A significant shift occurred in early February when President Marcos Jr. issued Executive Order 108, dissolving the Office of the Special Assistant to the President for Investment and Economic Affairs. Its responsibilities, previously overseen by Secretary Frederick Go – recently appointed as Finance Secretary – now fall under the purview of Executive Secretary Ralph Recto.
This restructuring concentrates economic oversight within the Office of the Executive Secretary, expanding its role beyond simply monitoring government departments. The aim is to streamline investment strategies and proactively address both present and future economic hurdles facing the nation.
A recent analysis of economic growth across East Asia and Europe reveals a stark contrast. By examining three-year GDP growth clusters, a clear trend emerges: the Philippines, alongside Vietnam, consistently outperformed its ASEAN neighbors and trailed only China in growth from 2011 to 2019.
However, the stringent lockdowns imposed during 2020-2021 proved devastating. While nations like Vietnam and China continued to expand, the Philippines experienced a staggering 9.5% contraction in 2020 – the worst in its post-World War II history and a regional low. The average growth during those years plummeted to a mere 1.3%.
A rebound followed, with growth exceeding 5% in 2023-2024. Despite challenges posed by infrastructure concerns, the average growth of 5.2% during this period surpassed that of other ASEAN-6 economies and established East Asian powerhouses, defying pessimistic predictions.
Meanwhile, a concerning trend of economic stagnation, even degrowth, is taking hold in several European countries, notably Germany and Austria. Italy, France, and the UK appear poised to follow suit, seemingly prioritizing globalist agendas over domestic economic vitality.
The focus in many European nations has shifted towards initiatives like environmental conservation, diversity programs, and international aid, potentially at the expense of job creation, business growth, and industrial strength. This divergence highlights a critical question for the Philippines: how to sustain a robust GDP growth rate of 5-6%, and ideally reach 7%, avoiding a decline to 4% or lower.
To achieve sustained growth, a clear set of priorities is essential. Avoiding future lockdowns and mandatory vaccinations, regardless of external pressures, is paramount. The national focus should be on preserving jobs and businesses, rather than pursuing externally driven agendas.
Emulating the economic and energy policies of successful East Asian nations, rather than those of Europe or North America, offers a more promising path. In 2025, most East Asian economies demonstrated growth above 3%, underscoring the region’s dynamic and prosperity-focused character.
Ultimately, the unwavering promotion of the rule of law – ensuring equal application of the law to all individuals and sectors, with no exceptions – should be the government’s foremost responsibility. This principle lies at the heart of the social contract, originally conceived to protect fundamental rights.
The foundational purpose of government, as articulated by Locke, Hobbes, and Rousseau, is to safeguard the rights to life, liberty, and private property. Modern expansions of “rights,” such as universal healthcare or guaranteed income, arose *after* the establishment of these core protections, fueled by the productivity and self-reliance they fostered.
Addressing issues like infrastructure corruption, unsustainable welfare programs, mounting public debt, and rising taxes requires a renewed commitment to the rule of law. The Office of the Executive Secretary, now central to economic oversight and investment liberalization, faces significant expectations.
Despite limited time and resources, the office is diligently working to meet these challenges, striving to create an environment conducive to sustained economic progress and a more prosperous future for the Philippines.
