The Economic Covenant

THE ECONOMIC COVENANT

 by Salvador M. Enriquez, Jr.

 

TWO-POINT PROGRAM

The leadership of NEPA for 2010 has decided to reinvirogate the movement. A two-point program has been adopted:

  • Macroeconomic review. Revie and redefine the country’s macroeconomic policy environment, identifying the inspiring philisophies, and strategizing actions for “quick win.”
  • Small Filipino enterprrise strengthening. Determine how small and medium Filipino enterpirses can be made to play a bigger role in econimic development. Resolve how they can helped to grow faster, while making vital advocates of economic nationalism.

INSPIRING PHILOSOPHY

This paper shall lay froth the inspiring philosophy that will characterize the environment that will guide and sustain national economic policy which will propel this nation to progress and development.

  • Filipinos must be the sole determinants of Philippine economy, so that they become the principal beneficiaries of the fruits of development.

One decides invariably for one’s benefit. Filipinos should benefit from the gain of the Philippine economy; in like manner, they will also suffer from the dysfunctions and retrogression of the economy.

  • While the Philippine economy needs to reckon with developkments in the globalized economic order, it must agressively protect and promote the resources and advantages of Filipinos in this economic environment (liberation and low-wage policy reversed).

Let us show aversion to multinational efforts to increase the world economic pie. We can participate in and identify the moves and opportunities that the Philippine economy can tale advantage of. Let us put Filipino priorities above the interest of other nations, while extracting from them that which will benefit Filipino enterprise.

  • “Guided free enterprise” will rationalize the production, distribution and consumption factors of the economy.

Truly, a democratic-capitalistic environment is still the best propellant of Filipino creativity, initiative and productivity. Collective social intervention by a moral government will indeed help direct the economy towards productivity that greatly benefits the most.

  • Tha nation’s production capability and capacity are the true measures of economic progress and development.

The productivity of any enterprise, family or nation, is essentially measured by the willingness of the unit to work hard and exert effort. Productivity if not attained by luck or by clever wheeling-dealing, nor by dependence in the generosity of another enterprise.

  • Inductry is a value or virtue to be developed and sustained, not only among individuals, but also for national society.

Civilization has come a long way. The sustenance of the good life is not dependent only on natural resources and God’s endowments. It is also generated by man’s efforts and capabilities to provide products and services that help lead to a better quality of life.

  • The nation cares moore for economic activities that rely on one and/or are supportive of another within the country (upstream-downstream, input-output, agri-industry).

Building a nation’s economy is the result  of widening network of economically complementary activities. Agriculture and industry can co-exist in a symbiotic manner. In the same way, big and small businesses can have mutually rewarding relationships.

  • Rational sourcing of inputs and equitable distribution of outputs help the economy grow faster, as in expanding employment and productive activities that broaden the sharing of the economic pie.

The economy progresses most rapidly when activities are undertaken by the broadest constituency of the enterprise unit, both by contributing to inputs and by sharing in the outputs.

  • Indutry is a value or virtue to be developed and sustained, not only among individuals but for national society specifically.

The production of more people in the national economic enterprise helps hasten the achievement and broadens the scale of progress and development. Providing employment to as many people as possible is one way of opening more doors to stakeholder involvement. Conversely, raising productivity through the capital of a few oligarchs does not generate the desired progress.

  • Productivity that propels the desired economic development is what which results from production that leads to ever-growing links enterprise building.

Optimizing productivity is achieved by prioritizing the prodyuction of tolls and machinery that are used in prroducing more goods. For example, manufacturing a tractor that will consequently prepare the soil for plating agricultural products is definitely more beneficial than producing carbonated and junk foods of equal value.

Rational distribution of inputs and outputs includes the propriety of vertical allocation of inputs and outputs of every participant in the national enterprise. What is cost to a consumer is income to a supplier, who in turn will be a consumer of another supplier. This consumptrion-supply chain optimizes benefits produced to both players.

  • Consumption of people within the country is supposed to be equal to the production of people in the country. One must function as an effective stimulus of the other.

Consumption in the country should stimulate production within the country as well. The cost of consumption should be the income of production. Consumption by Filipinos that results in income for non-Filipinos, should be discouraged.

  • To stimulate production, consumption needs to be disciplined to be consistent with the social covenant, particularly as we reckon with the needs of succeeding generations.

The Philippines is largely an agricultural country blessed by God and nature’s endowments. Filipinos must utilize the framework of sustainable development in addressing the people’s basic economic needs and in developing tha national economy, while concomitantly protecting and preserving the resources of succeeding generations.

  • Consumption is properly deserved to the extent to which one has contributed to production.

Those who produce wealth of the economy, by the principal of social equity, deserve to enjoy the fruits of their hard labor. What one has sown will be reaped by no other than oneself. Because each and everyone of the citizenry is considered a stakeholder of the nation as an enterprise unit, their collective endeavor serves the single concern of uplifting the economy and develping the nation.

 

Approved by the NEPA Board
Jan. 29, 2010
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