ELECTIONS 2022: Inflation exacerbated by govt's indifference to disputed sea issue

  • Oops!
    Something went wrong.
    Please try again later.
·Contributor
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
Former Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo said the next government must strengthen the Philippines' commitment to its ability to produce the country's own goods and services in order to deal with the rising inflation. (Photo: Getty Images)
Former Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo said the next government must strengthen the Philippines' commitment to its ability to produce the country's own goods and services in order to deal with the rising inflation. (Photo: Getty Images)

A monetary expert said that the government’s choice to remain indifferent to China’s illegal incursion into the West Philippine Sea (WPS) may have exacerbated the supply-driven inflation that the country has been experiencing.

“Based on reports, we are seeing this translated into a short supply of fish. The West Philippine Sea is one of the major sources of fish supply in the markets,” said Former Deputy Governor Diwa Guinigundo in an interview with Yahoo Philippines.

Contrary to what the president always says that the WPS has not much fish, it accounts for 30 percent of the country’s captured fisheries, making it one of our major sources of seafood.

Because of the short supply of food and other commodities in the market, the government had to liberalize exportation and issue certificates of necessity to import to make sure “that we can import those commodities that may be in short supply so that we can mitigate inflationary pressures building up.”

And so, for Guinigundo, the next government must strengthen its commitment to our ability to produce our own goods and services in order to deal with the rising inflation.

“It is important that our manufacturing and agriculture are robust and resilient to produce the basic commodities that we need, that we will not be in short supply,” he said.

Guinigundo also said that the next administration must give support to micro, small, and medium enterprises, which account for more than 97 to 98 percent of our economy, in order to level down the prices in the market.

He also emphasized the need for a competitive market so that we can get quality goods and services while keeping the prices down and affordable to the general public.

“[I]n this kind of competitive environment, you only see the best. You see the best in industry, you see the best in people producing more and producing efficiently. That will have a very positive impact on inflation,” Guinigundo said.

Marvin Joseph Ang is a news and creative writer who follows developments in politics, democracy, and popular culture. He advocates for a free press and national democracy. The views expressed are his own.

Watch more videos on Yahoo:

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting