THE government in pursuit of a well-balanced economic policy must have already realized losing one of the best economic think-tanks who has the capability to introduce tailor-fit economic reforms deemed crucial under the present circumstances.
Referred to as a gem in Marcos’ economic team, former Finance Undersecretary Cielo Magno who heads the agency’s Fiscal Policy and Monitoring Group, candidly admitted that she was “forced to resign” over her critical stand on Executive Order No. 39 imposing a price cap on rice commodities.
“The administration has lost a reformer with technical expertise who can reach out to sectors with varying persuasions – politicians, investors and businessmen, people’s organizations, academics and the international community,” Action for Economic Reforms (AER) said in a statement.
AER is a private think tank advocating economic and governance policies to promote Philippine development.
Magno, who holds a PhD in law and public policy from Northeastern University in Boston, was terminated days after she expressed her thoughts using a chart illustrating the law of supply and demand as a criticism of the administration’s decision to artificially lower rice prices by setting a P41 cap on regular-milled rice and P45 on well-milled rice.
The social media post, which went viral, appalled top Cabinet officials who recommended her termination.
Govt Needs Magno
With a long list of tasks delegated under her sleeves, finding a replacement to fill in the shoes left by Magno would be a tough even as the AER described Magno as a competent and professional, making her a total package for the Department of Finance (DOF).
Interestingly, Magno was among the team doing policy revisions aimed at preventing fiscal collapse of the military pension system.
Her contribution also translated to higher revenue forecasts via reforms in the government’s mining policy. She was also tapped to find ways to sustain President Ferdinand Marcos Jr.’s food stamp program.
Most importantly, it was Magno who did the legwork which brought the Philippines back to the globally prestigious Extractive Industries Transparency Initiative and improvements in the fiscal incentive rationalization system by adopting firm rules on the value-added tax.
“All this translates into better economic performance and investor confidence. Thus, Undersecretary Magno’s reform effort, in line with the President’s statements and Finance Secretary’s directives, are in the best interest of the country and of the Marcos administration,” AER said.
Reformist, Activist
The 45-year old professor from the University of the Philippines School of Economics is no stranger to UP where she served as chairperson of what was then a “radical” UP Student Council in 1999.
A thing is certain though, it was the Marcos administration who asked her to join the government to help the government rebound from the economic slump brought about by the pandemic and the financial mess in view of the more than P14 trillion national debt.
Magno didn’t apply for the job.
In an article posted in another major Manila-based daily, Magno admitted to the administration having supported the presidential bid of Marcos’ closest rival when the offer was made.
“I consulted family members and friends. In the end, I concluded that the agenda of the people remains the same, regardless of who is in Malacañang. We serve the interest of the people, not the interest of politicians,” Magno was quoted as saying.
Constructive Criticism
Regardless of the type of organization – whether it be in the government or in the private sector, constructive criticism is deemed as an essential element required for an organization to be effective.
But perhaps not in the Marcos administration, where AER coordinator Men Sta. Ana took a swipe at “some quarters” who capitalized on a mere social media post that was lifted from a widely-accepted book on economics.
According to Sta. Ana, policy disagreements or differences are normal and expected in any administration.
“But the lack of tolerance for different opinions on the part of some quarters in the administration leads to frustration among reformers in government,” averred Sta. Ana who hinted at internal politics behind Magno’s termination.
“Those reforms cry out to be done… regardless of who is in power. That’s the attitude of Cielo and other reformers.”
Just Like Magno
Even before Magno joined the government, a fellow UP School of Economics professor was forced to quit the government over government economic policies.
He is Prof. Ernesto Pernia, who opted to quit his post as Director-General of the National Economic and Development Authority and Secretary of Socioeconomic Planning under the Duterte administration.
Pernia in his “resignation” cited the need for a unified voice in the Cabinet, which his absence would provide.
Both Magno and Pernia advocated reforms and policies for the government to effectively take the country back on track amid economic setbacks.
Another common denominator between Magno and Pernia are proposals for balanced tax reforms that wouldn’t hurt the marginalized sector.
Both of them taught Development Economics, Environmental Economics, Human Resource Economics, Institutional Economics, Microeconomics, Public Economics.
Unsolicited Advice
Even before Marcos issued EO 39, economic scholars urged Marcos to seriously consider other options which include “walking his talk,’ in apparent reference to the Malanang chief executive’s campaign promise of reverting the price of rice at the level of P20 per kilo.
After the issuance of the controversial EO, several farmer groups expressed apprehension over the price cap, which they claimed will further burden the agriculture sector, unless the government goes after the traders “since the farmers are selling their rice produce way below 41 peso price cap.”
“Or better yet, instead of a price cap, the government should go directly to the farmers, buy their stocks and sell directly to the public.”
Where To Magno?
Magno is returning to her teaching job at the UP School of Economics as soon as she wraps up the process of securing clearances from the Department of Finance, which to her was indeed ‘temporary.’
According to Magno, she is just on “temporary loan or on secondment” to the DOF where she served as head of the agency’s fiscal policy and monitoring group.
“A wise man told me, if you do your job with integrity, you will be back in UPSE soon,” an ecstatic Magno posted on her FB wall.
She also expressed excitement over the idea of moving back her papers to UP, where “I will have more space to speak truth to power,”
“I am happy and excited to be back in UP. I am grateful for the opportunity to serve the Filipino people. I can sleep soundly at night knowing that I did my best to serve the interest of the public.”
Interestingly, the President has kept mum about Magno leaving his stable.
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