Economic Growth for Whom?

The government's pronouncement that they are on-track in eradicating poverty due to a soaring economy is a sign of desperation to conceal the real situation of poverty in the Philippines said the anti-poverty coalition, Global Call to Action against Poverty (GCAP).

According to the National Statistical Coordination Board, the 6.9% economic growth based on the gross domestic product (GDP) is the highest growth in years, surpassing even the market projections of 5.7-5.8%.

  
Domestic liquidity from election spending

"The desperation stems from anchoring the pronouncements of a soaring economy on a temporary phase in Philippine economy—the reality of election spending," asserts Marivic Raquiza, National Coordinator of GCAP.

Raquiza adds that anchoring the economy on something as temporary as election spending is an attempt to conceal the absence of real sustainable growth to fuel poverty eradication.

 To substantially eradicate poverty according to economists, the economy  must sustain 7-8% growth in the next few years. 

  
"What economic growth?"

Nora Protacio, Chairperson of urban poor women's group, Piglas-Kababaihan declares, "The reality is all this talk of a soaring economy has   not affected on the quality of lives of most Filipinos, especially the poor. The low inflation rates and the surging peso has not translated to the reduction of prices of gas, food, and other goods and services which we need in order to survive.  It has not translated to increased jobs for us, nor put food in our stomachs."

Today, the unemployment rate remains high (estimated at 2.8 million in 2007) and the underemployment rate is a whopping 7.8 million in 2007. A GCAP study also shows that at least half of Filipinos that are part of the labor force are earning poverty level wages. "No wonder that there are thousands of Filipinos who leave daily to seek better jobs abroad," Raquiza said.
"Economic growth for whom? Let us not be fooled and think that those who are now benefiting from the bullishness of the stock market, and the importers and others in business who are reaping the gains from the peso-dollar surge, comprise the majority of Filipinos.   The government's premature celebration is a publicity stunt to mask the true state of the economy for most Filipinos," Raquiza continues.

Poverty and hunger levels have risen according to the latest self-perception surveys. According to the latest Social Weather Station survey results, 53% of families in the country are poor, while a whopping 19% of the population are hungry, the highest levels in years.

From GNP to GDP

Early this year, the government also declared a soaring economy with the 6.6% gross national product (GNP).

According to the GCAP 2007 Policy paper the manufacturing sector's share in the total gross national product (GNP) has been falling—from 23% in 2001 to 22.1% in 2005 and 21.9% in the first 3 quarters of 2006.  "The current administration's celebration of a growing economy is anchored on the hardships that many overseas Filipino workers have had to endure in working abroad," according to Protacio.

Protacio states, "This play of words to create the image of a soaring economy is an attempt to hide the soaring hunger and poverty and is a desperate move to somehow show that that the government is doing something about poverty in this country."

The Global Call to Action against Poverty (GCAP) is a worldwide alliance of trade unions, community groups, faith groups, youth and campaigners working together across more than 100 national platforms. GCAP is calling for action from the world's leaders to meet their promises to end poverty and inequality. In particular, we demand solutions that address the issues of public accountability, just governance and the fulfilment of human rights as well as trade justice, aid quality and quantity, debt cancellation and gender equality. More at www.whiteband.org   

References:

May-i Fabros 63917-2069803

Marivic Raquiza, Nora Protacio 920-8949