Politics and Economic Policies: Would there be choices?

few weeks ago, Secretary of Socio-Economic Planning Romy Neri came out with a statement about how too much politics is negatively affecting the economy. Sec. Neri has been saying this for months perhaps implicitly at first. He cited the frequent holding of elections and the need for political reforms.

Now, with the election fever so intense, the interplay of politics and the economy has also strengthened.

The relationship can be seen in a number of ways. One way is by considering how the tirades of politicians against each other are making investors very cautious in coming to the Philippines or expanding their investments.

Also, the politicians particularly the candidates for President have to present to the voters their plans on how to solve our economic problems. So far, the campaign has not gone to the level of discussion of issues by and among the contending candidates. In short, we are still waiting for that “clash of ideas” so essential in a democracy.

Given the few options available to the winners (e.g. this is so largely because of the budget deficit that does not give much room for new projects), it could be that their economic positions may not have substantial differences and there won't be much clash of ideas.

Perhaps, the crucial thing is not what the economic policies would be because there would be little differences but how consistent and persistent would the next President be. The political skills to get our legislative, executive and judicial branches to work in harmony might be crucial and not economic ideas which won't differ much anyway.