IBON's Sonny Africa Slams PH Liberalization Policy Failure

In a recent ANC 24/7 report from Beyond the Exchange Episode 82, economist Sonny Africa of the IBON Foundation called on President Marcos to admit that the Philippines liberalization policy has failed to deliver broad-based prosperity.

IBON Foundation's Sonny Africa Calls on Marcos to Acknowledge Failure of Liberalization Policy

Manila, Philippines — During the June 28, 2026 interview with Rico Hizon, Africa stated that the economic model pursued over decades has concentrated wealth among a few while ordinary Filipinos in Manila, Cebu, and Davao continue to face stagnant living standards. The discussion also featured Dannah Majarocon of Jobstreet by Seek Philippines, who outlined current hiring trends amid the slowdown.

The critique centers on how liberalization has shaped Philippine economic policy since the 1980s, with Africa urging the public not to accept every government claim about growth at face value. This message arrives as GDP expansion has slowed steadily since 2017 and was further disrupted by the COVID-19 pandemic.

Liberalization Policy Under Direct Challenge

Sonny Africa told viewers that President Marcos must publicly recognize the shortcomings of the liberalization approach that has guided trade, investment, and industrial rules for decades. He pointed specifically to the administration's handling of the Pax Silica project with the United States as an example where industrial policy choices require closer scrutiny.

The IBON Foundation executive director emphasized that decades of following this model have not produced the promised widespread gains for workers and families. Instead, the benefits have remained limited to a narrow segment of the economy, leaving many communities in Quezon City and surrounding provinces without meaningful improvement in daily conditions.

Africa warned against accepting official narratives without examination, noting that the same policy framework continues to shape decisions in Congress and the Department of Trade and Industry. This stance directly ties into ongoing debates about how future budgets from the Department of Budget and Management should prioritize domestic industries over external partnerships.

Real Wages Fall 21 Percent Since 1989

Minimum wage earners in the Philippines now hold 21 percent less purchasing power in real terms than workers did in 1989, according to the figures presented on the program. This three-decade regression affects families across Metro Manila and provincial areas where sari-sari store prices and transportation costs have risen faster than pay adjustments.

Africa stated plainly that having a job will not make a Filipino less poor under current conditions. Many positions in retail, services, and manufacturing fail to lift households above the poverty line even when both parents work full time. The IBON Foundation has tracked this pattern through multiple administrations, showing that minimum wage increases alone have not reversed the trend.

The discussion highlighted the need for a livable wage standard rather than repeated small adjustments. Workers in Baguio and Cebu who commute daily report that current rates cover basic food but leave little for education, health, or housing, forcing many to take second jobs or rely on remittances from OFW relatives.

Wealth Remains Concentrated Despite GDP Growth

Philippine economic growth numbers have continued to rise on paper, yet Africa noted that wealth stays concentrated among a small group of families and corporations. This pattern has persisted through the slowdown that began in 2017 and worsened during the pandemic years.

The concentration affects how resources reach barangays in Davao and rural areas, where farmers and small vendors see limited spillover from national figures. The Supreme Court and Senate have reviewed related economic policies in recent sessions, but Africa argued that deeper structural changes are required before ordinary citizens feel the impact.

Jobstreet data shared by Majarocon reinforced the picture, showing that hiring activity has cooled in response to the weak economy and developments in the Middle East. Metro Manila remains the largest single job generator, yet even there many openings do not match the cost of living faced by residents in Quezon City and nearby cities.

2028 Presidential Race and Future Leadership Needs

Africa addressed what Filipinos should seek in candidates for the 2028 elections. He said the next president must assemble a team capable of steering the country toward genuine future-oriented reforms rather than repeating past approaches that favored only a few.

The IBON Foundation director stressed that any incoming administration will inherit an economy where inequality has hardened. He urged voters to examine whether proposed teams understand the lived experience of workers in provinces outside the capital, where job quality and wage levels determine daily survival.

This forward-looking segment connected directly to the broader critique of liberalization, suggesting that policy continuity without acknowledgment of past shortfalls will leave the same structural problems in place for the next generation of students and young professionals entering the workforce.

Job Market Slowdown and Upskilling Imperative

Dannah Majarocon reported that Jobstreet by Seek Philippines has recorded a clear hiring slowdown tied to the weak economy and regional tensions. Administrative roles face particular pressure as AI tools begin to handle routine tasks, reducing demand in certain Metro Manila offices.

Despite the slowdown, Majarocon emphasized that upskilling remains essential for workers who want to stay competitive. She noted that digital innovations continue to reshape requirements in customer service, logistics, and technical support positions that many Filipinos currently hold.

The combination of slower hiring and technological change places additional strain on families already dealing with in-work poverty. Workers in Cebu and Davao who rely on steady employment now face the added task of finding time and resources for training while meeting household expenses that have outpaced wage growth since 1989.

What Filipino Families Should Watch Next

The ANC 24/7 discussion closed with clear markers for the coming months. Observers should track whether the Marcos administration adjusts its industrial policy stance on projects like Pax Silica and whether Congress advances any measures aimed at raising real wages beyond minimum adjustments.

Communities across the Philippines will feel the effects first in household budgets, school enrollment decisions, and the ability of young people to remain in the country rather than seek work abroad. The IBON Foundation and Jobstreet data together show that current trends require more than continued reliance on the same liberalization framework that has governed policy for decades.

By Bella Reyes, Staff Writer