can be achieved with one signature by PBBM through amendments to Executive Order 44, earlier signed by former President Rodrigo Roa Duterte in 2017. The combined bank and cash remittances of overseas Filipinos account for nearly 20% of Philippine GDP – triple the contribution of the entire agricultural sector.
PBBM continued, “Through modernized customs procedures and heightened enforcement efforts, more than 2.7 billion pesos worth of smuggled agri-fisheries products have been seized, preventing them from entering the market and negatively influencing prices. ” This perennial problem is not beyond solving. Perhaps not the most minor complex, but otherwise, the most elegant solution is to collect VAT from manufacturers abroad as part of the bill of lading – this will mitigate technical smuggling and create a level playing field for retailers and consumers alike.
It is commendable that the Philippines secured a seat on the Board of the Loss and Damage Fund and has also been selected as a host country for that fund. Perhaps it is high time for the Philippine Crop Insurance Corporation (PCIC) to provide coverage at the inception of the planting season instead of waiting for crops to mature before doing so. It will, in itself, incentivize lenders to provide much-needed financing.
Regarding electric power, PBBM should initiate ASEAN regional grid interoperability to reduce or eliminate local spot market manipulation by sharing a regional power grid. It may also reduce power rates.
The health budget is Php 241B—a combined 195,000 health care provider deficit, particularly impacting rural areas. To partially address this problem, public funds in the form of higher subsidies for private health care, including hospitals, should be transitioned to a model that resembles public-private programs currently extensively used for infrastructure into health service contracts wherever practicable. It is, after all, a widely held perception that government is the least efficient way of delivering any service to taxpayers.
The real unemployment rate should reflect the 2 million OFWs who would otherwise be unemployed if repatriated. Unemployment statistics should exclude family members who marginally provide labor in family-owned businesses, such as a dishwasher in a carinderia serving ‘pagpag,’ as millennials would say, LOL!
By upgrading tourism to some semblance of being world-class, basic facilities to and around tourism sites outside of hotels and resorts should be made available, well maintained with secured rest areas provided with running water, working plumbing, soap and hand dryers, along the Maharlika Highway at the very least. Political vendettas should be set aside to improve tourist sites – any severe revival of tourism must strive to preserve historical places that remind Filipinos of their true history without resorting to historical revisionism.
To help address the labor clamor for a living wage, the government can share the burden through equitable earned income tax credits and child tax deductions, chelation to period, and adjustments based on inflation.
The State of the Nation is hopeful not because the government is adequately responsive but because Filipinos are, by nature, hopeful people. However, the political elite must recognize that no people in human history have ever exhibited an inexhaustible tolerance for suffering. The inevitable consequences of continued neglect are often met with the commensurate ferocity of the resulting upheaval – this is not a call to arms but an appeal to those who wield the power of the purse. It is never too late, and the time for reform is now – act before tomorrow is here and while yesterday’s pain and suffering remain within the capacity of the Filipino to endure.
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ABOUT THE AUTHOR: Dr. Crispin Fernandez advocates for overseas Filipinos, public health, transformative political change, and patriotic economics. He is also a community organizer, leader, and freelance writer.
