There has been unrelenting call from Gloria Macapagal Arroyo's administration for all sectors and political aggrupations to come together, reconcile and support her economic programs, short of saying that we can all forget the 2004 election scandal. She has proudly declared her success in directing the country toward economic progress, setting records never achieved by past administrations.
The economy expanded by 6.9% early in 2007, the highest in 17 years. Imports were up by 10.4% in February 2007 compared to the same period last year, while exports were up by 7%. The peso exchange rate, a macroeconomic indicator, reached an all-time high of P45.70 to the dollar. Foreign direct investment in 2006 of 2 billion US dollars was higher by 54% compared to the previous year.
The stock market, also part of macroeconomy, has been at its peak since the 1980s, with Phisix of 3,292 in February 2007 compared to 1,031 in the same month of 2003. Phisix measures the performance of selected investments and therefore reflects the overall condition of the economy.
We should be critical, however, of this economic success GMA uses to convince us of good performance. This success is limited to the macroeconomy, which may dangerously impinge on the economic interests of those in the microeconomy. Economics has 2 divisions : (1) macroeconomics, which covers the investment sector, the government, and the rest of the world; and (2) microeconomics, which involves the condition and concerns of households and individual
business firms.
Now, let us look at the microeconomy. If we ask ordinary Filipinos, especially at the grassroots level, how they find their economic life at present, we will realize that life is more difficult than before. Most families still do not have enough food on their table, not enough income for the children’s education, health care, clothing or safe shelter. Many Filipinos still do not have access to electricity, clean water, and sanitation facilities.
Vote buying in the recent elections succeeded because people are poor. Public schools are overcrowded because parents cannot afford the escalating school fees in private schools. Overall, enrollment decreased both in private and public schools because families are poor. Robbery, snatching, hold-up and other crimes have increased because people need money. Some household heads and couples have even been reported to have committed suicide because of poverty.
The macroeconomic success of GMA has benefited only a few sectors, all of whom have already accumulated much of the country’s economic wealth – the business tycoons, government officials who have protected their business interests through legislation or government projects, and foreign investors.
Foreign capitalists find it very profitable to do business in our country. According to Business Monitor International, our cheap, English-speaking workforce remains our biggest attraction. Low labor costs dramatically raise corporate profits. Moreover, GMA granted tax privileges in 45 economic zones all over the country. She permitted 100% foreign equity ownership in most economic sectors.
To illustrate concretely, let us take the Philippine Mining Act. GMA's administration excitedly anticipates continuous entry of foreign investors to exploit our mineral resources, announcing the Philippines a “mining country.” This will definitely increase investments, push the Phisix up once again to an all-time high, expand production, and strengthen the peso.
While GMA enjoys another round of wine drinking with the executives of the Philippine Stock Exchange, the working class will live on with meager income, overworked yet underpaid. The Filipino masses will be left with unproductive land, acid waste, toxic rivers and soils. Life becomes even more difficult and miserable. That is not reflected in macroeconomics nor will it be highlighted in public documents and international reports. Other countries will see the economic progress but not the ugly, miserable life of the Filipinos in the remote areas of Rapu Rapu, Albay or Mogpog, Marinduque or Catbalogan, Samar.