All-out imposition of imperialist dictates on the economy
Despite severe criticism of imperialist �globalization� not only from the Philippines but from the whole world, the US-Estrada regime is pulling no stops to implement policies that open the national economy to unbridled plunder by imperialist countries.
As soon as he became president, Estrada attempted to amend the reactionary constitution to remove in one fell swoop any remaining provision protecting the national patrimony.
The issue of amending provisions prohibiting foreign ownership of land and public utilities attained prominence along with Estrada�s plan to extend his term of office.
Also through Estrada�s prodding, the reactionary senate immediately ratifi ed the Visiting Forces Agreement (VFA), a military pact between the Philippines and the US. The VFA allows US troops to utilize any part of the Philippines in pursuit of their military objectives, effectively transforming the country into one big US military base.
These past months, the Estrada government pushed laws to privatize public corporations and fully open certain sectors of the economy to foreign control to comply with conditions for new loans. Among the most signifi cant of these laws are:
- Retail Trade Bill. This was passed by the reactionary congress and senate in December 1999, despite opposition from small merchants. The retail trade, heretofore one of the few remaining sectors of the eco nomy where small capitalists are protected, will now be opened to 100% ownership by foreign big capitalists. For a mere $50,000 (P200,000), any foreign company or individual may put up a specialty shop that would compete with small Filipino stores. And for a mere $2.5 million, small foreign-owned shops can be set up with up to 70% of shelf space allotted to imported goods.
- Electricity Industry Reform Bill (or Omnibus Power Bill). This proposed law calls for the privatization of the National Power Corporation (NAPOCOR) and the reorganization of the power sector as a private sector. It deletes power generation from the list of public utilities and allows 100% foreign control over the sector. To favor multinationals or Estrada cronies planning to buy NAPOCOR, the company�s P3-trillion debt will be passed on to the people through added taxes or sky-high electricity costs.
- Securities Bill 2000. This law is a step towards the full deregulation of the Philippine Stock Exchange, the foremost market for stocks and bonds of local corporations. It does away with government regulation of the stock market and raises the minimum capital requirement for brokerages to pave the way for the entry of foreign corporations and the booting out of smaller enterprises.
- Amendments to the General Banking Act. This amends the General Banking Act that has already allowed the free entry of 10 foreign banks into the country. In expanding this provision, the law allows 100% foreign ownership of local banks. This is in preparation for the participation of foreign monopoly banks and businesses in the privatization of the Philippine National Bank (PNB) and other government-owned banks. It was passed in December 1999 and signed into law by Estrada this May.
These bills were hastily passed by congress and the senate in April to comply with the International Monetary Fund�s (IMF) conditions for a $1-billion loan to cover the huge national budget deficit, a number of infrastructure projects and reforms in the financial sector.
The reactionary government is expected to rake in billions from the sale of NAPOCOR and PNB to favored multinationals or Estrada cronies. The proceeds will definitely be used to fund the 2001 elections.
In the face of the worsening economic crisis, the US-Estrada regime is implementing the worst anti-people policies to ensure its hold on state power.
Aside from these laws, other policies calling for the gradual removal of tariffs and other taxes on imported products are being adopted to comply with the dictates of the WTO on full trade liberalization. Estrada also continues to push and defend the most execrable policies of past regimes such as the deregulation of the oil industry.
Estrada hopes to pass laws calling for new taxes during congress� next session. Accordingly, more than 10 such bills are pending in congress to comply with directives from the IMF and its ally private banks to the reactionary government to raise revenues in order to assure its ability to service its debt. All remaining publicly owned corporations, big hospitals and schools are due to be privatized.
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