This is a reaction to the news item ?Moody?s: RP needs miracle to avert recession.? (Inquirer, 6/2/09)

The Philippine economy is in its worst shape nowadays. This cannot simply be explained away as the effect of the global economic crisis, because it is Gloria Macapagal-Arroyo herself and her neo-liberal policies that have caused the massive displacement of peasants, joblessness as well as high and new taxes, all of which have driven more Filipinos into the pit of hunger. She is also pushing for Charter change, which simply means selling the Philippine patrimony.

The Philippines is seen by international economic experts as a country on the brink of recession, with a 0.4 percent growth. In reality, we have been in recession for quite a long time. The National Economic and Development Authority (NEDA) cannot hide this anymore, with the so-called historic declines in manufacturing and trade, which contracted by 6.6 percent and 7.3 percent respectively. Exports sank 18.2 percent, while imports declined 19.2 percent in the first quarter of the year. Agriculture also slid to just 2.1 percent and the services sector showed no growth.

These figures will push the administration to revise its growth targets in order to paint a rosy picture of our economy. It would again ?doctor? its figures so as to justify its projections. Is this what the administration?s economists do when hard facts do not jibe with their boastful claims, and make something up or change the meaning of unemployment and poverty?

What this administration should do is stop fooling the people on the real state of the nation. Political economists have been saying for a long time that basic economic changes have to be made to prevent this crisis, but Ms Arroyo and her cohorts refused to listen. I hate to say this, but ?we told you so? is the most appropriate rejoinder for Ms Arroyo?s figures.

?CARL ALA,
carl_ala@yahoo.com