Philippines infrastructure needs more private money

Subject Infrastructure policy under the Duterte administration in the Philippines. Significance President Rodrigo Duterte’s economic team met their Japanese counterparts in Tokyo on March 27-28 to discuss infrastructure cooperation. Duterte is planning greater fiscal spending, seeking official development assistance and accepting unsolicited private sector proposals for infrastructure development. Meanwhile, he wants emergency powers to expedite the bidding process in Metro Manila and, ambitiously, to tackle simultaneously the different infrastructure problems of the Mega Manila area and the rest of the country. Impacts Congress will probably rebuff the executive push for emergency powers. Construction-related labour and supply shortages, and price increases are likely. Chinese construction on Scarborough Shoal could derail China-Philippine infrastructure cooperation. Land rights and access issues will bedevil Duterte’s infrastructure push. Internal security dangers in the south, including terrorism and guerrillas, could hit infrastructure projects.

Significance President Rodrigo Duterte's term ends in 2022; his administration is prioritising the development of the Philippines tourism sector. However, internal security could pose difficulties. Impacts Any infrastructure spending bottlenecks could undermine tourism development plans. New hotel construction will further concentrate tourist expenditure in Metro Manila, potentially worsening car traffic woes. The government is pushing for pro-foreign-investor constitutional reforms, but progress will likely be slow. The construction and ancillary sectors stand to gain from government tourism-sector spending. The Duterte tourism plans will likely achieve slow progress at best, partly over security concerns.


Subject Post-election infrastructure policy priorities. Significance On January 14, the transportation and communications department listed 13 public-private partnership (PPP) programmes that will avoid election-related public spending restrictions on infrastructure and public works. Infrastructure development has been a key Aquino administration initiative, but elections on May 9 will bring a new president, and with it a new focus on infrastructure and development policy. Impacts The next presidential administration may review or cancel some Aquino-era infrastructure projects. Competition between China and Japan will provide the Philippines with additional infrastructure funding. If the next government cannot improve road and energy infrastructure, manufacturing activity, mostly in Luzon, will suffer. Post-election infrastructure projects may emphasise ports, inter-city roads and perhaps urban rail.


Subject Philippine government's handling of the COVID-19 crisis. Significance Metro Manila and some other areas of the Philippines effectively remain under a lockdown, first imposed in March as part of efforts to prevent the spread of COVID-19. The restrictions have had a high economic cost. Impacts Congress could extend the 'Bayanihan To Heal as One Act', which gives the president additional powers to respond to the COVID-19 crisis. The economic fallout from the pandemic will set back Duterte's 'Build, Build, Build' infrastructure programme. Duterte will come under pressure to end his push for a federal constitution.


Subject Tax reform efforts in the Philippines. Significance Taxation reform is an aim of President Rodrigo Duterte's administration, but the first batch of measures that the finance department has submitted to congress have caused controversy: one representative on October 8, adding to others' criticisms, said that a mulled increase in vehicle taxes and prices would hit low- and middle-income households disproportionately. Impacts Tax cuts will be popular, but Duterte could lose support from those facing higher taxes. An increased tax take would support government infrastructure development goals. Lowering personal income taxes would see top-up taxes elsewhere, such as on petroleum products, increasing business costs. New taxes on alcohol, tobacco and other 'sin' items, sugary products, luxury items and the auto sector could be coming. Tax avoidance and evasion will not end quickly; sustained regulatory attention will be needed.


Significance A sweeping victory for the Philippines has dismantled any legal basis for expansive Chinese claims across much of the South China Sea. Impacts How the Philippines administration responds will shape how all affected countries interpret Philippine foreign and strategic policy to 2022. Manila may make its military more externally facing, reflected in equipment priorities; internal security capacity could suffer. More US 'freedom of navigation' exercises in the South China Sea are likely. Malaysia, Brunei and Vietnam will assess implications for their maritime disagreements with China. The ruling will exacerbate rifts in ASEAN over relations with China.


Subject ASEAN core countries and the Asian Infrastructure Investment Bank. Significance The Asian Infrastructure Investment Bank (AIIB) plans to begin lending in early 2016. Three ASEAN countries -- Malaysia, Thailand and the Philippines -- have not signed the bank's articles of agreement, despite their infrastructure development needs. These needs will grow as ASEAN integrates, for instance via the ASEAN Economic Community (AEC) free trade area from end-2015. Impacts Should Manila reject the AIIB, this will create an opening for further Japanese support of Philippines infrastructure. Early credibility among lenders could lead to the AIIB's rapid expansion in Asia. Until then, established development lenders will dominate -- the AIIB is untested.


2019 ◽  
Vol 17 (1) ◽  
pp. 17-30
Author(s):  
Jan Michael Alexandre Cortez Bernadas ◽  
Cheryll Ruth Soriano

Purpose The purpose of this paper is two-fold. First, it explores the extent to which diversity of connectivity or the connection through multiple internet access points may facilitate online privacy behavior. Second, it explains the diversity of connectivity-online privacy behavior link in terms of information literacy. Design/methodology/approach Situated in the context of urban poor youth in the Philippines (n = 300), this paper used a quantitative approach, specifically an interview-administered survey technique. Respondents were from three cities in Metro Manila. To test for indirect relationship, survey data were analyzed using bootstrapping technique via SPSS macro PROCESS (Hayes, 2013). Findings Urban poor youth with diversified connection to the internet engaged in online privacy behavior. The more the youth are connected to the internet through diverse modalities, the more this fosters cautious online privacy behavior. In addition, information literacy explained how diversity of connectivity facilitated online privacy behavior. It suggests that differences in online privacy behavior may result from the extent of basic know-how of navigating online information. In the context of the urban poor in the Global South, the youth are constantly negotiating ways to not only connect to the internet but also acquire digital skills necessary for protective online behaviors. Originality/value To date, this is one of the few papers to contribute to conversations about online privacy among youth in the Global South. It broadens the literature on social determinants of online privacy behavior that is crucial for designing policy interventions for those in the margins.


Significance This is part of his desire for an 'independent' foreign policy, which includes Manila distancing itself from Washington and seeking closer economic and military ties with China and Russia. Impacts Philippine purchases of Chinese and Russian arms will probably grow. Future US military aid to the Philippines may be curtailed or cancelled. China will provide more financing support for the Duterte administration's infrastructure development plans. Closer ties with Beijing and Moscow may reduce Manila's interest in joining the US-led Trans-Pacific Partnership. The mid-November APEC Summit in Peru provides further opportunity for Duterte to meet Russian and Chinese leaders.


Significance He has now introduced martial law to Mindanao and confirmed yesterday that habeas corpus had also been suspended on the island. Impacts Internal security risks will likely delay or halt Mindanao investment pledges. This could hit Duterte’s development aims and dent his support in his Mindanao political heartland. The Philippines will seek Russian investment especially in tourism, energy, infrastructure and transport. Philippines-Russia trade will likely expand but this will be a long-term process, as will trade diversification. Retaliating against martial law, the New People's Army will conduct more attacks, underming the government-communist peace process.


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