With the current economic situation of the Philippines, provide at least five (5) solutions to the

country’s economic downfall. How would the economy recover from this crisis? Explain your
answers

Source: https://voxeu.org/content/mitigating-covid-economic-crisis-act-fast-and-do-whatever-it-takes

The pandemic has already translated into an economic crisis. There remains a high risk because of several
attacking factors, the direct virus-related disruptions that last longer than expected. In fact, there are big
corporations that closed down and perhaps will never get back. There is a risk of lengthening recession or
even another financial crisis as companies turn insolvent. The image above shows the domino effect if
one of the economic actors were disrupted, wherein everything is interconnected. With the Covid19
pandemic, our economy is paralyzed and is on the brink of an economic crisis. Below are the possible
solutions.

1. Imposing a public health policy

In the Philippines, imposing containment policies such as lockdowns, social distancing,
quarantines, and business closures can be observed. Using these containment policies, lives have been
saved by avoiding medical rationing but it also means that flattening the medical curve, steepens the
recession curve because it reduces economic activity. These public health policies implemented make the
economic crisis worse, at least in the short run because it results in unemployment but the worse outcome
of continued economic activity would be lost lives. In addition, even though if public health measures
would not be implemented in the Philippines, a recession would still occur because panic will stir up
within the households and firms, faced with uncertainty dealing with a pandemic. So as a solution, we
people should cooperate and follow all the health protocols of our government, be disciplined, and aware
enough about the happenings in our surroundings. The goal of this solution is to flatten the curve in
observance with containment policies and the government must ensure a dynamic and persistent response.
2. Stepping up the financial and fiscal policy
During this pandemic, the Philippine government has had an unsystematic approach to offer
tangible remedies. To comply with containment measures and advice, the options given are to ensure the
safety of the people. Ensuring that employees can also get a share of their earnings or salaries, with
temporary layoff assistance (which is a key component), families to pay their basic payments, to ensure
that businesses can deal with the uncertainties without falling into debt with simpler borrowing terms,
having payroll taxes on a temporary basis, suspending debt payments or providing direct financial aid
where necessary and, eventually, supporting the financial system as non-performing debts are mounting
to ensure that the situation does not turn into a financial crisis.
3. Maintaining an Open Trade
We cannot recover at a fast pace, hence just a gradual unfolding of the economy. The airports and
ports are slowly opened to cater to the movements of goods, products, and services. Maintaining an open
trade can help recover our economy, as long as there is transparency with the policies and having safety
protocols. The priority of an open trade should be concerning with our essentials like medical and food
supplies and technological products. Maintaining an open trade can be challenging because everything is
within its limits for example unavailability of labor and changes in port protocols, however, we need to do
whatever it takes.
4. Ensuring Transparency and Accountability
Transparency and Accountability cannot function without the other. The key to a responsive
result is an informed public because for them to be able to make sound decisions. The government needs
to provide rightful data on where the budget is allocated. They can do this through airtime, daily briefing,
and a real time update using social media and government websites. Through this, it builds trust and the
willingness of the people to cooperate with the policies. It gives people an assurance that we are all in this
together. Also, the government people when given the chance to provide data should be aware and liable
for their speeches, they should practice speaking positive economic statements.
5. Innovation, Research, and Technology
Now is the time to be creative with our solutions. We are now in the stage of prevention because
it is too late for a cure. In Taiwan, they use advanced ICT and research development and manufacturing
capabilities. They have a digital fence and mobile app that monitors the movement of people in
quarantine status, it helps them track those in close contact with confirmed covid19 cases. The
government needs to fund potential researches that can make an outbreak in our situation. It is the time, to
be inspired by the solutions made by other countries and it is certainly a time to listen to our economists.

To put this all in perspective, millions of people are affected by this and are still fighting in the midst of
the pandemic. And most of all we must be aware of the new normal protocols and being people of the
society, we must be responsible also Facing this pandemic was never been easy, a lot of people lose their
job and depend on what government can provide. Let us learn to live without any debts because living
without debts means simplifying your life and also let us think of reducing our expenses.