Sec. Neri and his guts

Secretary of Socio-Economic Planning Romy Neri has recently been in the news talking about controversial issues.

He mentioned the role of big businesses in financing politicians who, when elected, protect big businesses from government regulation such as paying more taxes. This is a cycle so vicious it can, in the long run, ruin the economy as it is doing now.

So-called “sin taxes” on cigarettes and alcohol are not being raised due to the fact that the owners of these businesses (the newspapers identified them as Lucio Tan and Danding Cojuangco) do not want to pay more taxes. Such resistance has contributed to the huge (around P200 billion) short fall in revenues.

When politicians who are financed by big businesses win, they will surely not pass laws detrimental to the interests of those big businesses who financed them. (It is possible to say the same connection could be true in Tacloban City and the same result could happen in a city that may be restrained from growing by big businesses who may not be doing enough to help the city progress. Some of course, are trying to help the city progress).

The second issue raised by Sec. Neri is on Official Development Assistance or ODA. He was referring to loans granted to the Philippine government by such institutions as the World Bank, the Asian Development Bank and the Japan Bank for International Cooperation.

He was quoted as saying these ODA packages turned out to be more costly to government because of obligations such as fees for consultants and the obligation to purchase equipment coming from the country granting the loan. (This is called supply-driven ODA because the loaning institutions are the ones who propose and insist that such equipment be bought).

Grants are a different story because they are not borrowings. The foreign government foots the bill, so to speak. The Tacloban Urban Development and Environmental Management (TUDEM) Project is an example. Its funding comes from the Federal Republic of Germany.

Both positions (on big business and on ODA) should be appreciated since they mean having funds to implement projects like schools, roads and hospitals and for stretching and making more efficient the use of government funds.

For a cabinet member to voice them out at this time when an election is approaching makes Sec. Neri a different kind of cabinet member – one who knows what is best for the country and is not afraid to say it. One who has guts, no matter the odds. One who is willing to stand up and fight vested interests which are not helping this country enough.

As a common phrase goes – No guts, no glory.