Saturday, October 5, 2013

More Bad News for the Philippines' Haters

While the US government has ground to a halt, and is on the verge of a credit default, due to political bickering...

“Moody’s Investor’s Service has upgraded the rating of the government of the Philippines by one notch from Ba1 to Baa3. At the same time, Moody’s has assigned a positive outlook to the rating. The factors that prompted the review remain intact, mainly, the sustainability of the country’s (1) robust economic performance; (2) ongoing fiscal and debt consolidation; and (3) political stability and improved governance.”
- Statement of Communications Secretary Ramon A. Carandang on Moody’s Investor’s Service rating upgrade of the government of the Philippines
Click here to read full statement.

“Our commitment to honest and responsible government, as well as our fundamental macroeconomic strengths—such as our structural current-account surplus, stable inflation, and low dependence on foreign debt—serve to differentiate us from other emerging markets that are resource- and export-dependent.”
- Statement of Finance Secretary Cesar Purisima on Moody’s Investor’s Service rating upgrade of the government of the Philippines

Click here to read full statement.


  1. Sabotage

    FIRST PERSON By Alex Magno (The Philippine Star) | Updated October 5, 2013 -

    For keen observers of the Philippine economy, 2011 has been a riddle. Now, we might be on the verge of solving it.

    For years, notwithstanding the 2008 global financial meltdown, the Philippine economy gathered steam. By 2010, our economy posted a record 7% GDP growth rate after 40 quarters of uninterrupted expansion. Even as the economies of our major trading partners slid in and out of recession, the Philippine economy trudged on at an accelerating pace. Clearly, we have managed to break the boom-and-bust cycle that manacled our economy for generations.

    Then, in 2011, our growth rate drastically halved. That is like a large steamship stopping on a dime, screeching to a stop. So many potential jobs were lost because of that. So much in terms of poverty alleviation dissipated.

    Everybody agreed the sudden economic slowdown was due to a dramatic fall in public sector spending — the second crucial leg that enables an economy to run.

    We all thought the sudden drop in public sector spending was due to the sheer clumsiness and bizarre zealotry of a new administration unfamiliar with the vital dynamics between the public and private sectors of the national economy. In short, even with the most malice, we could only suspect stupidity on the part of this new regime.

    The truth, it now appears, is much more sinister, much more sophisticated.

    It now appears the Aquino administration deliberately curtailed spending programs to produce a budget within the budget well beyond the pale of Congress’ power over the purse. The curtailed spending produced at least P72 billion in “savings” eventually deployed to buy Congress to undermine the judiciary — in a word, to scuttle the checks-and-balances on which our democracy runs.

    If true, this is a gruesome crime against both our constitutional order and our economy. The dramatic drop in the 2011 growth rate appears now to be the consequence of systematic sabotage through budgetary machination.

    Over P72 billion in “savings” never happened in the ordinary course of things. This surprising feat can only happen by way of comprehensive manipulation of the budget to the point of subverting Congress’ power over the purse.

    Former budget secretary Ben Diokno asked current budget secretary Butch Abad what the term “savings” in the now notorious “disbursement allocation program” (DAP) really means. Abad has not honored his distinguished predecessor with a reply.

    If the President scuttles programs funded through the General Appropriations Act (GAA) to produce “savings” (eventually consolidated into a humungous presidential pork barrel), is this legal? The Philippine Constitutional Association (Philconsa), Joker Arroyo, Miriam Santiago, constitutionalist Joaquin Bernas and Fr. Ranhilo Aquino says the DAP is illegal. The Philconsa filed a petition before the Supreme Court.

    This is a serious constitutional question. The best the Supreme Court can do now is to issue a restraining order on further payouts through the DAP to prevent this anomaly from further eroding our constitutional order.

    At least now we have a clearer idea about why our economic growth surprisingly collapsed in 2011. Billions in public funds were commandeered to a shadowy disbursement program for use according to the President’s whim.

  2. The PHILS' share of international investment is nothing short of pathetic if you compare to other countries in South East Asia. Moodys or no Moodys. No corporation or country that knows what it is doing would get involved in the cesspool and chaos of the Philippine economic "system" or "legal" system...massive corruption, dishonored contracts, red tape....the pork barrel scandal is the tip of the iceberg...political stability? What a joke....

  3. Bamboo Bugle, I don't think there are "Philippine haters" as you like to call them. If there are, I have never actually met one that lived here. After all, most expats, and I'm assuming they are the ones you are venting your own hate toward, have families here and invest in the economy through buying or renting houses and everything needed to equip their homes. Many of them own very successful businesses. They are significant contributors to the economy, even if it is in a bar. At least they are spending their hard-earned money here.

    But, there ARE people who are frustrated with what they see in the Philippines, primarily corruption and the filth and ignorance that are by-products from it. They hate that many people seem so apathetic with these problems that corruption is a way of life in the Philippines. Just ask a local what they think of the corruption and they will often amazingly say "I wish I was like Gloria or Marcos."

    Then you have Bugle claiming the outrageous, that superpowers and developed countries are envious of the Philippines. Come on Bugle, you can't really believe that. Open your eyes, look around. What do you see? Be honest with yourself first. Stop the hate baiting!

    What you see Bugle is not so much hate but frustration that nothing is being done to fix the problems that the majority of the people suffer. Remember, expats cannot vote, yet they see so many citizens sell their own votes for just a few pesos. What a waste for short term gain. It thwarts the essence of democracy!

    Bugle, please do a little more analysis on your part before you jump to conclusions. Maybe you need to spend some time in front of the mirror. If expats truly hate the Philippines so much as you say, they most definitely have the ability to leave unlike the locals, believe me. But they hope like all expats do, that the corruption will end sooner than never. We all have families here.

  4. IMPROVED GOVERNANCE AND POLITICAL STABILITY? OH REALLY? How is the pork barrel working out for you? How about reports that Senators were paid a million bucks to vote to impeach the Supreme Court Justice Corona? How about the war in Mindinao? The Ampituan non-trial? The cultural rot there is deep and systemic.


All comments are posted anonymously. We don't care who you are, we just care about what you have to say. But let's keep it civil. No slander. Talk about issues, not individuals. No racism. Cool it on the profanity. Like Sinatra said, "You don't need to work blue. You'll never play the big houses with that crap."