Category: poverty

The economy grew—so what?

By Mahar Mangahas

A week ago (8/27/2014), Socioeconomic Planning Secretary Arsenio Balisacan was pleased to report that economic growth had accelerated to 6.4 percent/year, adjusted for inflation, in the second quarter of 2014. He touted the Philippines as the second fastest growing economy among major Asian countries, with its growth rate equaling Malaysia’s and topping Indonesia’s 5.1 percent and Thailand’s 0.3 percent.

Some technicalities. How well does economic growth signify betterment of the people’s economic wellbeing? The cited number of 6.4 is specifically the growth rate of the Gross Domestic Product (GDP). It is the aggregate of production and also of income—since value-added in production is also value-earned as income—within Philippine domestic territory, including that of foreign entities based in it.

Read on…

php 4.15 power rate hike – outrageous and obscene

and yet the palace’s first reaction was to defend it — not arbitrary, not unreasonable, it is based on the law.  ah, yes, the Electric Power Industry Reform Act of 2001, the infamous EPIRA that the senate of the eleventh congress passed in the last minutes of the gloria arroyo regime, with the promise that privatization of NAPOCOR would bring down the cost of power to the consumer.

yeah right.  according to a bill filed by senator gringo last year re mindanao’s power problems, when EPIRA became law in june 2001, the retail price per kilowatt hour was php 5.32. in march 2011 it was php 9.84. last month, says boo chanco, it was php 11.06.  the php 4.15 hike would make it php 15.21.  check your last meralco bill and weep.

i’m aghast that the palace made that mistake at all, defending that obscene price hike as though we were talking in centavos rather than pesos in today’s foreign exchange, and as though the department of energy were not remiss in its duties to the public.

mabuti at natauhan sila.  konting damage control, better late than never — coloma pleading that private power companies practice corporate social responsibility, voluntarily desist from passing on costs to consumers, esp in the wake of yolanda, and energy sec jericho petilla promising to investigate and to fearlessly call out the unscrupulous ones, if any, no matter how powerful or powerfully connected. (dec 7 teleradyo with henry omaga diaz)

petilla won many many pogi points when he promised to restore electricity to yolanda-ravaged regions by christmas eve, or he would resign.  on twitter he has been praised to high heavens and a rosy 2016 run-for-whatever-position predicted.  hmm, too soon to tell, even if he’s smooth and simpatiko and all that.  i heard him saying that he does not know how much the restoration will cost, but he will do it, whatever the cost, bahala na.  which is truly nakaka-tense for the visayas.

surely petilla knows that the problem,whether in luzon, visayas, or mindanao, is the EPIRA.  here’s what freedom from debt coalition’s leonor briones said in an open letter to the president in april 2012 when mindanao was gripped by brownouts and higher costs.

Mr. President, the highly flawed policy framework of EPIRA or Electric Power Industry Reform Act is the problem behind the Mindanao power supply issue. This law is designed for big business interests, not for public service. Before EPIRA was passed, the former National Power Corporation was responsible for generating electricity as well as developing power transmission lines. But EPIRA in effect removed this fundamental role of the State. What EPIRA did was to pave the way for private investors to come in and chart the course of generating electric power in our country. This law also gave the control and management of a major pillar of the industry – our national power transmission lines to a foreign State corporation – State Grid of China with Henry Sy’s SM Holdings Corporations as its partner.

In short, the matter of developing electric power supply and management has been left at the mercy of the private sector, an oligopoly of a few big, long-entrenched family/corporate interests.

kung talagang magaling si petilla, and his heart is in the right place, he would champion the repeal of the evil EPIRA and come up with an alternative reform program that would put the public interest on equal footing with business interests.  there has to be a way, an ethical way.  maybe a price ceiling, a profit ceiling, for this essential expense?  how naive of me?  meralco made a net profit of 17B in 2012, a third higher than the previous year, and surely it’s doing even better in 2013.  how about meralco shouldering the costs instead, for a change?  pay back, pay forward.

but wait, meralco says it’s not to blame, it’s only a distributor (really? no power plants?).  what’s gone up in the Wholesale Electricity Spot Market, meralco says, is the generation charge of the power plants producing the electricity.  hmm.  but WESM was devised to encourage competition and keep prices down.  so what is going on?  speculation by the big players?  capitalist greed as usual?  who runs WESM?  who owns the power plants making hay while malampaya is away?  mga tao ba ito?  mga pilipino ba ito?  sino-sino ba itong mga ito na ang titindi kumabig, in billions upon bllions of pesos, wringing hard-earned thousands upon thousands from consumers.  sila mismo, along with meralco, and the rest of the power industry that have been enriching themselves at our expense, ang may kaya at nararapat na magbayad niyang 4.15 na yan.  hindi naman puwede, hindi naman tama, na pass-on na lang sila nang pass-on, lahat na lang ay sa atin sinisingil, to protect, nay, enhance, their profits.

now senator serge is saying that the malampaya fund should be used to subsidize the rate hike.  WHAT? that’s like saying the rate hike is okay, we just need to find the money to pay the power oligarchs.  senator serge should explain instead why they voted yes to the EPIRA in the first place.  he was part of the senate of the 11th congress that gave the final seal of approval in june 2001, along with robert barbers, rodolfo biazon, rene cayetano, anna dominique coseteng, franklin drilon, juan flavier, gregorio honasan, robert jaworski, loren legarda, ramon magsaysay jr., blas ople, tessie aquino oreta, sonny osmena, aquilino pimentel, ramon revilla, miriam santiago, vicente sotto iii, and francisco tatad.  oh and let’s not forget former president gma who pushed for the EPIRA, complete with bribery, it is said.  you wonder what was in it for arroyo.  is she or her family a power industry player too?

ironically, given how unpopular he is these days, enrile was the only senator who said no to the EPIRA in 2001.  and in june 2008 – power rates had risen to php 8.3/kwh in april from php 7.43/kwh in dec 2007 – upon his initiative the senate (14th congress 2007-2010) introduced amendments to the EPIRA to address the perceived weaknesses and clarify the ambiguous provisions in the law.

Juan Ponce Enrile: Seven (7) years ago, Congress passed Republic Act No. 9136 or the Electric Power Industry Reform Act (EPIRA) with the end goal of providing affordable and reliable electricity to consumers in the Philippines. To achieve this goal, the law provided for the restructuring and deregulation of the power industry, however, there were not enough safeguards to prevent power industry players from manipulating the rates and the unabated transfer of the burden of what are properly costs of doing business on to the consumers. [bold mine]

It is in this light that I pushed for the amendments of the EPIRA in order to correct the flaws of the law and to set additional safeguards that will allow the end-users of electricity to enjoy an efficient, reliable, and inexpensive electric power system. (Posted on Facebook)

read More Senators join Enrile in pushing for EPIRA amendmentsMiriam to foreign traders: Explain pro-EPIRA lobbyEpira amendment bill might not pass – VillarSenators scold foreign traders at Epira hearing.  yes, there was, is, a foreign lobby to stop amendments to the EPIRA.  obviously the lobby was successful.

here’s calling out the senators of the 14th congress: villar the husband, enrile, estrada the son, kiko pangilinan, migs zubiri, pimentel the father, angara the father, joker arroyo, rodolfo biazon, the cayetano kids, miriam santiago, chiz escudero, dick gordon, gringo honasan, ping lacson, lito lapid, loren legarda, jamby madrigal, revilla the son, mar roxas, sonny trillanes, and last but certainly not the least, benigno aquino the son, now the president.  you all owe us an explanation for buckling to foreign pressure.  and you all owe us big time for abandoning us to the mercies of a merciless oligarchy.

it’s not as if life is good, the living easy, for the low- and middle-income masses of luzon that depend on meralco for electricity.  if anything, living conditions have gone from bad to worse, with wages remaining low while prices of essential commodities are forever spiralling.  except for the rich and relatively rich, life is harsh, the living a struggle to make ends meet for millions, esp the ones with families, children, to feed, clothe, shelter, and send to school.

life is harsh, the living a struggle, and electricity is the one essential commodity that makes life, the daily grind, bearable.  imagine what life would be like for the masses without electricity.  walang ilaw, walang electric fan, radyo, tv, walang pang-charge ng celfone, (and for the middle class) walang fridge, computer, internet, oven, toaster, plancha, washing machine.  ang dilim.  ang lungkot.  ang bigat.

we won’t die without electricity the way we would die without food and water, but it would be a kind of death, it would be the pits, and many already beg, steal, or borrow, ‘wag lang maputulan ng koryente.  no wonder at all that the news of a php 4.15 (!) price hike, no matter if temporary (malaking IF), no matter if utay-utay ang singil, is driving the masses to tearful, and fearful, desperation.  paano na.  tipid na tipid na nga.  wala nang ihihigpit ang sinturon.

unless the president and the lawmakers get their act together on the EPIRA and bring down the power rate to truly reasonable levels, millions of poor pinoys in the very near future would have to do with even less food and less utilities, maybe no radio, no tv – no entertainment, no escape! – just to keep up payments for a little light, shore up what little dignity they have left, as they struggle, kahig-tuka, to keep body and soul together.

beware the social volcano.
http://getrealphilippines.com/legacy/agr-disagr/8-2-volcano.html
http://business.inquirer.net/8377/philippines-leads-in-income-inequality-in-asean-says-study
http://www.tribune.net.ph/nation/most-pinoys-have-trouble-buying-basic-needs-ibon

 *

10 years of EPIRA: what went wrong?
The curious case of NAPOCOR debts
Power lords
ADB : Anti-Development Bank

 

DAPork, drilon, poverty

on top of PDAF, meron palang DAP.  Disbursement Allocation Program.  heh.  more like Da Additional Pork, huwag nang i-deny.

But Senate President Franklin Drilon said the DAP was primarily a “stimulus fund” meant to address criticisms in the first 18 months of the Aquino administration that economic growth was only half the 7-percent gross domestic product targeted by the government to make any wealth expansion meaningful to a broader base of Filipinos.

Drilon said that the P100-million DAP he received was used to build a convention center and widen roads in Iloilo as part of his home province’s bid to be one of the sites for the Asia-Pacific Economic Conference summit in 2015.

“The issue here is whether the funds were misused or not. I hope the public will listen to our explanation that we did not pocket everything,” he said. [bold mine]

WE DID NOT POCKET EVERYTHING!  ahah!  slip of the tongue?  so you did pocket some of it, yes?  like maybe 50 %? 70 %?

on teleradyo yesterday, vic lima listed the projects that chiz escudero spent his DAPork on, and on that basis pronounced him not-guilty of misusing DAPork.  excuse me, right now all i care to know of every senator and representative regarding PDAF and DAPork is, did s/he or did s/he not get commissions / kickbacks from the agencies and/or contractors concerned?  if yes, how much each time, and how much all in all over time?  what did s/he do with the money?  break it down, please.

it doesn’t matter what abigail valte is saying right now on live tv, that DAP is not pork.  what matters is that the senators thought it was pork, and they spent it like it was pork.  GOOD JOB, GUYS.

the bottom line is, we have yet to hear any porker senator or representative speaking up and saying s/he has or has not received any kickback / commission from his / her PDAF or DAPork.  so drilon’s “we did not pocket everything,” slip of the tongue or not, is quite a gem to be treasured.  at last, meron nang umamin, kahit pa hindi sinasadya ang pag-amin, kahit tila nadulas lang, puwedeng puwede na rin.

meanwhile, i imagine it’s all very busy behind the scenes for the entire network of porkers, trying to clean up acts that go back a long way, maybe even cleaning out bank accounts, holding fire sales, antedating documents, but quietly, quietly… because walls, and celfones, have ears.

meanwhile, senate prez drilon seems to think that giving up their PDAF will be enough to placate the public.

“While an actual vote has yet to be officially taken, a majority of our senators, myself included, have publicly declared that we will do away with our PDAF allocations in 2014 in response to the people cry for change,” Drilon said.

“There is no turning back as far as the pork barrel system is concerned. We have to institute these reforms in order to regain our people’s trust and conference,” he said.

if that’s trust and confidence (huy, inquirer!), the only thing that would bring back our trust and confidence in you, mr. drilon, would be if you set the example and voluntarily released for public consumption a fully documented accounting of how you spent your pork barrel from 1995 to 2007, and from 2010 to 2013, and how much went back to you as kickbacks / commissions — no doctoring, please, warts and all — and maybe your resignation as senator, unless of course you change your mind and allow napoles to testify in the senate, take the people’s side in this struggle for good governance, atbp., let the chips fall where they may.  but napoles or not, resign or not, you’d have to give back the money, of course, deducting only what expenses you can justify to the people.

the most depressing thing about the DAP exposey really is not that it distracts from the PDAF issue — because it does not, they are of a piece — but that it confirms yet again the saddest shortcoming of the aquino admin, i.e., the lack of a vision for nation, and therefore the lack of a development strategy, and a concerted effort, to achieve that vision.

asked at a presscon why the savings, the DAP fund of some 72 billion bucks, did not go instead toward poverty alleviation measures, da abigail replied, but there is so much criticism of the conditional cash transfer, referring to DSWD sec soliman’s dole-outs to the poorest of the poor.  ahahaha.  talagang yun na pala yon, next to trying to attract foreign investors to provide jobs.  so pyestang pyesta lang the government agencies and members of the senate and house of reps who are free to decide what infra to ramp up spending on, the faster the better, kanya-kanyang diskarte, in the name of “priority development assistance.”

in the context of worsening poverty countrywide, the question is, what development, and for whom?

pork barrel, corruption, poverty (updated)

 “The President has said that PDAF is the share of the people … In theory, PDAF is really a good thing.” 

that’s abigail valte speaking for the prez (i wonder who fed her those lines).  and here’s senator chiz saying the same thing in other words:

“The PDAF system is a way to listen to the opinion of those on the ground – what each district and barangay needs and not just dictated by the secretary (of the various departments).

but but but, clearly, the benefits of the pork barrel that the people get to share in, aside from dole-outs and scholarships for the relatively few lucky ones, are quickie projects without longterm impact on the people’s economic well-being.  read interaksyon.com‘s analysis: From waiting sheds to roads leading nowhere, pork barrel leaves trail of waste 

Human Development Network Foundation coordinator Toby Monsod said pork barrel has created the “divide-by-N” syndrome.

“The divide-by-N syndrome is the mechanical and feckless dissipation of government funds across localities instead of their rational allocation to where these might have the most impact,” Monsod said on the sidelines of yesterday’s launch of the 2012/2013 Philippine Human Development Report.

Among such wasteful uses of public funds are the construction of countless bridges that lead to nowhere, dirt roads interrupted by occasional concrete paving and half-roofed schools, she said.

…”The congressman will always give pork barrel to something that they can see immediately, and people can say ‘thank you,'” Monsod said.

“In other words, the projects become segmented in that sense. For example, if you have P100 million, you can build a strategic road connecting two municipalities. But if you have to divide it up between 20 mayors, it becomes P5 million per mayor. What you have is welcome arches all over the place,” she said.

…The latest Philippine Human Development Report cited the country’s 87 airports, many of which are within two hours away from each other. The report also pointed to 140 seaports, 40 of which hardly have any traffic.

“This results in an annual allocation of maintenance funds so spread out as to be ridiculously small,” the report said.

“The consequence is you give up projects, you give up connective infrastructure and other interventions that have … spillover effects, have longer term benefits. That’s the consequence. So if you want to keep the pork barrel, this is what you’re giving up,” Monsod said.

indeed.  it should be obvious by now, into the pork barrel’s third decade post-EDSA, that whatever they call it — countrywide development fund, congressional initiative allocation, or priority development assistance fund — pork barrel by any other name stinks just as bad.

it should be obvious by now, even to the president’s fanclub, that the pork barrel scheme is an epic failure as aid to national development.  whether it’s the president’s or the senators’ and reps’ pork barrel, it’s spent mostly just for show and short-term gratification of constituents, and such an extravagant show at that, in aid of papogi points for the next elections.

even if there were no bolanteses or napoleses, even if no one were diverting the monies into ghost ngos or sticky legislative pockets and private bank accounts and ritzy condos and grand mansions here and abroad, palpak pa rin ang pork barrel as “share of the people” because it is a scatter-brained disorganized affair that encourages corruption while failing to address the people’s long-term needs.

the senators and congressment addicted to pork could say, of course, that long-term development isn’t their mandate, after all,but the president’s.  and they do need funds to dole out to poor constitutents who are forever asking for help pang-ospital at panlibing, pangmatrikula at pantawid.  but really, magkano ba ang napupunta sa ganitong gastusin?  surely just a small fraction of the 70 M that each rep gets, and even a smaller fraction of the 200 M that a senator gets, EVERY YEAR.

take note: in cory’s time

With an initial funding of P2.3 billion, the CDF was supposedly designed to support small local infrastructure and other priority community projects, which were not included in the national infrastructure program of massive and expensive projects.

… each lawmaker was assigned P12.5 million of CDF every year. In succeeding years, the amount grew steadily as “special purpose funds” and insertions in the budgets of executive departments and agencies started to creep into the national budget. At the time, legislators drew amounts for their pet projects from at least five different sources of pork barrel allocations.

The first of these funds is the School Building Fund, which was originally part of the budget of the Department of Education, Culture, and Sports (DECS, now the Department of Education or DepEd). Created in 1995, the School Building Fund allowed each legislator access to P4.5 million a year, supposedly for the construction of school buildings in his or her district.

and then in fvr’s time:

In 1995, each legislator was also allotted P500,000 for the construction of farm-to-market roads, using funds from the budget of the Department of Agriculture (DA)

In addition, the legislators also allotted themselves P30 million each per year from the Public Works Fund (PWF).

Each lawmaker also had at least P15 million in Congressional Initiative Allocation (CIA) every year.

CIAs are budget items incorporated in allocations for various agencies over which legislators exercised the power to direct, how, where, and when these amounts were to be disbursed. Most of these funds were inserted in the budgets of DepEd, the Department of Public Works and Highways (DPWH), the Department of the Interior and Local Government (DILG), and the Department of Health (DOH).

Parreño wrote that the higher the rank of the legislator, the bigger the CIAs he could get. Senior committee chairpersons, for instance, could then draw up to P100 million per year in CIAs, he added.

and then in erap’s time:

In the year 2000, the CDF morphed into what is now known as the Priority Development Assistance Fund or PDAF. Under the PDAF system, each district and party-list representative gets P70 million a year, while each of the 24 senators, P200 million a year, of pork allocations.

House members may spend a maximum of P30 million on “soft” projects (education, health, and other social services projects), and the remaining P40 million, on “hard” or infrastructure projects. The senators, meanwhile, may spend P100 million on soft projects, and another P100 million on hard projects.

tama naman si miriam, we voted them into congress to craft laws and serve as check and balance to the executive and judicial branches.  what business do they have with roads and bridges at kung anu-ano pang infrastrucutre na madalas ay sub-standard naman ang kalidad dahil nga napupunta sa mga komisyon ang mas malaking bahagi ng pondo?

and take note how the PDAF has grown by leaps and bounds from arroyo’s time to aquino’s now.  here is agham.org‘s compilation based on data from the dept of budget and management website:

PDAF through the years
2008      7,892,500,000.00       7.89 B
2009      9,665,027,000.00       9.67 B
2010     10,861,211,000.00      10.86 B
2011     24,620,000,000.00     24.62 B
2012     24,890,000,000.00     24.89 B
2013     24,790,000,000.00     24.79 B
2014     27,000,000,000.00     25.2 B

and what about presidential pork?  read ‘President has P1-trillion pork barrel,’ or so former national treasurer leonor briones and bayan muna partylist rep neri colmenares reportedly suspect, based on the palace’s proposed 2.6 T budget for 2014 that’s more than 500 B larger than the 2013 budget of 2.06 T.

such gargantuan amounts for spending and nothing to show for it other than a people increasing in number and in poverty, and, worse, a national debt that has ballooned to P5.325 trillion ($129.2 billion), rising by some P400 B per year since 2010.

this is not to say that it’s because of the pork barrel alone that we remain a poor undeveloped basket-case of a third world country.  rather, it’s because the larger development strategy, i.e, the import-dependent export-oriented development program imposed on us since the foreign-debt crisis in marcos times, administration after administration, simply doesn’t work, the benefits do not trickle down, have never trickled down, to the masses.  yumayaman lang lalo ang mayayaman na, forget “inclusive growth.”   and this is where, i suppose, the pork barrel scheme comes in, the president’s as well as the legislature’s, as compensatory mechanisms?  while waiting kuno for the benefits to trickle down to the poor, pork barrel na lang muna, sabay conditional cash transfers at kung ano-ano pang dole-out gimmicks?

what a waste of good money.  what if, instead, the president channelled all that cash into an economic development program inspired by the vision of a sustainable, modern and diversified, domestic industrial economy.  read giovanni tapang’s National industrialization is not passe:

Having a sound industrial policy that focuses on modernizing agriculture and shoring up our capability to locally produce capital goods is key to the establishment of a modern and diversified industrial economy. We need to build, among others, our own base metals industry, chemical industries, machinery manufacturing, pharmaceuticals, electronics, industries for food processing, textile, garment, mass housing and agricultural commodities. Having these built here in the country would not only address the problem of producing our basic needs but would also secure jobs for many so that they will stay home instead of going abroad.

The objective of building these industries is to maximize self-sufficiency in the local industrial production of capital, provide intermediate and consumer goods for domestic needs and to ensure food security and self-sufficiency in the country. In generating and mobilizing domestic capital, we create real jobs and ensure rapid and sustained economic growth.

National industrialization is the opposite of the current pattern of production, investments and trade where it is the export of extractive raw materials and agricultural products that is a primary activity in the country. In turn, we import most of the things that we need as finished goods as well as agricultural commodities and capital. Local value added is usually only on labor done in reassembly or repackaging of manufactures for export most of which have a very large import component.

The large service sector and the ever growing number of overseas Filipino workers signal the urgency of our need to build domestic industries in order to stem unemployment. Manufacturing is as small as it was in the 1950s in terms of percentage at slightly less than a quarter of the total economy while services rose to its current levels of nearly 50 percent of GDP. In this sense, the need for national industrialization is really decades old. This historical need does not make it passe, it only makes it more urgent.

alas, the powerful ones that we elected into office are obviously, yet again, not up to the challenge.  we really should all level up, choose more intelligently next time around.  a senate investigation of the pork barrel scam should help enormously, especially if it’s televised.  says conrado de quiros   :

… televised congressional hearings and impeachments are an education unto themselves. The Erap impeachment, which had the deepest impact on public consciousness, shows just how deep that can be. For the first time, people began talking like lawyers. For the first time, the citizens got to have an appreciation of law, not as lokohan but as an instrument of justice. Unfortunately, Gloria replaced Erap and that education swiftly unraveled, the lessons went for nothing. What lessons may be imparted by a televised hearing of the pork scam can always be conserved, strengthened, and promoted, over the next three years. P-Noy will still be president then.

Particularly today, with the Internet, cellphones, the social media, and other instruments of rapid and mass communication, the prospects for the public weighing in on the hearings multiply tenfold. I repeat my proposition yesterday: Government alone cannot stop corruption, it needs the public to help in it. It needs the outrage of the people to stop it. It needs the fury of the people to stop it. It needs the condemnation of the corrupt by the people to stop it. It needs the people marching in the streets, or its modern equivalent in Facebook, text messages, and blogs, shouting at the top of their voices, “Tama na, sobra na, tigilan na,” to stop it.

Alongside an ardent campaign launched by government or civil society, or both, to make people realize that taxes are their money, that the corrupt are kawatan, no more and no less than pickpockets and snatchers, that corruption is in fact stealing from them, who knows? Maybe that televised hearing can rouse enough public interest and indignation to spark a cultural upheaval. That’s what an education is.

hear, hear!