The Philippine president’s zany ideas have not hurt the economy

IN MATTERS of economics, as in other realms, Rodrigo Duterte, the president of the Philippines, is more than capable of flamboyant, populist gestures. Earlier this month, to the astonishment and consternation of much of his cabinet, he signed a law abolishing tuition fees for students in state universities. When asked how the government would pay for the new policy, he replied “I don’t know, we’ll have to see.” By the same token, he has promised to restrict severely the sorts of temporary contracts under which around 30% of Filipinos are employed; he has pledged allegiance to China in exchange for investment in infrastructure; and, in April, he announced a plan to suspend imports of rice to help local farmers.

Economists point out that abolishing university tuition will be more of a subsidy for the rich than the poor, since just 12% of students come from the poorest 20% of families. It could also cost anywhere between 30bn pesos ($588m) and 100bn pesos a year, according...Continue reading

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