BPP strongly believes that a social structure of poverty is one of the worst, if not the worst, form of unrighteousness, wickedness, or injustice in the social order, and that the end of all economic programs should be the levelling of the playing field for all whereby sufficiency, if not prosperity, is reachable or possible for all and not just for a preferred or favoured few. To achieve this objective, the economic agenda of BPP shall be guided by the following principles:
1. The Principle of Agriculture being the Foundation of the Economic Recovery of the Philippines:
The Philippines is an agricultural country and majority of its people, including the largest members of its poor population, belong to the agricultural sector, which is supposed to be strength of the country.
Consequently, the first economic agenda of the Bangon administration is the rejuvenation of the agricultural economy, where the country’s greatest assets and potentials lie. Enhancement and promotion of organic food production, food security, and agricultural and agro-forestry products and by-products leading also to the production of goods for clothing and shelter, as well as all other appurtenances of modern, sustainable, green, bio-diverse and organic agriculture and agro-forestry, and including computer hardware and software shall be the broad objectives of putting premium on the agricultural sector and economy of the country. The Bangon administration will throw its full support for agriculture, including subsidy of farm implements, lifting of tariffs or customs for equipment or machinery needed by farmers, funding assistance, and other helps, not only for domestic benefit, but also for global competitiveness.
The desirability of fusing the Department of Agrarian Reform and Department of Agriculture (to be renamed as the DARA) shall be seriously considered, to ensure that the twin objectives of social justice and agricultural productivity can be pursued in harmony with each other, to ensure productivity.
Government shall also support organic farming, production of organic health supplements and organic medicine, as well as clothing and shelter by-products, for domestic consumption as well as for export.
Agriculture must also be vigorously protected from unfair global trade.
2. The Policy of Self-Help First before Foreign Assistance:
Bangon believes that the progress of the Philippines will not come primarily from foreign effort or help but will result first from the Filipino people’s resolve to elevate the nation. The thrust, therefore, of the Bangon administration is to develop a strong and vibrant domestic economy.
For this reason, Bangon will adopt a policy of self-help first before foreign aid, primarily among others by financing research and development for the conversion of raw materials and natural resources into finished products.
To jumpstart the Filipino self-help policy, the Bangon administration will undertake the following measures:
a. Granting tax holidays to local business institutions that will prioritize Research and Development (R&D) for Filipino inventions and products
b. Lifting tariffs and duties for the import of equipment and technology intended to aid Filipino invention and production of goods
c. Opening up of government credit facilities with special interest rates for R&D and production of Filipino inventions
d. Granting similar incentives and assistance for the green and sustainable modernization of Philippine agriculture
e. Funding scholarships for bright Filipino students to study in schools all over the world with contract to bring back their knowledge to the homeland.
3. The Principle of Filipino Security amidst Global Trade
In view of the seeming unstoppability of globalism, a Bangon administration will be careful to protect national interest and welfare in the global market. It will protect home-grown industries while at the same time encourage them to be globally competitive.
Along this line, a Bangon administration will protect local industries and businesses against the adverse effects of globalism such as AFTA (Asean Free Trade Agreement), GATT (General Agreement on Tariffs and Trade), JPEPA (Japan Philippine Economic Partnership Agreement), and other similar agreements, by the following measures:
a. Political will in enforcing the policy of RECIPROCITY and EQUALITY
b. Review of such treaties and agreements and request or work for appropriate repeals, revisions or amendments as may be necessary to protect local industries
c. Subsidize or support local industries to make them globally competitive
d. Review in order to revise if not repeal the EPIRA Law, to make the cost of electricity in the country low, so that local producers and manufacturers can make the prices of their products competitive in the global market
e. Stop smuggling
4. The Principle of Kindness, Incentive, or Reward to Foreign Investors that utilizes local products, goods, or services
The preceding principle of Filipino Security amidst Globalism will be counter-balanced or complemented by a policy that rewards foreign investment which helps local industries.
The Bangon administration will attract foreign investment to come to the Philippines through the following:
a. Reduction if not removal of excise or similar taxes on foreign companies that set up businesses here which utilise local products (“local content”) for the things they produce
b. Establishment of one stop-shops for investors
c. Provision of stiffer penalties for those who illegally impose personal levies on investors
d. Long term lease of carefully classified areas of land under terms and conditions that are fair
e. Honest and righteous governance that will not tolerate corruption
f. Reduction of the cost of electricity low in the country
5. The Principle of Government being the Equalizer or Leveller of the Playing Field
As a general rule, business is best left to businessmen. But government is the equalizer or leveller of the playing field when conditions arise where the profit of some results in injustice to others. A Bangon administration will step in when there is cartelization, monopoly, or similar conditions that work injustice or disadvantage to the Filipino people.
Government should reacquire its share in Petron, if only to prevent cartelization in the fuel industry.
6. The Policy of Alchemy over Mere Raw Material Production:
For too long, the Philippines has lagged behind its neighbours because it has not gotten out of its pre-industrial agricultural age. In the main, we plant and harvest using ancient tools and we produce raw materials only, such as sugar, hemp and coconut.
While the change cannot be implemented overnight, Bangon will shift the direction of Philippine agriculture in particular and the economy in general to the policy of “alchemy,” or production of finished products over mere raw materials.
Along this line, Bangon will reward both local business and foreign investors who will bring the Philippines to this new direction. For example: foreign investments that transfer knowledge, knowhow, training and technology to enable the production of finished, useful products out of Philippine natural resources will be encouraged with a moratorium on corporate and income tax for a fixed number of years until investors are able to recover their investments, or after a minimum number of Filipinos are employed by said company vis-a-vis its capital investments. Instead of merely buying vehicles from other countries for example, the Philippines will make its own engine blocks and produce its own eco-friendly vehicles.
7. The Policy of “ASSURED REGIONAL PIE”
Recognizing the economic injustice suffered by the countryside in the allocation of the natural wealth and income, the Bangon administration will pursue a policy and program that will assure that what is for Mindanao will go to Mindanao, what is for Visayas will go to Visayas, what is for Luzon goes to Luzon and what is for Metro Manila goes to Metro Manila. Bangon believes that greater economic activity will be spurred if the countryside is given the necessary resources to unleash its potential.
This major shift in policy in the sourcing and allocation of the national wealth and income is best achieved by a corresponding Constitutional amendment that makes permanent the shift, or by legislation that brings about the change in the budgetary process.
8. The Principle of Collective vs Central Economic Planning:
While the mechanism for the policy of the Assured Regional Pie is not yet in place, a Bangon administration will already start to veer away from the current centralized planning followed by Malacanang.
Instead, our geographic and demographic economic planning will involve the provinces, cities and municipalities in a multi-stage process, the first stage of which will consist in their consultation and contribution of plans and ideas together with the collation of statistics through research.
The aggregated data will be assessed and developed by the NEDA into one economic master plan, to become the basis for the national budget to be passed by Congress and implemented by the Executive, subject to the economic policies of Bangon Pilipinas Party herein explained.
9. Developing Smart Labor while Protecting Cheap Labor:
Cheap labor has sustained the Philippine economy for hundreds of years and has spawned social injustice and economic inequality.
Bangon will protect cheap labor against exploitation and starvation wages. At the same time, however, it will develop skilled and smart labor by:
a. Granting government scholarships for poor but talented minds
b. Increasing the mandate and budget of TESDA
c. Re-gearing existing state-sponsored technical and vocational schools towards software programming for agricultural as well as entrepreneurial purposes
d. Bolstering current polytechnic learning institutions with an R&D orientation designed to build the best possible products out of Philippine human and natural resources
e. Establishing Community Entrepreneurial High Schools that can develop family and community enterprises with the view of also developing skilled and smart labor within the families and communities involved in these enterprises
10. The Institutionalization of Nationalized Microfinance for Small and Medium-Range Enterprises:
The current banking and financing industry is based on a “trickle-down” neo-classical economic theory that rewards only those who are already successful and has nothing to offer to those who are starting out from zero.
The Bangon administration will adopt the tested concept of the Grameen Bank, which has already been brought to the Philippines by some notable NGOs, and provide them with adequate capitalization, support services and technical support to enable the poor to have access to soft loans to start their businesses. It will seek to establish a National Cooperative Bank to encourage small and medium-scale industries and entrepreneurship.
11. Purchasing Power of the Peso vs Exchange Rate:
For too long, government has regarded the foreign exchange rate of the peso as if it were an end in itself, even though there are always winners and losers in any movement of the exchange rate in either direction.
Bangon Pilipinas maintains that it is the purchasing power of the peso, and not the level of the exchange rate, that is of paramount importance to Filipino consumers.
The proper goal for the exchange rate is to avoid volatility and drastic movements.
On the other hand, purchasing power, particularly of poorer Filipinos, will be safeguarded through monetary and fiscal discipline that will promote overall price stability, as well as through appropriate economic policies that will ensure the accessibility of basic commodities to all Filipinos.
The Bangon administration will keep a close watch on purchasing power and regard it as one of its key performance indicators and critical yardsticks for economic success.
12. The three-point strategy of honest leadership, debt moratorium, and increased revenue collection to address the problem of the budget deficit
Bangon Pilipinas will address the challenge of the huge budget deficit by:
a. First establishing an honest, credible, and respected leadership in government
b. Then by working for debt relief or moratorium
c. Then by improved revenue collection.
BPP believes that everything hinges on honest, credible, respected servant-leadership. If the leadership is honest and respected, creditors will not be difficult to speak to concerning debt relief or moratorium, and taxpayers will be encouraged to pay the right taxes.