Duterte’s Economic Policies: Achievements and Challenges

 

Duterte’s Economic Policies: Achievements and Challenges

During his presidency (2016–2022), Rodrigo Duterte focused on infrastructure development, tax reforms, foreign investments, and social aid programs to boost the Philippine economy. His administration saw steady growth before the COVID-19 pandemic, which caused an economic downturn.

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1. Key Economic Policies Under Duterte

A. Build, Build, Build (Infrastructure Program)

✅ Goal: Modernize the country’s infrastructure to attract investments and create jobs.
✅ Achievements:

• 119 infrastructure projects launched, including roads, airports, bridges, and railways.
• Major projects:
  • Metro Manila Subway Project (first underground railway in PH)
  • Clark International Airport Expansion
  • Cebu-Cordova Link Expressway
• Infrastructure spending increased from 5% of GDP (2016) to 7% of GDP (2019).

B. Tax Reform (TRAIN & CREATE Laws)

✅ Goal: Generate more government revenue while reducing tax burdens for lower-income earners.
✅ Achievements:

• TRAIN Law (Tax Reform for Acceleration and Inclusion Act):
  • Lowered personal income taxes for workers.
  • Increased excise taxes on fuel, sugary drinks, and cars.
• CREATE Law (Corporate Recovery and Tax Incentives for Enterprises):
  • Lowered corporate income tax from 30% to 20% to attract investments.

C. Foreign Investment and Trade Policies

✅ Goal: Open up the economy to more foreign investors.
✅ Achievements:

• Signed the Ease of Doing Business Act to reduce red tape.
• Allowed 100% foreign ownership in key industries like telecommunications and transport.
• Strengthened economic ties with China, Russia, and ASEAN nations, reducing dependence on the US.

D. Anti-Poverty and Social Aid Programs

✅ Goal: Provide financial relief and social programs for low-income families.
✅ Achievements:

• Free College Education Act (2017) – Tuition-free education in state universities and colleges.
• 4Ps Program Expansion – More cash assistance for poor households.
• COVID-19 Financial Aid (SAP) – Gave ₱5,000–₱8,000 per family during lockdowns.

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2. Economic Challenges Under Duterte

❌ COVID-19 Recession (2020–2021) – The Philippine economy shrank by 9.5% in 2020, the worst drop since World War II.
❌ Rising National Debt – Government debt rose to ₱13.52 trillion by mid-2022 due to pandemic spending.
❌ Inflation and Rising Prices – Fuel and food prices surged, affecting the poor.
❌ High Unemployment (2020–2021) – Millions lost jobs during the lockdowns, slowing economic recovery.

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Conclusion

Duterte’s economic policies focused on infrastructure, tax reforms, and social aid programs, leading to strong growth before COVID-19 disrupted the economy. While his "Build, Build, Build" program improved infrastructure, issues like rising debt and inflation posed long-term challenges.

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