CPP joins condemnation of US$1-B Aquino pledge to IMF

Information Bureau
Communist Party of the Philippines
June 25, 2012

The Communist Party of the Philippines (CPP) today joined the widespread condemnation of the Aquino government's US$1 billion (P42 million) pledge to the International Monetary Fund (IMF), calling it a "crass display of puppetry in complete disregard of the gross socio-economic conditions of the Filipino people."

"The Aquino regime even had the gall to misrepresent this pledge of US$1 billion as a loan in order to make empty boasts of economic progress," said the CPP. "Such a desperate media spin has backfired on the Aquino regime and has further isolated it from the Filipino people who daily face the grave economic problems of unemployment, poverty, hunger, rising costs of living, disease and epidemics resulting from the Aquino regime's wrong economic policies and misplaced priorities."

"The $US1 billion pledge to the IMF is a slap in the Filipino people's face who have long been suffering from decaying public health and education services as a result of the Aquino regime's budget cuts on social spending," added the CPP.

"In a supreme irony, the Aquino regime is pushing for the 'corporatization' of public hospitals in order to further justify the acute insufficiency of its budget allocations for public health," said the CPP. "At the same time, it is pushing for the greater privatization of educational services as a solution to the severe shortage of classrooms, school facilities and teachers."

"The Aquino regime deceptively projects that the Philippines is now a lender to the IMF and no longer a borrower when, in fact, the Philippine government continues to rely on foreign loans from IMF-allied international banks and financial institutions," said the CPP. In a recent announcement, the Central Bank itself admitted that Philippine total foreign debt has ballooned to $62.9 billion, more than 75% of which is public debt.

"Debt servicing continues to eat up the largest portion of the Philippines' financial resources," said the CPP. Last year, the Philippine government used up as much as P357.1 billion on debt service or nearly 30% of the P1.2 2011 trillion budget. In comparison, the Aquino regime only allocated a little more than P170 billion for education and around P40 billion for health.

"The Aquino regime continues to zealously implement IMF-designed blueprints and IMF policies such as tax hikes, social spending cutbacks, tax incentives for foreign investors, mining investments liberalization and the like," added the CPP.

"The Aquino regime's US$1 billion pledge is a demonstration of downright puppetry to the US imperialists and international finance oligarchs," said the CPP. "It is a grave insult to the Filipino people who for more than half a century have suffered from the consequences of the IMF-World Bank's successive structural adjustment programs which have transformed the Philippines into a foreign debt and investments-dependent country, prevented national industrialization and genuine land reform and imposed a regime of low wages, unemployment, poverty and hunger on the Filipino people."