Sona 1986-2010

DIE HARD III
Herman Tiu Laurel
07/26/10



Families experiencing “involuntary” hunger, i.e., having nothing to eat at least once in three months, now make up over 21 percent of the population. Severe hunger rose to 4.2 percent, representing 780,000 families, from the previous 2.8 percent (or 530,000 families). Comparing this to the hunger average since 1998 of 13.6 percent, this dire situation precipitously aggravated in the past decade coincides with the inception of Edsa II and its acceleration of the economic privatization process, alongside the reinforcement of the fascist corporatist-bureaucratic governance of the country. The Edsa II political-economy transferred at least P3 trillion from the pockets of consumers to the top corporations through payments for power, water, telecoms, toll ways, and other privatized utilities, while the remainder went to increased taxes on consumer goods and payment of the national “debt.” This is the first point about the present state of the nation.

This “debt” and hunger are undoubtedly due to the net transfer of trillions from consumer pockets to corporate and bankers’ coffers. The 10 years of Gloria Arroyo incurred more debt than her three predecessors combined, expanding it to over P4 trillion. This was in keeping with the record of the “power grab” government of Corazon Aquino, which incurred over P400 billion ($16 billion) in domestic debt in seven years that rivaled all previous governments since Carlos Garcia, Dadong Macapagal, and 21 years of Marcos, which totaled $27 billion, as well as $3 billion in private sector debt.

PeNoy Aquino and his Budget Chief Butch Abad had initially promised to reverse this tradition by telling the nation that they can cut the Arroyo deficit of 36 percent of GDP down; but upon assumption into office, they increased the deficit ceiling to 39 percent of GDP, to be filled by borrowings on top of the P4.389 trillion ($83.809 billion) today.

More debt will mean even more increased hunger in the future. So is there no way out of this debt trap? Of course there is, but it is a course of action that isn’t anywhere in the mind — much less imagination — of the PeNoy administration. Even the basic minimum that we and other parties, such as the Freedom from Debt Coalition, have been clamoring for is not even being noted. That minimum: (1) a review and audit of the debt as it stands today, with the view of segregating those questionable debts for renegotiation; and (2) a review of the automatic appropriations law. The maximum, on the other hand: a debt moratorium, or even a debt default, would free up close to a trillion pesos for reconstruction and recovery. For many countries — from the US during FDR’s time to China in 1949 and Argentina in 2001 — a debt default has produced recovery and growth after a brief period of austerity.

Taxes are another indicator: Instead of cutting taxes to restore purchasing power to consumers and revive industry and agriculture, the PeNoy government is on a silent rampage to increase them. PeNoy may be keeping mum but his Cabinet gofers are the ones making noise. The VAT on toll ways IS a new tax, as any heretofore non-existent tax being imposed is always such, including a tax on any P25 transaction that will cover banana-Q and sampaguita vendors; and no legal gibberish by World Bank hatchet girl Kim Henares can change that. While these new taxes are being pushed (or floated) by PeNoy’s people, they are on a contradictory course in proposing the lowering of tariffs and royalties on oil products and Malampaya gas, which will cut revenues but not touch the profits of oil companies. Such muddle-headedness by the PeNoy Cabinet and other Liberal Party politicians is another malady that characterizes the state of the nation today.

Indeed, power, water, telecoms, and toll ways are the other indicators of the state of the nation: The higher the rates of services, the greater the negative impact on the national economy. Therefore, the rise in poverty and hunger correlates with the years of steeply climbing rates due to privatization. The PeNoy government, on the eve of the State of the Nation Address (Sona) to be delivered by its president, has given no indication of its policies on any of these vital utilities. Instead, it has dwelt on a “shock and awe” of more corruption exposés about the Arroyo regime and “truth telling.” What we should be getting but won’t expect to hear is a review of the Epira and the Performance Based Rating Mechanism (PBRM) for power pricing that is a built-in windfall for power companies and a burden to consumers, as well as, the Wesm spot market, which has been riddled with manipulations of power rates since its inception.

As for the AFP and PNP, an early indication of the total lack of management and direction is the recent “water crisis” incident where newspapers reported thousands of troops called into Metro Manila in anticipation of “water riots,” which call Malacañang a day later denied — a confusion that perhaps mirrors PeNoy’s appointment of his booze-loving nanny as Defense chief. While in the administration of democratic principles and justice that this Republic is supposed to be founded on, nothing typifies the state of hypocrisy and rot better than the way the legislature is treating one of its own and how the judiciary is handling the case of idealistic Sen. Antonio Trillanes IV’s continued detention; this, while a whole gamut — from Nani Perez, Chavit Singson, Nur Misuari, to Gloria and Miriam — runs free.

It’s been an era of economic, political, social, and moral collapse ever since the Yellow power grab of 1986 until this last installation of the Yellow emperor by the global and local oligarchy. Only a nationalist-populist revolution can turn the dire state of the nation around. The only inspiration left for those aspiring for genuine change is the continuing struggle of Senator Trillanes. Join the November 29 Movement (N29M of the Manila Peninsula siege) in its press conference today, 11 a.m., at the Treehouse in Matalino Street, Quezon City.

(Tune in to Sulo ng Pilipino, Monday, Wednesday, and Friday, 6 p.m. to 7 p.m. on 1098AM; watch Politics Today, Tuesday, 8 p.m. to 9 p.m., replay at 11 p.m., on Destiny Cable Channel 21, about “Miscarriage of Justice: The Trillanes Case” with lawyer Rey Robles and lawyer RG Guevarra of N29M; our new blog, http://newkatipunero.blogspot.com)