Noy’s grumblings answered
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Eminent columnist William Pesek has something to tell Noynoy about his periodic tantrums on his supposed achievements in spurring growth in the economy not getting the appropriate media space.
If a local critic says that, which incidentally does say so, such would be dismissed by Noynoy and his Palace boys as “sour-graping.”
In gist, Pesek said these supposed achievements in the economy have no meaning unless the poor are actually benefiting from it.
Incidentally, the quarter before Noynoy took over had much higher growth rate. It was during his quarter and half term that the economic growth contracted.
Pesek noted that despite a seven percent growth, political stability, healthy banks and a narrowing budget deficit, the Philippines is still not shaking off its credibility lack in the international market, thus its persistent junk-bond status among credit rating agencies.
“If President Benigno Aquino wonders why the Philippines is not shaking its junk-bond status, a visit to the local supermarket may set him straight,” Pesek said in his column in a prominent business magazine.
Food prices, he noted, are surging and pushing more Filipinos into extreme poverty, which he said is the kind where they live on less than $1.25 a day.
Similarly, the Asian Development Bank in a recent study said 64 million more Asians may sink into poverty this year as a result of rising prices that it said would likely offset growth in the economies of the region.
The economic managers of Noynoy have been on overseas tours to court investments and at the same time persuade a possible upgrade in the country’s investment ratings which is crucial in determining the success or failure of such persuasion tours.
Pesek poses this question: What good is rapid growth if it is not getting to the neediest segments of the population?
He noted the Philippines, apparently referring to the administration of Noynoy, has yet to deal with this question in a meaningful way.
The recent inflation figures bear out Pesek’s assessment. The figures on price increases were the highest for a year at 4.5 percent in April.
The inflation upswing was the result of increases in the cost of transportation and communication services and fuel prices. Electricity rates were also up during the month and so were the cost of basic commodities such as meat, fruits and vegetables.
A 4.5 percent increase in prices negates a similar growth figure in the economy, meaning that the supposed increase in output which is usually measured in value rather than volume, was more likely the result of higher prices rather than an increase in production.
Several annual reviews on the corruption level in the country, that of the Hong Kong-based Political and Economic Risk Consultancy and the recent Global Integrity Report all pointed to worsening perception of corruption in the country despite Noynoy’s regular lip service on eradicating graft in government.
The problem lies basically in his failure to match fighting words with action in removing those in government perceived abusing their positions when they are considered allies.
Pesek said poverty and corruption have credit-raters wondering if the nation is ready for prime time.
This poses a basic question on the capability of Noynoy to convince rating firms that indeed his administration has made the right moves to warrant an upgrade aside from engaging in mostly talks and promises about what his administration will do.
Similarly, it would require his ability to translate economic gains into improvement in the livelihood among the poor.
Thus far, Noynoy has not shown any signs that such quality exists in him.
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