Tag Archives: IMF

World Bank eyes RP as Asia’s begging capital

By Gerry Albert Corpuz, Bb. Tayuman Recto-Yap and Akihira Tatchu

MANILA, Philippines- The plan of the Brettonwoods institution to support the direct cash assistance fund to millions of impoverished Filipinos through an increased fresh loan to Manila government sparked protest from a Philippine group highly critical of the World Bank (WB) and the International Monetary Fund (IMF). The leftist fisherfolk alliance Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (Pamalakaya) on Sunday assailed WB over its recent move to double its assistance in the country for 2011 so the national government could fund its conditional cash transfer (CCT) program to poor Filipinos. Impressed by the Philippine government’s initiatives on good governance, WB country director Bert Hofman last Friday said WB will increase the current overall assistance to the Philippines from $ 630 million to $ 1.3 B in total assistance to the administration of President Benigno Simeon Aquino III.Hofman said the aid increase was approved last week at the annual meeting of the WB and International Monetary Fund (IMF)with the Philippines economic team.

In 2007, the WB approved a five year support to CCT with $ 400 million loan as funding support for 2008 as launched by the Department of Social Welfare and Development (DSWD) then under President Gloria Macapagal- Arroyo administration. This year, Congress passed the national budget for 2011, allotting P 21 B for CCT, an increase of P 9 billion compared to last year. The P 21 B for CCT elicited protest from 100 congressmen.

But Pamalakaya national chair Fernando Hicap said the increase in aid assistance merely suits the political agenda of WB-IMF to turn millions of Filipino poor into beggars and mendicants, transform them into passive political entities highly allergic or hostile to politics of change in the country.

“The WB-IMF supports the CCT program because it sees it as a socio-political instrument that would convert this nation of over 90 million starving Filipinos into a Republic of mendicants and beggars rather than into a progressive nation with critical thinking and struggling people fighting for land, jobs, rights and justice.The increase in assistance with the purpose of supporting the CCT program is mainly a counter-insurgency program in form and in substance,” Hicap explained.

“The WB-IMF backed CCT program is also counter-productive in the sense that it does not create jobs and does not transform people into productive citizens but helpless folks begging for alms,” the Pamalakaya leader added.

The WB country director said the initiatives of the Aquino administration for poverty alleviation were doing well for target beneficiaries and that transparency under the new government made them more comfortable to provide additional assistance to Aquino government.

“It is business as usual for IMF-WB. It will lure the Aquino administration enter into another cycle of debt trap and national death bed due to debt. Behind the triple platinum debt offer of this US-led financial monster is the cruel intention of IMF-WB to get involved in Jurassic public-private partnership (PPPs) economic escapade of the Aquino administration,” said Pamalakaya.

The militant group also slammed the Philippine officials who signed the deal with IMF-WB during a meeting in Washington D.C. Pamalakaya said Finance Secretary Cesar Purisima, Budget and management SecretaryFlorencio Abad and Socio-Economic planning secretary Cayetano Paderanga Jr. should be condemned to the highest order for what the group called a millennium sell out of the national economy.

“These officials of Noynoy Aquino committed one of the major blunders in the 21st century when they offered the Philippines at the altar of IMF-WB millennium exploitation.They should be remembered in history as modern-day traitors along with President Aquino for undertaking this sell out of national patrimony and grand scam denationalization and privatization of national economy,” said Pamalakaya.

According to Pamalakaya, the IMF-WB aside from raking super profits from interest on loans, would also take part in highly profitable business in the country including but not limited to the expansion of Light Railway Transit system, the improvement of sewerage system of Maynilad and Manila Water.

The militant group said IMF-WB also wants to facilitate PPPs in tourism, food supply chain, construction of airports and other road networks, mass transport, national highways, water, power and other utilities.

Pamalakaya said the P 18.7 B Laguna Lake Dredging Project in Laguna de Bay was one of the PPPs approved by the Arroyo government prior to the May 2010 elections.The group said the project is between the Philippine government and the Fortis Bank of Belgium, which is a private commercial bank based in Brussels. It said around 400,000 lake families or roughly 2 million people in Laguna Lake will be displaced by the Laguna Lake dredging project #

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Incoming Philippine President urged to suspend debt payment

By Gerry Albert Corpuz and Mimaropa France

MANILA, Philippines- Anti-debt activists belonging to the fisherfolk alliance Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (Pamalakaya) on Saturday challenged leading presidential candidate Sen. Benigno Simeon “Noynoy” Aquino III to radically overturn the decision of the 14th Congress to allot P 726.63 billion for debt servicing this year.

“We strongly recommend to the incoming Yellow Republic in Malacanang to scrap the P 726 billion budget for debt servicing earmarked by his predecessor President Gloria Macapagal-Arroyo to the inglorious money market bastards and corporate financial gangsters of International Monetary Fund and World Bank,” said Pamalakaya national chair Fernando Hicap in a press statement.

The Pamalakaya leader added: “Mr. Aquino and the recycled Hyatt 10 economic managers can do that in their first 100 days in office. That can be done without much fanfare. We hope Noynoy and his self-proclaimed economic experts will face these all time money laundering giants and pursue the collective interest of the Filipino people”.

“Billions of pesos of hard-earned taxes by the 94 million taxpaying Filipinos go to payment of debts incurred by all time financial monopolies, business syndicates, money market gangs and bureaucrat capitalists. Aquino is hereby tasked to stop this modern day financial oligarchy and slavery,” said Hicap.

The Pamalakaya official advised Aquino to issue a marching order to Senate and the House of Representatives suspending debt payment this year. Hicap said Aquino can put to task the 23 senators of the Philippine Senate and the 270 members of the House of Representatives to review the approved 2010 national budget, and in aid of legislation passed a joint resolution suspending debt payment for 2010.

Pamalakaya said the next thing Mr.Aquino should do is to call Congress to amend if not repeal the automatic 40 percent appropriation to debt servicing as enshrined in the General Appropriations Act to empower Congress and the Office of the President to pursue the budget in accordance with public interest and opposed to the financial interest of foreign creditors and big financial groups here and abroad.

The militant group also learned the Philippine government is posed to allocate some P 829.41 B for debt servicing, which is P 102.78 B or 13.7 percent higher from this year budget for debt payment. Pamalakaya said of the P 829-B debt budget set aside for next year’s debt servicing program, P 367.28 B will go to interest payment, P 40.55 billion higher compared to 2010’s P 326.73 B.

The Bureau of Treasury said principal payment will reach P462.13 billion next year, 15.6 percent above the current year’s allocation of P399.9 billion. Of the total debt, treasury officials said P1.954 trillion was loaned from foreign creditors while P2.403 trillion was sourced from domestic creditors.

On the other hand, the Department of Finance (DoF) said the country’s total debt for 2010 would reach P4.83 trillion, higher than the previous forecast of P4.723 trillion. #

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