Peace, justice, and strong institutions amid the COVID-19 pandemic in the Philippines
2020 is the worst year of the 21st century because of COVID-19. Philippines has been coping up
and grasping the situation against the pandemic. In the pre-SONA 2020 Forum they discussed
about the security, justice, and peace and answered questions from the media. The Philippine
Information Agency post the highlight of the forum. One of the highlights are the efforts of the
Duterte administration through DILG, DFA, DND, DOJ, OPAPP, and NSC to maintain the
peace and justice to secure the lives of Filipinos here and abroad. The security and protection of
Filipinos abroad is being prioritize by the government to the extent of DFA opening more
embassies to different countries to assist services to Filipinos abroad.
In the pre-SONA forum, Secretary Delfin Lorenza state that there are programs about
preventing and countering violent extremism which is still on the process to face the problems in
the country and calling it “the first counter-radicalization program in the Southeast Asia”. He
also mentioned about the social healing and peace-building program in Marawi City that will
benefit the residents to get back on their feet after the chaos of Maute terrorists.
Reliable foundations are the key to attain progression against the pandemic. Peace, justice
and strong institutions are crucial frontliners in assuring that a country remains grounded while
dealing with the chaos, proper authorities are set into place to support this ideology. However,
based on the study entitled ‘Modeling the lockdown relaxation protocols of the Philippine
government in response to the COVID-19 pandemic: An intuitionistic fuzzy DEMATEL
analysis” conducted by Lanndon Ocampoa and Kafferine Yamagishi, the assignment of proper
experts are limited resulting to an imbalance in protocols. The proponents assessed the approach
of government of the Philippines to progression by examining the IATF protocols. Using the
decision-making trial and evaluation laboratory (DEMATEL), they were able to conclude that
related institutions are leaning towards an authoritarian route with bias to the implementors.
(Ocampo and Yamagishi 2020)
In relation to this, a news article from The Diplomat stated that the United States of America
founded a bill that will stop providing aid to the Philippine Military and Police due to
unconstitutional laws implemented in country. The Philippine Human Rights Act, introduced on
September 23, 2020 by Rep. Susan Wild (D-PA), will require the Philippines, their military and
police to reform their partisanship-like human rights creed or they will lose funding from the US.
These factors are prominent basis for reforms in the peace and justice sector of the country
during the pandemic that further strengthens the initiative of research to properly invest and
reform the status of the said institutions.
Value of Peace and Justice
In a research done by the Institute for Economics & Peace entitled “The Economic Value of
Peace, Measuring the Global Economic Impact of Violence and Conflict” way back 2016, they
discovered how violence affects many economical factors most especially economic activity and
additional expenditures. They found that violence costs 13.3% of world Gross Domestic Product
or simply $13.6 trillion, this was data collected in 2015. Containing violence requires necessary
expenses for security personnel and equipment. Such that, governments themselves spend a lot
on military expenditures to maintain their strength and prevent conflict to occur. Although these
costs so much for countries, businesses, and other institutions, “spending on peacebuilding and
peacekeeping is small compared to the economic losses caused by conflict.” (The Economic
Value of Peace, 2016)
In an article posted at US Agency for International Development written by Nisha Biswal,
assistant administrator for Asia, the influence of the judiciary towards economic growth was
mentioned by former Chief Justice, Maria Lourdes Sereno in an event at the Center for Strategic
and International Studies. Quoted is “the judiciary should be considered as a key element in the
promotion of inclusive, sustainable and equitable economic growth especially for those who are
poor and marginalized in developing countries.” (Biswal, 2013)
Influence of Stronger Institutions
According to a paper conducted by Emmanuel S. de Dios, with the help of the University of the
Philippines School of Economics, tackling on Institutional Constraints in Philippines growth, in
his recommendations and conclusions, limiting executive power and strengthening the
bureaucracy would help in further growth to lessen the excessive expenditures towards elections
simply for political ambitions and invest more on reform and political education for the people
and common practices to progress. The severe influence of officials affects the possible
financing from external sources, political stability, and economic growth; once a stronger
institution is established within the offices in the government, it will be able to stand alone and
not depend its progress upon the elected executives. (de Dios, 2008)
As mentioned in an article from CNN Philippines, the country lacked “entrepreneurial
dynamism” and needed reforms in its institutions because the judicial system is still weak and
very much vulnerable to political influence. Business freedom and investment freedom seem to
be not present within the boarders which makes it more difficult to progress. Inability to enforce
law properly opened corruption and cronyism, inefficient trials and hearings in court weaken the
system more. Hence, an institutional reform within the present structures and laws must be done
to make positive effects towards everything that has been affected of these injustices.
Economic Impact of COVID-19
It is proven that COVID-19 affects not just the health of people but also in societies and
economies. Each scenario differs from country to country but have the same cause and effect. An
article in Deloitte Insights written by Daniel Bachman (2020) state that because of COVID-19
the global economy is affected in three ways, by affecting production, by creating supply chain
and market disruption, and by its financial impact on firms and financial markets. The economy
is slowing down because of these interruptions across the world. Transportation are being limited
and even restricted to some countries.
International Labour Organization released an assessment regarding the impacts of
COVID-19 on the world of work (2020). ILO stated that underemployment is expected to
increase on a large scale, there are limitations on the movements of the people and goods. The
services sector, tourism, travel, and retail are especially vulnerable. ILO also stated concern
about the lower income sector stating that “Working poverty is also likely to increase
significantly”. Since there is a decline in economic activity it is most likely that people in the
poverty line will suffer more.
Panic is also a considered factor that affect the market. There is panic among the
consumers and firms in consumption of goods which result to market anomalies. An article from
World Bank Blogs stated that “The pandemic has led to a market failure where high demand
meets limited supply”. Suppliers are overwhelmed by demand and shortage in raw materials
which prices are increasing. Health scams also have an economic impact on LMICs where
resources are already scarce. The economic loss to governments and patients’ loss of income
increases socioeconomic inequalities and worsens health outcomes for patients. (Besson, 2020)
Economic state
In late July and early August up to the present, the Philippines has been perceived as the
worst performer in COVID prevention and economic recovery in East Asia and the Pacific, with
the largest number of cases, largest percentage of active cases, lowest percentage of recovery
rates, the highest COVID deaths per million population, and one of the countries in ASEAN
experiencing negative growth in the first quarter and strong economic collapse in the second
quarter of 2020. Thus, the expectation is that the Philippine economy will be the hardest hit in
East Asia and the Pacific.
Joseph Anthony Lim conducted a study that discussed the Philippine economy during the
COVID-19 pandemic. It is stated there that the first quarter 2020 saw a decline in GDP of -0.7%.
January 2020 was affected by the eruption of Taal Volcano which threw ashes as far out as
Metro Manila, and affected transportation, agriculture, and livestock in the surrounding areas.
The author, however, thinks that the small decline in GDP in the first quarter is more due to the
strong lockdown (Enhanced Community Quarantine) imposed on March 17 to May 31. Though
this involves less than half a month in the first quarter, the economy had already been hit hard
starting March 7 when the first local transmission of the COVID-19 virus at Greenhills, San Juan
City was confirmed. Since then, people panicked and avoided malls and crowded areas. Many
remained at home. This affected retail sales of manufactures, transportation, and services. (Lim,
2020)
Likewise, according to the Government of Philippines report by National Economic and
Development Authority (NEDA), the slowdown in economic activities may reduce employment
by about 33,800 to 56,600 in 2020. The tourism industry which contributes 12.5% of the GDP
will also lose its contribution. The household consumption lost about 5 to 10 percent in the non-
essential items. On the upside the socioeconomic debt ratio of Philippines is now at an improved
41% from the previous 70%, according to government reports. (Amadora, 2020)
Not only did the rise of the COVID-19 cases affected the economy, but as well as the legal
economic reforms during the administration of President Rodrigo Roa Duterte alone proved as a
disadvantage to the citizens. A constant hurdle is the Republic Act (RA) No. 11203 or Rice
Tariffication Law, passed last February 2019, aims to modernize the agricultural sector as a way
of making the sector globally competitive. Under this law, it permits the entry of imported rice
while imposing a tariff, which varies depending on the volume of imported goods. Furthermore,
as the community quarantine continues and the people below the poverty line augments, they’re
faced with the Tax Reform for Acceleration and Inclusion (TRAIN) or the Republic Act No.
10963 was signed into law by President Duterte on December 19, 2017 and implemented on
January 1, 2018. It was the initial package of the Comprehensive Tax Reform Program, which
aims to rationalize the Philippine tax system. The said law was promised to bring “long-term
benefits” to the Philippine economy, however, increase in taxes only served as a constraint for
people with limited financial resources. The governance that gave fruition to these components
digressed the economic state of the country and the financial stability of the people of the
country.
Recovery in the New Normal
As early as March 31, 2020, the Secretary-General of the United Nations, Antonio Guterres,
warned the world about the possible recession in the economy, an “unprecedented test” faced by
the world. With the problem in mind, he suggested that the way out would need efforts from all
sectors especially those who have more means. It is a matter of response and not a long term
plan, because the path toward the 2030 sustainable development goals remain although some
maybe altered because recovering from this COVID-19 crisis will result to a new or more
complex economy. Hence, what must be established are more equal, inclusive, and sustainable
communities and economies which will be able to resist or go through crises like the pandemic,
climate change and other possible problems that might face the globe. (Guterres, 2020)
Querying on the concern of economic recovery, the Manila Bulletin came to ask the Department
of Finance regarding the status of the Philippines. In their report, Finance Undersecretary Gil S.
Beltran said that the contraction of the trade merchandise industry is slowly recovering from its
lowest level during April. While the acting socioeconomic planning secretary, Karl Kendrick T.
Chua, discussed on the gradual yet carefully assessed opening of the economy as they continue
to follow the protocols set by authority while giving support to the economy’s recovery. Beltran
also mentioned that with the continuous support and guide of the government through reforms
and amendments like the Commonwealth-era Public Service Act and the Retail Trade
Liberalization Act, the country will be able to attract investors as they adopt these economic
reforms as the Philippines weather this storm given by the pandemic. (Leyco, 2020)
Synthesis of the Review of Related Literature
Aside from identifying 2020 as the worst year of the 21 st Century, it is evident in the pre-SONA
forum, the DND (2020) and Sandodong (2020) emphasized how the current administration
invests on defense and foreign affairs to maintain peace within the country from terrorist and
likewise outside to support the millions of OFW’s who support the economic growth of the
country. Moreover, these sectors for peace, justice, and stronger institutions are essential
especially at the trying times of the country due to the pandemic, although certain problems are
being faced on how they are implementing protocols and laws that are slightly leaning to an
authoritative state amid the democratic system said Ocampo and Yamagishi (2020), likewise the
Diplomat (2020).
From the works of the Institute of Economics and Peace (2016) and Biswal (2013), the costs
incurred for defense are too significant that it outlays a large amount from national budgets not
only in the Philippines but in other countries as well. The expenses done for peacebuilding and
keeping although are said to be little compared to when faced in conflict. In terms of the justice
system, it must also be developed alongside defense because of its vital role for developing
countries to lessen social inequality.
In the writings of de Dios (2008) and CNN Philippines, the institutions within the Philippine
government and beyond it are either too strong or too weak. The Executive on one hand has too
much powers that it can influence several external factors within the economy whilst also lacking
entrepreneurial dynamism that results to soft funding from investors because of the one sided
support towards large business icons and corporations that could be at the back of the executive
as well. These result to several injustices shackling further improvement for smaller
entrepreneurs and other potential individuals.
According to articles published by Deloitte Insights (2020), International Labour Organizations,
and World Bank Blogs, many of the labor forces are either fearing for their jobs, a large amount
of the labor force have already been left unemployed due to the crisis faced. This did not just
lead to a decline in the economy but has also affected a significant part on the mental and
physical health of people with others striving to achieve income amidst the fear of the virus, and
others filled with panic birthing their survival instincts on procuring a considerable amount of
goods destroying the demand and supply balance.
While other countries are recovering already, the Philippines is still at a declining state for the
most part of the year 2020 failing in economic recovery and the handling of the virus, its
prevention and spreading. By virtue of the studies of Lim (2020) and Amadora (2020), statistics
on the decline on GDP were not just affected by the pandemic alone but also due to previous
implementations and laws done by the administration to boost up the economy and improve
infrastructure within the country.
By careful readings and considerations, Guterres (2020) and Leyco (2020) claim that the
economy is meant to decline because of the crisis and for it to rise again requires cooperation of
the government and the people. The support from the government for the livelihood of the people
will also help in the gradual recovery of the economy. Pathing towards the sustainable
development goals and reforming certain laws will also help in weathering the storm because the
effect of the COVID19 crisis is not a one cure problem but a long term healing of the economy
which will eventually lead to economic development.
The reviewed literatures and studies have given the researchers a thicker understanding of this
study. The different studies cited in this chapter were about the Philippine Economy in the
Pandemic, and Peace, Justice and Strong Institutions.
The results and findings based on the different studies and articles published served as an
inspiration for the proponents to further investigate and to have a deeper understanding on the
Philippine Economy and the Pandemic, its recovery in the perspective on Peace, Justice, and
Stronger Institutions.
