The Guardian London said: Ferdinand Marcos Debts of Billions is a huge devastation than typhoon Yolanda (Haiyan)

The municipality of Basey as Christmas approaches. Devastated by typhoon Haiyan, the Philippines also has huge foreign debts. Photograph: Ezra Acayan/Barcroft Media

Former Dictator Marcos Debt over the past 40 years is continuously pushing the Philippines into deep deep down to poverty.

• Marcos Loaned $115 Billion US Dollars
• Philippines Defaulted (Bankrupted) in 1983 -  (After Martial law ended and ousted Marcos 1986)
• Succeeding government till todate paid Marcos debts of $132 Billion Dollars repaid in principal sums and interest
• The remaining unpaid is still $60 Billion Dollars
• The Philippines pays its international lenders nearly $22 million dollars every day for Marcos debt. The funds for payment of Marcos debt are slashed from the originally intended for Health Services, Education, Infrastructure and military armament upgrade – reported in Thomson Reuters Foundation

Without Marcos debt, the Philippines could NOT be a beggar country but a rich country today

The Philippines is devastated as much by unfair debt as typhoon Haiyan

By Christmas Eve, a country struggling with foreign loans and climate change will have spent $1bn on debts in seven weeks

By Christmas Eve, the Philippines will have spent $1bn (£0.6bn) paying foreign debts in the seven weeks since typhoon Haiyan devastated much of the country. It will have spent a total of $8.4bn on foreign debt in 2013, and faces a further $8.8bn in 2014. While a little more than $100m has been pledged by international donors for relief work, more than 800 times that amount of money leaves the country every year to pay debts.

The people of the Philippines have been saddled with a large debt since the 1980s, when Ferdinand Marcos, the dictator who held the presidency from 1965 to 1986, was loaned large amounts by western governments and institutions such as the World Bank in order to keep him onside during the cold war. During his rule, Marcos is thought to have stolen up to $10bn of Filipino money. But after he was deposed in 1986, the lenders who were complicit in this corruption continued to demand repayment.

The impact of chronic debt has been devastating for the Filipino people, with public services such as health and education persistently underfunded. Today, about 16 million Filipinos are estimated to be living in extreme poverty and malnourished. Meanwhile, more than 20% of government revenue is spent on foreign debt payments each year, almost as much as on health and education combined.

In response to typhoon Haiyan, the World Bank and Asian Development Bank rapidly announced they would lend $1.9bn for emergency assistance and reconstruction. That this much-needed money will be given as loans rather than grants means the impact of the disaster will continue through another generation because of the high debt payments.

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By definition, loans for reconstruction cannot generate returns to enable the debt to be paid. The most they can do is return infrastructure to the state it was in before a disaster hit. As Joseph Stead from Christian Aid says: "Debts that should have been cancelled years ago are limiting the capacity of the Philippines to respond and rebuild [after] the typhoon. Action on this is clearly needed before any new debts are added."

But the impact of high debt payments is not the only reason Filipino debt should be cancelled. Following the end of Marcos's dictatorship, many of those who had resisted his rule formed the Freedom from Debt Coalition, calling for the non-payment of his odious debts. Loans to Marcos to build the Batan nuclear power plant – which never generated any electricity, and was built on an earthquake faultline – merely represent the most absurd example.

These unjust loans continued after the fall of Marcos. In 1997, the Bank of Austria lent money for medical waste incinerators, which were already being decommissioned in Europe because of their high level of pollution and would be banned in the Philippines within two years. In 2008, the Freedom from Debt Coalition got the Philippines Congress to agree to suspend payments on these and 10 other loans, but this decision was vetoed by Gloria Arroyo, the president at the time.

The UK government also played a role in the accumulation of useless debt. In the 2000s, UK Export Finance, part of the Department for Business, guaranteed loans for the purchase of bridges from British company Mabey and Johnson. Local campaigners said many of the bridges went nowhere, leading into the middle of fields or connecting up mud tracks. Mabey and Johnson were later convicted of paying bribes to win projects in six developing countries: Jamaica, Ghana, Angola, Madagascar, Mozambique and Bangladesh.

The Philippines was excluded from international debt relief schemes because, with an annual income of £1,600 a person, it was adjudged "too rich" by governments. Consequently, the country remains trapped in a debt cycle where payments limit government investments, preventing repayment of the debt. Over the past 40 years, the Philippines government has been loaned $115bn and has repaid $132bn in principal sums and interest. However, it is still said to owe $60bn.

This cycle is now being exacerbated by climate change, as the strength of typhoons and the damage they cause increases. Richer governments have consistently refused to meet obligations, agreed in 1992 (pdf), to compensate developing countries for the damaging impact of their greenhouse gas emissions.

Even where limited funds are being given, these often come in the form of loans.

For example, alongside a grant of £70m, the UK government is lending £255m through the World Bank for climate change adaptation projects. This includes lending money to the Caribbean island of Grenada, even though it is already in default and unable to pay its huge debts.

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"Justice for the Filipino people demands debt cancellation," says Ricardo Reyes of the Freedom from Debt Coalition. "Climate justice demands reparations to enable the Philippines to develop resilience to climate change and compensation for losses and damages."

Where debts are out of control, fail to protect basic human rights, or come from odious loans for damaging or failed projects – all of which is true of the Philippines – they should be cancelled. And as climate change gets worse, the largest contributors to greenhouse gas emissions have a moral duty to compensate those who are most impacted, and to do so with grants, not loans. – report posted from The Guardian and Thomson Reuters Foundation

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Malacañang Palace said Arroyo's term MISUSED around ₱836 billion to more than ₱1 trillion

Gloria Arroyo's term MISUSED around ₱836 billion to more than ₱1 trillion - Malacañang Palace said 

Noy slams Arroyo same day Palace wished her peace

President Benigno Aquino III again criticized former President and now Pampanga Second District Rep. Gloria Macapagal-Arroyo for the corruption that plagued her administration.

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In his speech at the first state conference on the United Nations Convention Against Corruption on Thursday, Aquino lamented that the Philippines missed opportunities during Arroyo's term and that the former President left him a government ruined by corruption.

"I myself have pointed out that the ten years before I stepped into office had been called a lost decade—one in which our country could have developed strong foundations to build upon. Instead, after my predecessor stepped down, our administration found a system of governance long decayed by corruption," Aquino said.

In giving the Philippines its first investment grade, debt watcher Fitch has credited the Arroyo administration for beginning the reforms needed to improve government finances.

"Improvements in fiscal management begun under President Arroyo have made general government debt dynamics more resilient to shocks. Strong economic growth and moderate budget deficits have brought the general government (GG) debt/GDP ratio in line with 'BBB' median," Fitch said in a statement in March.

Aquino's fresh criticisms against Arroyo came after Malacañang wished for peace and goodwill during the holidays for the former president.

Despite being three years into the presidency, Aquino continues to hit the past administration. In a speech last October, he said the amount of public funds misused during Arroyo's term was around ₱836 billion and may exceed ₱1 trillion.

The President claimed that his administration has since taken steps to curb corruption in the government after Arroyo left the Palace.

He said the first thing his leadership identified was that no one can be above the law in the fight against corruption.

"It should not matter what position you hold in the bureaucratic ladder: If you do wrong by the people, then you should be held accountable," Aquino said.

The President recalled that in his term, cases were filed against Arroyo while former Supreme Court Chief Justice Renato Corona was impeached.

But Aquino said the campaign against corruption is not limited to those in public office as the government will go after anyone, regardless of profession.

"If you do not pay your taxes, the state will pursue you. It means that no matter how many resources you have at your disposal, if you choose to smuggle goods, you cannot escape the government," Aquino said.

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He said in the past three years, the government has filed 423 cases against tax evaders and smugglers.

Aquino also enumerated some of the other anti-corruption programs of his administration such as the reforms in the Bureau of Customs and the zero-based budgeting system of the Department of Budget and Management (DBM).

The President also mentioned the Budget ng Bayan and Pera ng Bayan campaigns of the DBM and Department of Finance and the most recent initiative, the Foreign Aid Transparency Hub or Project FAiTH which tracks the international donations in the wake of Super Typhoon "Yolanda." - philSTAR

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CHA-CHA: Belmonte to Amend Philippines Constitution NOT for Federal Government but for foreigners to own 100% - supported by allies

 

Is it timely that the faulty and protective economic constitution of the Philippines be amended and allow all foreign investors to own 100%  in the Philippines?

Is it timely that outside Manila; Luzon, Visayas and Mindanao must stand also to push for Charter Change for Federal system that would empower the States of Luzon, State of Visayas and State of Mindanao an ample autonomy to develop its jurisdiction with equal power with Manila?

Is this charter change is timely for a genuine economic growth?

Published in Inquirer, Speaker Belmonte gained support for Charter change.

Allies back Belmonte on Charter change

House allies of Speaker Feliciano Belmonte on Thursday (December 19, 2013) said they were endorsing his push for charter change (Cha-cha) despite the absence of categorical support from President Aquino, and they believed the idea of amending the economic provisions of the Constitution would eventually gain acceptance and support.

Cavite Rep. Elpidio Barzaga and Iloilo Rep. Jerry Treñas commended Belmonte for his proposal, saying the Charter's economic provisions have to go in keeping with current economic realities.

Treñas said many House colleagues favored the proposal, even if Aquino was not receptive to it.

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Speaker has spoken

 "I think that many of us in the House of Representatives are really for charter change. Others are not just that vocal but now that no less than our Speaker has spoken, I think more congressmen will voice their support for [Belmonte's] position on the issue," he said.

At the Senate, Senate President Franklin Drilon on Thursday said he was willing to look into amending the Constitution but added that any attempt to tinker with the basic law would need the support of the President.

 "We are open to it. We will see how these debates develop and we will take a position at the appropriate time. There must be consensus among the political leaders because this kind of political exercise must have the support of the unified political leadership," Drilon told reporters.

 'Political exercise'

He said charter change, to be successful, would need the support of Aquino because "it's a political exercise."

1BAP party-list Rep. Silvestre Bello III, who is from the House minority, warned that any move to amend the economic provisions would open up the entire Constitution to proposed changes.

Bello said he could only be convinced of Belmonte's charter change idea if he knew the exact purpose and real intent of the proposal.

Belmonte earlier said he only sought to amend the economic provisions of the charter by adding the phrase, "unless otherwise provided by law," to the constitutional provisions limiting foreign investors' participation in economic activities in the country.

 "If you have charter change, everything goes. You can't limit it to amending the economic provisions. If you allow it, you open the flood gates," Bello told reporters.

He said politics would likely enter the picture, as many officials are politically minded.

Barzaga recalled how when he was a city mayor, many investors had complained about the economic restrictions in the Constitution that made it hard to do business in the country.

The investors lamented the difficulties they encountered in trying to acquire land for their manufacturing plants, Barzaga said. He said some of these investors were forced to use dummy corporations to circumvent the constitutional prohibition.

Barzaga said there must be a firm resolves to amend the restrictive economic provisions of the Constitution.

 "After all, we legislate not on the issue of popularity but on what we think will be best for the country," he said in a text message.

Treñas believed the President could come around to supporting the idea once Congress begins discussing the merits of correcting the "restrictive and inward-looking economic provisions," and once it shows that it only intends to focus on this and nothing more.

To follow

 "As soon as he is convinced that Congress is only interested in revising serious flaws on the Constitution's economic provisions and nothing else, I am confident that the President's support will soon follow," he said.

According to Treñas, there is a need to lift the restrictions on economic policies because other countries that have embraced the reality of how the world conducts business have been overtaking the Philippines.

 "Reviewing the Constitution is to keep our basic law attuned to the changing world. A national debate within the halls of Congress on the merits and demerits of amending the Constitution will give our people a better perspective on this particular issue," he said.

Drilon said it was ultimately up to the Filipino people whether they think it was time to change the Constitution ratified more than 20 years ago under the administration of the President's mother, the late President Corazon Aquino.

Up to the people

 "At the end of the day, it will depend on the people where in the process of ratification, they themselves will decide whether it is proper at this point to amend the Constitution in the manner as presented by Congress acting as a constitutional assembly," he said.

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Drilon said he had yet to discuss charter change with Belmonte "but the process they are suggesting is the process that I initiated a couple of years ago, that when we propose amendments to the Constitution, it must be in the same manner as we pass laws."

Under Drilon's proposal, the Senate and the House of Representatives will deliberate and vote separately on the proposed amendments.

He noted that the Senate had in the past rejected the proposal that senators and representatives convene as a constitutional assembly voting as one, "because you might as well abolish the Senate—the Senate is just 24 against the House's 270 votes."

 "That is why there is a resistance. But if we vote separately, as separate houses of Congress, then that possibility will not happen," Drilon said - INQUIRER

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