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IMPACTQuote in the ActI feel so empty today, I feel Brandenburg.

Judika Zirzow, a 24-year old, visiting her hometown, Hoyerswerda in Eastern

Germany, where housing is being torn down because of decreasing population;

quoting the above line from a song by performer Rainald Grebe.

The next six to nine months are about survival.

Kapil Arora, of Ernst & Young aviation; talking about Kingsher Airlines of India

which was known for giving royal treatment to passengers, but is presently

reckoning with heavy debts from Indias government-owned banks due to

operation losses.

The anti-corruption campaign is a vehicle topurge resistance.

Russell Leigh Moses, a Beijing-based analyst; of the recent wave of anti-

corruption campaigns that is sweeping through China in the wake of the downfall

of two high-ranking ofcials, but otherwise seen as the governments attempt to

assuage public discontent at this time of recession.

They should not be the victims of theirgovernments provocations.

Lesley-Anne Knight, Secretary General of Caritas Asia; referring to peoples

plight in North Korea saying that aid for the poor is the solution to ending the

crisis rather than military action which will only cause greater human tragedies

and more suffering for the people.

We may have declared independence from somenations, but the ones that now enslave and exploit

Filipinos are their fellow Filipino.

Angel Lagdameo, Archbishop of Jaro and President of the Catholic Bishops

Conference of the Philippines; in his message on the occasion of the countrys

Independence Day celebrations.

A triumph of democracy and the popular will.

This Day, a national Nigerian newspaper; referring to a 13-1 vote where the

legislature in the small state of Imo, Nigeria rejected the Reproductive Rights

Bill, marking a pro-life victory in state whose rich heritage, culture and religious

traditions welcome life and respect of unborn children.

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IMPACT July 2009 / Vol 43 No 7

EDITORIAL

New art forms .................................................... 27

COVER STORY

How bad really is Philippine Economy? ........ 16

ARTICLES

The Church's Resistance against Mining ......... 4

All the Denarii of Peter ....................................... 9

Tweeting all fellow twavellers ......................... 11

The New Fair-Trade Label Sets theStandard .......................................................... 13

Freedom gone awry .......................................... 14

DEPARTMENTS

Quote in the Act ................................................. 2

News Features ................................................... 22

Statements .......................................................... 24

From the Blogs ................................................... 26

From the Inbox .................................................. 28

Book Reviews ..................................................... 29

Entertainment .................................................... 30

News Briefs ........................................................ 31

CONTENTS

The annual themes from

June 19, 2009 to June19, 2010 are a mouthful.

First, the Catholic BishopsConference of the Philippines(CBCP) decided during theirplenary assembly in January2009, to declare a Year of theTwo Hearts of Jesus and Maryfor Peace-Building and Layparticipation for Social Change,at the tail-end of the Year of St.Paul. The principal objectivebeing the May 2010 elections:we invite the Filipino faithful

to start preparing spirituallyfor another crucial transition inthe life our nationnamely, theelections in May 2010.

Without the slightest premo-nition of anybody else outsidethe Vatican, the Holy Fatherdeclared on March 16, 2009 aYear for Priests, announcingit first to the members of theCongregation for the Clergyon the occasion of their PlenaryAssembly in Rome.

The Pope did this to encour-age priests in this striving forspiritual perfection on which,above all, the effectiveness oftheir ministry depends, andfor making the importance ofthe priests role and mission inthe Church and in contemporarysociety ever more clearly per-ceived. Apparently, this was

occasioned by the 150thanniversary of the deathof the Holy Cure d Ars,Jean Mary Vianney.

In the Philippines,peace-building and layparticipation for socialchange is a very tall order. In fact,while both are still in the stars,bringing them down to actualizationor the hopelessness of it, accumu-late a tinge of failure on the partof the Church after over 400 yearsof Christianity. Working for socialchange, seemingly has not been ajob of the churchgoer who has beendutifully catechized to observereligious practices stringently with-out regard for whatever happens toMalacaang or Congresswhich, ofcourse, are not within the ambit ofthe religious and, therefore, notpart of being Christian, rightly orwrongly.

Truth to tell, the task of moralregeneration is too serious and big

to be entrusted solely to religiousleaders who, until now, have beentoo busy with the affairs of the sac-risty and, perhaps, barrio fiestas.The arena of battle is right in thehearts of lay people.

Says the CBCP Statement onthe Year of Two Hearts for Peace-building and Lay participation forSocial Change: The participation

of the laity in moral leadershippertaining to every specificdiscipline and institution inthe Philippine society is mostessential, if we want the Gospeland the social teachings of theChurch to have a tangible and

positive impact at all on our lifeas a nation.

On second look, it maybeprovidential, after all, why thisis also the Year for Priests, ifonly to give a serious thoughtof his role in contemporarysociety which, for some, hasgone far and wide to even runfor political positionswhichis a way of robbing from thelaity what rightly belongs tothem or, more seriously, a way

of wasting what every priestshould be most faithful about,his priesthood.

This issue opens with RodneGalichas Defending Our Beau-tiful Land: The Churchs Re-sistance against Mining. Staffwriter Charles Avila writes ourcover story, How Bad really isPhilippine Economy? Read on.

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ARTICLES

Defending Our Beautiful Land:

The Church's Resistance ag

By Rodne Galicha

The protection of the environmentis not only a technical question;it is also and above all an ethical

issue. All have a moral duty to care forthe environment, not only for their owngood but also for the good of futuregenerations. (John Paul II)

Rattling the world is the financialcrunch which continuously challenges

the economic stability of nations. In thePhilippines, despite the world economiccrisis, the government sees a hopeful

potential of liberally utilizing mineralresources portrayed as an economicmessiah with projected investmentsof $1 billion this year. However, due toan unclear global metal demand, Reuters(2009) reported that the investmenttarget was slashed to only $600 mil-lion considering the total investment of$11.26 million in the first three months

of 2009. This is higher than the totalactual Southeast Asian nations miningsector investment of $577.25 million in2008, in which $600 million is quiteambitious.

But looking deeply into this reced-ing reality far from what was projected,the economic crisis and the lack of globalmetal demand are not the only reasons.If analyzed carefully at the grassrootslevel, in rural communities where large

scale mining is aggressively promoted,the people themselves are learning toresist as they continue to realize thelong-term effects of the industry notonly in their lives but also on the livesof surrounding communities. With thissense of social understanding amongcommunities, those people outsidethe applied mining area, realizing thatthey indeed share in the struggle, startto stand up and take strong position ontheir basic rights. And to address this

resistance, mining companies have beentrying to bribe these people with sociadevelopment programs and threatenthem with displacement. But generallythe resistance becomes stronger.

CBCPs consistent standDisturbed by the emerging fragility

of the environment and its impacts onthe faithful brought about by ecological imbalance and human-made abuses

the Catholic Bishops Conference of thePhilippines (CBCP) in 1988 issued aPastoral Letter on Ecology about ouliving world and the deterioration wesee all around us, What is Happeningto Our Beautiful Land?, that attemptto reflect the cry of our people and thecry of our land in which the bishopcollectively said that at the root of the

problem, we see an exploitative mental-ity, which is at variance with the Gospeof Jesus. It further declared that We

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The Church's Resistance against Mining

reap what we sow; the results of ourattitude and activities are predictableand deadly and our lands, forests andrivers cry out that they are being eroded,denuded and polluted. Hence, there isan urgency about this issue which callsfor widespread education and immedi-ate action.

The CBCP then asked the govern-ment not to pursue short-term economicgains at the expense of long-term eco-

logical damage.Always considered as the last and

only refuge of the Filipino peoplewhen it comes to moral and politicalsensitivities, the CBCP addressing theconcerns of affected communities afterthe passage of the Mining Act in 1995opposed its implementation.

Consistent to the 1988 statement,another statement was collectivelyagreed by the bishops in 1998. In AStatement of Concern on the MiningAct of 1995, the CBCP declared thatthe government mining policy is offer-

ing our lands to foreigners with liberalconditions while our people continueto grow in poverty, and that its imple -mentation will certainly destroy bothenvironment and people and will leadto national unrest.

In 2006, CBCP President Angel N.Lagdameo, DD, signed another state-ment reaffirming the collective standsaying that the Mining Act destroyslife. It further stressed that The right tolife of people is inseparable from theirright to sources of food and livelihood.Allowing the interests of big mining

corporations to prevail over peoplesright to these sources is tantamountto violating their right to life.

Again in December 2008, the CBCPissued a new pastoral letter on ecology,20 years after the issuance of Whatis Happening to Our Beautiful Land?landmark pastoral letter in 1998.

Signed by Archbishop Lagdameo,the statement called for a moratorium onmining activities. Mining as promoted

by the government, having a poor re-

cord of community accountability, isconsidered as uncontrollable plunderof natural resources with mining com-

panies having systematically engagedin the rape of Mother Earth and left alegacy of impoverished communitiesand environmental despoliation.

Protracted local resistanceAlyansa Tigil Mina (ATM), a na-

tional alliance of non-government or-ganizations, peoples organizations,indigenous peoples groups, convened

by the Philippine Partnership for the De-velopment of Human Resources in RuralAreas (PhilDHRRA), Legal Rights and

Natural Resources Center-Kasama saKalikasan/Friends of the Earth Phil-ippines (LRC-KsK/FoE Phils.) andHaribon Foundation, has been engagingdirectly with mining-impacted com-munities through the Social Action

Centers (SAC) of ecclesiastical ter-ritories. Through this engagement and

partnership, ATM has been working atthe grassroots level together with theSAC and various concerned groups,hence getting the whole mining picturein the country.

Known for his unquestionable en-vironmentalism,Dipolog BishopJose Manguiran,

bishop-in-chargeof the MindanaoDIOPIM (Dio-

ceses of Dipolog,Iligan, Ozamis,

Pagadian, Ipil and Marawi) Committeeon Mining Issues or DCMI, seeks to lib-erate people, especially the indigenous

peoples, from the belief that miningpromotes sustainable development.

Mining destroys the soil, it doesnt just displace it, Bishop Manguiransaid. And (this is) the destructionof biodiversity, large animals down tomicrobes. And geological restitution isalready impossible. Our laws are meantto protect the indigenous people (andthe land). But in implementation theyonly help the foreign corporations, hecontinued. Bishop Manguiran wouldalways compare Filipinos who are pro-environment to the biblical David andthe foreign mining companies, and thegovernment to Goliath. We only havea slingshot to defeat that horrible giantand the battle may be long, but the handof God is with David, he explained,

and David always wins.DIOPIM has been helping commu-

nities in the Zamboanga peninsula andthe surrounding dioceses especially withthe Subanons Apo Manglang GlupaPusaka (AMGP) through Timuay JoseBoy Anoys struggles against TorontoVentures Inc. (TVI) . TVI has been de-stroying the sacred Mt. Canatuan inSiocon, Zamboanga del Norte.

Down toSouthern partof Mindanao,the charis-

matic Bish-op Dinual-

nst Mining

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ARTICLES

do Gutierrez, of the Diocese of Marbelin South Cotabato, has been a front-liner in the anti-mining advocacy inthe SOCSKSARGEN (South Cotabato,Sultan Kudarat, Saranggani and GeneralSantos).

On Earth Day 2009, Bishop Guti-errez, with SAC Director Fr. RomingCatedral, led a large protest againstwhat they call unholy trinity. He de-nounced the three industries that would

put his flock into uncontrollable risksand disasters: Sagittarius Mining Inc.(SMI) large-scale mining in Tampa-kan, Conal Holdings Corporation andAlsons, Inc. coal-fired power plant inMaasim, and Sultan Mining and EnergyDevelopment Corp (SMED) coal miningin Lake Sebu.

Its alright to pray and launcheducation campaigns. But this time,we need to take up bigger actions and

let our national leaders know that weare really opposing this, for the sake ofourselves and our future generations,he declared.

On the presence of SMI, BishopGutierrez stressed that it would affectour peace and order situation. Any im-moral activity breeds social ills. Miningoperations in the hinterlands of Tampa-kan would destroy the environment andresult into human rights abuses.

When asked about the developmentand assistance of SMI to tribal commu-nities, Bishop Gutierrez would always

regard it as inducements to permitmining operations. For him, if someonetakes advantage of the ignorance and

poverty of the people, that is one formof human rights abuse.

With Butuan Bishop Juan de DiosM. Pueblos, Bishop Gutierrez had beento the United Kingdoms House ofCommons to challenge the Members ofParliament to end British investment indestructive mining.

Backed by the Catholic Agencyfor Overseas Development (CAFOD)of the Catholic Church in England

and Wales, the two bishops managedto present the real situation of miningindustry in the Philippines speaking in

behalf of their flocks urging the Parlia -ment to stop destructive mining in ourcountry. They also stressed that itsa lie to say that poor people are beinghelped by it and the small islands inthe Philippine archipelago can easily

be destroyed.Bishop Pueblos has been deeply

concerned with militarization, eco-

logical threats and displacement ofindigenous peoples as results of theincreasing mining ventures in his dio-cese especially in Agusan del Norte.

Speaking over Church run Radio Veritas,he said, Its a lie to say mining saves

people for there would be no more landto till and it will alter the climate intheir area.

Recently, Bishop Nereo Odchimarof the Diocese of Tandag expressedhis disappointment on the governmentdespite the issuance of Proclamation1747, declaring the portion of the pub-lic domain of Alamyo, Buyaan, PanikiRivers and Sipangpang Falls situated inthe Municipalities of Carascal, Cantilanand Madrid, Province of Surigao del Sur

and in the Municipalities of Jabonga,Santiago and Cabadbaran, Province ofAgusan del Norte as critical watershedforest reserves.

During an Earth Day event in Su-rigao del Sur, the bishop said that hefelt betrayed upon learning that theDepartment of Environment and NaturalResources (DENR) had already issuedEnvironmental Compliance Certificates(ECCs) to Marcventures Mining andDevelopment Corporation (MMDC)

and Carac-an Development Corporation(CDC) two months prior to governmenassurance through a dialogue with SecLito Atienza, that it would look deeply

into the watershed proclamation vis-vis mining.

Meanwhile, deeply etched in thememories of the faithful of the Archdiocese of Cagayan de Oro was thedevastation brought by flooding inJanuary 2009 which affected more than30,000 individuals.

Consistent with his stand, Archbishop Antonio Ledesma has renewedthe call for environmental conservation pointing out that flush mining hasilted the river of Iponan; and loggingupstream has brought devastation no

only in the interior of Cagayan de Oro but also in the downstream areas iBukidnon and Lanao del Sur.

Fourteen years of the implementation of the Mining Act of 1995 had

brought about the physical and economicdislocation of many indigenous peopleand other upland rural communitiesas well as aggravated the already diresituation of our environment by handingover our lands and mineral resourcefor corporate exploitation. All these, in

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to care for the environment as a matterof common and universal duty.

The presence of People's Recovery,Empowerment Development Assistance(PREDA) founded by Columban mis-sionary Fr. Shay Cullen, SSC, in Ibadiocese has been vital in protectingthe indigenous rights of the Aeta com-munity especially in Sitio Maporac inCabangan town. With Maporac AetaAssociation (MAO) led by Tribal ChiefSalvador Dimain, PREDA partnerswith PMPI and ATM to address issuesregarding Ancestral Domain claims visa vis mining.

In Marinduque, people are still suf-fering the aftermath of the Marinduquemining disaster caused by Marcopper'sfloodings of some 1.6 million cubicmeters of tailings many years ago. BoacBishop Rey Evangelista lamented thegovernments inaction to remedy the

situation.After 27 years of Marcopper's

operation, Marinduque remains a 4thclass province, he said.

Asked about the accountability ofMarcopper in an interview over RadioVeritas, Bishop Evangelista said that hehas grown tired of meeting governmentofficials on our plight and nothing goodhas happened.

Despite the disappointments, resi-dents of Marinduque recently flockedto Mogpog River and put sandbagsalong the banks to reduce the risk of

floodings.After long years of neglect by

higher officials of the country who lenddeaf ears to our cries for the miningcompanys cleanup of the Boac andMogpog rivers, we decided to mobi-lize the people to clean the MogpogRiver ourselves, said Myke Magalang,executive director of the MarinduqueCouncil for Environmental Concerns(MACEC), which initiated the sandbag-ging activity.

Due to the opposition of the peopleof Bagamanoc to magnetite mining of

Shun Fong Transport Co. in the coastaltowns of Bagamanoc and Panganibanin the Diocese of Virac in Catanduanes

province, Bishop Manolo delos Santosand the clergy are now at the forefrontof the anti-mining advocacy. Togetherwith the I-Care Bagamanoc organiza-tion, the Diocese of Virac Social ActionFoundation, Inc. (DVSAFI) formed atechnical working group versus min-ing to address the emerging threat notonly of magnetite mining but also of

the possible massive consequence ofthe Department of Energys coal miningto be operated by Monte Oro Resourcesand Energy, Inc.

DVSAFI Executive Director Rev.Fr. Laudemer Jose Gapaz said thatmining has been a big problem forthe Philippines as its social effect has

been disastrous and the industry has not proven to be economically beneficialdespite claims by its backers, addingthat only one percent of the gross rev-enues go to the coffers of the nationalgovernment, not to the area of miningoperation. This has resulted in economicexploitation, injustice, and ecologicaldegradation.

Because of the threat of large-scaleopen-pit mining by Filminera MiningCorp. (FMC) backed by Australian-

based Central Gold Asia Ltd., theDiocese of Masbate formed the multi-

sectoral Task Force Aroroy in whichBishop Joel Baylon was chosen asChairman. In a statement, the diocesestressed that that we are stewards ofGods creation and are accountable toHim who created everything in ourworld to be good.

With the Association of ConcernedResidents of Aroroy (ACRA), the Evan-gelical Churches, through Fr. Leo Casasof the Diocese of Masbate Social Ac-tion Foundation Inc. (DMSAFI) andvarious peoples organizations, seriesof protests have been held in front of

the mining area. Worth mentioning isthe priest-in-charge of a quasi-parish,Fr. Edgar Mamforte, who has been re-ceiving threats and was even harassed

by the armed security of the miningcompany.

Alarmed by the opposition of thepeople and the reality of mining devasta -tions in Albay province and possible ef-fects in Bicol Region, a letter-statementwas issued by the Bicol bishops and sentto His Holiness Benedict XVI, sayingthat their opposition have have fallenon deaf ears, and since it is also a most

important human responsibility, theChurch is duty-bound to offer, throughthe purification of reason and throughethical formation, her own specificcontribution towards understanding therequirements of justice and achievingthem politically.

In the Apostolic Vicariates of Cala-pan in Oriental Mindoro and San Jose inOccidental Mindoro, a series of protestshave been conducted to oppose IntexResources public scopings and hear-

exchange for a grossly disadvantageousamount from mining revenues, he saidas he criticized the mining policy beingimplemented.

The situation of mining in Mindan-ao has been haunting rural communities.Lumads and Bangsamoro communitieshave joined hands in opposing miningcompanies, opposition that led to thekilling of Eliezer Boy Billanes, a layleader, who opposed the activities ofSMI and other companies in SOCSK-SARGEN. Bishop Gutierrez hailed Boyas a prophet, a voice of God. He waskilled because of his advocacy againstmininghes a protector of the integrityof creation.

In the Diocese of Mati, Sr. Stella

Matutina, OSB, had been illegally de-tained by the military due to her effortsto educate the people on the ill-effectsof mining. The Military tagged hereas a Communist member, hence, theexplicit condemnation of the Sisters As-sociation of Mindanao (SAMIN) sayingthat amidst this state of oppression, weremain steadfast to fulfill the missionof the Church which is to assert thedignity and rights of the people and theintegrity of Creation. We carry this task


DonnaVirola

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ings. Recently, five thousand peoplewere mobilized in the town of Polawith Calapan's clergy and seminariansfrom St. Augustine Seminary, thousandsin Victoria and another five thousandin Mamburao where Bishop AntonioPalang joined the protestors togetherwith his clergy in staging a walk outfrom the public hearing venue.

In his latest statement, Most Rev.Warlito Cajandig said that consideringthe situation of our country, it is impos-sible to have the so-called responsiblemining because of the prevailing cultureof corruption in the governmentmanyare abusive of their powers, and manycan also be bribed. Even the on-goingmining in Palawan that is being tauntedas beneficial to the people does not really

pursue the well being of the people, asreported to me by my friendspriestscoming from the area.

In the island of Mindoro, the Churchis joined by various anti-mining orga-nizations such as Alyansa Laban saMina (ALAMIN) and Kaagapay. Both

provinces have been expressing theiropposition to the unjust and irrespon-sible processes undergone by Intex andthe DENR.

In Sibuyan Island, under the Dio-cese of Romblon, the clergy withBishop Jose Corazon Talaoc, are very

supportive to the position of the ma-jority of the island-people. The anti-mining advocacy is being maintainedthrough the Basic Ecclesial Com-munities (BEC) in coordination withSibuyanons Against Mining/SibuyanIsland Sentinels League for Environ-ment Inc. (SAM/Sibuyan ISLE). Some85 church-workers, teachers, farmers,among others, are still facing gravecoercion charges filed by the employeesof Sibuyan Nickel Properties Develop-ment Corp. (SNPDC) because of their

participation in a rally in which Hon.Armin Rios-Marin, president of a Par-ish Pastoral Council, was murdered bySNPDC's security guard.

Most Rev. Ramon Villena of theDiocese of Bayombong, where vari-ous human rights violations have beendocumented and brought to the attentionof the Commission on Human Rights

(CHR), commented on OceanaGold'shuman rights abuses and injustices inDidipio, Kasibu, The company is doingan overkill on this. It is now wieldingits octopus hands and power in order tooverwhelm and oppress the people, anddisregard their human rights.

"These human rights violations areindicative of the fact, a sign that whatwe have been telling all along that min-ing is very destructive and many more

destruction will follow if we allow it,he added.

Just like Bishop Villena who wadeclared by Nueva Vizcaya province a

persona non grata ten years ago becauseof his strong position against illegalitiesFr. Emiliano Ibera, OFM, parish priesof Quezon town, through a resolutionof the said town was declared the sameand was petitioned to be ousted fromthe parish recently. This was due tohis position against illegal logging andlarge-scale mining. But Bishop Villencalled the resolution rubbish.

Fr. Ibera, true to his calling as aFranciscan, said, I knew it was coming but I just shrugged it off, my workmandates me to advocate social issuesand as Gods servant, I will continue todo it in accordance with the teachingof the Church.

Nueva Vizcaya hosts a number o

mining companies such as OceanaGoldRolayco, and FCF Minerals/MTL Phils.among others.

Going up to the North, the Archdiocese of Tuguegarao clergy, through Auxiliary Bishop Ricardo Baccay, issued astatement of concern on the emergingthreat of mining especially on the shoreof Northern part of Cagayan province

particularly in Buguey, Aparri and LalloResistance, page 1


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In early July, the Vatican will publish its nancial reportfor 2008, as it does every year, in two chapters plus anappendix.The rst chapter will list the income and expenditures of

the Amministrazione del Patrimonio della Sede Apostolica,APSA, which manages the xed and current assets owned byitself, the curia, the diplomatic corps, the publishing house,the radio and television stations.

The second chapter will list the income and expendituresof the governorate of Vatican City State: land, services, mu-seums, stamps, coins.

The appendix will present the total of the Peter's Pence, thecollection for the pope taken all over the world every year on

June 29, the feast of Saints Peter and Paul, plus the donationsmade directly to the pope over the course of the year.

In 2007, for example, the collection and donations totaled94.1 million dollars, 14.3 million of which came from a single

donor who wanted to remain anonymous.This is what is published each year.

Nothing else. Not a line about the other income, apartfrom the Peter's Pence, that feeds into the "pope's charity."And not a line about how this sum is used.

There is an ofce in the secretariat of state that dealswith precisely this matter. It was directed for many years

by Monsignor Gianfranco Piovano, who was replaced a fewmonths ago by Monsignor Alberto Perlasca. Both men arecareer diplomats. In addition to the Peter's Pence, its fund-ing is provided by the contributions that the dioceses all overthe world are required to make to the successor of Peter,according to canon 1271 of the code of canon law. Money

is also sent by the religious congregations and foundations.In 2007, according to a condential report that the Vaticansent to the dioceses, these contributions amounted to 29.5million dollars, which together with the Peter's Pence total123.6 million dollars.

This money is earmarked for the "pope's charity." In alecture to diplomats from various countries in the Middle Eastand North Africa, given in Rome at the Pontical GregorianUniversity in May of 2007, the banker Angelo Caloia, presidentof the Istituto per le Opere di Religione, IOR, the "Vatican

bank," described the use of this money:"It is directed above all to the material needs of poor

All the Denarii of PeterVices and virtues of the Vatican BankBy Sandro Magister

dioceses, to religious institutes and communities in gravedifculty: the poor, children, the elderly, the marginalized,victims of wars and natural disasters, refugees, etcetera."

In that same lecture, moreover, Caloia referred to anotherfunding source of the "pope's charity": the prots of theIOR. In March of every year, in fact, the IOR makes entirelyavailable to the pope the difference between its income andexpenditures during the previous year. This total is kept se-cret, but it is believed to be close to that of the Peter's Pence.At least this was the case in the four years for which gureswere leaked. It came to 60.7 billion Italian lire in 1992, 72.5

billion in 1993, 75 billion in 1994, and 78.3 billion in 1995.During those same years, the Peter's Pence was just slightly

above these amounts.Given this state of affairs, 2007 should have brought

Benedict XVI, for his "charity," a sum total of about twohundred million dollars.

During that same year, the ledgers showed a decit of 9.1million euros for APSA, and a surplus of 6.7 million euros forthe governorate. Chopped liver, by comparison.

Caloia said little about the IOR in his lecture to the dip-lomats. He emphasized that this "does not have a functionalrelationship" with the Holy See. And he stated that the onlyauthorized depositors are "individuals or persons juridicallyendowed with canonical legitimacy: cardinals, bishops, priests,sisters, brothers, religious congregations, dioceses, chapters,

parishes, foundations, etcetera."But the reality has not always corresponded to this de-

scription. When Caloia became head of the Vatican bank in1990, it had just emerged from a terrible decit connected to

the name of Caloia's predecessor, Archbishop Paul Marcinkus,and to the reckless operations he undertook with the nanciersMichele Sindona and Roberto Calvi, both of whom later diedviolent deaths under mysterious circumstances.

Cardinal Agostino Casaroli, the secretary of state at thetime, had resolved the dispute by ordering that the creditors

be paid 242 million dollars as a "voluntary contribution." Inan agreement with the Italian government, Casaroli appointedtwo specialists in nance and administrative law, PellegrinoCapaldo and Agostino Gambino, to investigate the operationsof the Vatican bank, together with a prelate in the curia withhis absolute trust, Monsignor Renato Dardozzi. Dardozzi was

ARTICLES

Two hundred million dollars for the pope's charity. Wheredoes it come from? Where does it go? New revelations on the

malfeasance of the Institute for Works of Religion. And onthe obstacles posed to its rehabilitation.

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10/32

born in 1922 and became a priest at the age of 51. He receiveddegrees in engineering, mathematics, philosophy, and theol-ogy, and was a telecommunications manager before nally

becoming director and chancellor of the Pontical Academyof Sciences.

From that time until a few years before his death in 2003,Dardozzi continued to oversee the operations of the IOR on

behalf of the Vatican secretariat of state, with Casaroli andhis successor, Cardinal Angelo Sodano.

Dardozzi documented his work of oversight. And thisdocumentation has now been made public in a book recentlyreleased in Italy, written by Gianluigi Nuzzi and published

by Chiarelettere.The documents cited and reproduced in the book are

absolutely reliable. They demonstrate that the removal ofMarcinkus and his replacement by Caloia in 1990 was notenough to purge the IOR of malfeasance right away.

In fact, Monsignor Donato De Bonis stayed in the keyrole of "prelate" of the Vatican bank until 1993. And duringthose years, he launched a sort of parallel shadow bank, underhis exclusive command, that again risked plunging the IORinto decit.

It was in the spring of 1992 that Caloia began to suspectthat there were irregularities. He ordered a thorough investiga-tion, and veried that in effect De Bonis controlled accounts

attributed to ctitious foundations, which in reality concealedillegal nancial operations, for tens of billions of lire.

In August, a detailed report on these fake accounts cameto the desk of the secretary of John Paul II, Monsignor Stanislaw Dziwisz.

De Bonis was removed from the IOR in March of 1993No one replaced him in the post of the bank's "prelate," whichremained vacant. De Bonis was consecrated bishop and ap

pointed military chaplain of the Sovereign Military Order oMalta, a role that enjoys diplomatic protections.

But even after his departure from the IOR, De Bonicontinued to operate through ofcials connected to himAlarmed by this, at the end of July Caloia wrote to cardinasecretary of state Sodano:

"... It is increasingly clear that criminal activity is beingconducted deliberately by those who, according to their chosen way of life and the role they fulll, should instead have

provided a strict critical conscience. It is becoming more andmore difcult to understand the continuation of a situationsuch that the person in question [De Bonis] continues, froma no less privileged position, to manage indirectly the activities of the IOR..."

The risk was all the more severe in that, precisely duringthose months, the Italian judiciary was investigating a colos

All the Denarii of Peter

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day 2008. No prizes for guessing whothis demographic voted for.

Just as Obama used social media in asophisticated way to mobilize his target

audience to win last Novembers elec-tion, every one who considers himselfa political or social conservative needsto learn and master this new means ofcommunication. Social media are toour age what the printing press was tothe Reformation. We neglect it at ourown peril.

Friend is a verb nowget used to itUnfortunately, I am dismayed by

everything I read about social media by writers on conservative websitesincluding MercatorNet. All they can

do is point fingers, complain andridicule the medium because they aredismayed by all the bad stuff you canfind on social media sites. True. It isall therepornography, internet bul-lying, bad manners, and bad grammarand spellingand I am dismayed byall those as much as any of my fellowconservatives.

But shunning social media, fromFacebook to Twitter to Youtube, is notthe answer. Obamas win proved it.

Rather we need to be engaged. Justas the Counter-Reformation also had

to leverage the printing press, we needto leverage social media. It is time toopen accounts on Facebook, MySpace,Twitter and Youtube, to start friend-ing others and stop complaining thatfriend is not a verb.

Just as politicians and major cor-porations are using social media to gettheir messages out, thinking conserva-tives need to do so too. Unfortunately, ifyou go to the blogs or Twitter accountsof many leading conservative thinkers,

Tweeting all fellow twavellersDon't be a trog, get with the blog;

or if that's a bad t, try tweeting a twit.By Alistair Nicholas

Ihave a very simple proposition: Itis time conservatives got with the

times and grabbed Web 2.0 by thehorns. Otherwise we should pack our

bags and concede defeat to the left inthe culture wars.

Here is the problem. By eschewingsocial mediafor fear of technology,fear of what we dont understand, andin order to protect our children from itsunsavory excesseswe are in dangerof becoming the troglodytes of theintellectual battlefield. We are handingvictoryon every point of contentionfrom abortion and gay marriage to na-tional security and social welfareto

the other side.Conservatives simply are losing

political and moral ground in the in-formation age because, armed with the

propaganda instruments of a previousage, we cannot enlist the support of ageneration that is growing up immersedin social media. Just look at the resultsof the last US presidential election. Itwas overwhelmingly won by BarackObama on social media platforms thatthe Republicans did not understand.Barack Obama may have won the elec-tion regardless thanks to the ineptitude

of his Republican predecessor; but theObama camps use of social media tomobilize supporters and organize theircampaign ensured an overwhelming vic-tory for the Democrats with the highestyouth voter turnout on record.

Conservatives lost the battle onTwitter, on the blogs and the vlogs, onMySpace and Facebook, and on You-tube. We are losing the war because wecontinue to cling to dying traditionalmedia platforms (TV, radio, newspapers

and magazines) and their static, one-waycommunications websites while failingto grasp the basics of the new media.

Nabbing the youth voteThe numbers tell the story. By the

time President Obama was elected morethan 500 million blog articles could befound online about him, his campaignand policies, compared with just 150million on John McCain. No doubt agood many of those posts were criti-cal of Obama; but then so were a goodnumber of the blog posts on McCain. Inthis case it is the volume of posts thatspeaks volumes.

On social networks like MySpace,Obama had more friends than McCa-

ina lot more. By the time the electionwas held Obama had some 844,927friends compared to McCains 219,404.On the micro-blogging site Twitter,Obama trounced McCain with 118,107followers compared with 4,942.

The US election has always beena popularity contest. But, whereasThomas Jefferson and John Adamsonly had to influence a few hundredElectoral College delegates directly bytargeted letter writing campaigns andvisits by their proxies and surrogates,todays candidates need to reach a mass

audience with the tools of modern com-munication. What Obama demonstratedwas the ability to bypass the traditionalmedia (which is in decline anyway) andtake his campaign directly to the vot-ers, young voters in particular. Indeed,figures show that 52 per cent of usersof the Facebook social networkingsite are aged 18-25, a demographicstrongly targeted by the Obama cam-

paign. Consequently the youth voterturnout record was broken on election

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like Peggy Noonan and Anne Coulter,you realize they have an appalling lackof knowledge of social media and howto leverage it. They have plain failedto friend the right people or achievesufficient numbers of followers to re-ally drive political and social debateon Web 2.0.

The key failing of the McCaincampaign was to understand that socialmedia is about user-generated content.The McCain camp seemed to think theyhad to drive it all from the top down asthey had always done with traditionalmedia.

But social media is different. Itsvery difference is highlighted by theword social. This means it is aboutindividuals interacting with others whoshare their views and experiences.

It is time conservatives started tofriend, blog, vlog, and tweet in genu-

inely social waysor die.

Tweeting purposefullyBlogging and vlogging are not

for everyone and I dont recommendeveryone try those. They are heavylifting and, if done well, take a seriouscommitment. Good blogs need to bewell written and good videos need to

be well made. They take time, effortand real thought. Of course, if you havesomething to say and can commit theresources, go for it.

But tweeting is a different ball game

and should be adopted by everyonewith purpose. While Twitter has beenridiculed as the Internet medium fortelling people about the most mundanedetails of your life (having coffee inStarbucks and bought milk at the gro-cery store), it is fast evolving beyondthat. Companies have discovered it as away to get their messages out, directlyto their stakeholders and media outlets,like CNN and the Financial Times, arenow using Twitter to drive traffic totheir websites for breaking news andop-ed pieces.

How can conservatives use Twitterto drive the political and social agenda?Its easy. Start by registering an account.If you dont want to show your real

name, make up a name like Republi-canRapunzel or whatever works foryou. If you want to see what leadingconservatives are tweeting, search forthem under their real names and thenlink to follow them on Twitter. Youllfind that other people who follow themmay start following you as well.

The math of it is simplethe morepeople you follow, the more followersyou will acquire. You can either build upa mass following by following masses ofother tweeters, or you can take a strategicapproach and just follow a select groupof people, such as fellow conservativesand conservative websites.

While you will get the tweets of allthe people you follow, you dont haveto read them all. So dont worry thatBetty-Sue is tweeting about being atthe hairdressers or the grocery store.Be selective. Only read the tweets of

the people that interest you and that youtrust. For example, while Im technicallyfollowing more than 70 people on my

personal Twitter account and more than200 on an account I manage for a client,I am in fact only reading the tweets ofabout seven people. They are a couple of

journalists that I know, or media outletsthat I trust, or opinion websites that Ilike. Thats it. I dont read the tweets ofeveryone else I am following and youdont have to either.

Nor am I under the illusion thateveryone following me is reading my

tweets. I know most of them are not.Indeed, many are companies linkingto me to build their own following.Its all part of the game. But the wayI look at it is, if there are seven good

people following then I must be havingan impact. Because those seven peoplewill have seven people truly followingthem. And their seven true followerswill have their own seven true follow-ers and so on and so forth. You get theidea. Its about creating a tidal wave bystarting a ripple.

The other big myth about Twitter

is that you need to be plugged in andhooked up to it 24/7. There are peoplewho live their lives on it, but you donthave to. I check in about every two

dayswhen I have something valuableto tweet. At that time I check what theseven people I follow are saying to seeif they are pointing me to good information. Maybe someone has a commenabout a good article in the WashingtonPost, with a link to it. I follow the linkIn a lot of ways, Twitter has made myresearch more efficientmy fellownetizens are doing the work for mand pointing me in the right directionIt saves me hours of Googling for thesame stories and I have the verificationof those I trust.

It doesnt get better than that.Of course, there are unsavory peo

ple on the Internet, pornographers, childmolesters and other scoundrels. But thenthey may be living in your neighborhoodas well. But you dont know. So whado you do? Move to another street, another city or another country? No. You

lock the door so they cant get in; andif you find out about them you reporthem to the police. Do the same withTwitter. When the pornographers andother creeps come knocking or try tofriend me I block them. Its easyyou

just have to check on who is trying tobecome a follower on a regular basisI receive an email as soon as someonlinks to me on Twitter. If I am suspicious I get online as soon as I can andI read their profile. If they prove to bea creep, I block them.

Its time to stop twitching at the

thought of tweeting and get on Twitter. Come on; Ill follow you if youra fellow traveler. The more conservatives that get on Twitter and other sociamedia sites, the more balance we canintroduce into the debates taking placon Web 2.0.

(Alistair Nicholas is the foundeof AC Capital Strategic Consulting, aChina-based communications advisoryand training company. He also advisescompanies on the use of social mediaand search engine optimization strate

gies. He blogs at Off The Record andhe tweets under the name alinicholason Twitter. This article is printed with

permission by MercatorNet)

Tweeting all fellow twavellers

I

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The New Fair-Trade LabelSets the Standard

By Fr. Shay Cullen

No matter how many times I told Dado Santos to leavehis big sack of recovered recycled drink pouches atthe bottom of our steep driveway and we would send

down the pick-up to get his heavy sack, he always insistedon carrying that heavy sack up the driveway on his back

by himself.He was making a statement, look at me, he was saying,

a poor uneducated jobless man turned recycler, collector andsanitizer of discarded drink pouches and here on my back is

the evidence of my success. Then he collects his hefty andfair-trade payment. That is at the heart of fair tradejustwage for good products.

These discarded drink pouches are recycled and sewn intosuper quality colorful and attractive back packs, rucksacks,shopping bags, purses, computer bags and every other bagyou could think of. They sell all over the world and givesustainable work to more than fifty sewing families that havea good living, making them in their own homes.

They can now feed their families with plenty of healthyfood, dress them well and parents stand tall and proud asthey send their kids to school. The cycle of poverty has been

broken. All this thanks to the good people around the worldthat buy Preda recycled products.

Despite all the worry and problems caused by an eco-nomic recession, one thing has not diminished and that isthe commitment of the people who love fair-play, and afair-go and dislike buying anything made by a companythat gets rich on child labor or exploiting women in sweatshops or farms.

Preda Fair Trade saw the plight of small mango farmersover 15 years ago. The farm gate price was so low becausethere was a price fixing cartel. They only bought the best and

biggest fresh mango fruit for export and the rest were leftto rot. But a friend and partner found a way to dry the fruitand dried mangos had a terrific taste and everybody wanted

to buy them. Preda fair-trade mangos were born.Soon we were exporting tons of dried mangos to the

fair-trader importers in Europe. They are the healthiestof all, a special secret Profood drying process gives thema long shelf life without using preservatives. So they arechemical-free and we even have unique great tasting driedmangos with no added sugar.

Preda and Profood were soon buying hundreds of tonsof fresh mangos of all shapes and sizes and paying higher

prices. The farmers were delighted, there were no rejectsThey only wanted to sell to the Preda-Profood project and

soon the members of the price fixing cartel were starvedof mangos and had to offer higher and higher prices andcompete with each other for a supply of mangos.

The cartel soon disintegrated and the price of mangosalmost doubled and thousands of small farmers and theirfamilies were ecstatic. They too could stand proud and

prosperous and send their children to school, well dressedwith full stomachs and much more. Dire poverty was overfor them. Preda Fair-Trade had scored again and continuesto keep on scoring in the grim game against poverty andexploitation. Preda fair-trade dried mangos are in majorquality supermarkets in the UK and Ireland. Support smallfarmers and ask for Preda dried mangos under the ForestFeast brand and have a taste of justice and take a bite out

of crime as they say.How can we be sure that a product is really a fairly-tradedproduct and not made with child labor or sweat shop slaves?That's where the new and upcoming IFAT Fair-trade label i sessential. The International Fair Trade Association (IFAT)has the highest standard for certifying that an organizationis truly doing fair trade and Preda is one of those. Look forthe Preda name and IFAT, the only names you can trust to

be truly fair trade.

(Fr. Shay Cullen, a Columban Missionary, is the Founderand Director of Preda Foundation, Inc. in Olongapo City.)

erra.net www.wl-wolfach-haslach.de www.einewelt-altbach.de

ARTICLES

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FREEDOMBy Fr. Roy CimagalaARTICLES

impulses from impropeif not false sources.

This is the freedomwe see in the world todaydeeply embedded in thculture and peoples wayof life. This is also thkind of freedom that giveshape and direction to thevision and authority o

some world leaders.Its a freedom tha

acknowledges no absolute law outside of oneself or of some subjectEverything is made relative to the subject whonow considers himselhis own God, perhapwith some support froma consensus.

We need to recovethe true and objectivenature of freedom from

the clutches of subjectivism, secularism andrelativism. And perhapthe more challenging

predicament from whichfreedom has to be extricated is the double-lifculture so widespread

even among professed Christians.Its this culture that fails either to distinguish o

link, or both to distinguish and link God and us, whatsinside us and whats outside us, the subjective and theobjective, our freedom and autonomy in relation to lawand the virtue of obedience, the mundane and the sacred

in our affairs and concerns.For me now, the US has become a big, interesting and illuminating theatre where the battle fothe true nature of freedom is waged. Of course, thedrama of freedom is played everywhere. But its inthe US where this drama of freedom gone awry ilarge and closely monitored, as if youre watchingYouTube.

At the moment, I cannot get over that view of President Obama who says he is still for abortion but wants ito be as rare as possible. Its a crude, Solomonic if foxyway of resolving an issue, as if a baby can be divided

Iremember that whenthe Iron Curtain col-lapsed, Pope John

Paul II warned the worldto the effect that whilefreedom was restoredin the Communist bloc,freedom in the Westneeded also to be re-covered. In fact, that

is the more urgent andimportant task.

Implied was that thefreedom in the West,heavily infused with thecapitalistic ideology,was of the trickier kind,since it tended to screamthat it was free when infact it was not.

So the effort to re-cover it would be morechallenging, more de-manding, since we can-

not easily point a nger atwhats missing with thefreedom so far practicedand enjoyed in the West.In the communist andsocialist system, thesemissing elements couldeasily be identied.

The Western freedom has the appearance andtrappings of freedom but without its proper substance.Its a self-generated freedom, which starts and endswith oneself or with a certain collective subject, as ina family, group, country or even the whole world. Itsa freedom gone astray.

Its a freedom that refuses to acknowledge whereit comes from and for what and for where it should beused and directed. Its a freedom incapable of transcend-ing itself.

Thats the meanest cut it inicts on itself, the mostsubtle and pernicious virus that can attack it. With thatunderstanding, freedom gets totally imprisoned in itssubjectivity with no link to its objective nature.

Its a freedom intoxicated with its own powers andprivileges, very vulnerable to getting abused and spoiled.Detached from its basis on truth, from its proper originand end, from God, it can easily get blinded. It gets its

www.f

ickr.com/photos/stranju

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ONEAWRYtowns. Bishop Baccay said that the

priests are in solid mind and heartin concluding that the larger socio-economic and environmental costs ofmining operations far outweigh the

people's economic benefits.The statement further said that

the mining operations will endangerthe rivers ecosystems, cause deple-tion of resources, result to the destruc-tion of sources of livelihood and willseriously threaten the people's health

and environmental safety.It has been known recently that

the shores in the Archdiocese ofTuguegarao from Sta. Ana, Cagayanto the Ilocos Region down to thecoastlines of Zambales are beingapplied for by mining companies toextract magnetite.

Fr. Manny Catral, SAC Direc-tor of the Archdiocese of Tugue-garao, said that the SACs of theIlocos Region had already expressedtheir concern not only on magnetitemining but also the emergence of

large-scale mining operations andexplorations.

These are just some of the mas-sive protests of the people within theChurch across the Philippines in thefirst half of 2009, not mentioningsome areas such as those being led byCBCP President and Jaro ArchbishopAngel Lagdameo, Taytay Bishop Ed-gardo Juanich, and Palawan BishopPedro Arigo, among others.

An urgent MissionIndeed, the words of John Paul II

echoes through the Church's concernon ecological issues: We are quicklylearning how vital it is to respect theecology of nature, if we are not tocause serious harm to the world futuregenerations will receive from us. Moreurgent still, though more difficult, is theneed to learn to respect the ecology ofthe human world, by which I mean thetruth of the human person and the social

implications of this.This certainly nullifies the allega-

tion of some economists and pro-miningadvocates that the Church is just a use-less noisy gong. No, not useless. TheChurch is the voice of the voiceless.Is it not true that the last resort of the

people to help them seek justice andrefuge are always the men and womenwithin the Church?

In this time of injustice broughtabout by the aggressive promotionof mining in the Philippines, various

people's organizations and non-gov-

ernment organizations are all workingtogether with the Church and otherreligions to bring back the integrityof creation. Leading the anti-miningcampaigns are the CBCP-NationalSecretariat for Social Action (NASSA),Episcopal Commission on IndigenousPeoples (ECIP), the Association ofMajor Religious Superiors in thePhilippines (AMRSP) with its Mis-sion Partners (MP) and the Philippine

Misereor Partnership (PMP), amongothers.

The Alyansa Tigil Mina (ATM),consistent to the call of the CBCP,aims to put a stop to large-scale min-ing in the Philippines and the imple-mentation of the fiscal regime.

If the government claims that themining industry is the messiah ofour ailing economy, then it is not true,for the real Messiah is Jesus ChristHimself. To save the economy is to

follow the egalitarian character ofChrist that is brought about by Hisunconditional love.

John Paul the II further saysthat When man disobeys God andrefuses to submit to his rule, naturerebels against him and no longer rec-ognizes him as its 'master', for he hastarnished the divine image in himself.The claim to ownership and use ofcreated things remains still valid, butafter sin its exercise becomes difficultand full of suffering. (Solicitudo ReiSocialis, S. 30)

Indeed, development whichis merely economic is incapable ofsetting man free; on the contrary, itwill end by enslaving him further.(Solicitudo Rei Socialis, S. 46).

(Rodne R. Galicha is the Sitesof Struggles Officer of Alyansa TigilMina (ATM), a coalition of non-

government and people organizationsagainst destructive mining.)

into two to satisfy the opposing parties.And this mindset seems to be widespread, and

even supported by a systematic ideology with practicalscript and methods. Secretary of State Hillary Clinton,for example, is now promoting worldwide abortion-on-demand and other questionable causes.

A bill is now pending approval in the US Congress tocreate among other things an Ofce for Womens GlobalIssues in the State Department, a thinly veiled effortto promote abortion all over the world and to overturn

pro-life laws in other countries, including ours.In fact, in our country there is already a slow but

steady trend to approve population-control laws anddecrees in the city level. Of course, the Trojan horseused are concerns like Reproductive Health and now,Health Care.

We have to help one another in understanding thetrue nature, meaning and purpose of our freedom. Wehave to learn how to overcome the obstacles to thisunderstanding, exposing the many myths and lies aboutfreedom and showing the practical ways true freedomcan be lived and enjoyed.

But for all this, lets never forget to pray, offersacrices, study and act!

Resistance, from page 8

Freedom gone awry

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How bad really Philippine Econom

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COVERSTORY

?By Charles Avila

The Lost Decades

At a U.N. Conference on Financ-ing for Development last De-cember in Doha, Qatar, Member

States requested the General Assemblyto organize a meeting at the highestlevela United Nations summitwhich they scheduled for 23-26 June2009 in London (UK).

The aim was to identify both emer-gency and long-term responses to miti-gate the impact of the crisisincreas-ingly perceived to be the worst globaleconomic downturn since the GreatDepressionespecially on vulnerable

populations. The hope thereafter was toinitiate a needed dialogue on the trans-formation of the international financialarchitecture, taking into account theneeds and concerns of all countries of

the world.Assessments of the impact on the

ongoing economic crisis highlightedthe deteriorating social and politicalfallout in the least developed countriesand middle-income countries as well.

Prospects for an early recovery havefaded, forcing countries to prepare fora prolonged downturn in trade, invest-ment and employment.

The stark reality is that the situationin the worlds developing countrieswhich contributed least to the crisis and

yet are the ones most severely affected

has led some economists to warn of lostdecades for development which couldhave catastrophic consequences for richand poor countries alike. It seems to be

bad news all around.

Filipinos still upbeat on the economy?Given all this, many UN Summi-

teers were incredulously surprised, if notshocked, when told that 44 percent ofFilipinos nationwide believed that whilethe economy was still weak, it wouldsoon start to recover. In the most recent2,000-people survey by global market

research firm Synovate 43 percent ofrespondents even said that they hadearned more in the last six months! And12 percent of Metro Manila respondentssaid they were actually spending moreon luxury items. In fact, the Mallingof the country goes on unabated.

This is not to say that the currenteconomic situation has not impactedthe lives of everyday Filipinos. Allacross the Philippines, according to thesame survey, people have become more

Unless people-powered participation is organized by

change agents, the governments economic resiliency

plan will be short of details and long in sub rosa

appropriations, and last minute looting may even

lead to worse economic misery and heightened social

unrestor, maybe, at last, to real change.

CBCPM

edia

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COVERSTORY

conscious when it comes to spending,with close to two-thirds (or 59 percent)

paying more attention to prices of fooditems before making a purchase. In ad-dition, high-tech gadgets and brandedgoods topped the list of items that

people from Metro Manila avoided,while over a quarter (28 percent) fromMindanao said they were giving up onoutside meals with friends, choosingcheaper dining options instead. Peopleare definitely making changes to theirspending habits.

Despite the worrying trend, how-ever, the survey interpreted the majorityof people to be generally upbeat, withover three quarters (86 percent) agree-ing that they will always find a wayto afford some items that make themfeel good.

But arent more people losing their jobs?

How many people do you knowwho have not lost their jobs? Howmany do you know who have? Some

private survey groups say one thing.The official statisticians of the State sayanother. Being in some measure part ofa globalized economy, let us hear fromthe ILO, the United Nations Interna-tional Labor Office. The ILO puts outan annual Global Employment Trendsreport (GET).

The report says global unemploy-ment in 2009 could increase over 2008

by a range of 18 million to 30 million

workers, and more than 50 million ifthe situation continues to deteriorate.Giving a report it called realistic, not

alarmist the ILO said that last scenarioof 50 million unemployed would easilymean some 200 million workers, mostlyin developing economies, could be

pushed into extreme poverty.The number of working poor

people who are unable to earn enough tolift themselves and their families abovethe US$2 per person, per day, povertyline, may rise up to 1.4 billion, or 45 %of all the worlds employed.

In 2009, the proportion of peoplein vulnerable employmenteither con-tributing family workers or own-accountworkers who are less likely to benefitfrom safety nets that guard against lossof incomes during economic hardshipcould rise considerably in the worst casescenario to reach a level of 53 % of theemployed population, the report saidrealistically, not trying to be alarmist.

Meanwhile in the Philippines, in

its latest survey, the Social WeatherStations (SWS) reported last May thatunemployment among Filipinos hasrisen to a record high of 34.2 percent.This would translate into 14 millionFilipinos who had no jobs during thefirst three months of the year. Of thatnumber, some 2.9 million had lost their

jobs within the previous three months.Of these 2.9 million, 13 percent volun-tarily left their old jobs, while 12 percentwere retrenched9 percent were laidoff and 3 percent had unrenewed previ-ous contracts.

On the other hand, for contrasts,the National Statistics Office (NSO)survey showed that the unemployment

rate rose by only 7 percent. Although state agency, the integrity and independence of the NSO has yet to be seriouslyimpugned.

The SWS survey on unemploymenwas conducted from February 20 to 23using face-to-face interviews of 1,200adults in Metro Manila, with the balancspread in Luzon, Visayas and MindanaoMargins of error are plus or minus 2.5

percent for national percentages an plus or minus 6 percent for area percentages. The NSO, for its part, had much bigger number of respondents a50,000 individuals.

A third think-tank voice, IBONfoundation, said that the real unem

ployment rate is not 7.7 percent aofficially reported but likely to be aleast 11.2 percent. IBON estimates thasome 2.5% of the working age population 15 years and over should still be

considered part of the labor force, whichimplies an additional 1.5 million jobless on top of the 2.9 million officiallyreportedfor a total of roughly 4.3million. The officially-released figurealready show an increase of 180,000

jobless Filipinos, which was reporteto have reached 2.9 million in the lateslabor force survey. Combined with the6.2 million underemployed, it meanthat there were at least 10.6 millionFilipinos jobless or otherwise lookingfor more work and pay in early 2009

per IBON interpretation.

As many Filipinos are fond osaying these days, whaaateverBetween NSO and IBON, it may bemerely a matter of definition. Whomdo you include in unemployed andunderemployed? Between NSO andSWS it could be additionally a matteof respondent coverage. Among alof them, there is no question: a goodnumber of Filipinos are looking for jobshave been out of a job, have given uplooking, or are precariously hanging onto a dear job.

Is work in the First World drying up?Quite relevant to our job situation ioverseas opportunity. A team of writerfor the Wall Street Journal recently remarked that full migration numbers fomost countries are only available aftea long lag, and so don't yet capture althe effects of today's economic crisisBut anecdotal reports and data fromgovernment ministries and outside organizations already indicate that the flowof immigrants from poor to wealthie

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countries is slowing significantly forthe first time in decades while more

people are returning home. Any sig-nificant number of Filipinos with thesereturneesit would be quite relevant toask. The answer is not yet clear.

Generally, however, it seems to bea fact that the biggest turnaround inmigration flows since the Great Depres-sion has now begun. Unemployment isrising in the Firs t World, and backlashesagainst foreign workers are mounting.Of course, these migratory shifts willhave profound consequences for FirstWorld nations as well, especially in

places where domestic populations

aren't growing fast enough to fill jobsor pay for social needs. And in theThird World countries of migrant origin,remittances sent home by workers arealso slowing, meaning less incomeand potentially, less growth.

The World Bank foresees workerremittances declining by up to 8% thisyear, after rising to $305 billion in2008, or more than double the level of2002. In this area, the Philippine sharehas always been quite significant and

it is still unsettled whether our remit-tances will also decline, following

world trends.Was it not only recently when econ-

omists and policymakers eloquentlyargued that widespread labor movementis a win-win because it boosts opportuni-ties for people from Third World coun-tries while giving First World employersmore options for labor, allowing them toincrease efficiency and keep costs low?That, in turn, can keep inflation in checkand contribute to higher standards ofliving. Can these economists keep up theargument when unemployment surges,income gaps widen and home-grown

workers increasingly view foreignersas competitors for scarce jobs?Given all these, is then the Over-

seasFilipinoWorker uniqueuniquelyskillful and charming? It is an egoistobservation based on the fact that lastyear did not see his deployment declineor his remittances diminish.

According to the BSP Governor:Robust remittance flows have beenshored up by strong overseas demandfor Filipino skills, and the greater avail-

ability of expanded money transferservices to overseas Filipinos and their

beneficiaries. The Philippine OverseasEmployment Administration (POEA)also said that the number of Filipinosdeployed abroad grew by 25.9 percentto 1.005 million last year compared with798,731 the year before. And last yearthey sent home $14.4 billion, equivalentto 10 percent of gross domestic product.This year Manila is projecting remit-tances to exceed $16.4 billion, despitethe crisis which could make the figuredifficult to achieve.

What about FOREX reserves?

The measure of a countrys abilityto service obligations and engage incommercial transactions with the restof the world is called its Gross Interna-tional Reserves. The Philippines GIRregistered a new historic high in May:$39.5 billionkeeping the Philippinessufficiently liquid despite the lingeringglobal economic crunch.

Third World nations like ours havebeen urged to tap the international creditmarket to borrow and support their BOP

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and GIR as the lingering global turmoilis seen creating pressure on their liquid-ity positions. The BSP, however, said thePhilippines need not borrow, noting thatthe countrys foreign exchange liquiditywas still relatively healthy. The GIR inMay was estimated to cover at least sixmonths worth of imports.

The BSP said the gradual revivalof market confidence in the Philippineswas helping increase the amount offoreign portfolio investments enter-ing the country. Increasing inflow ofinvestments in securities and equitiesto the Philippines was partly a reasonthe peso has strengthened somewhatin May than the previous month. Afterhovering mostly in the 48 level, the pesomoved into the 47-to-a-dollar territorylast month.

What about inflation?

Are we in great danger of havingmore and more money chasing fewerand fewer goods? What the monetaryauthorities have said is they expectinflation to hit bottom in the thirdquarter this year and slightly pick up inthe following months to hit an averageof 3.4 percent by the end of the year,within the government's 2.5-4.5 percenttarget in 2009.

Consumer price index rose 3.7percent in May from a year earlier, aReuters poll of 12 economists showed,marking the slowest annual rise since

November 2007 when inflation wasat 3.2 percent. The central bank hadforecast May annual inflation to comein between 3.3-4.2 percent from 4.8

percent in April.Economists said the inflation drop

was due to a stronger currency and baseeffects from rapid increases in commod-ity prices in the same period in 2008.They logically expect the central bankto deliver its sixth consecutive interestrate cut at its next policy meeting on July9 to lift economic growth, and probablymark the end of its current rate easing

cycle that began in December.The BSP policy was to bolster the banking system, instituting measuresto provide liquidity where needed tosupport the functioning of the creditmarkets. Banks were exhorted to con-tinue lending freely and boldlytoshow the public that theres money inour system. It does seem true that theimpact of the global financial crisison the Philippine banking system wasmuted due to its relatively minimal

exposure to the affected financial in-stitutions abroada statement that maynot have been taken as a compliment ayear and a half ago!

What about the real economy?If the news in the banking system

is not all that bad, how bad is it in thereal economy? Are monetary policyresponses to restore confidence in creditmarkets ever enough to mitigate theeffects of the crisis on the economy?The sum of the value of goods pro -duced and services rendered within aneconomy in a given period is generallyconsidered the most common measureof an economy and it is called the GDPor Gross Domestic Product. Economistscite the drop in our GDP growth from7.2 percent to 4.6 percent in 2008.

Moodys Economy.com, the re-search unit of credit-rating firm Moodys

Investors Service, said the Philippineeconomy most likely shrank 1.2 percentin the first three months of the year fromthe last quarter of 2008. They see thefull-year growth at only 2.9 percentslower than the governments officialeconomic growth target of between 3.1and 4.1 percent. The National Economicand Development Authority (NEDA)said earlier the economy needed to grow

by at least 7 percent over several yearsin order to reduce poverty incidence.

Weak external conditions such asthe steep decline in exports outweighed

whatever positive factors the domesticeconomy had during the first threemonths. In the first quarter, exports

plunged 36.8 percent to $7.92 billionyear-on-year. This was due largely tothe decline in exports of electronics,the countrys major dollar earner ac-counting for about half of total exportrevenues.

Coconut oil exports slid 72.6 per-cent in April from a year earlier, markingits 10th consecutive month of decline.The Philippines expects exports of coco-nut oil, which is used in food, cosmetics

and biodiesel, to dip to 835,000 tonsthis year from 847,626 tons in 2008,on soft global demand as well as itsincreasing use as feedstock by local

biodiesel producers. Actual shipmentsslumped to 31,638 tons last April from115,632 tons in April 2008.

Besides the drop in exports, themove of some producers to cut outputsignaled a contraction of the economyon a quarterly basis. Fearful that weakdemand will persist, producers rapidly

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cut back on staffing and investment. Ifinventory levels have not fallen sharply,further production and investment cut-

backs may be forthcoming. The NationalStatistics Office reported recently thatfactory output, measured in terms ofvolume of production, fell at an annualrate of 12.7 percent in March and 20.1

percent in February.

What about our debt burden?It is almost settled doctrine that

the current crisis demands unabashedgovernment spending. But the Philip-

pine government may not have enoughflexibility to shore up spending to alevel necessary to achieve its economic-growth target for the year, set at between3.1 and 4.1 percent. Fitch Ratings,the credit ratings agency, has alreadysaid the government debt, at nearlyP4 trillion, was still high and a drastic

increase in public spending could leadto a worrisome fiscal condition.

The latest is that the economyplunged to a decade-low growth of 0.4percent in the first quarter despite theexpansion in bank lending, and not-withstanding the fact that remittanceflows have held up reasonably well sofar. A steady rise in bank lending shouldsustain, if not accelerate, the growth ofthe economy. Through all that, it seemsit is the high debt burden, along with

possible inflationary pressures, thatsweighing down the fiscal and monetary

policies of the government and affectingthe countrys growth.

Systemic CollapseThe radical economist, Paul L.

Quintos, quite perceptively wrote lastyear that the current global financialcrisiswith the US economy at itsepicenteris merely the latest and so farmost severe in a series of financial crisesthat have erupted since the 1970s.

At the most basic, one finds thecapitalist system itself to be in funda-mental contradiction between social

production which enables great stridesin productivity on one hand, and theprivate ownership of the means of pro-duction which ensures that only a few

profit from production by exploitingthe many. The contradiction inevitablyleads to crises of overproduction rela-tive to the capacity of people to buy the

productive systems commodities andproducts. Before long, real productionthat cannot realize enough profits givesrise to shadow financial products that

enable some to make tons of moneyuntil reality catches up with the shad-ows, derivatives and other profitablemental figments and thereby manifestreal crisis.

Said Quintos: In 1980, the value ofthe world's financial stock was roughlyequal to world GDP, itself bloated. By1993, it was double the size, and by theend of 2005, it had risen to 316%--morethan three times world GDP. Govern-ment and private debt securities ac-counted for more than half of the overallgrowth in the global financial assetsfrom 2000-2004which indicated therole ofleverage or debt in driving this

process. In 2004, daily derivatives trad-ing amounted to $5.7 trillion while thedaily turnover in the foreign exchangemarket was $1.9 trillion. Togetherthey added up to $7.6 trillion in dailyturnover of just two types of portfolio

capital flows, exceeding the annualvalue of global merchandise exports

by $300 billion.While the value of financial assets

is ultimately grounded in the value cre-ated by the working class in the processof production in the real economy andcannot [should not] diverge too far fromit, asset bubbles can form for a periodof time driven by irrational exuber-ance (in the words of Alan Greenspan).The positive expectations of financialspeculators feed on each other, biddingup asset prices in a seemingly end-

less virtuous cycle. But like all ponzischemes, reality eventually takes overand all it takes is one negative develop-ment, e.g. rising home foreclosures, toreverse expectations and send the entirehouse of cards crashing down. Andwe are told that is what happened. Thecapitalist system collapsed.

Yes, capitalism became dysfunc-tional but capitalists now want socialismfor themselves and dump capitalismon the poor. In short, said Quintos,monopoly capital is using the pres-ent crisis to appropriate more of the

peoples (real) wealth, erode and pressdown on wages and social spending,lay off workers, promote precariousemployment, tear up workers rights,clamp down on workers concerted ac-tions and intensify the exploitation ofthe working class.

And it affected the Philippines asearly as last year, said U.P. ProfessorB. Diokno: In 2007, 924,000 new jobswere created; in 2008, the number was

How bad really is Philippine Economy?

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sal "bribe" paid illegally by the companyEnimont to the politicians who had fa-vored it. And the investigations also led

to the IOR, as a concealed intermediaryfor these payments through the fake ac-counts operated by De Bonis.

In the autumn of 1993, the mag-istrates in Milan asked the Vatican, byrogatory, to provide information onthe disputed transactions. The Vaticancomplied by providing the minimumrequired, less than what it had discoveredin its own investigations. Some ofcialswere replaced, the fake accounts were

blocked, and De Bonis did not recover

so much as a lira of the funds depositedin them.

Along with De Bonis, the cardinal

in the Vatican who had been his biggestsupport also left the scene, Jos RosalioCastillo Lara, president of both the APSAand the governorate.

In 1995 Caloia was conrmed foranother ve-year term as president ofthe IOR. And again in 2000. And yetagain in 2006, after a year's extension "adinterim" amid insistent demands that he

be replaced immediately. In the summerof 2006, before leaving the secretariat ofstate to his successor, Tarcisio Bertone,

Beijings new and improvedexecution method, lethal injection

in lieu of bullet in the head

Cardinal Sodano nonetheless restored thepost of "prelate" of the IOR, assigning ito one of his own secretaries, Monsigno

Piero Pioppo.There are still occasional calls foa change at the head of the IOR. BuCaloia, 69, with an English wife and fouchildren, is holding an appointment thalasts until March 14, 2011.

Without a doubt, thanks to him theIOR is getting closermore so than eve

beforeto the of the virtuous bandescribed in the lecture two years agoto the diplomats from the Middle Easand North Africa.

BY the end of this year Chinawill start executing people

by lethal injection ratherthan bullets. Officially thismethod is described as a newand more humane form ofdeath penalty, raising Chinato the level of other modernnations.

In Beijing the authori-ties have built a facility nextto a prison outside the citys

limits that houses most of thecapital's death row inmates. Itis here that lethal injectionswill be performed, the ChinaDaily reported.

In the meantime would- be executioners are beingtrained on how to administerthe injections, and medicalstaff is learning how to super-vise the use of drugs, moni-tor executions and conrmdeaths.

Hu Yunteng, head of theSupreme People's Court'sresearch bureau, said thatlethal injection (legalised in1997) was a cleaner, saferand more convenient way ofexecuting prisoners than theold-fashioned bullet throughthe head.

It is considered more hu-mane as it reduces the crimi-

nals' fear and pain comparedwith gunshot execution, Mr.Hu said.

Last year some 1,700people were executed in main-land China. This represents 70

per cent of the total number ofexecutions world-wide.

However, off-the-recordCommunist Party membershave acknowledged that in

past years up to 10,000 people

have been executed.In late 2006 the SupremePeople's Court resumed the

power to review death sen-tences. This has led to an ap-

parent drop in the number ofexecutions, but overall guresremain a state secret.

At the same time though,human rights activists haveaccused Chinese prison au-thorities of involvement inthe trafcking of organs takenfrom executed prisoners aswell as of carrying out execu-tions la carte according toorgan market demands basedon death row inmates physi-cal traits.

For this reason some peo-ple suspect that execution bylethal injection was adopted inorder to better preserve organsfor sale. (Zenit)

Peter, from page 10

Caritas calls for peacetalks in North Korea

CARITAS is calling for peace talks in North Korea to easethe tensions and to lower the risk of military actions thatwill further endanger the poor.

A press release from Caritas reported today the conclu-sions of a meeting in Beijing about the growing tensions in theregion. After the North Korean government conducted nuclearweapons tests and announced plans to strengthen its arms

programs, U.N. sanctions were imposed on the country.Meeting participants, including Caritas members from

Asia, North America and Europe, called for a denucle-arization of the area and for peace talks to help preventescalation into military action.

The organization asserted that "resorting to armedconfrontation will have devastating consequences for thepoor in North Korea" and will "destabilize the region."

The Caritas secretary general, Lesley-Anne Knight,stated, "Genuine negotiations with concrete outcomes forimproving the daily living conditions of the people arevital steps in reducing the suffering and engaging withNorth Korea to find a solution to this crisis."

She continued, "The desperate situation many NorthKoreans find themselves in needs addressing by the inter-national community."

The agency reported a humanitarian crisis where some8.7 million of the citizens need food assistance, and manyare unable to get any aid.

Knight stated: "A major part of the population ishighly vulnerable, living in a precarious state where basicneeds are not met. They should not be the victims of theirgovernment's provocations." (Zenit)

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down to 530,000. This levelof job generation is unaccept-able for an economy that isexpected to generate between1.0 to 1.5 million new jobsevery year.

According to Diokno, aresponsive jobs creation pro-gram should address five setsof unemployed and underem-

ployed workers: those whoare currently unemployed(2.7 million), those who areunderemployed (6.6 million),those entering the labor force(1 to 1.5 million), those whowill lose their jobs at home,and finally, Filipino overseasworkers who will lose their

jobs abroad.The government, for its

part, unveiled a broad spend-ing program called Philip-

pine Economic ResiliencyPlan (PERP) worth PhP330

billion. It consists of thefollowing:

PhP160 billion in incre-mental government alloca-tions;

PhP100 billion forgovernment corporations,financial institutions and the

private sector; PhP40 billion for cor-

porate and individual incometax breaks; and

PhP30 billion for tem- porary additional benefitsfrom the social security in-stitutionsGovernment Ser-vice Insurance System andSocial Security SystemandPhilhealth.

Some say this stimulus package may not be largeenough to reverse the antici-

pated sharp slowdown of thePhilippine economy. Others

say it may even be grosslyoverstated. To be sure, unless people-powered participa-tion is organized by changeagents of all persuasions, the

plan will be short of detailsand long insub rosa appropri-

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