ecoN REPORT

Economic Development Overview

• The presentation covers various aspects of economic development in the Philippines, especially during the presidency of Rodrigo Duterte from 2016 to 2022.

• Focus on economic growth rates, policies implemented, and the overall impact on different sectors.

Rodrigo Roa Duterte

Background

• Birth Date: March 28, 1945

• **Roles:

  • Mayor of Davao City

    • Served from 1998-2001, re-elected 2004-2013, again 2013-2016

  • President of the Philippines: June 30, 2016 – June 30, 2022**

Major Policies and Issues

• War on Drugs:

  • Controversial campaign leading to thousands of deaths and significant international criticism regarding human rights abuses.

• Foreign Policy:

  • Shifted towards China, improving relations, while the relationship with the United States became strained.

• Public Health:

  • Addressed challenges including the COVID-19 pandemic, with health measures implemented to combat the virus.

• Controversies:

  • Criticized for harsh language, behavior, handling of press freedom, and human rights issues.

Economic Statistics

GDP Growth Rates

• The Philippine economy showed significant recovery post-pandemic:

  • 2022: 7.6% growth rate.

  • Q1 2023: 6.4% growth rate.

• Historical context:

  • 2015 Growth Rate: 6.3%

  • 2016 Growth Rate: Improved to 7.1% under Duterte.

• Comparative Growth Rates (Q1 2023):

  • Philippines: 6.9%

  • China: 6.7%, Vietnam: 5.5%, Indonesia: 4.9%, Malaysia: 4.2%.

Growth-Related Contributions

• War on Drugs (July 1, 2016):

  • Aimed at reducing crime rates to create a conducive environment for economic activities.

• Martial Law in Mindanao (May 23, 2017):

  • Declaration to address security threats, particularly during the Marawi siege.

• Build, Build, Build Program (April 18, 2017):

  • Infrastructure development to stimulate economic growth and reduce urban congestion.

• Universal Access to Quality Tertiary Education Act (August 3, 2017):

  • Free tuition aimed at increasing access to higher education.

• TRAIN Law (December 19, 2017):

  • Tax reforms to increase disposable income and government revenue for infrastructure and social programs.

• Boracay Closure and Rehabilitation (April 26 - October 26, 2018):

  • Addressed environmental degradation with short-term economic impacts but long-term benefits for tourism.

Challenges Faced

Economic Challenges

• Rising Inflation Rates:

  • Result of the TRAIN Law leading to increased prices of goods.

• Unemployment Trends:

  • Major spikes in unemployment in 2020 due to the COVID-19 pandemic; however, stabilization efforts helped return to pre-pandemic levels.

• Impact of Boracay Closure:

  • Significant losses in tourism sector, affecting local businesses and employment.

Inflation Trends

• Inflation Rates (2016-2022):

  • Initially stable at 2-3% until mid-2018.

  • Peak Inflation (September 2018): 6.7%, prompting measures to stabilize food prices.

  • Decline Post-2019: Stabilization efforts brought inflation down to approximately 2.4% during the pandemic.

  • Rising Rates (2021-2022): Inflation increased again due to global economic pressures, reaching 5.8% in 2022.

Conclusion

• The presentation reviews Duterte's economic policies and their direct impacts on growth, inflation, and employment. Despite facing challenges, the economy saw periods of significant growth and recovery during his administration.

• The overall assessment indicates a complex interplay of policy, economic performance, and external factors impacting the Philippines during and post-Duterte's presidency.