DuterteNomics

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DuterteNomics is a catch-all term referring to the socioeconomic policies of Rodrigo Duterte, the 16th and incumbent president of the Philippines. A significant part of these policies include the development of infrastructure and industries in the Philippines.[1]

Background[]

Finance Secretary Carlos Dominguez III has said that the government required what he describes as an "audacious" economic strategy in order for the Philippines to "catch up with its more vibrant neighbors" by 2022 and help it achieve high-income economy status within a generation. The term DuterteNomics was coined to describe the economic policy of the Duterte administration. The term also refers to the series of forums where Duterte's economic team pitches the administration's plan to help the country become a high-middle-income economy by 2022.[2]

The policy was unveiled on April 18, 2017, by the Department of Finance and the Presidential Communications Operations Office (PCOO), in cooperation with the Center for Strategy, Enterprise and Intelligence (CenSEI) in a forum held at Conrad Manila in Pasay. A second forum was held on April 25, 2017.[2]

DuterteNomics was also pitched abroad, particularly at the 2017 World Economic Forum on the Association of Southeast Asian Nations in Cambodia and at the sidelines of the 2017 One Belt One Road Forum for International Cooperation in Beijing, China.[2]

Ten-point agenda[]

The economics team of then President-elect Rodrigo Duterte presented the following points of Duterte's socioeconomic policy in a business forum in Davao in June 2016.[3] DuterteNomics is anchored on these ten principles.[2]

  1. Continue and maintain current macroeconomic policies, including fiscal, monetary, and trade policies.
  2. Institute progressive tax reform and more effective tax collection, indexing taxes to inflation.
  3. Increase competitiveness and the ease of doing business.
  4. Accelerate annual infrastructure spending to account for 5% of GDP, with Public-Private Partnerships playing a key role.
  5. Promote rural and value chain development toward increasing agricultural and rural enterprise productivity and rural tourism.
  6. Ensure security of land tenure to encourage investments, and address bottlenecks in land management and titling agencies.
  7. Invest in human capital development, including health and education systems, and match skills and training.
  8. Promote science, technology, and the creative arts to enhance innovation and creative capacity.
  9. Improve social protection programs, including the government's Conditional Cash Transfer program.
  10. Strengthen implementation of the Responsible Parenthood and Reproductive Health Law.

Build! Build! Build! Program[]

Skyway Stage 3 construction along G. Araneta, Quezon City

Part of DuterteNomics is the Build! Build! Build! Infrastructure Plan which according to the administration will usher in the "Golden Age of Infrastructure". The goals of the program are to reduce poverty, encourage economic growth and reduce congestion in Metro Manila.[4][5]

In November 2019, the government revised its list of flagship infrastructure projects under Duterte's "Build, Build, Build" program, expanding it to 100.[6][7] It was revised again in August 2020, bringing the total number of projects to 104, expanding its scope included health, information and communications technology, as well as water infrastructure projects to support the country's economic growth and recovery from the effects of the COVID-19 pandemic. As of September 11, 2020, 24 projects are still in the approval & planning stages, while 80 were under implementation.[8]

As of July 2021, 214 airport projects, 451 commercial social and tourism port projects, 29,264 kilometres (18,184 mi) of roads, 5,950 bridges, 11,340 flood control projects, 11,340 evacuation centers, and 150,149 classrooms had been completed under the infrastructure program.[9][10]

Associated projects[]

Transportation and mobility[]

Railways[]
Project Construction Status Completion date Ref.
LRT Line 1 South extension 2019–2024 Under-construction 2024 [11]
LRT Line 2 East extension 2015–2021 Completed July 5, 2021 [12]
LRT Line 2 West extension 2021–2024 Proposed 2024 [13]
MRT Line 3 rehabilitation 2019–2021 Ongoing December 2021[needs update] [13]
MRT Line 4 2021–2025 Proposed 2025 [13]
LRT Line 6 Proposed [13]
MRT Line 7 2017–2022 Under-construction December 2022 [14]
Metro Manila Subway (Phase 1) 2019–2027 Under-construction 2027 [15]
MRT Line 10 Proposed [13]
MRT Line 11 Proposed [13]
North Triangle Common Station 2017–2022 Under-construction 2022 [16]
PNR North–South Commuter Railway (NSCR) 2019–2025 Under-construction 2025 [17]
PNR South Long Haul Proposed 2025 [17]
SkyTrain (Fort Bonifacio–Makati SkyTrain) Proposed [13]
Subic–Clark Railway Proposed 2024 [18]
Mindanao Railway Phase 1 (Tagum–Davao–Digos Segment) Proposed June 2023 [19]
Cebu Monorail System Proposed [13]
Urban transport[]
Project Construction Status Completion date Ref.
Cebu BRT system 2017–2022 Under-construction March 2022 [13]
Davao Public Transport Modernization project Ongoing [13]
EDSA Busway Concourse project 2021–2022 Under construction 2022 [20]
Metro Manila BRT Line 1 (Quezon Avenue) Proposed 2022 [13]
Parañaque Integrated Terminal Exchange 2015–2018 Completed November 5, 2018 [13]
Taguig Integrated Terminal Exchange 2018–2021 Under-construction 2021 [13]
Roadways[]
Project Construction Status Completion date Ref.
Bacolod–Negros Occidental Economic Highway 2017–2024 Under-construction 2024 [13][21]
Boracay Circumferential Road (Phase 1 and 2) ?–2020 Completed December 4, 2020 [13][22]
Cagayan de Oro Coastal Road 1997–2017 Completed November 10, 2017 [13][23]
Camalig Bypass Road ?–2021 Completed June 15, 2021 [24]
Camarines Sur High-Speed Highway 2019– Under-construction [13]
Davao City Bypass Road 2020–2022 Under-construction 2022 [25]
Davao City Coastal Road 2017–2023 Under-construction 2023 [25]
EDSA Greenways 2022–2024 Proposed November 2024 [13][26][27]
Iconic Bridges for Socio Economic Development Under-construction [13]
Improving Growth Corridors in Mindanao Road Sector Project (former Tawi-Tawi Interlink Bridge and Guicam Bridge) Under-construction [28]
Mindanao Development Road Network Under-construction [28]
New Bacolod Economic Highway Under-construction [28]
Pasacao–Balatan Tourism Coastal Highway 2019– Under-construction [13]
Road Network Development Project in Conflict Affected Areas in Mindanao Under-construction [28]
Samar Pacific Coastal Road 2018–2021 Under-construction December 2021 [13][29]
Sariaya Bypass Road 2014–2021 Completed October 21, 2021 [30]
Sindangan-Bayog-Lakewood Road 2014–2022 Under-construction 2022 [13]
Sorsogon City Coastal Road 2015–2020 Completed August 30, 2020 [31]
Surallah-T'boli-San Jose Road 2016–2022 Under-construction 2022 [13]
Urdaneta City Bypass Road 2019–2021 Completed January 18, 2021 [13][32]
Inter-island Bridges
Bataan–Cavite Interlink Bridge 2022-2027 Proposed 2027 [33]
Cebu–Mactan Bridge and Coastal Road Construction project Proposed [13]
Coron–Culion Bridge 2021– Under-construction
Davao–Samal Bridge Proposed [34]
Mindoro–Batangas Super Bridge Proposed [35]
Panay–Guimaras–Negros Bridge (Phase 1) Proposed [13]
Panglao-Tagbilaran City Offshore Connector Bridge Under-construction [13]
Panguil Bay Bridge 2021–2023 Under-construction December 2023 [28]
Samal Island-Davao City Connector Bridge Proposed [13]
Roma Point Bridge 2018– Under-construction [36]
Expressways
Cebu–Cordova Link Expressway (CCLEX) 2018–2022 Under-construction 2022 [37]
Davao City Expressway Proposed [13]
Metro Cebu Expressway 2018–2022 Under-construction 2022 [28]
Pasig River Expressway 2021–2023 Under-construction 2023 [38]
Luzon Spine Expressway Network[28][39]
C-5 Southlink Expressway 2016–2022 Under-construction 2022 [40][41]
Cavite–Laguna Expressway (CALAX) 2018–2023 Under-construction September 2023
Cavite–Tagaytay–Batangas Expressway Proposed [13]
Central Luzon Link Expressway (CLLEX) 2017–2021 Completed July 15, 2021 [39]
Metro Manila Skyway Stage 3 2014–2021 Completed January 15, 2021 [42][41]
Skyway Extension 2019–2021 Completed December 10, 2021 [41]
North Luzon East Expressway (NLEE) Under-construction [39]
NLEX Harbor Link 2014–2020 Completed June 15, 2020 [41][43]
NLEX Harbor Link Extension to Anda Circle Proposed [13]
NLEX–SLEX Connector Road 2019–2022 Under-construction March 2022 [42][40][41]
Plaridel Bypass Road (Phase 2 and 3) 2014–2020 Completed December 2020 [44]
Quezon–Bicol Expressway Proposed [13]
Southeast Metro Manila Expressway (SEMME) 2018–2022 Under-construction 2022 [40]
SLEX Toll Road 4 2019–2022 Under-construction 2022 [39]
SLEX Toll Road 5 Proposed [39]
Subic Freeport Expressway Expansion 2019–2021 Completed February 19, 2021 [45]
Tarlac–Pangasinan–La Union Expressway (TPLEX) Extension Proposed [39]
Metro Manila Logistics Improvement Network[46]
Binondo–Intramuros Bridge 2018–2022 Under-construction January 2022 [46][41]
Eastbank–Westbank Bridge 2 2021–2023 Proposed 2023 [47]
New Estrella–Pantaleon Bridge 2019–2021 Completed July 29, 2021 [46][41]
Bonifacio Global City-Ortigas Center Link Road (Santa Monica–Lawton Bridge and Viaduct) 2018–2021 Completed September 30, 2021 [46][41]
J.P. Rizal–Lopez Jaena Bridge Proposed [47]
J.P. Rizal–St. Mary Bridge Proposed [47]
Laguna Lake Highway 2016–2018 Completed November 15, 2018 [40]
Lawton Avenue Expansion 2017–2021 Under construction September 2021 [48]
Marikina–Vista Real Bridge Proposed [47]
Mindanao Avenue Extension 2017– Under-construction [40][41]
North–South Harbor Bridge 2021–2023 Proposed 2023 [47]
Palanca–Villegas Bridge 2021–2023 Proposed 2023 [47]
Metro Manila Priority Bridges Seismic Improvement Project[47]
Guadalupe Bridge Rehabilitation Proposed [47][40]
Lambingan Bridge Vertical Improvement Proposed [47][40]
Airports[]
Project Construction Status Completion date Ref.
Bacolod–Silay International Airport Proposed [13]
Bicol International Airport Development project (New Legazpi) 2016–2021 Completed October 7, 2021 [49]
Bohol-Panglao International Airport (New Bohol International Airport) 2016–2018 Completed November 27, 2018 [50]
Calbayog Airport expansion 2017–2021 Completed May 5, 2021
Clark International Airport expansion project Phase 1 2017–2021 Under-construction[needs update] July 2021 [51][52]
M'lang (Central Mindanao) Airport Development project Proposed [13]
Davao International Airport expansion Proposed [13]
General Santos International Airport expansion Under-construction [53]
Iloilo International Airport expansion Proposed [13]
Kalibo International Airport expansion 2018–2021 Completed June 4, 2021 [13][54]
Laguindingan Airport expansion Proposed [13]
Mactan–Cebu International Airport expansion 2015–2021 Completed May 5, 2021 [55]
New Manila International Airport 2020–2026 Under-construction 2026 [56]
Ninoy Aquino International Airport expansion Proposed [13]
Puerto Princesa International Airport expansion Proposed [57]
Sangley Point Airport 2019–2020 Completed February 15, 2020 [58]
Siquijor Airport upgrading and expansion 2018–2021 Completed August 26, 2021 [59]
Cagayan North International Airport (Lal-lo International Airport) ?–18 Completed March 23, 2018 [49]
Seaports[]
Project Construction Status Completion Date Ref.
Borac Port ?–2019 Completed November 2019 [60]
New Cebu International Container Port 2021–2024 Proposed March 28, 2024 [13]
Port of San Fernando 2019–2020 Completed June 2020 [60]
Port of Bataraza ?–2018 Completed February 15, 2018 [60]

Urban development[]

Project Construction Status Completion date Ref.
Ambal Simuay River and Rio Grande de Mindanao Flood Control projects Proposed [18]
Bayanihan 2 Bike Lane Networks 2021 Completed June 30, 2021 [61][62][63]
Cavite Industrial Area Flood Management Program Proposed [64]
Emergency Assistance for Reconstruction and Recovery of Marawi (Output 2: Reconstruction and Development Plan for a Greater Marawi, Stage 2) 2017–2022 Under-construction 2022 [13]
Integrated Disaster Risk Reduction and Climate Change Adaptation in Low-Lying Areas of Pampanga Bay 2018–2022 Under-construction March 2022 [13][65]
Leyte Tide Embankment 2016–2022 Under-construction 2022 [28]
Marawi Rehabilitation (China Grant)
a.) Bridge and Bypass project
b.) Grand Padian Market and Sports Complex
 2017–2021 Under-construction December 2021 [13]
New Clark City Phase 1:
a.) National Government Administrative Center Phase 1A
b.) Filinvest Mixed Use Industrial Development Phase 1 (Site Development)
 2016–2019 Completed October 2019 [13][52][66]
Pasig–Marikina River Channel Improvement project (Phase IV) Under-construction
Reconstruction and Development Plan for Greater Marawi 2017–2022 Under-construction 2022 [13]

Water resources[]

Project Construction Status Completion date Ref.
Angat Water Transmission Improvement project 2016–2020 Completed June 2020 [67]
Aqueduct No. 7 project Proposed [13]
Balog-Balog Multipurpose project Phase II Under-construction [13]
Bohol Northeast Basin Multipurpose Dam project Proposed [13][64]
Chico Pump Irrigation project 2018–2021 Under-construction December 2021 [68]
Jalaur River Multipurpose project Phase II 2019–2022 Under-construction 2022 [13][69]
Lower Agno River Irrigation System Improvement project 2018–2022 Under-construction December 2022 [16]
National Irrigation Sector Rehabilitation and Improvement project 2013– Ongoing [13]
New Centennial Water Source – Kaliwa Dam project Under-construction 2026 [13][64][70]
Malitubog-Maridagao Irrigation project Proposed [13]
Water District Development Sector projects (ADB-WDDSP) Proposed [13]
Wawa Bulk Water Supply project Proposed [13]

Information and Communications Technology[]

Project Construction Status Completion Date Ref.
ICT Capability Development and Management Program Under-construction [13][71]
LTO Command Center Proposed [13]
Luzon Bypass Infrastructure project Completed [13][52][71]
Motor Vehicle Recognition and Enhancement System Proposed [13]
National Broadband Program Under-construction [13][71]
National Government Data Center Proposed [13]
National Interoperable Automatic Fare Collection System project (formerly Automated Fare Collection Clearing House) Proposed [13]
Philippine Identification System 2020- Ongoing [13][72]
Road Transport Information Technology Infrastructure project Phase I (LTO IT) Under-construction 2022 [13][71]
Safe Philippines Project Phase 1 Proposed [13]

Power and energy[]

Project Construction Status Completion Date Ref.
Agus 3 Hydroelectric Power project (225 MW) Proposed [13]
Agus-Pulangi Rehabilitation project Proposed [13]

Health[]

Project Construction Status Completion Date Ref.
Virology Science and Technology Institute of the Philippines Proposed [13][73]

Economic trends[]

Economic outlook[]

In December 2017, government data revealed that the Philippines' output of nickel ore fell 16 percent in the third quarter from a year earlier, after the country, which is the world's top supplier of the metal, suspended some mines in a clampdown on environmental violations. Production dropped to 19.8 million tons in the nine months to September from 25.97 million tonnes a year ago, according to the data.[74] According to Finance Secretary Carlos Dominguez, the "Philippine economy is delivering the performance we anticipated, notwithstanding the political noise and a significant terrorist event in Mindanao". Dominguez gave the assessment during the Banyan Tree Leadership Forum of the Center for Strategic and International Studies.[75]

On March 31, 2018, the Financial Times reported that the export of the Philippines has continued its drastic drop for the fifth month in a row,[76] while the Philippine Statistics Authority reported that the trade deficit of the country has widened to 47.6%, endangering further the country's local economies.[77]

In October 2018, the World Bank downgraded the economic outlook of the Philippines for 2018, but expects it to remain strong.[78] FMIC and UA&P expect the economy to improve in the second half of 2018.[79] On October 24, the Philippines improved its ranking by 29 places in the Ease of Doing Business rankings.[80]

On November 2, 2018, the Philippines slipped 11 places from the World Bank's Ease of Doing Business rankings.[81][82] The Department of Finance is demanding a correction from the World Bank, citing the smaller data set used to assess the country's credit base.[83][84]

Inflation rate[]

On July 5, 2018, the inflation rate of the country soared to 5.2%, its highest in 5 years.[85] The inflation rate worsened the impacts of the government's new tax policy, increasing the price of all goods in the country.[86]

In September 2018, the inflation rate of the country further increased to 6.7%, its highest in a decade.[87][88] President Duterte blamed American president Donald Trump for the inflation increase.[89] Opposition Senator Francis Pangilinan, however, pointed out that if the United States was to blame, then all countries in ASEAN should have been experiencing the same, and only the Philippines had a very high inflation rate in the entire region at that time.[90] On September 21, 2018, Duterte signed Administrative Order No. 13, removing non-tariff barriers in the importation of agricultural products, to address soaring inflation rates.[91][92]

According to ING, with food prices decreasing, the worst of the inflation crisis is over.[93] Inflation decreased in November 2018, at 5.8 to 6.6 percent.[94] BSP decreased its inflation forecast for 2019, after the passage of the rice tariffication bill.[95]

Inflation stayed at 6.7 percent in October 2018, higher than expected.[96] July 2019 was met with a 2.4% inflation rate.[97] October 2019 received an 0.8% inflation rate, the lowest under Duterte.[98] However, this increased to 2.5% by December 2019.[99] and increased again to 2.7% by July 2020.[100]

Income and employment[]

Economic managers predict the accession of the Philippine economy to upper-middle-income status by 2019, citing massive infrastructure spending and robust growth.[101][102][103]

COVID-19 pandemic[]

See also: COVID-19 recession and COVID-19 pandemic in the Philippines § Economic impact

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno and then-NEDA Director-General Ernesto Pernia forecast that the Philippine economy would likely enter a recession in 2020 due to the effect of the pandemic. Diokno stated that, although the first quarter is likely to grow by 3% since the Luzon-wide enhanced community quarantine only took effect near the end of the quarter, the second and third quarters would likely experience contractions in economic growth.[104]

The unemployment rate of the country continued to follow a downward trend since 2005, however, it reached a record-high 17.7% in April 2020, where 1 in every 5 persons in the labor force are unemployed, accounting to 7.3 million jobless Filipinos.[105][106]

On the second quarter of 2020, the Philippine economy went into a recession for the first time in 29 years, where it shrank by 16.5%, which was one of the biggest falls in the Southeast Asian region. GDP fell by 9%. Seasonally adjusted GDP fell by 15.2 percent in the second quarter from the first three months of the year.[107]

The government expects an economic rebound by 2021, driven in part by the BBB infrastructure program.[108][109]

See also[]

References[]

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