Bu-lat-lat (boo-lat-lat) verb: to search, probe, investigate, inquire; to unearth facts Volume 3, Number 2 February 9 -15, 2003 Quezon City, Philippines |
GDP
Growth Claim Can’t Hide Higher Cost of Living A
telling sign of hardship lies in recent estimates of cost of living for a family
of six. After all, where can a breadwinner get P16,315.20 ($302.47, based on
exchange rate of P53.94 per US dollar) monthly to provide for his or her
family's basic needs? By
DANILO ARAÑA ARAO The
impending U.S. war on Iraq has prompted government officials to be more
circumspect as regards the country's economy. However, the same old tunes of a
better life still appear to inundate official press releases. In
a Jan. 30 statement, Economic Planning Secretary Romulo Neri says that the 5.2%
growth in the gross national product (GNP) is the "strongest recorded since
the 1997 Asian financial crisis, exceeding the high end of official
forecasts." He
stresses that growth of all production sectors surpassed expectations. "We
credit this to policies that have created a stable macroeconomic environment in
2002, as well as structural and productivity-enhancing reforms such as the
reduction of tariff rates." Not
surprisingly, he argues, "With the economy on a healthy footing in 2002, we
see growth being sustained in 2003. GDP is expected to grow 4.2 - 5.2 percent
and GNP by 4.5 - 5.4 percent." By
Feb. 5, however, Neri, in announcing recent inflation and consumer price index
(CPI) data, admits that the administration "expects inflation to move
upward in the coming months due to the impact of the U.S.-Iraq conflict on oil
prices and the peso-dollar exchange rate." That
inflation -- an increase in the average level of prices of goods and services --
slightly rose to 2.7% last month compared to 2.6% in December 2002 is a fact
that not everybody can relate to, since how this affects cost of living
requirements is not properly explained. By
inflating government's cost of living data in 1988 with the current CPI,
Bulatlat.com estimates that a family of six in Metro Manila needs P543.84
($10.08) everyday to meet food and nonfood requirements. In areas outside Metro
Manila, a family of six needs P404.78 or $7.50 (agricultural areas) and P425.88
or $7.90 (non-agricultural areas). (See Table 1) On
a monthly basis in Metro Manila, this means that a breadwinner must have
P16,315.20 ($302.47) to provide for his family's needs, assuming that the number
of members is six. The current minimum wage of P280 ($5.19) translates to a
monthly gross pay of only P6,160 ($114.20). (See Table 2) Since
President Gloria Macapagal-Arroyo assumed office, cost of living has continued
to increase. In Metro Manila, daily cost of living for a family of six in
January 2001 was already high at P500.78 ($9.28) since the minimum wage was
pegged at only P250 ($4.63). Wage increases in Metro Manila amount to only P30 ($0.56) so far, barely enough to cover the discrepancy in wages and cost of living which ballooned for the past two years. Bulatlat.com
We want to know what you think of this article.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||