A “summit” to prepare a positive economic future

CONSUMERS DEMAND!
Herman Tiu Laurel
12/5-11/2011



When poverty worsens despite an embarrassingly slow yet supposedly growing economy, then something is obviously very wrong in a country’s economic direction.

The Philippines reportedly attained rates of up to 5 to 6% (peaking at 7% in 2010) due to inflationary election spending. But this year, growth rates have dropped to no more than 4% by year-end.

The Asian Development Bank (ADB) reports that in the past decade, only the Philippines was able to attain modest increases in annual growth rates of around 1% but with the irony of increasing the number of the poor (by over three million families).

True State of the Economy
Meanwhile, in other countries, every 1% GDP increase generally resulted in an average 1.4% decrease in poverty levels while in Asian countries, the decrease in poverty became as high as 2%.

We drill these facts into our readers so that we can keep sight of the utmost priority of achieving a consensus on the true state of the economy and what we should do about it.

OpinYon readers are mostly from the educated middle and upper classes.

I know they are conscientious citizens like Chris, Richard, Zaida and many others who tune in to my daily weekday 5 to 6 p.m. radio program over 1098AM, or those who text me their comments about the many articles of OpinYon.

It is this class that can really do something about changing the country, but only if a consensus is attained that is enough to mobilize around 3% of the population in Metro Manila into action toward specific reforms in our economic system.

That 3%, making up at least 300,000 citizens of the 10 million estimated daytime population of this metropolis, can act as one in calling for specific economic policy reforms.

That is the ideal number for a mass base that can mobilize for a demonstration or rally for issues that will, without fail, call the attention of policy makers, politicians, and institutions -- and scare the daylights out of them should they choose not to heed this call.

Not even the Media Force
However, a 300,000-strong mass base, ideal as it is, may not have the wherewithal to be together in all demonstrations and rallies.

Even if only a sixth of that were to physically join, it would already be sufficient to jar the powers-that-be into serious response.

At the same time, this mass base can influence and shape national perception.

Mainstream media obviously won’t be able to stay blind to such a force even if their owners may want to mute or suppress the economic issues being raised by such a crowd, as they are wont to do.

As we explained in our last OpinYon article (which cited the concurring study of the think tank, Stratbase), the root of the Philippine economic crisis is the oligarchy that monopolizes all the country’s wealth, leaving the population, including the middle class, drained of the means to sustain a decent standard of living or to hope for a better future.

What will we do about it?
For the past year and a half in this space, we (along with our long missed colleague, Butch Junia) have incessantly drilled in the problem of massive abuse and plunder of our people by the privatized electricity generation and distribution companies (such as Metro Pacific, Benpres, Aboitiz Power, Alsons) that are all owned by no more than a handful of families.

We have also consistently exposed the same grand larceny of the privatized water utility companies that have grown fat and powerful on the backs of water consumers and taxpayers with tax holidays, exorbitant rates and, among many other things, government write-offs of massive debts, such as that of the Lopezes’ over P8 billion loans (according to party-list Rep. Bernadette Herrera-Dy) that were magically made to disappear by the DBP.

And that’s just one of the many examples of how the oligarchy is at the root of the continuing decline of the Filipino people’s welfare and fortunes.

The only question remaining is what we will do about it.

Occupy Meralco
I believe that by now a mass base of more than 300,000 citizens are already aware of such evils.

In fact, millions are now even enraged.

For one, we have seen business groups and conservative labor movements, from the Employers Confederation of the Philippines, the Philippine Chamber of Commerce and Industry, to the Trade Union Congress of the Philippines, join the clamor for action to lower power rates.

The Church, for its part, has also become aware, as my appeal to Fr. Rudy Abao of the Santa Quiteria parish, was immediately heeded by a commitment to support an “Occupy Meralco” proposal I advanced.

The only thing lacking at this point is a consolidation of the forces as well as the leadership to organize the forces that will act to alleviate the dire straits of the people and the economy into one powerful thrust.

Campaign vs. corporate greed
Let me cite one example of how this is already happening on a smaller scale.

Last week, this news developed: “Bishop leads PH version of campaign vs. corporate greed… Manila Auxiliary Bishop Broderick Pabillo said that the campaign aims to make the poor ‘the center of development and making the government accountable for the welfare of the majority’… the movement Kilusang 99% (K99%) will be launched this week…

"Pabillo, who is also the chairman of the National Secretariat for Social Action, Justice and Peace of the Catholic Bishops’ Conference of the Philippines, clarified that their movement is… directed… at the financial system that has bred social injustice, economic imbalance, corporate greed and the darkest side of capitalism.

"‘What is happening now is that the government is just at the backseat and they [government officials] just let the market, which seeks profit and not the common good, dictate. We really need to talk before it’s too late.’”

Action Long Overdue
Current events continue to remind us that action to turn the economic situation around is long overdue.

Consider these developments: A report from Cliff Harvey C. Venson “MPIC airs interest in state hospital... METRO PACIFIC Investments Corp. (MPIC) may join the bidding for the modernization of Philippine Orthopedic Center, one of the public-private partnerships (PPP) set to be rolled out next year”; and another, Big Three oil companies remain most profitable...

"The country’s Big Three oil companies remain the most profitable in the industry, according to the DOE... Petron Corp. posted the heftiest profit of P7.92 billion last year, followed by Pilipinas Shell Petroleum Corp. with P6.02 billion, and Chevron Philippines Inc., P1.43 billion. Total (Philippines) Corp. and Liquigaz Philippines Corp. earned P375 million and P183 million, respectively. PTT Philippines Corp., however, lost P233 million in 2010. Excluding Petron, the above companies are units of foreign oil firms.”

Oil Firms' Bonanza
Metro Pacific acquired its financial clout from exploiting our consumers’ payment to its companies in telecoms (which have one of the highest rates in the world) and, now, with revenues from Meralco.

The oil companies’ bonanza started with the deregulation of the oil industry in the 90s to the detriment of everybody else in the country--except, of course, for the local oligarchs like the Ayalas, Aquino-Cojuangcos et al. who are, in turn, partners of the foreign oligarchy.

Meanwhile, news about the economy in general are just as bleak: “Q3 result a letdown... ECONOMIC GROWTH slowed drastically to just 3.2% in the third quarter, dragged down by a weak agriculture sector and a plunge in construction activity” ; “Metrobank warns remittances to slow next year… Mabellene Reynaldo, Metrobank research analyst, said the political and civil unrest in North Africa and the Middle East continue to escalate.

"Saudi Arabia’s Nitaqat system, under which foreign workers are allowed only six years residency, would also slow down remittance inflows in the following quarters.”

Economic Policy Adrift
Some more dire news, this time from a Star columnist: “BPOs won't be economy's savior... Norio Usui, ADB senior country economist, told a meeting of what’s left of our local manufacturing sector that despite the strong growth of the BPO sector since 2001, the country’s unemployment and underemployment rates have remained high.

"To the ADB economist, the country’s economy should walk on two legs: services and manufacturing if we want inclusive growth.”

All told, our national economic policy is adrift because it is the oligarchs who are controlling the government for their own profit.

And all they say is “damn the people.” As such, we need to gather--as one--and plan our actions to reform the nation, through a national summit for all concerned citizens and groups to come together to plot this out.

(Tune in to Sulo ng Pilipino/Radyo OpinYon, Monday to Friday, 5 to 6 p.m. on 1098AM; Talk News TV with HTL, Saturday, 8:15 to 9 p.m., with replay at 11 p.m., on GNN, Destiny Cable Channel 8; visit http://newkatipunero.blogspot.com for our articles plus TV and radio archives)