‘Arroyonomics’?
Redefining Economic Indicators to Hide
Crisis
In its effort to
present an illusion of economic improvement, the Arroyo administration
revised statistical methods and definitions to come up with better social
indicators and make them consistent with the growth hype, said independent
think-tank Ibon Foundation.
However, these
efforts -- which are increasingly earning their distinction as Arroyo’s
brand of economics or “Arroyonomics” -- have failed to paint a rosy
economic picture, said Ibon executive editor Rosario Bella Guzman. “On the
ground, the economic growth is a fantasy as people continue to face
joblessness, high prices, and abject poverty,” she said.
Speaking at Ibon’s
Midyear Birdtalk, Guzman cited that by simply changing the definition of
joblessness, and not by job creation, the Arroyo government was able to
reduce the unemployment rate to 8.2% in April. But Ibon estimates that job
scarcity is 43% of the country’s labor force.
Guzman added that
because of redefinition, government pegs the national average poverty
threshold per day at only P33.72, which means that a Filipino who earns
this much daily is already considered non-poor. This has allowed the
Arroyo government to claim that it has lowered poverty incidence from 33%
of the population in 2000 to 30 percent. But Ibon estimates (using the
daily cost of living) that as many as eight out 10 Filipino families, or
some 12.8 million families (or around 76% of the population), may be poor.
Government labor
agencies also use the poverty threshold figures to set and justify the
meager minimum wage, which despite the recent P25 wage increase in NCR, is
only 44% of the estimated cost of living for a family of six (P675.54 as
of June 2006).
The increase is
obviously not enough to keep up with the country’s high cost of living,
which is a result of high prices brought about by monopolies in vital
industries, Guzman said. The Arroyo administration had the most number of
oil price hikes (69 times since 2001, or an average of once a month), and
was also responsible for making power rate hikes regular (26 times from
2001 to 2005). Water rates also had the steepest increase under Arroyo.
All these point to
the realities of hard life for the ordinary Filipino. Unfortunately,
instead of facing this reality squarely, the Arroyo administration chooses
to hype increasing growth figures and redefine economic indicators.
“However, its efforts of creating the illusion of progress are
unsuccessful because the social crisis is raging on,” said Guzman.
Bulatlat
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