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IMPACTS OF DUTERTES ECONOMIC AGENDA ON PHILIPPINE FOREIGN POLICY

Submitted by: Emmanuel J. Bacud & Genuine Antique, BA POLITICAL SCIENCE IV

Davao City (CNN Philippines) A former agriculture secretary and close friend of presumptive
president Rodrigo Duterte on Thursday (May 12) disclosed the 8-point economic agenda of the incoming
administration. In a press briefing in Davao City, Carlos Dominguez, who is being eyed as the Finance
secretary in Duterte's Cabinet, said the economic agenda is wide-ranging from tax reforms to
accelerating infrastructure building to support services for farmers and attracting foreign investments by
reducing crime. He said that while the target economic growth rate is still to be set, the economic agenda
is aimed at boosting growth through the following:

1. Continue and maintain the current macroeconomic policies. Reforms in tax


revenue collection efforts will be complemented by reforms within the
bureaucracy of tax collecting agencies.
2. Accelerate spending on infrastructure by addressing major bottlenecks, and
maintain the target of setting aside 5% of the country's gross domestic
product (GDP) to infrastructure spending.
3. Ensure attractiveness of the Philippines to foreign investors, and enhancing
competitiveness in doing business in the country. This also means reducing
crime to attract investors, and increase security of businessmen and
consumers.
4. Provide support services to small farmers to increase productivity and
improve market access. Provide irrigation and better support services to
farmers. Promote tourism in the rural areas.
5. Address bottlenecks in our land administration and management system.
6. Strengthen basic education system, and provide scholarships for tertiary
education, which are relevant to private employers' needs.
7. Improve tax system by indexing tax collection to inflation rate, "to enable
those who earn a little to have more in their pockets."
8. Expand and improve implementation of the conditional cash transfer (CCT)
program.
Dominguez said most items on their agenda include the elimination of corruption in accordance with
Duterte's election campaign promise. Duterte's administration will be "vigorous" in prosecuting people who
engage in corrupt practices, he said.
ANALYSIS:
The 8-point economic agenda formulated by the transition team of presumptive president Rodrigo
Duterte showed a high manifestation of Consensus-Oriented Foreign Policy. Though Dutertes
administration may be perceived as an IRON FIST, the foreign policies most especially the economic
policies to be imposed by his administration are adhering to the liberal-internationalist orientation- that is
being friendly to foreign investors and to boost the GDP at least 5% annually. Dutertee administration will
also implement tax reforms in the country by reducing the income tax to enable citizens to obtain more

earnings in their pocket. This tax reform scheme is obviously leaning to the presence of a more welfarist
state (i.e. An ideal liberal democratic state). Moreover, Dutertes administration will tend to liberalize
market access of the small-scale farmers in the international markets by providing better support services
such as irrigation and technological assistance.
Basing also to the 8-point economic agenda, Dutertes administration will also continue the
government efforts to subsidize citizens in the poverty line by continuing the implementation of
Conditional Cash Transfer Program. This scheme will also aid the acceleration of capital flow within the
national economy since the citizens can acquire at least minimum purchasing power for the provision of
basic needs such as food, clothing, education and medicine.
Submitted to: Dr. Buddy M. Castillo
Faculty-in-charge
Political Science 35 (2:30-3:30 MWF)