Federalism will bring 'greater growth' to PH and not economic disruption - Con-com

The change to federalism will not result to any economic disruption, rather it will pave the way for Philippines greater growth.

The Charter change committee formed by President Rodrigo Roa Duterte has clarified and explained the plan to Socioeconomic Planning Secretary Ernesto Pernia after he made public his fear that the shift to federalism will “wreak havoc” on the country’s economy.

Consultative Committee spokesperson Ding Generoso made the clarification that the change of form of government would lead the Philippines to a “greater” economic growth. That was in the mind of the Con-Com members when they were deliberating the draft. Former Chief Justice Reynato Puno is the chairman of the Consultative Committee that was tasked to make the draft .

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“The shift to a federal system of government won’t cause disruption in the nation’s economy but, in fact, lead to greater and a more balanced growth over the medium- and long-term after the system is put in place,” Generoso said in a statement.

Socioeconomic Planning Secretary Ernesto Pernia’s fear that a shift to federalism would “wreak havoc” on the country’s economy is baseless, President Rodrigo Duterte’s charter change committee said on Wednesday.

Contrary to Pernia’s claim, changing the form of government would lead to a “greater” economic growth, according to Ding Generoso, spokesman of the Consultative Committee (Con-com), which is chaired by former Supreme Court Chief Justice Reynato Puno.

“The shift to a federal system of government won’t cause disruption in the nation’s economy but, in fact, lead to greater and a more balanced growth over the medium- and long-term after the system is put in place,” Generoso said in a statement.

Generoso explains that if charter change is voted Yes by the Filipinos, it would not  immediately happen since there is a transitory plan that will be followed.

“It is not like the shift will happen immediately upon ratification of the proposed constitution,” Generoso said. “This is why a transition commission will first be put in place to formulate the comprehensive transition plan.”

In the transition, all government offices will participate from the national, regional and local levels and it will also involve the private sector.

“In fact, even as early as now, a mechanism can be put in place to already conduct initial studies to support the transition plan,” Generoso explained.

“Upon ratification of the proposed charter, everything remains as they are,” he said. “Government and all agencies will operate as usual, businesses will operate as usual, the economy will operate and move as usual.”

Offices or institutions will be created like such as the governments of the federated regions and the Federal Intergovernmental Commission (FIGC), to accommodate the a smooth transition from the present form of government.

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Report from PDI