Especially significant in 2006 is how the Arroyo administration entered into the countrys first full-fledged free trade agreement (FTA) with Japan: the Japan-Philippines Economic Partnership Agreement (JPEPA). The JPEPA is a patently unequal deal that one-sidedly demands much greater trade and investment liberalization from the backward pre-industrial Philippines than advanced capitalist Japan makes. The unprecedented deal also gravely undermines the countrys negotiating position in all subsequent trade and investment agreements. The end result of the JPEPA and other such agreements will be to decisively prevent any real domestic industrial growth and economic progress.
The closing weeks of 2006 finally also saw the Arroyo administrations attempts to overhaul the 1987 Constitution including, aside from changes in the political set-up, removing various economic sovereignty provisions for developing the domestic economy. Among others these provisions include controls on foreign equity investments, exploitation of natural resources and land ownership and provisions promoting Filipino economic activity.
Challenges in 2007
The deteriorating social conditions of joblessness, hunger and poverty IBONs last October 2006 survey had over 70 percent of respondents rating themselves as poor are the sharpest rebuttal of any government economic hype. Administration propaganda one-sidedly presents growth, peso appreciation, lower public deficits and foreign investments as if these were development ends in themselves. Similarly, the usual government argument that the fiscal sacrifices are short-term pain for long-term gain is specious considering that the fiscal squeeze is precisely aimed at furthering the administrations bankrupt neoliberal agenda. As it is, the New Year will already open with further privatization-driven water and power rate hikes.
In her speech at the 28th Catholic Mass Media Awards (CMMA) ceremonies in November, Pres. Arroyo dreamily said, So much is going well in the Philippines I hope to leave office in 2010 with the nation well on its way to First World status. Yet, clearly, little is going well for the majority of Filipinos. It is entirely understandable that many will probably think that the three years until 2010 is too long and, equally understandably, do their utmost to ensure that she leaves office as early as possible before then. IBON Foundation
[tags]davao today, philippines, philippine economy, economy, arroyo, president arroyo, gloria macapagal-arroyo, unemployment[/tags]
2006: Davao Today's Year-End Series
