Crisis convergence

As I wrote in previous entries, June and July are critical months for the Filipino people. One, food prices are expected to rise further, due to food and oil price speculations in both the global and local markets. Two, despite the expected decrease in electricity rates, water rates are sure to rise due to the falling peso ranged against the green buck. Three, these months are campaign periods for the ARMM elections. With the number of candidates for the ARMM gubernatorial posts and the resumption of armed hostilities against the ASG and criminal elements in Sulu, things could turn really ugly. Lastly, Congress will re-open the ZTE probe and other controversies which definitely would again heat up the political scene.

What is more challenging is the way the local economy has been "fucked up", as described by Economic adviser and Governor Joey Salceda. Recently, in a news report, he bewailed the rising numbers of poor people, estimated to be around 4 million to date, which could be extremely difficult to manage. Cash subsidies could provide some relief but this cannot ultimately solve the crisis. And despite early opposition to government's plan to subsidize some food costs, this could be a feasible solution, given that the real issue behind all of these is the decreasing purchasing power of Filipinos.

Malacanang should pursue Salceda's Noah's Ark plan to at least address the rising economic concerns of the poor. Eliminating VAT is not the answer, since big firms and wealthy individuals are also expected to gain from this instead of the poor. There should be a mechanism to give back VAT to those critical sectors of the economy. Short of subsidies, government should strictly enforce socialized services within a period of six months at the least, to enable poor families to at least weather the socio-economic storm.

Likewise, Malacanan should suspend the ARMM elections to save money and prevent a possible escalation of hostilities in Mindanao. I am glad that Gloria decided to resume peace negotiations with the MILF with some solutions on the thorny issue of ancestral domain. That is the way to go.

By the way, I'm extremely glad that the US will build a US$ 3 million port in Sulu. Kenney is right. That will surely provide enough jobs for the Tausugs there and deter them from doing criminal and stupid things like kidnappings.