News Release

January 10, 2011

The umbrella group Bagong Alyansang Makabayan blamed the Aquino government’s dismal economic program as the reason for the negative economic outlook of many Filipinos.

According to a recent Pulse Asia survey, 45% or nearly half of those surveyed said that nothing changed in the economy last year while 38% believed that the economy has worsened.

“Aside from the belated filing of charges against Gloria Macapagal Arroyo, there’s really nothing much that the present administration has achieved since it started its term. This is especially true for the economy. There has been no outstanding achievement in land reform, national industrialization and job creation and in poverty eradication. Aquino has shunned calls to remove the oppressive VAT on oil and power. The much-vaunted conditional cash transfer program has not made a dent on poverty,” said Bayan secretary general Renato M. Reyes, Jr.

“Unemployment and overseas migration are also at an all-time high. Oil prices, water and power rates are soaring to new heights,” Reyes added.

The group said that the economy needed more than just pump-priming programs by government.

“Pump-priming aims to window-dress the dismal statistics of the economy. It’s not equivalent to sustainable growth. What we need is self-reliant economic development, hinged on internal growth drivers especially agriculture and local industry. So long as we remain and export-oriented, import-dependent economy, there will not be any real and well-rounded growth,” Reyes said.

Electricity: more expensive

Bayan was also unimpressed with news reports that a 5 centavo/kWh reduction in power rates will take place this month.

“There’s little consolation in this 5 centavo reduction. Power rates have more than doubled since the EPIRA was implemented in 2001. The Aquino government has done practically nothing to address the power woes of many consumers, including the business sector,” Reyes said.

“The Department of Energy may as well adopt the slogan, ‘Electricity: It’s more expensive in the Philippines’. It’s done nothing as well,” Reyes added.

Bayan noted that on January 1, private water concessionaires Maynilad Water Services Inc. and Manila Water Company announced higher rates that will raise the monthly bill of households using 30 cubic meters by P20 to 58. On January 3, oil firms led by Pilipinas Shell implemented the first round of oil price hikes this year that increased the pump price of unleaded gasoline by 90 centavos per liter and diesel by 30 centavos.

“The people cannot live on the Arroyo-Corona legal drama alone. Equally important for the poor is the resolution of their perennial economic woes including the ever increasing prices of basic goods and services, joblessness, lack of livelihood, depressed wages, onerous taxes, landlessness among the peasants, and lack of social services including health, education, and housing, among others,” the Bayan leader said. ###