Introduction
The Maharlika Investment Fund (MIF) was a government-initiated investment
program established in the Philippines during the tenure of Ferdinand Marcos Jr.
(Ricaña, 2023). It aimed to promote inclusive growth and development by providing
financial assistance to small and medium-sized enterprises (SMEs) in the country.
However, several factors hindered the effectiveness of the project (Ricaña, 2023).
Problem
Initially, there were concerns regarding the lack of transparency and
accountability surrounding the fund (Ricaña, 2023). The MIF relied on public resources,
including foreign debt, but there were allegations of funds being misallocated and
mismanaged for personal and political purposes (Venzon, 2023). This lack of
transparency undermined public trust in the program and hindered its effectiveness.
Additionally, there were issues with the selection process for beneficiaries. The criteria
for choosing SMEs to receive funding were unclear nontransparent, potentially leading
to favoritism and corruption (Jocson, 2023). This caused a lack of confidence in the
fairness of the program and created unfair competition among SMEs. Genuine
entrepreneurs were excluded from the funding scheme, limiting its overall impact on
economic growth. Moreover, the MIF struggled with governance institutional capacity
(Ricaña, 2023). There were inadequate systems and procedures in place for
effectively monitoring and evaluating the investments made. This resulted in a lack of
proper oversight and assessment of the projects funded by the MIF, making it
challenging to determine their true impact and effectiveness (Venzon, 2023).
Recommendations

Improve transparency and accountability: Establish clear and transparent
procedures for fund allocation and management. This can include regular
reporting on fund usage, independent audits, and public disclosure of
beneficiaries. Implement strict regulations to prevent the misallocation and
mismanagement of funds for personal or political purposes (Ricaña, 2023).

Enhance the selection process: Develop and transparent criteria for choosing
SMEs to ensure fairness and prevent favoritism. Establish an independent
committee or body responsible for assessing applications and selecting
beneficiaries based on merit. Implement a system for and evaluating the
performance of funded projects to ensure accountability (Jocson, 2023).

Build governance institutional capacity: Improve systems and procedures for
monitoring and evaluating investment projects. This can include hiring qualified
professionals to the implementation of projects, implementing proper project
management and evaluation frameworks, and providing training and support to
staff involved in project monitoring and evaluation (Venzon, 2023).
Jocson, L. M. J. C. (2023, June 13). Maharlika Fund has ample safeguards against
risks, economic managers say. BusinessWorld Online.
https://www.bworldonline.com/top-stories/2023/06/14/528472/maharlika-fundhas-ample-safeguards-against-risks-economic-managers-say/
Ricaña, M. J. (2023, January 8). Economists are opposing the Maharlika Investment
Fund. here’s why you should too. Philippine Collegian.
https://phkule.org/article/743/economists-are-opposing-the-maharlikainvestment-fund-heres-why-you-should-too
Venzon, C. (2023, March 14). Maharlika Investment Fund provides “make or break”
test for Marcos. Nikkei Asia. https://asia.nikkei.com/Spotlight/AsiaInsight/Maharlika-Investment-Fund-provides-make-or-break-test-for-Marcos