Why the BBB of Pres Duterte Was Wrong

 Government turns to private sector for infrastructure funding amid financial constraints

This article sums it up. The government does not have the financial capacity to follow up with its infrastructure plan. The previous administration heavily borrowed to finance its Build Build Build project, sometimes at the expense of onerous loans, to bankroll its development. Not to mention, favored contractors were given juicy projects with the standard SOP going back to the awarding party.

The ideal way to go would have been to pursue and continue the PPP of Pres PNoy, which the current admin of Pres BBM is looking into. Unlike the BBB, which is riddled with corruption, credit grabbing, and the like, the PPP ensured transparency and timely development of the projects since it involves the private sector. 

With the pandemic, wastage of vaccines, anomalous transactions by DepEd, DOH, favoritism in the DA, and many more corrupt practices, involving the private sector will put a small transparency in the transactions of the government. 

The ideal scenario is a little bit of belt tightening by the government and empower COA. That will in a way fix the runaway spending and lower debt. BIR needs to go after the big taxpayers, esp PBBMs unpaid tax estate. BoC needs to go after smugglers, esp the agricultural ones. 

Most of the people running the government are strong in name only but no track record to show of it. The government needs to hire tested and proven firms/individuals in its projects and consultations. As for the electorate, we need to smarten up and vote for the best leaders with the track record of service.

rb28

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Stocks Performance under each Philippine President (PSEi Doubled in Size During Pres Aquino's Term)

1. During the time of Pres. Cory Aquino, the first 1,000 breakout level of the PSEi was recorded on July 2, 1987, a little over a year after she assumed the presidency.

2. During the administration of Pres. Fidel Ramos, Philippine stocks achieved two new breakout levels just three months apart. The PSEi’s 2,000-point level was reached on September 13, 1993 while the 3,000-point level was reached on December 23, 1993.

3. During the administrations of Pres. Joseph “Erap” Estrada and Pres. Gloria Macapagal Arroyo (GMA), the PSE never reached any new 1,000-point milestone.

The sluggish performance of the Philippine stock market was partly due to market meltdowns resulting from the aftermath of the Asian financial crisis in 1997 (during Pres. Estrada’s term) and the subprime mortgage and global economic crisis in 2007 (during Pres. GMA’s term). Both major events imposed a heavy toll on Philippine stocks lasting almost two decades.

4. It took the PSEi a long 17 years, from 1993 to 2010, to increase by just 1,000 points from 3,000 to 4,000 level.

5. While it took the PSEi 17 years to go from 3,000 to 4,000, it only took less than two years to jump from 4,000 to 5,000 points. This happened during the administration of Pres. Noynoy Aquino when the local index grew from 4,000 in September 2010 to 5,000 in March 2012.

6. Philippine stocks managed to breach the 1,000-point hurdle five (5) times from the 4,000 level in 2010 to 8,000 level in 2015. During this time, under the term of Pres. Noynoy Aquino, the PSEi doubled its value from 4,000 to 8,000 points.

7. It took the local stock market index three years (from March 2015 to January 2018) to reach a new milestone from 8,000 to 9,000 points. The 9,000-point level was reached on January 26, 2018, almost two years into the administration of Pres. Rodrigo Duterte.

8. In 2020, Philippine stocks plummeted alongside global markets because of the COVID-19 pandemic. The PSE suffered its biggest one-day decline of -13.34% on March 19, 2020 following the national government’s announcement of lockdowns and mobility restrictions.

SOURCE: Pinoy Money Talk

 

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