Sunday, September 24, 2023

BWorld 638, Global Philippines: The successful FIBA hosting in Manila and the OGP Summit

Sept. 12, 2023 

Last week, two important global events concluded successfully. One was the final games of the Fédération Internationale de Basketball Amateur (FIBA) World Cup, last Sunday, Sept. 10. The second was the Open Government Partnership (OGP) Global Summit in Estonia last Sept. 7.


The Philippines hosted some of the FIBA games, which were held from Aug. 25 to Sept. 10.

Some 80 country-teams went through qualifying games to join the top 32 teams that would play in the FIBA World Cup 2023. Of the 32 teams that went to Asia to play in the elimination rounds, eight each were hosted by Japan and Indonesia, and 16 by the Philippines. The 16 teams that survived the elimination round held their games in the Philippines.

I watched the opening games between Angola and Italy, then the Dominican Republic vs. Gilas Pilipinas on Aug. 25 at the Philippine Arena in Bulacan. My daughter Bien Mary and two friends, Luis and Simon, Filipino-German boys who live in Bavaria and who were on vacation here, joined me.

I also watched the semi-final games on Sept. 8 at the Mall of Asia (MOA) Arena: Serbia vs. Canada, then Germany vs. The USA. My two daughters, Bien Mary and Elle Marie, joined me for one game apiece. Then I watched the final game — Germany vs. Serbia — on Sept. 10, with my wife, Ella.

Over the past two weeks, the Philippines had been on the sports pages of many newspapers and sports channels around the world. One of the opening games was particularly electrifying for the local crowd because it was Gilas Pilipinas’ first game — more than 38,000 people watched it live. I wrote about it in my previous column, “BRICS energy and Philippine hosting of FIBA games” (Aug. 29).

This column is supposed to be about economic analysis and not sports analysis, so I will discuss the economics of the country hosting FIBA, led by the Samahang Basketbol ng Pilipinas (SBP), with the support by two government agencies, the Philippine Sports Commission and Philippine Olympic Committee.


Here are the main beneficiaries of hosting FIBA: private sector economic players.

The first beneficiaries were the three arenas or stadiums where the games were played — Philippine Arena in Bulacan, the MOA Arena in Pasay City, and the Araneta Coliseum in Quezon City. Ticket prices were high, and attendance was high only during the opening games, the semi-finals, and the finals.

The next beneficiaries were the hotels, malls, restaurants and bars near the game venues. These were around MOA itself, the PICC area and Roxas Blvd., Pasay, Makati, Ortigas, and Quezon City.

Then there were the airlines, and the bus and van companies that transported the players, officials, staff, and security people, and companies that provided their food and other logistical needs.

Also benefiting were the telecom companies, and internet and mobile data providers.

Finally, the energy and electricity companies that provided 24/7 power needs of the hotels, malls, arena, etc. did well too.

Just assuming that around 20,000 balikbayans and foreigners spent $200/day for two weeks, that is $4 million or P280 million added to the local economy. The locals in the five business sectors mentioned above who earned more during the competition would also spend their earnings elsewhere — this is called the “multiplier effect” of higher or rising income.

We will now try to quantify the economic contribution of hosting the FIBA. Here I make two assumptions: First, a 6.5% GDP growth in the third quarter (Q3) of 2023, mainly coming from household and private spending (foreigners and locals), the rise in government infrastructure spending, and net exports of goods and services (especially tourism). Second, a sensitivity analysis of the contribution of FIBA hosting, including the multiplier effect. A 0.1% contribution to the GDP from FIBA hosting would have added some P5.1 billion in Q3 alone; a lower 0.05% contribution would give the domestic economy some P2.5 billion (see Table 1).


The medium- and long-term benefits of hosting this important international sports event will be felt in the coming quarters and years. This is mainly through the increase in tourism, trade and investments in the country as more people abroad would have seen the games, the arenas, the big city, the people, the big population of always smiling and peaceful non-rioting people.

The country, the Philippine economy, owes the SBP a lot for its leadership in hosting the FIBA World Cup. In particular, SBP President Al Panlilio, and SBP Chairman Emeritus and member of FIBA Central Board, Manuel V. Pangilinan or Mr. MVP. Thanks much, sirs.

Thank you, FIBA leaders, and all the foreign teams that came here for the games. It was hugely entertaining to simply see so many seven-footers, 6’ 11” tall players, and “small” but very fast players like Germany’s 6’ 1” dribbler-shooter Dennis Schroeder, who was the FIBA 2023’s most valuable player (another MVP).

And, of course, thank you Gilas Pilipinas for uniting the country. You did not make it to the quarterfinals, but you made us go wild, screaming every time you scored or blocked an opponent’s shot.

I like this observation by Joe Zaldariaga in his column last month, “Sports: A game changer for the economy” (Philippine Star, Aug. 10). He wrote: “Just as success on the court demands strategic planning, agility, and teamwork, the same attributes fuel a nation’s progress in the business arena. There is reason to believe that a positive correlation exists between sporting achievements and a conducive business environment. President Marcos’ drive to attract foreign investors finds resonance in the FIBA World Cup’s potential to highlight the nation’s capacity to host world-class events — a beacon of business-friendliness.”


Department of Budget and Management (DBM) Secretary Amenah Pangandaman led the Philippine delegation to the OGP Global Summit, which was held on Sept. 5-7 in Estonia.

“Open Government” is broadly defined as one with more transparency, accountability, citizen participation, and technology and innovation by governments. As an economic researcher and writer, I believe there is more transparency now in economic and fiscal data than in the past — budget, taxes, borrowings, GDP, inflation, trade, investments, etc.

Secretary Pangandaman correctly stated in her opening address to the Summit that equipping citizens with adequate knowledge on the National Budget also means enabling them to meaningfully engage in various phases of the budget cycle and at different levels of government.

But I must add that the lockdown dictatorship of 2020 and 2021 had not resulted in humility among many officials, especially in the Health, Defense, and Interior/Police departments, and the local governments. Those officials engineered a draconian economic and political dictatorship that resulted in a huge annual budget deficit, huge annual borrowings, and more citizen dependence on government aid and subsidies.

Open Government should lead us to question and disobey the non-expert “experts” that the lockdown implementers have tapped and imposed on the public. We need more economic freedom, not restrictions on freedom. We need more sustained growth, not deep economic contraction.

See also:
BWorld 635, Financing Growth: reforms in government procurement, MUP pension, and infrastructure, Sept. 17, 2023
BWorld 636, Economic basis of net zero is zero, September 18, 2023
BWorld 637, High inflation with high growth, the case of the Philippines, Indonesia and India, Sept. 22, 2023.

My radio, tv and newspaper interviews this September

This month I have been interviewed on three platforms.

1. TV, Agenda by Cito Beltran last Thursday Sept 21, about the proposed suspension of excise tax on fuel products, see below.

2. Radio, AM radio RMN DXBC in Butuan City, Agusan del Norte last Sept. 14, about illicit tobacco and excise tax on tobacco,

I was also interviewed in RMN's DXDZ Davao hosted by June Duterte, and DXRZ Zamboanga City  hosted by Marlon Simbajon last Sept. 12 on the same subject. Illicit tobacco is more rampant in Mindanao than Luzon and Visayas because most illegal tobacco come from the porous south, from Malaysia, Indonesia, even from China and Vietnam.

3. Interviews in BusinessWorld.

Test-based SUC admission policy will magnify middle-income students’ advantages — PHINMA Education
September 4, 2023 | 8:40 pm
Luisa Maria Jacinta C. Jocson

"... Bienvenido S. Oplas, Jr., president of a research consultancy and of the Minimal Government Thinkers think tank, said the government should concentrate on subsidizing basic education tuition.

“Free education for public elementary and secondary education is understandable. But not so in public tertiary education,” he said in a Viber message...

Meanwhile, Mr. Oplas recommended privatizing state universities.

“All state universities including the University of the Philippines should become private, not abolished. Then all university students will become scholars via government vouchers, say P60,000 per year per student. If a student enrolls in a P150,000 a year university, his or her parents or guardian must pay the balance of P90,000. If a student enrolls in a P60,000 a year university, then no additional payment,” he said.

Mr. Oplas said that this way, the government funds students, and not state universities.

He said such an approach would result in “equal privilege for all tertiary students, no budgetary favoritism as in the current system.”

“All universities will compete to attract more students, improve their education services,” he added."

PHL global economic freedom rating slips
September 21, 2023 | 8:47 pm
John Victor D. Ordoñez

"... Bienvenido S. Oplas, Jr., founder of the think tank Minimal Government Thinkers, said the index likely reflected the effect of lockdowns on the regulation of businesses in 2021.

“The worst lockdown policies in Asia were done in the Philippines  — massive closure of businesses, public transportation, etc.,” he said in a Viber message."

House version of MUP reform may still pose fiscal risks
September 22, 2023 | 12:32 am
Luisa Maria Jacinta C. Jocson

"... Bienvenido S. Oplas, Jr., president of a research consultancy, said the MUP pension system is “very unfair to taxpayers.”

“There is a double standard in the treatment of government personnel. MUP are ‘special’ while government doctors and nurses, government teachers and professors, government agriculturists and engineers, are not special. Whenever the budget deficit remains high, whenever public borrowings and annual interest payment remains high, we can partly blame the ‘special’ MUP pension system. It is a big deficit generator now,” he said in a Viber message."

Friday, September 22, 2023

BWorld 637, High inflation with high growth, the case of the Philippines, Indonesia and India

High inflation with high growth, the case of the Philippines, Indonesia and India
September 7, 2023 | 12:02 am

My Cup Of Liberty
By Bienvenido S. Oplas, Jr.

One concept or theory in economics related to inflation and growth is the Philips Curve. It says that there is an inverse relationship between inflation and unemployment, so high inflation leads to low unemployment and, by extension, high growth because high growth leads to more job creation and hence, low unemployment.

This is not a rock-solid economic law or theory, unlike the law of supply and demand and price movement, and the law of diminishing marginal utility or revenue, with almost 100% accuracy and predictability. But somehow the Philips Curve theory seems to apply in the current situation of the Philippines, Indonesia, and India.

The Philippine Statistics Authority (PSA) reported last Wednesday that the country’s inflation rate is 5.3% — breaking six months streak of continued decline in inflation, which was only 4.7% last July.

I construct a table showing the inflation rate and growth rate of major economies in the world, focusing on countries with inflation of 4% or higher in 2023.

Among Group A (Asian countries), the Philippines has the highest average inflation rate this year with 6.6%, followed by India and Indonesia. The three countries are also in the top five of a list of the fastest growing countries among the top 50 largest economies in the world by GDP size, in the first half (H1) of 2023. The other two countries in the top five were the United Arab Emirates at 8.5%, and China at 5.4%.

Singapore has escaped the Philips Curve theory — it has high inflation with low growth. As did the Group B countries (Europe), especially the United Kingdom and Germany which had inflation rates of 9% and 7.1%, and growth of 0.3% and -0.2%, respectively.

Group C — the biggest economies of North and South America — also had high inflation but with modest growth, higher than Europe but lower than the Asians (see Table 1).

So, the high inflation in the Philippines, Indonesia, and India has not cooled down domestic consumption nor production by various sectors. Their huge populations have created dynamic domestic economies that continue to grow despite the worsening global economic environment.

While continued high inflation is bad news in the Philippines, high growth in H1 is good news. And from the PSA data, the main contributors to the 5.3% inflation in August were Alcoholic beverages and tobacco (10.1%), Food and non-alcoholic beverages (8.1%), and Restaurants and accommodation services (7.1%). This implies that many people are going out more: partying, drinking, smoking, and going to restaurants, hotels, and resorts. Which creates more jobs in the services sector.

Jobs creation should continue, be sustained and expanded. So long as people have jobs, they can adjust to rising prices.

The rise in inflation in August coincided with a slow rise in the global prices of oil as OPEC and Russia have cut their production and exports.

In Table 2 is a comparison of the global prices of some important commodities six months apart over the last two years. One can see that oil prices increased in August this year, but these are similar to levels from a year ago. Coal prices have increased slightly, but these are still low compared to prices in January to May this year, and previous months.

Rice prices are not rising fast as predicted by food crisis alarmists due to the current El Niño season and rice export ban by India. Current rice prices are similar to those of a year ago. Corn and wheat prices now are lower than the past two years (see Table 2).

So we should not entertain the alarmist narrative of further rising inflation. Prices are still in their natural modest fluctuation, not on a severe upward or continuously rising trend.

The government can help by cutting food imports tariffs and revive free trade policy especially in food. And the public should continue to do more productive work and be less alarmist, and lobby less for additional food and cash subsidies. If we want cheaper food and other commodities, we should expand food production, move towards more corporate farming and land consolidation with economies of scale. More political accommodations via subsidies that will require more taxation and borrowings will only worsen, not improve, the high inflation problem.

See also: 
BWorld 634, BRICS energy and Philippine hosting of FIBA games, Sept. 16, 2023
BWorld 635, Financing Growth: reforms in government procurement, MUP pension, and infrastructure, Sept. 17, 2023
BWorld 636, Economic basis of net zero is zero, September 18, 2023.

Agenda One News, Part 10

Yesterday I was interviewed again by Cito Beltran in his daily program Agenda (Monday-Friday 8-9am) in One News channel of Cignal TV ( Topic was about the proposed suspension of excise tax on fuel products. It was my 10th apperance or interview in Cito's program.

Cito is among the most prominent columnists of Philippine Star, he writes there 3x a week, On fuel excise tax suspension, he wrote this last Wednesday Sept. 20 supporting the proposal, 

I started by saying that in the first place way back in 2017 during the tax debate in the TRAIN law, I opposed the plan of the DOF then pushed by Sec. Carlos Dominguez and USec. Karl Chua to raise excise tax on gasoline, impose tax on diesel, etc. Tractors, harvesters, irrigation pumps, trucks, fishing boats, etc. use diesel. These are used in farming and fishing, food production and transportation. Fuel products are public goods, not public bad. By raising the cost of farming and fishing "to save the planet", government raises the cost of food production, and we have higher food inflation. Many officials and groups now complain of high food inflation when it was the same groups of people who supported the fuel tax hike/imposition in 2017, implemented in 2018, to help "save the planet."

I also opposed the coal tax hike, from P10/ton to P600/ton as proposed by former NEDA Secretary Ciel Habito in his series of articles in the Inquirer. The TRAIN law passed P150/ton coal tax. (Ciel Habito did not disclose that he was an independent director of FirstGen Corp., mainly in gas power business, making coal power become more epensive to make gas power look relatively cheaper by invoking climate, sneaky). The original links in BusinessWorld are no longer working but I reposted those papers in this blog, (April 10, 2017) (Oct. 25, 2017) (Dec. 28, 2017) (Dec. 30, 2017)

Fast forward to present, with world crude oil prices rising again, domestic prices of gasoline, diesel, aviation fuel, LPG, etc. are rising again. And excise tax on gasoline P10/liter, diesel P6/liter, plus 12% VAT on that additional excise tax (a tax on a tax), they continue to distort oil pricing, distort cost of farming and transportation of food and other commodities.

So I support the suspension of fuel excise tax, revenue loss of P73 B/quarter according to DOF Sec Ben Diokno, but there should be corresponding spending cut by same amount P73 B/quarter, and or removal of VAT exemption by some sectors to raise the same amount, plus address smuggling especially illicit tobacco and get more revenues.

I cited the huge annual budget deficit of P1 trillion/year, huge borrowings. In 2019 we were borrowing about P0.8 trillion, by 2020-2022, we were borrowing about P2.2 trillion/year, could be same amount this year. So Sec. Diokno's opposition to such revenue loss is understandable, the deficit and borrowings will simply become even bigger this year. I believe that any revenue reduction via fuel tax suspension should be accompanied by spending reduction by the same amount if not bigger. Need to identify which spending should be cut, by how much, spending cut even for one quarter.

I also mentioned cutting the subsidy for tertiary education and suspend free tuition in all state universities, magbayad mga estudyante, partial subsidy na lang. Also suspend free irrigation. Proceed with government rightsizing program, and MUP pension should be cut, currently at P164 B/year, MUPs should pay and contribute to their own pension fund. But the House bill passed by Cong. Salceda has practically kept the old system generally intact, ugly.

Then I mentioned the need to cut and minimize tobacco smuggling. Cong Salceda himself estimated this in 2021 as P30B/year of tax losses, former Partylist Cong. Koko Nograles estimates it at P31B up to P60 B/year tax losses. And BIR Commissioner Lumagui himself said it could be up to P100 B/year of tax losses. Assuming the correct figure is P50B/year, we cut it by 50%, that will give the government additional revenues of P25B/year.

My interview portion is at 41:00 mark here, 


Thanks again, Cito, for the opportunity to discuss the subjects of high public spending, lagging revenues, high borrowings, and excise tax reforms especially in oil products.

See also:
Agenda One News, Part 7, February 07, 2022
Agenda One News, Part 8, October 21, 2022
Agenda One News, Part 9, February 15, 2023.

Monday, September 18, 2023

BWorld 636, Economic basis of net zero is zero

Economic basis of net zero is zero
September 5, 2023 | 12:02 am

My Cup Of Liberty
By Bienvenido S. Oplas, Jr.

We go straight to the numbers. I constructed two tables that accompany this piece. The first shows that in Group A countries that have fast “decarbonization” and are weaning themselves away from coal consumption measured in terajoules (TJ) per person from 2002 to 2022 or over two decades, their overall electricity generation either flatlines or declines. Then their GDP per capita at purchasing power parity (PPP) values over two decades have expanded by two times at most.

Group B countries are Europeans that have high coal consumption plus South Africa. Their coal use per capita has either declined or increased a bit, their overall electricity generation increased (except South Africa) and their per capita GDP has doubled or tripled.

The Group C countries are in Asia. They all have expanded their coal consumption per capita, their electricity generation has doubled or quadrupled (except Pakistan), and their per capita GDP has expanded up to five times (See Table 1).

Next table shows countries that have had huge expansions in wind plus solar from 2007 to 2022 or over 15 years. Then I compare their GDP growth during the 10 years before 2007 and 10 years before 2022. There are many reasons why a country’s economic performance is good or bad, and the quality of power generation (coming from stable and conventional sources vs intermittent sources) and electricity prices are among the important contributors.

Group A countries have had a high jump in solar + wind use and have shown growth deceleration.

Group B countries in Asia showed little expansion in solar + wind use (except Japan and China) and they showed high average GDP growth (See Table 2).

The wild pursuit of “net zero” and decarbonization has no economic basis for developing countries that need to create more jobs, more businesses, and more streetlights. Dark streets at night — which lead to more road accidents, more crimes like stabbing, abduction, and murder — are fatal today, not 50 or 100 years from now.

Meanwhile, here are some recent developments in the Philippines energy sector as reported in BusinessWorld and mostly written by Sheldeen Joy Talavera: “ERC extends suspension of FIT-All collection” (Aug. 22), “FIT-All collection freeze not seen affecting RE developers” (Aug. 27), “EPIRA changes should focus on tax — Congress think tank” (Aug. 28), “Coal-fired capacity for retirement in clean-energy shift seen at 5,000 MW” (Aug. 30), “Energy infra enhancements, streamlined permits seen attracting more investment” (Aug. 31), “Energy dep’t awards 77 offshore wind contracts” (Aug. 31), “ERC grants Meralco-PEDC move to end supply deal” (Sept. 1), and, “Further consultation needed on gas-power quota for Luzon grid” (Sept. 3).

The Department of Energy plan to retire more coal capacity is dangerous and anti-growth. As shown by the numbers in the tables, more coal use leads to more electricity generation and higher GDP per capita income. In contrast, adding more intermittent solar + wind share to the grid means a decline or the flatlining of electricity generation and per capita income.

We should prioritize our national agenda — more sustained growth, more job creation, more electricity for rising demand from households and industry. The global agenda of global ecological central planning should take a backseat.

See also:
BWorld 633, Some trends in de-dollarization and implications for developing countries, Sept. 04, 2023
BWorld 634, BRICS energy and Philippine hosting of FIBA games, Sept. 16, 2023
BWorld 635, Financing Growth: reforms in government procurement, MUP pension, and infrastructure, Sept. 17, 2023.

Mining 66, Reports on proposed new PH mining tax

See these reports in BusinessWorld alone. Enjoy.

Cloud over mining taxes holding back nickel jobs creation, legislator says
December 22, 2020 | 7:25 pm

Push for new mining tax arrangements emerging
April 29, 2021 | 7:50 pm

Key legislator says mining industry fiscal overhaul crucial for recovery
August 1, 2021 | 8:00 pm

New mining fiscal regime approved
August 25, 2022 | 12:34 am

Flexible mining taxes
August 28, 2022 | 5:42 pm
By Ramon L. Clarete

Mining bill expected to raise gov’t revenue but poses risk to FDI growth
August 29, 2022 | 8:18 pm

Mining industry faces ESG, gov’t tax pressures
October 9, 2022 | 7:26 pm

House considering sliding-scale royalty on miners, windfall profit tax of up to 15%
May 16, 2023 | 8:30 pm

Mining industry backs bill imposing margin-based royalty
July 10, 2023 | 12:31 am

Diokno calls for simplified mining taxes to attract FDI
July 24, 2023 | 8:32 pm

House committee sees approval of new mining fiscal regime this week
July 30, 2023 | 7:48 pm

Panel OK’s mining fiscal regime bill
August 3, 2023 | 12:35 am

See also:
Mining 63, Consumer applications of mineral products, February 06, 2022
Mining 64, Mining taxation in PH, July 01, 2023
Mining 65, The Mining Philippines 2023 Conference, September 16, 2023.

Sunday, September 17, 2023

BWorld 635, Financing Growth: reforms in government procurement, MUP pension, and infrastructure

August 31, 2023.

(Part 2)

There were a number of important development in government fiscal reforms recently. I will focus on three areas: government procurement reforms, military and uniformed personnel (MUP) pensions, and infrastructure.

See these recent reports in BusinessWorld, mostly written by Luisa Maria Jacinta C. Jocson and Keisha B. Ta-asan:

Budget and procurement: “Easier procurement rules seen curbing underspending” (Aug. 15), “Diokno: Tuition-free college education ‘unsustainable’” (Aug. 20), “DBM chief says Q2 GDP growth would have been higher if not for gov’t underspending” (Aug. 21), “Infra law TRO ban applicable to all procurements — DBM” (Aug. 29), “DBM urged to reconsider ‘no TRO’ proposal for procurement deals” (Aug. 29).

Reforms in MUP pension: “House panel approves bill seeking to reform military pension system” (Aug. 16), “Failure to reform military pension system may hurt PHL credit rating” (Aug. 17), “Gov’t expects military pension system to be self-sustaining in 20 years” (Aug. 21), “House to accommodate DND chief’s proposals in MUP pension reform bill” (Aug. 23).

Infrastructure, fiscal balance: “PPP measure expected to clear third reading in Senate this week” (Aug. 22), “3 more added to list of flagship infrastructure projects” (Aug. 24), “Gross borrowings hit P1.4T in 1st half” (Aug. 28), “Deficit-to-GDP ratio still a concern, analysts say” (Aug. 28), “BIR surpasses July collection target by 5%” (Aug. 30), “Rules for Maharlika fund released” (Aug. 30).

During the UP School of Economics (UPSE) Program in Development Economics (PDE) alumni homecoming on Aug. 19, Budget Secretary and PDE alumna Amenah Pangandaman said during her lecture that their Department’s study showed that if the scheduled spending of P170 billion were done by agencies in the second quarter, GDP growth would have been 5.3% and not 4.3% due to multiplier effect of those programs that suffered underspending.

Finance Secretary Benjamin Diokno is correct to say that free tuition in state universities is not fiscally sustainable. I reiterate my position that tertiary education should be a parental or guardian responsibility, not a state responsibility and hence, public spending in state universities should be cut so that more resources can be allocated to public primary and secondary education.

On MUP pension reform, again I agree with Secretary Diokno and the economic team on two basic reforms that must be done: 1.) There should be a mandatory 5% contribution by active personnel in years 1-3, 7% in years 4-6, and 9% starting year 7 onwards, while new entrants will immediately contribute 9%. Contributions are based on monthly base and longevity pay, and government’s counterpart contributions will cover the balance to meet the 21% total pension premium. And, 2.) the removal of indexation for active personnel and new entrants. I reiterate my position that a third reform should be made — that MUP pension should be taxed.

I do not support Defense Secretary Gilberto Teodoro’s disagreement with the two basic reforms made by the economic team. Very likely he would also oppose my additional proposal of taxing the pension.

Our soldiers, policemen, and other MUPs indeed do some dangerous work. But they are not sent to work with just a gun or machete. They are provided by taxpayers with high powered armaments, bombs, tanks, choppers, armored boats, etc. so that they have logistical and organizational superiority over rebels and organized criminals. For the Philippine National Police (PNP) and Armed Forces of the Philippines, they even have free education, free board and lodging for four years at the PNP Academy and Philippine Military Academy.

A big drag on fast economic growth for the Philippines is the continued high budget deficit, high annual borrowings, high interest payments of P500+ billion a year excluding amortization, mainly because of high spending and obligations by the National Government (NG) like endless subsidies and MUP pension (See Table 1).

Government personnel and agencies should do their share to help unburden the taxpayers. Let it be “To serve and protect… the public and taxpayers.” And not just “To serve and protect… our superiors and our pension.”

This week, the economic and infrastructure teams of the Marcos Jr. administration were in Tokyo to convince more Japan investors to come to the Philippines and do business here. Aside from showing the numbers on the macroeconomic fundamentals of the country which are superior compared to many other Asian and European countries, the two teams also showed the administration’s important infrastructure programs and plans. From the virtual presentations, I extracted some data and compressed three sub-tables into one table for the purpose of brevity (See Table 2).

Good thing that the PPP Act will soon be passed by the Senate. It sets clear and above-board procurement processes and awarding of major infrastructure projects. Cynthia Hernandez, who is the PPP Center Executive Director and another PDE alumna, is hopeful that this new legislation will help hasten faster infrastructure development in the country.

Growth should principally come from private investments and household and corporate spending. Financing growth should principally come from private resources too, with government providing the basic infrastructure, the physical-electrical-digital highways that private investments will tap to expand their businesses and job creation. The economic team is doing well in facilitating this kind of growth financing.

See also:
BWorld 632, Financing Growth, August 30, 2023 
BWorld 633, Some trends in de-dollarization and implications for developing countries, Sept. 04, 2023
BWorld 634, BRICS energy and Philippine hosting of FIBA games, Sept. 16, 2023.

Deindustrialization 19, UK and EU and rising cost of net zero

More stories about UK and EU experiences here. Enjoy.

The real costs of wind power prove the sums don’t add up
The chasm between net zero ambition and reality is growing ever larger
JEREMY WARNER 30 August 2023

Orsted plunges 20% on risk of $2.3 billion in US impairments
Reuters August 30, 2023

Why wind and solar power are running out of juice
By Jonathan Lesser Sep. 2, 2023

The Coming Green Energy Bailout
Renewable power operators already want rate increases for their subsidized projects.
By The Editorial Board  Sept. 4, 2023

More than half of British people are too preoccupied with the rising cost of living to prioritise climate change concerns, according to a survey
Dimitris Mavrokefalidis 4 September 2023

Turn on your heat pump when wind is blowing, Government pleads
Tory MPs criticise ‘dreadful’ Energy Bill, due before Commons on Tuesday, as Government denies electricity rationing
Nick Gutteridge, 4 September 2023

UK Now "Hopelessly Divided" Over The Net Zero Program
Francis Menton September 04, 2023

Net zero ban on petrol cars means EU and Britain cannot compete with China, says BMW chief
Chinese manufacturers have price advantage in electric vehicle production
Howard Mustoe 4 September 2023

‘Horrific - completely offensive!’ Outrage as Britons risk jail for breaking net zero rules
Ben Chapman 05/09/2023

Villagers ‘reject £5,000 payouts, oppose giant wind turbines in Wales’
Residents in Wales are reportedly resisting £5,000 compensation offers to oppose plans for massive wind turbines and a network of pylons in the Nant Mithil Energy Park
Dimitris Mavrokefalidis 5 September 2023

Britain’s deepening savings crisis must urgently be addressed, says Mervyn King
It should not be in the Bank's remit to help world fight climate change, former governor warns
Szu Ping Chan 8 September 2023

Households face £2,300 bills under net zero plans
The cost of shutting down Britain’s gas grid could reach £65bn
Matt Oliver 9 September 2023

Wind farms 'gaming system to inflate millions earned when asked to halt production'
Study finds companies are 'exaggerating' claims about the amount of energy they will produce at times when network risks being overloaded
Edward Malnick 9 September 2023

Electricity from wind isn’t cheap and it never will be
Politicians should stop endorsing an energy source that isn’t particularly clean or secure, and won’t bring down prices
MATT RIDLEY 10 September 2023

The rising cost of net zero
The NIC says the multi-decade cost of decommissioning the network could be as high as £65 billion, or over £2,000 a household
TELEGRAPH VIEW 10 September 2023

The Inflation Crisis Is Fraying Europe’s Climate Consensus
From UK to Germany, politicians are retreating on green policy
Sunak likely to make green policies an issue in next election
By Ellen Milligan, Olivia Rudgard, and Petra Sorge 10 September 2023

Mayors’ initiative calls for car, dairy and meat ban by 2030
C40 Cities recently unveiled a raft of radical green proposals
PANDA LA TERRIERE 11 September 2023 

The Coming Eco-Totalitarianism

Ofgem chief warns Brits face 'reality' of energy bills being as high or 'worse' this winter than last year
International energy costs have fallen but government support is being pulled
By JAMES TAPSFIELD, 13 September 2023

European Union Pledges to Help Struggling Wind Energy Industry
Wind developers face financing and supply-chain hurdles
Europe’s industry dealing with rising global competition
By Ewa Krukowska and Priscila Azevedo Rocha 13 September 2023

Opinion: Climate censorship is worse than you think
Science requires open debate. It does not advance by consensus or political pressure
Steve Ambler,  Sep 13, 2023

Driving could become 'upper class pursuit' due to petrol car ban, Karl McCartney says
Speaking on the Planet Normal podcast, Tory MP says there is ‘no way we’re all going to go electric’ as he calls for deadline to be scrapped
Emma Gatten, 14 September 2023

‘We’ve cut carbon emissions by decimating working-class communities’: the leader of the GMB union on the folly of net zero
Kate Andrews 16 September 2023

Why won’t Greenpeace admit that wind turbines may be killing whales?
Matt Ridley 16 September 2023

Stories in the US, China, others:

Green energy is already causing blackouts in the USA – and it’ll get worse
‘We're headed for a crisis, and I'm not being melodramatic’
KATHRYN PORTER, 5 September 2023

Energy Subsidy Shenanigans: The Green IMF At Work
Tilak Doshi Sep 6, 2023

China is building new coal power so fast that ‘energy transition’ by the West is meaningless
Even if the US went completely off coal tomorrow, its plants would be more than replaced
DAVID BLACKMON 6 September 2023

Texas Teeters on Edge of Blackouts as Demand Squeezes Grid
Grid operator issues first emergency declaration since 2021
ERCOT draws on electricity reserves while urging conservation
By Joe Carroll and Naureen S Malik 7 September 2023

Texas Suffers a Solar and Wind Power ‘Drought’
The Lone Star State barely avoids blackouts, thanks to natural gas
By The Editorial Board Sept. 7, 2023

See also: 
Deindustrialization 16, UK expensive electricity, coal to avoid blackout, July 08, 2023
Deindustrialization 17, Germany recession, ESG problems, August 17, 2023
Deindustrialization 18, Germany recession and degrowth, August 30, 2023.