The Consultative Committee (Con-com) said the Philippine economy won’t drain once it shifts to a federal system as such transition can even lead to “greater growth.”
This statement came in response to Socioeconomic Planning Secretary Ernesto Pernia, who said that federalism will “wreak havoc” and “downgrade ratings” in the fiscal matters of the country.
Con-com spokesman Ding Generoso said in a statement that, “The shift to a federal system of government won’t cause disruption in the nation’s economy but, in fact, lead to greater and a more balanced growth over the medium and long-term after the system is put in place.”
If the Charter change gets the approval of the Filipinos and after it gets ratified “everything remains as they are” he said, adding that the “Government and all agencies will operate as usual, businesses will operate as usual, the economy will operate and move as usual.”
Generoso said that “it’s not like the shift will happen immediately upon ratification of the proposed Constitution” that is why “there is no basis for fear that it will ‘wreak havoc’ because the transition will be made smooth, orderly, effective, and efficient.”
And once the system becomes fully operational, “the regions will be fully-equipped to function as constituent units of the Federal Republic—politically, administratively, and most of all economically,” Generoso said.
(DAILY NEWS ROUND UP FOR 07/ 19 /18)