Philippine Economy Expands 6.9%, The Poor Are Still Poor.
The story in the news today, as well as coming from the Malacañang spin-doctors is that the economy has grown and is “on a roll”.
In the Inquirer,
MANILA, Philippines — The Philippine economy surged 6.9 percent in the first quarter of the year from the same period in 2006, way above expectations, prompting officials to declare that the country was no longer a laggard in Asia.
Low inflation, a strong peso, government’s pump-priming activities and preparations for the elections pushed gross domestic product (GDP) growth to its highest level since 1990, the National Statistical Coordination Board reported Thursday.
And Manuel does another fine job looking at just where this growth is coming from,
Where is all the money being made, I asked. He said, in real estate. Look at the stock market, he pointed out. The property holdings companies are driving the stock market boom. But there isn’t a corresponding boom in consumption, he added. If there was growth in consumption, he clarified, the stock of Jollibee would be leading the market. And it’s not.
And finally, my thoughts on the champagne popping party coming from Malacañang because of this news,
The Macro Economic outlook in terms of interest rates, deficit, and other indicators may be up, and I for one am very happy to see this great improvement, but let’s not forget, that the Macro economic indicators do not always put food on the table for those who need it most.
For everyone to take advantage of this great economic improvement, the government still has to work in its infrastructure, health programs, education programs, and overall government oversight, so that the governments funds goes to those who need it most.
I mean, you tell a street-child the percentage 6.9% and he’ll ask you one thing, does that mean food for me?
In other words, look at the sectors that are representative of this growth, and you will soon realize that all sectors of society don’t necessarily see this increase, only the those entities that are responsible and related for this growth actually see the fruits of its labor.
In the words of Robert Kiyosaki, a man I don’t necessarily agree with many times, The rich are getting richer and the poor are getting poorer.
It’s like a room full of millionaires and billionaires. You look at the overall worth of the room itself, and you say to yourself, “wow the whole of this group is doing well.” Then what if you let in some homeless people in that room, the value in that room remains the same. But when a situation takes place where either a one of the men grow in net worth, or some rich guy comes into the room, the value suddenly increases. That doesn’t mean that the the poor homeless people in that room are better off than before the increase in value took place.
What I’m saying is that the whole of the economy doesn’t always mean that the poor of the nation are enjoying that increase. For this to happen, the increase in value must be utilized in such a way that the wealth trickles down do the poor of that nation. Until this happens, I’m happy that the economy is doing well, but don’t shove it down my throat and tell me to jump with joy.
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Give Gloria a little credit! The economy is doing good under Gloria, you guys just don’t want to admit it.
I think you’re right regarding the economic increase and that not everyone really feels this increase. Kita ko nga everyday, when coming home from work, all the street people. They don’t know what 6.9% will mean to them.
Hindiakopinoy I think that Gloria is ok with her economic plans, but seeing all the good coming from our overseas filipino workers, I think she can do more. As nick says, maganda talaga ang economic increase na ito, pero dapat e-sustain and dapat ma feel ang mga kababayan natin. At this point, only the rich and maybe middle class feel this economic increase, and in the end, indicator lang naman ito. What is important is that we can sustain this growth and that we develop our programs free from corruption so that this wealth will be felt by those who are in poverty.
Barbie oh sweet barbie, it’s as if you want the whole Philippines to change over night. This is a great achievement for the economy yet you can’t see it for what it is, and that it is a great step forward for our economy.
All you Gloria haters out there just hate it when she does something good. Face it, if anyone else were president, say Fernando Po you would not see this kind of economy. This is just the start if only you people would let her do her job and stop destablizing her government.
HindiAkoPinoy, Who the hell are you to call me sweet barbie, go F$#@ off! Keep on glorifying this idol of yours because you may just become a Comelec official like your other idols, Bedol and Abalos. You see the headlines, and all the flowery words coming from Malacanang and believe all the crap.
Kaya hindi tayo naguunlad, palagi nalang sumusunod parang aso, at hindi kinikwestyon ang mga ginagawa ng mga opisyals natin.
Whatever gets you to sleep I guess. But don’t just read the headlines and believe what Gloria is saying, look at the numbers and as nick says, look at the sectors, and you will see that not everyone is doing so good.
don’t call me sweet barbie again!
Do you know how to make poor rich?
We’ve been seeing good signs in our economy and yet your still spewing doom.
For godsake can you please be more constructive.
The poor will be poor if they let it to be.
Life is what we make it!
Barbie’s “They don’t know what 6.9% will mean to them.”
That 6.9% is reserved for the most part for big business.
You might feel it but if big business and the 800 big players of the Philippine Stock Market export their gains, there’s no way the poor will feel the 6.9%.
That’s the biggest problem Pinas has - the OFWs send money home for their families and make the rich grow richer when their families back home buy into the rich/richer/big business business concerns - but the profit these big businesses make goes abroad.
It’s all very well and good to announce a hugely superficial 6.9% increase but if taxes aren’t paid by those who make the money, you will have the same problems - there will be no increase in health, education, road infrastructures, etc. in the end, there’s no change in living standard for the poor.
The poor still needs to eat their 3 meals a day, they need health care, they need right education infrastructure for their children and the right to live in an orderly society or I don’t believe the 6.9% is making that possible.
A spin, that’s what it is, just a spin for the poor at the end of the day!
Question to ask really is: WHERE’S ALL THAT MONEY GOING?
@Mark,
Thank you for the comment, I’m not spewing doom here, in fact I recognize that the increase in economy is great news, but if we take to heart everything that comes out of Malacañang, then we wouldn’t be doing our job in separating fact from pure spin.
The fact is, that it’s important for us to realize that the increase, as I’ve said before, must also be made with concurrent strengthening of micro-economic factors in society so that the poor can also take part in this growth.
We’re not spewing doom and gloom, we’re trying to get the government and people to realize how we can make this increase actually help the poor, and for people to also realize that this increase must be sustained and spread into other sectors of the government.
Doom and gloom would entail a sense of indifference. On the contrary, we’re passionate about our nation, so much so that we decide to devote so much time writing about the issues…
Barbie I’m sorry for that, I didn’t mean in that way. It’s just that sometimes, we need to enjoy the good news at least for a second or two before we analyze to death the meaning of such good news. I don’t disagree that we may need to still concentrate on actually helping the poor, heck I’m all for it, I’m poor myself. But we also need to take good news when it comes.
I appreciate your concern regarding the inaccessibility of government to the people. Indeed, the question that you pose is an excellent one, does growth in GDP mean that the poor can eat?
The growth and ‘richness’ of the Philippines of course is not simply measured by economic growth but access to services, ability to exercise democratic citizenship, access to public education, environmental justice and myriad other factors.
The concern that I sense from the comments from your post is one , which seeks to focus on the overall picture of Philippine society. Filipinos after all (near or far), are also accountable to the well-being of our native land.
Love the blog!
hey hindiakopinoy,
you are so right!!! can’t we take the time and enjoy the news that the economy actually grew at a respectable rate? why do we filipinos love to shoot down any bit of good news…one quarter does not a first world country make…it will take many quarters of having a responsible, economy-minded government like what we have right now and even more importantly the general population realizing that it is in everyone’s little contribution that a strong, vibrant, growing economy is formed. we just have to think more of what is the best way we can contribute…me, i just work, send money home, and when im home i tip the taxi driver a little bit more and spread good cheer…
GLORIA ARROYO LIAR…………
THE PHILIPPINE ECONOMY IS NOT REALLY IMPROVING gloria macapagal arroyo LIAR!
Let me talk about the problem I the South East Asian Nation, particularly Philippines! Even though I am not there, even though I am very far but I could not forget I grew up from such paradise like tropical Islands of Philippines. When I watch TV, I hate and I do really hate for boasting leaders out there now. Especially Gloria macapagal arroyo. She keeps boasting that the Philippine Economy is doing well and improving as her basis is the US Dollar is lower and the Philippine Peso ‘s currency revaluation. Hey! She advertised her collegiate course as Bachelor of Science in Economics but she is “NO HOW” do you know why? The truth is this! The Philippine economy is not improving. If she will base on the strengthening of Peso compare to US Dollar, it is not the only basis. Only, the US Dollar is getting low in the world market and because of it, if we will look at the exchange rate the peso looks moving up. She must have to think of that the currency revaluation and devaluation are not the only factor of economic progress. My point is this! If the Philippine Peso revaluating inspite of Strong US Dollar and the GDP of the Philippines is increasing as well, then that’s the point we could say that the Philippines economy is improving. If the US Dollar devaluates compare to the currency of the world markets because of low economy then it would not be the basis of revaluating the currency in the other country as their economic improvement.
Look! People in the Philippines are complaining of oil price hike! The oil price in the world market is getting high. If the Philippine economy is getting better then Filipinos won’t suffer from economic crisis anymore but because only at the end of the tongue of Gloria arroyo boating Philippine economy is improving then only her tongue feeds up and full but the people is still hungry. The oil in the world market is priced as US Dollar that’s why when UD Dollar devaluates, of course the oil producers must have to increase the price because the US Dollar value is very low. If the Philippine Economy is improving they would not be affected on oil price increase in the world market because the value of Philippine money is enough to vie with the oil price but because the president is liar! The people still suffers.
I agree with what Mr. Denis Somoso said.
I hope country leaders will never lie to his people. and boast of thier achievements.
Yes!! is true. The Philippine economy is not really improving!!!!
Thats really a lie. How I wish that the Mr. Denis Somoso ’s quality and vision will lead the Philippines?
Yes I aggree what Mr. Denis Somoso said.
wow! if the Filipino leader is an economist, what makes she say like that?..
Myabe she are just sleeping the the canteen while her professor is discussing about economics. like here in India, our leader is not boasting well, but we are among the strongest economy in the world.
our leader is good than hte leader of the philippiens