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A fleeting illusion of development
A detailed analysis of the data released recently by the government describing a so-called 6.4% growth in the economy in the first quarter of 2004 will show that the factors behind such growth are non-productive and fleeting in character. The figure merely conjures an illusion of development in the face of an economy that has long been bled dry and is in a state of inexorable decline.
The so-called economic growth was due to (1) soaring election-related expenses (5.9%); (2) the further expansion of telecommunications services (13%) arising from the millions of additional cellphones in use; (3) the temporary rise in agricultural production due to good weather conditions; (4) a tenuous rise in the production of electronic parts, from a previous decline; and (5) the growth in remittances from overseas contract workers.
None of this indicates genuine economic growth or long-term future development. Even some bourgeois economists doubt if the so-called development is sustainable.
Manufacturing has already registered an 11% plunge as the quarter ended in March. Exports dropped anew by 11.4% in April, mainly due to a fall in semiconductor exports which comprise the Philippines' leading export product. Production is likewise expected to drop in the following months due to the execessive rise (130%) in inventories of agricultural products and stored commodities in the first quarter. The return to normal consumption levels after the election, continued hikes in oil prices and the overly swollen government deficit and debt service payments are also expected to exert a major downward pull on production.
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 07 June 2004
English Edition
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Ang Bayan is the official news organ of the Communist Party of the Philippines issued by the CPP Central Committee. It provides news about the work of the Party as well as its analysis of and standpoint on current issues.
AB comes out fortnightly. It is published originally in Pilipino and translated into Bisaya, Ilokano, Waray, Hiligaynon and English.
Acrobat PDF files of AB are available online for downloading and offline reading printing. If you wish to receive copies of AB via email, click here. |
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