Template-Type: ReDIF-Paper 1.0 Author-Name: Ernesto M. Pernia Author-Name-First: Ernesto Author-Name-Last: Pernia Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Marianne C. Sales Author-Name-First: Marianne Author-Name-Last: Sales Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Public-Private Partnership: Physical, Social, and Human Infrastructure in the Philippines Abstract: Partnership between the public and private sectors, the main constituents of the economy, is not only logical but seems like a natural institutional arrangement. It can be a symbiotic relationship which brings about mutually beneficial processes and outcomes that redound to the economy and society-at-large. Among the three types of infrastructures, human is evidently the most vital and of the highest priority, followed by social infrastructure which directly undergirds human development that begins in the womb, and physical infrastructure required to buttress the country’s social and economic growth sustainably. This essay discusses physical infrastructure at length followed by human capital and social infrastructure. Length: 17 pages Creation-Date: 2023-05 Publication-Status: Published as UPSE Discussion Paper No. 2023-01, May 2023 File-URL: https://econ.upd.edu.ph/dp/index.php/dp/article/view/1549 File-Format: Application/pdf Number: 202301 Handle: RePEc:phs:dpaper:202301 Template-Type: ReDIF-Paper 1.0 Author-Name: Ma. Joy V. Abrenica Author-Name-First: Ma. Joy Author-Name-Last: Abrenica Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Luzeta C. Adorna Author-Name-First: Luzeta Author-Name-Last: Adorna Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Patricia T. Coseteng Author-Name-First: Patricia Author-Name-Last: Coseteng Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Emmanuel S. de Dios Author-Name-First: Emmanuel Author-Name-Last: de Dios Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Marian S. de los Angeles Author-Name-First: Marian Author-Name-Last: de los Angeles Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Noel B. Del Castillo Author-Name-First: Noel Author-Name-Last: Del Castillo Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Benjamin A. Endriga Author-Name-First: Benjamin Author-Name-Last: Endriga Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Laarni C. Escresa Author-Name-First: Laarni Author-Name-Last: Escresa Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Jonna P. Estudillo Author-Name-First: Jonna Author-Name-Last: Estudillo Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Maria Socorro Gochoco-Bautista Author-Name-First: Maria Socorro Author-Name-Last: Gochoco-Bautista Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Aleli D. Kraft Author-Name-First: Aleli Author-Name-Last: Kraft Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Alice A. Lee Author-Name-First: Alice Author-Name-Last: Lee Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Adrian R. Mendoza Author-Name-First: Adrian Author-Name-Last: Mendoza Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Ernesto M. Pernia Author-Name-First: Ernesto Author-Name-Last: Pernia Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Jan Carlo B. Punongbayan Author-Name-First: Jan Carlo Author-Name-Last: Punongbayan Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Renato E. Reside, Jr. Author-Name-First: Renato Jr. Author-Name-Last: Reside Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Anthony G. Sabarillo Author-Name-First: Anthony Author-Name-Last: Sabarillo Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Orville Jose C. Solon Author-Name-First: Orville Jose Author-Name-Last: Solon Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Gerard P. Suanes Author-Name-First: Gerard Author-Name-Last: Suanes Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Elizabeth Tan Author-Name-First: Elizabeth Author-Name-Last: Tan Author-Workplace-Name: School of Economics, University of the Philippines Diliman Author-Name: Mariel Jances Nhayin P. Yamashita Author-Name-First: Mariel Jances Nhayin Author-Name-Last: Yamashita Author-Workplace-Name: School of Economics, University of the Philippines Diliman Title: Maharlika Investment Fund: Still Beyond Repair Abstract: The administration of President Ferdinand Marcos Jr. is pushing for the creation of the Maharlika Investment Fund (MIF). Originally proposed as a sovereign wealth fund, the MIF later on morphed into what can be called a sovereign investment fund (SIF): a state-owned investment fund that aims to reap returns from financial investments as well as economic returns from developmental projects like infrastructure. We find that the MIF violates fundamental principles of economics and finance and poses serious risks to the economy and the public sector — notwithstanding its proponents’ good intentions. First, the raison d’être of the Maharlika Investment Fund remains unclear even as it has already hurdled both houses of Congress. Second, due to its confused goals, the MIF bill does not adequately articulate and take account of several implications of the fund’s dual-bottom line objective. Third, the manner of funding the Maharlika Investment Fund poses huge risks to our already strained public coffers and is vulnerable to moral hazard. Fourth, red flags abound in the MIC’s governance structure. Fifth, with elevated global economic headwinds and uncertainties, it is unlikely that MIF will be able to “crowd-in” investments and eke out returns that are large enough for the fund to grow substantially to finance development projects. Sixth, the preoccupation with this defective proposal has diverted attention from more vital and urgent national agenda that the administration itself has rightly identified, notably the need to reform the retirement and pension system for military and uniformed personnel. In view of the foregoing, we call upon President Marcos to seriously reconsider the final approval of the Maharlika Investment Fund bill, and present before the public a clear and solid rationale for setting it up in the first place. We also call on our former and present colleagues who are now part of the Marcos economic team to reconsider their position on Maharlika and advise the President accordingly, in line with their best appreciation of their discipline and the reservations expressed by the rest of the economics profession of the country. Length: 28 pages Creation-Date: 2023-06 Publication-Status: Published as UPSE Discussion Paper No. 2023-02, June 2023 File-URL: https://econ.upd.edu.ph/dp/index.php/dp/article/view/1551 File-Format: Application/pdf Number: 202302 Classification-JEL: G23, G32, H50, H54, H63 Keywords: strategic investment fund; Philippines; economic development Handle: RePEc:phs:dpaper:202302