Statement of Support for BSP Gov. Amado Tetangco

We, the Fellows of the Foundation for Economic Freedom, Inc. (FEF), give our unequivocal support for the reappointment of Bangko Sentral ng Pilipinas (BSP) Governor Amado Tetangco Jr. to another term as the head of the nation's monetary authority.

We believe that BSP Governor Tetangco deserves another term for ably steering the economy to a state of stable low inflation;

For managing the nation's monetary agency in a professional and competent manner, without political considerations;

For increasing the credibility of the Bangko Sentral both in the local and international financial community;

For keeping inflation under control without compromising the soundness of the country's banking system and its rate of economic growth.

For implementing structural banking reforms and preserving financial stability under his watch, allowing the economy to remain resilient through the last global financial crisis.

FEF, Inc. Chairman Dr. Felipe Medalla to speak on tax policy

photo grabbed from the UP School of Economics website

Foundation for Economic Freedom (FEF) Chairman and former National Economic and Development Authority Secretary Dr. Felipe Medalla will give a lecture entitled "Financing the Aquino Administration’s Fiscal Program: Better Tax Administration and New Taxes?" at the 4th Annual BSP-UP Professorial Chair Lectures at the Assembly Hall of the Bangko Central ng Pilipinas from 9am-10am on February 22, 2011.

The lecture will serve as a reality check to President "Noynoy" Aquino's promise to improve infrastructure and social services without imposing new taxes.

In the lecture's abstract, Dr. Medalla explains that "while it is important to improve tax administration, it may not be enough".

"The tax system has been eroded by (a) the effects of inflation on excise taxes, which have not been adequately adjusted for inflation;  (b) reductions in tariffs due to our free trade agreements and trade liberalization policies;  (c) negative effects of global crises on corporate profits;  and  (d) new revenue–losing  laws.  The effects of (a) to (d) are so large that the improvements in tax administration cannot restore the revenue loss, even under the most optimistic scenarios.  It may be necessary to increase excise taxes and rationalize fiscal incentives."

Will these policies contravene free market principles?  "Like" The Foundation for Economic Freedom, Inc. today and follow the discussion on this topic!

FEF, Inc. launches advocacy on land reform

The Foundation for Economic Freedom, Inc. (FEF), a non-profit, non-government organization promoting free market reforms launches its new advocacy project, which aims to strengthen property rights in Philippines.

FEF identified twin approach to achieve this objective: (1) push for the establishment of LGU Land Offices to promote a more integrated land reform based on multi-purpose cadaster and (2) work directly with Local Government Units (LGUs) to increase the issuance of free patents.

“We’re hoping to help solve long-standing problems involving property rights in the Philippines through specific and targeted means,” says FEF president Calixto Chikiamco. “Unlocking the value of untitled land parcels by simply titling these properties will not only benefit the property owner but will ultimately spur economic growth,” he added.

FEF identified possible Angono and Tanay Rizal as possible pilot areas to develop a toolkit that will serve as implementation guides to LGUs.