NationalNationalSituationSituation

IBON Foundation, Inc.IBON Foundation, Inc.

September 14, 2005September 14, 2005

LOURDES SCHOOL OF LOURDES SCHOOL OF MANDALUYONGMANDALUYONG

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– Agri., Fishery, Forestry (.09)– Industry 4.24– Services 6.89

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 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 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

• 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 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 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?

• Falling spending– Health spending dropped by 24.5 %– Housing dropped by 61 %– Education small increase but still not enough

Allocation is not Enough!

• Education 14.9 %

• Health 1.4 %

• Housing 0.2 %

This is more than Enough

• Government allocation for Debt servicing in 2005 is a whooping

• 33.2 %

Unpopular President

• Staunch supporter of WTO

• She implements anti people policies– Anti people economic reform– Bogus Agrarian reform

Unpopular President

• Rampant Graft and Corruption

• Militarization

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

• Cheating during the 2004 election

• Impeachment

• Ouster movement