The latest investment upgrade for the Philippines does not reflect the real situation of the countrys economy, According to IBON, unchanged poverty levels and continued high joblessness into the third quarter of 2013, as well as the continuous unravelling of the pork barrel controversy in the country, belies the Philippines supposed title as Asias fastest growing economy. The research group also added that the Aquino governments maintenance of hundreds of billions of pesos in discretionary funds which continues to stir public disgust affirms how patronage-driven governance remains from the lowest up to the highest level of the presidency. According to the group, this disproves the administrations claim that good governance is good economics and results in benefits for the country. For instance, the Disbursement Acceleration Program (DAP) under the present government, with a reported release of Php137.3 billion in 2011 and 2012, is an instance of presidential pork barrel and abuse of executive power, Credit rating firm Moodys Investor Service upgraded the country to Baa3, a notch higher than its previous Ba1 rating, and an improvement to Standard and Poors BBB- rating. It supposedly reflects the countrys improved capacity to service its debts due to sound economic policies. IBON however reiterated that as with previous credit ratings, the upgrade by Moodys cannot be taken as an indicator of an improving economy. Historically, the country has obtained credit upgrades amid rising unemployment, poverty incidence and social unrest, the research group noted. The real situation of the economy points to the urgency of pouring efforts to economic development where it matters, the research group said, meaning a real thoroughgoing agrarian reform, agricultural development and building local industries which will push the economy upward. IBON added that this requires a government with a bias for the interests of the people and strong political will rather than one that caters to profits and elite interests.
Posted on: Sat, 19 Oct 2013 11:00:43 +0000
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