Action for Economic Reforms was founded in 1996 by a group of progressive scholars
and activists in the Philippines.

Why an independent, reform-oriented, activist policy group?

The formation of an independent, reform-oriented, activist policy group, which we call Action for Economic Reforms, has gained greater urgency and significance. The terms of reference of policy debates in the Philippines have seen radical transformation in recent
years.

The dominance of neo-classical structural adjustment and liberalization and the collapse of "statist" models of development ("actually existing socialism" and capitalist protectionism) have compelled progressive forces to rethink and redefine development strategies.

Despite the progressive movement's gains in struggling for economic reforms, objective problems and subjective weaknesses have prevented it from maximizing opportunities and neutralizing threats in the new situation.

Peoples' organizations, progressive political formations and a host of non-governmental organizations now realize the need to deepen their understanding of basic economic concepts and conjunctural economic issues. Yet, more must be done to strengthen the technical and academic aspects of economic reform advocacy. Within the broad movement, a strong tendency exists to gloss over technical work because of the perception that technocracy connotes elitism.

Perhaps the most controversial issue is that "populism" is deeply entrenched in the strategy, thinking and behavior of the progressive movement. Of course, populism assumes different forms, a typical example of which is invoking "economic rights" but brushing aside the accompanying responsibilities (say, demanding higher public spending but resisting taxes). To be sure, the conservatives are likewise guilty of this, as shown by their worship of individualism and anything private.

The type of populism that affects some progressive groups is manifested in the resistance to or antipathy towards market reforms and structural adjustment. It likewise shows in the uncompromising if not absolute opposition to government policies that result in price increases of politically sensitive goods. (For example, commodities like oil and rice, policies like taxes and devaluation.)

This is not to say that populism is the scourge. Populism is a natural reaction to problems that have immediate negative effects on peoples' lives. Hence, the natural (though narrow) response to, say, an oil price hike arising from objective market factors is to oppose it.

But populism can deceive. To pursue the oil price hike example: Subsidizing oil may prevent an oil price increase, but new problems affecting ordinary people and the whole economy will surface - budget deficit, more borrowing, higher taxes, or cuts in public investments.