EDITORIAL - Into the third year

In the past 12 months, President Duterte ended a protracted siege in Marawi by Maute terrorists and imposed martial law for a year in Mindanao. The President shut down the “cesspool” that is Boracay. He fought with Kuwait over Filipino workers and with God over the teachings of the faith, but later tried to patch up differences. He refused to fight with China over sovereign rights, to the dismay of many Filipinos, as indicated in surveys.

The Tax Reform for Acceleration and Inclusion has raised additional revenues for greater public spending particularly on infrastructure. But the TRAIN – particularly the hefty excise tax on oil – has also been blamed for the highest inflation in five years, wiping out income tax breaks accorded to wage earners and hitting the poor hardest.

Business confidence remains high, but the country’s investment grade is threatened by the uncertainty of the rushed push for changes in governance and the negative impact on public finances. Investment pledges have fallen since last year, partly fueled by concerns over the next phase of TRAIN.

Drug killings continue, but on a much lesser scale as the new leadership of the Philippine National Police committed to uphold human rights in the tough battle against criminality. 

Several of the President’s friends lost their government posts amid allegations of wrongdoing, but some were recycled to other posts, raising questions about his avowed commitment to fight corruption. The push for federalism, one of his campaign promises, hangs in the air.

Peace negotiations with communist rebels are stalled as the government tries localized negotiations. But the enactment of the Bangsamoro Organic Law, expected today, will be among the positive developments that can be highlighted as President Duterte delivers his third State of the Nation Address.

There’s still a lot of work ahead, however, before the promise of a new Muslim autonomous region can be realized and efforts for enduring peace in Mindanao get a boost. This also sums up the state of the nation as the Duterte presidency enters its third year: there have been achievements in several areas but also setbacks, and a mountain of work still to be done to move the country forward.