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National Situation. IBON Foundation, Inc. September 14, 2005 LOURDES SCHOOL OF MANDALUYONG. Weak Economy, Embattled Presidency. The economy is on a roll !. Growth?. 6.1 % economic growth Fastest growth in over a decade. What Growth?. GDP 4.74 % GNP 4.59 % Selected Industry Sectors

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national situation

NationalSituation

IBON Foundation, Inc.

September 14, 2005

LOURDES SCHOOL OF MANDALUYONG

weak economy embattled presidency
Weak Economy, Embattled Presidency

The economy is on a roll !

growth
Growth?
  • 6.1 % economic growth
    • Fastest growth in over a decade
what growth
What Growth?
  • GDP 4.74 %
  • GNP 4.59 %
  • Selected Industry Sectors
    • Agri., Fishery, Forestry (.09)
    • Industry 4.24
    • Services 6.89
economic issues
Economic Issues
  • EVAT-answer to Fiscal Crisis, signed last May, TRO by Supreme Court last July.
  • Joblessness
    • 4.8 million unemployed
    • 8.4 million underemployed
    • 11.8 % Unemployment rate
economic issues1
Economic Issues
  • High Prices, Falling Income
    • Basic Commodities; household products, food items, including rice, flour, pork, beef, chicken, etc.
    • Increase by 6-8.5 %
    • Impending increase of LPG
economic issues2
Economic Issues
  • Real Value of peso dropped to 65 centavos
  • The minimum wage cannot cope-up with the increasing prices
  • Php 610.80 DCOL Vs Php 250.00 Minimum +50.00 ECOLA
utility price increase
Utility Price Increase
  • Oil
    • 160% increase since 1996, the year the industry was deregulated
    • 8X price increase since January this year
    • 2.00-3.00 average increase
    • LPG- planned 16.00 increase per tank next week
    • Oil Cartel is manipulating the prices
utility price increase1
Utility Price Increase
  • Power
    • 175 % increase per KwH since mid 90’s
    • EPIRA for smooth privatization of Power industry
    • Onerous IPP contracts, heavy load to consumers
    • Pending increase of 40 cents per KwH in 3rd quarter of 2005
utility price increase2
Utility Price Increase
  • Water
    • Since privatization of MWSS in 1997, water rates increase by 450%
    • Maynilad increased water rates last January and pending increase last June.
    • The increase was because of privatization of water services
social services
Social Services?
  • Falling spending
    • Health spending dropped by 24.5 %
    • Housing dropped by 61 %
    • Education small increase but still not enough
allocation is not enough
Allocation is not Enough!
  • Education 14.9 %
  • Health 1.4 %
  • Housing 0.2 %
this is more than enough
This is more than Enough
  • Government allocation for Debt servicing in 2005 is a whooping
  • 33.2 %
unpopular president
Unpopular President
  • Staunch supporter of WTO
  • She implements anti people policies
    • Anti people economic reform
    • Bogus Agrarian reform
unpopular president1
Unpopular President
  • Rampant Graft and Corruption
  • Militarization
social unrest
Social Unrest
  • Suspension of peace talk
  • Increase of street protest
  • Significant increase of forces fighting the government
    • The CPP/NPA
    • MILF
gma s final crisis
GMA’s Final Crisis
  • Cheating during the 2004 election
  • Impeachment
  • Ouster movement