THE Communist Party of the Philippines (CPP) has slammed President Aquino for allegedly continuing to delude the Filipino people about the so-called inclusive economic growth he had accomplished since 2010.
In a 31-page official message of the CPP on its 47th anniversary on December 26, the party’s central committee said that “from 2010 to 2013, the Philippine ruling system appeared to be exempt from the crisis of world capitalist system, if we were to look at the rise of the GDP. This was growing far beyond the growth rate of the world economy. The Philippine growth rate was being touted as the highest in Asia in 2013. The content of the growing GDP was obscured.”
CPP said the money flow reflected by the GDP of 7.2 percent consisted of portfolio investments or hot money, 65 percent of which went mainly to the financial markets, reducing to only 6 percent the proportion of money remittances of overseas workers and the income from call-center operations.
“The rest of the total money flow came mainly from government spending for bureaucratic operations, debt service and other counterproductive purposes,” it noted.
The party added that the US deliberately gave the Aquino administration the special privilege of having the Philippines receive a large flow of money from hedge funds “in order to conjure the illusion of economic growth, sustain the private construction boom and generate government revenues for boosting military operations and appropriating large doleout funds for the conditional cash transfer and Pamana program to make the US-designed Oplan Bayanihan successful.”
Increased government spending, remittances of the overseas contract workers and earnings of business call centers also served to maintain high consumption spending by a small part of the population, CPP noted.
At the same time, the crisis of global capitalism reasserted itself relative to the Philippines. The flow of hot money began to subside in 2014 when the US announced it would slow down quantitative easing and possibly raise interest rates and because of China’s even worse problem of wanton spending and credit for public and private construction, the statement said.
“The much-vaunted Philippine economic growth rate of 7.2 percent has gone down to 6.1 percent in 2014 and is expected to go further down to 5.8 percent by year-end, with the World Bank blaming slow government spending, negative net exports and the initial impact of El Niño for the downturn.
1 comment
really, what about me, i am an OFWs working abroad but i invest my money in the PSE and gained something, you NPA are so STUPID fighting the goverment for 45 years and nothing happens only harassing the people, burning construction materials for development of the countryside, collecting taxes, killing innocent civilians, destroying livestock and agriculture…look for JOMA and Jalandoni in the Netherlands attending parties left and right, eating good food, FUCKING beautiful ladies while you stupid people die in the mountains of hunger, malaria and bullets, then WHO’s stupid but YOU….DOWN the NPA!