The Philippines Economic Managers | Still a Miracle?

When President Bongbong Marcos took office, he was widely praised, both in the Philippines and internationally, for assembling a strong cabinet. Many people said that he selected some of the best and brightest individuals to help govern the country. Senator Loren Legarda even mentioned that Marcos had picked the “best team” to steer the economy through its recovery from COVID-19. The Philippine business community lauded his team, calling them the “A-Team” for their expertise and the fact that they were free from political bias. This focus on the economy and the well-being of Filipinos became a hallmark of Marcos’ administration. However, things have changed. More than two years later, several key cabinet members have left. So, is the Marcos cabinet still as strong as it once was, or has politics started to play a bigger role in his new team? To answer this, let’s look at who left and who replaced them.

One of the most notable figures in Marcos’ administration was Benjamin Diokno. Considered one of the Philippines’ top economists, Diokno was expected to deliver excellent results when he was appointed as Secretary of Finance. Before this role, he served as the Governor of the Philippine Central Bank (BSP) and as Secretary of Budget and Management under former Presidents Rodrigo Duterte and Joseph Estrada. Diokno’s reputation as a leading figure in the Philippine economy was well-established, but after nearly two years, he was replaced as Secretary of Finance.

His successor is Ralph Recto, who took office on January 12, 2024. Unlike Diokno, Recto is more of a politician than a technocrat. He has served as a Senator multiple times and briefly held a technical position as the Director-General of the National Economic and Development Authority (NEDA) under former President Gloria Arroyo. Despite not having an economics background like Diokno, Recto has achieved significant milestones as a politician. He was a key figure in the House of Representatives, where he championed economic reforms and poverty alleviation measures. Some of his major contributions include the Social Reform and Poverty Alleviation Act, the Philippine Economic Zone Law, and the Comprehensive Tax Reform Law.

As NEDA chief, Recto played a crucial role in developing the government’s Economic Resiliency Plan (ERP) and introduced the Reloading Economic Acceleration Plan (REAP) to sustain the gains made under the ERP. He also pushed for greater transparency and efficiency in government projects. Despite these achievements, Recto remains a controversial figure, particularly due to his involvement in the Expanded Value-Added Tax (EVAT) law, which many believe cost him his Senate seat in 2007. While the EVAT law was ultimately seen as an important fiscal reform, it significantly hurt Recto’s political standing.

Another new addition to Marcos’ cabinet is Francisco Tiu Laurel Jr., who was appointed as Secretary of Agriculture. Unlike most appointees, Laurel comes from the private sector. He is a prominent businessman, often referred to as a billionaire, and the president of Frabelle Fishing Corporation, one of the leading deep-sea fishing enterprises in the Asia-Pacific region. Laurel also heads the Agusan Power Corporation, which recently inaugurated a hydropower plant in Lake Mainit. His political connection to Marcos comes from his reported role as a major campaign donor during the 2022 Presidential Elections, and he was later appointed to Marcos’ Private Sector Advisory Council.

Another major change in the cabinet is the departure of Alfredo E. Pascual, who recently stepped down as Secretary of the Department of Trade and Industry. Pascual, a former President of the University of the Philippines, was considered one of Marcos’ top economic managers. He had a distinguished career, including key roles at the Asian Development Bank (ADB) and as President and CEO of the Institute of Corporate Directors. Under his leadership, UP became a research-intensive institution, and he led significant infrastructure projects across Asia while at ADB. Pascual’s replacement is Acting Trade Secretary Cristina Roque, a former CEO and president of the Kamiseta group of companies. While she has been praised for her new role, her background differs significantly from Pascual’s.

The most significant recent appointee to Marcos’ cabinet is the new Secretary of National Defense, Gilbert Teodoro. Teodoro is a well-known figure in the Philippines, with a career that spans both the public and private sectors. He holds a law degree from the University of the Philippines and a Master of Laws from Harvard University. Teodoro was the youngest person to serve as Secretary of National Defense when he was appointed in 2007. He also chaired the National Disaster Coordinating Council (NDCC), where he implemented key reforms in disaster risk management and defense policies.

Since his appointment as Secretary of National Defense, Teodoro has taken a strong stance against China, challenging them on several occasions. He has been vocal about Chinese propaganda tactics, questioned their credibility, and has been involved in securing military deals with foreign countries. Teodoro’s appointment is seen as one of the best decisions Marcos has made.

Teodoro’s background is also interesting. He ran for president in the 2010 elections but lost to his cousin, Benigno “Noynoy” Aquino. He also twice declined offers from President Rodrigo Duterte to lead the Department of National Defense. In 2021, Teodoro expressed his willingness to be Davao City Mayor Sara Duterte’s running mate if she decided to run for president in 2022. Given his political connections, it’s possible that Teodoro might aim for higher office in the 2028 elections.

So, are Bongbong Marcos’ new cabinet members still as strong as the original team? Some may be better than their predecessors, while others may not measure up. It’s clear that politics could be playing a larger role in these appointments, but merit is still a significant factor.