Philippine Government Should Stop Deluding People on Real State of Economy

In its latest report on Asia the IMF raised the need for governments in the region to implement measures that will boost domestic demand. It said that the Philippines and other Asian countries must rely more heavily on domestic consumption to keep their economies afloat. The government, however, is less pessimistic than the IMF and expects the country’s growth in gross domestic product to expand by 3.1-4.1 per cent this year. Through the National Economic and Development Authority (NEDA) the government even went as far as saying that the job loss threat in the country is already on the wane. It cited data from the Department of Labor and Employment (DOLE), showing that layoffs only reached 1,026 in the first half of April which they say is a stark slowdown from the peak of 14,512 job losses recorded in March.

Of course, the Arroyo administration’s optimism is obviously politically loaded because 2010 is an election year and it has to save face due to its disastrous neo-liberal economic policies. But it should stop daydreaming though and accept the fact that this crisis is just starting. The data it cited cannot even be said to be a trend because it needs to be at least three months in a row.

In fact Microsoft Philippines just announced that it will reduce jobs in the country and it is safe to say that this will not be the last company to do so, more firms from the manufacturing sector, pre-need and banking sector will fold before the year ends.

The administration also failed to factor in that the lingering recession in the United States and Europe which is the primary market of our export products, would continue taking its toll on households. Households in industrialized nations were likely to keep their spending tight as they suffer from unemployment seen to rise further next year-and as they address burgeoning debts.

The government should stop painting a rosy picture of the Philippines in lieu of the economic crisis because we are just feeling its early symptoms. What it should do now is implement effective short term and long term economic measures first to mitigate the effects of the crisis and to finally stop another one from affecting us again.

Carl Ala
carl_ala@yahoo.com