history of phil economic crisis

8/9/2019 History of Phil Economic Crisis

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As Aristotle taught, people do notnaturally become morally excellent or

practically wise. They become so, if atall, only as the result of life-longpersonal and community effort.

-JIM MOLINE-


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THE IMPLICATION OF

VALUES EDUCATION

ON DEVELOPMENTk Introduction

Values education has become a growing concern.

many people realize that human development today is afunction of human values

government recognized the urgency of the problem

it does not concern only the education sector but all thegovernment structures if the nation is to develop

the crisis calls for self-examination

The only Christian nation in South East Asia The second most corrupt nation in South East Asia

the crisis calls for a complete of mindset


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THE THREE SCHOOLS OF

THOUGHT ABOUT

DEVELOPMENT


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k It measures development in terms of the countrys GNP andper capita income. Gross National Product (GNP) - measured by totaling all

personal spending, all government spending, and all investmentspending by a nation's industry both domestically and all overthe world

Gross Domestic Product (GDP) - the value of all goods andservices produced within a nation's borders regardless of thenationality of the producer

The per capita income on the other hand is the amount ofmoney that on the average each citizen receives in one year.

k Other tools to measure the economic progress of a country:savings, investments, balance of payment, dollar reserve,

export, etc.

A. Economic Growth and

Development


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Table 1. Comparative GDP and Per Capita Income ofSome Countries including the Philippines (2001)


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k Development = Economic Growth + Social Changek It gives equal value to social changes that should

accompany such monetary gains.

k Progress is measured in terms of having moderninstitutions and technological developmentk Encourages the spread of attitudes that are

compatible with economic efficiency and productionk Favors the improvement of the structures of society

for the material wellbeing of its people.k Great fan of this school of thought is Alvin Toffler

B. Economic Growth, Social Change

and Development


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k The focus shifts from material to ethical values

k The emphasis is in being and not in having. The value of human lies not on what he possesses

The value of human lies not on what he is capable ofdoing

The value lies in his being a human

For Christians, his value is inherent to his being created inthe image and likeness of God

Ethical Values and

Development


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Ethical Values and

DevelopmentkGrowth should be seen in quality and

not in quantity.

kGoods are still considered importantbut only as a means to live with dignityas a human

kIt focuses on human dignity


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kFigure 1. The Dimensions of

the Human Person


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The Dimensions of

the Human PersonkAs a physical being, we are made up of

matter and must maintain health andharmony with nature.

kAs an intellectual being, we are gifted withmind and the capacity to know.

kAs a moral being, we are endowed with thefaculty of choosing and what is right andgood.


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The Dimensions of

the Human PersonAs spiritual being, we are capable of higher

concerns that rise above the material world. It iswithin our nature to look for the explanation ofourselves and the world we live in beyond ourexistence which we find in a Supreme Being.

We are a social being because we all grew up anddeveloped as characteristically humans in a familyor its substitute.

We are an economic being because the resources

that we use are not unlimited in supply; we haveto budget them


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We are a political being because of thenecessity to assume and exercise powerfor a harmonious living within thecommunity.We are an emotional being because we

are capable of feeling and with the comingof EQ, we now come to realize more and

more the importance of emotions in thepursuit of self-actualization.

The Dimensions of

the Human Person


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k As a Goal: What to develop To have economic growth faster than the

increase in population growth?

Improved social, political and culturalconditions?

Better education, better health care andfacilities, better transportation?

Better communication and increased politicalparticipation?

III.Values Education:

A Goal and A Process


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Values Education: A Goal

and A Processk As a Process: How to develop

Construct of bridges, feeder roads, superhighways, newports and harbors (infrastructures)

Improved infrastructure means more businesscorporation, bigger supermarkets, industries, banks, etc.

Development of skills, value systems, habits and thoughtpatterns

Higher literacy, technical expertise, respect for scientificmethod and respect for others property


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The Need for Formation

in ValuesAn education in values is imperative.Having a good end through good

means necessarily requires a strongindividual and group valuesformation based on the considerationof all dimensions of human dignity.


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Brief History of the Philippine

Economic Crisisk Why do we need to understand the

past in order to understand thepresent?

As a multi-dimensional being, we are aproduct of the past

We are a product of our genes and ourenvironment

(Like in the story of Remus and Romulus)


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Brief History of the

Philippine Economic CrisiskWe are not going to pass judgment and

condemn the past and our leaders but wehave to unearth what was buried in our

history to know who we are and why we arein this very situation right now.

k It may cause some pain and hurt oursensibility, but we would rather stare at a

grim and poignant reality rather than sanitizeit AND live in self-deception without learning alesson from our past.


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The Philippines as a

Spanish Colonyk The most insidious damageUnder the banner of Christianity, they rendered

the people docile in accepting a lop-sided social

order where it is ok to oppress the weak and thepoor

The corruption of the mind of the people.

The erosion of trust in national leaders,

The deformation of our value system, etc.

The institutionalization or legitimization of afeudal system of society


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Uncle Sams Benevolent

Assimilationk Once the revolutionaries were silenced, the

methodical but not less insidious act of benevolentassimilation by establishing the so-called democraticsystem and its institutions

k There was no genuine intention or policy to promotedevelopment and economic independence which areat the heart of democratic state

k Democratic institutions were used as a mere faade,a covert strategy to enjoy unbridled exploitation of

the countrys natural resources and unhamperedaccess to our territoryk The Philippines were used as a launching pad for the

fulfillment of its policy of American domination inAsia-Pacific. (e.g. Korean and Vietnam wars)


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The Japanese Invasion

k It stalled US granting of Philippineindependence

k Left more that a million Filipino soldiers

deadk Exercised the colonizers prerogative of

exploitation of the invaded countrysresource and people,

k

Remember its horrors: the battles ofBataan and Corregidor, the Death March,etc.


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The Emergence of

Neo-Colonialism

k When swords and guns are all gone,what comes next?

k The rise of neo-colonialism: a newform of oppression expressed througheconomic dominance of one countryover another


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New Weapon of

Oppression: Lasses

Faire or Free Trade or

Capitalism


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ITS ARCHENEMY:Mercantilism (16th-18th C.)governmental controls over industry and trade

national strength is increased by a increased inexports over imports.

The strength of the state is measured in terms ofsurplus or savings.

The goal is to lessen import and increase inexport of manufactured goods.

It is the economic system industrializing nationsadopted which is characterized by import controlsand strict laws governing development prioritiesin favor of the national economy.


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Mercantilism vs. Lassez

Faire or Free Trade or

Capitalismk Free Trade or Lassez Faire (19th C.) Government regulation is justified only to the

extent necessary to ensure free markets, absence

or limited government controls.The national advantage represents the sum total

of individual advantages, and national well-being

National interest is best served by allowing allindividuals complete freedom to pursue theireconomic interests


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Mercantilism vs. Lasses Faire

or Free Trade or Capitalism

kMercantilism prevailed in the beginningof the 20th century but Free Trade or

Capitalism was imposed on thePhilippines despite its abandonment bymany industrialized countries.


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The Economic Crisis of 1949

and the Bell Trade Actk The country ran out of dollars in spite of the war

damage compensation and post-war financialassistance

k The compensation and assistance tied to conditions Pre-independence, colonial era free trade arrangement

The Philippines unable to limit the influx of goods from theUS

US imports to RP enjoy no quota, while RPs export

subjected to US quotas


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The Economic Crisis of 1949

and Bell Trade Actk RP was forced to borrow dollars, the international

trade currency, under humiliating conditions (TheBell Trade Act: see Microsoft Encarta)

Extension of free trade with the US The amendment of the Constitution to accommodate the

parity rights provision=Americans have equal rights indoing business in the Philippines and exploiting our naturalresource

Extension of the US Bases stay for 99 years

Uncontrolled capital flight

Continued dependency to the US


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The Sovereignty Gained

(partially)k The institution of import and foreign exchange

(dollar) control

k All the dollars earned in the Philippines had to be

surrendered to the Central Bank and exchangedfor pesos at the rate of P2 to 1$.

k Controls became the governments powerfulweapon of economic planning which it used forchanneling the scarce dollar resources of the

country towards project of high development value


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The Sovereignty Gained

(partially) but bitterly

opposed

kOpposition from the US and other localinterest groups was not missing

k The start of industrialization andachievement of our sovereignty to chart ourown future as a nation.

k It even gave birth to the slogan FilipinoFirst, which translated into preferential right

for Filipinosk The glory days of Filipino Nationalism


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The Sovereignty Lost

(Again)kAmericas anti-industrialization policy in the

Philippines: The Recto Expose (Pls. seeNationalist Economics by A. Lichauco pp.

156-157)k Interest groups backed by the American

businessmen

k Free trade vs. Mercantilism or Nationalist

Economy


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(Again)kThe Mighty US always got what they

want: the US interventionist policy to

RPkReversal of the entire foreign exchange

control system: The Undoing of Pres.

D. Macapagal


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(Again)k The immediate effects of the decontrol program

were as follows: The government abandoned its power to determine what

goods could be imported and what it could not.

It relinquished its power to determine what othertransactions that needed the use of dollars were allowed ornot.

Dollar earners were automatically enriched due to theensuing devaluation of peso from $1:P2 to 1$:P3.90.

The cost of imports automatically increased with the peso

devaluation. The cost of industrialization and creation of local jobs rose

steeply. The invasion of foreign goods undermined the market of

the countrys domestic industries


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The Birth of the Foreign

Debt Problem

k Prior to decontrol, the foreign debt stood atsome $150 million

k By 1965, three years after the lifting ofcontrols, that debt went four times at $600million.

k In 1968, three years after Marcos ascent to

power it again rose to $1 billion


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Debt Problem and the

Congress Response

k The Congress Passed the Magna Charta of SocialJustice and Economic Freedom

k The government continued borrowing frominternational financial institutions (IFI)

k Borrowings however did not come without pre-conditions. Hence, a new form of donimation, thistime structural in nature, came into being

purportedly to help the borrowing nation to improveits fiscal situation.


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Debt Problemk Subscription of the government to free trade

principles and to the conditions laid down by IMF-WB did nothing to improve our situationFinancial flight unabated, instability in the

government and crisis grew

From $1 billion in 1968, our foreign obligationsescalated to US$26 billion in 1986

Peso depreciation continued from P4:$1 in thelate 60s to P21:$1 at the end of Marcosdictatorship.

Devaluation unfortunately multiplies our foreigndebt borrowed in dollar currency


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The Rise of the Foreign

Debt Problem

kThe Asian crisis and the ballooning ofthe foreign debts

From P26:$1 in 1995 the exchange ratewent up to P45:$1

From $28 billion to about $50 billion.

Last year, it stood at a gargantuan $ 69.7billion (2005) or P3.8 trillion.


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Total Foreign Exchange Liabilities from1995 to 2001


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The Social and Environmental

Cost of the Countrys

Foreign Debt Crisisk This year we will be paying P 1.48 B per day,

62M per hour, and 1.03M per minute!!! 33%of our national budget goes to debt servicing

every year!k For the BNPP itself, US$155 T per day

kMoney lost which could be spent in buildingroads, school buildings, hiring teachers,

improving our facilities, etc.


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The Social and Environmental Cost

of the Countrys Foreign Debt Crisis


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The Social and Environmental Cost

of the Countrys Foreign Debt Crisis


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The Implication of Values

Education on Developmentk The relationship of attitudes and values on the

development or underdevelopment of a nation maynot be easily observable.

k However long it may take us to fully comprehend theimplication of our values on the nationaldevelopment, the point is they have tremendouseffect;

k it is best demonstrated in the following presentation:

(PowerPoint presentation of First World)kAny comment? Reaction? Opinion?


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Toward a Revolution of

Mindsetk Sociologists disillusioned

k Philippines economic, social, political

and cultural backwardness despite therich socio-cultural heritage borrowedfrom the West


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Conclusion

Ifa person dies because nobody giveshim food, that is a questionofmorality.Butiftwentymillionpeople die ofhunger

orotherwise forcedtolive amiserablelife withoutdignity, because the leaderswouldbleedthe nationofitsresources,then,Ibelieve thatisacrime. Butin

whose courtshallwe file ourgrievances;whowillbe the judge?


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The mismanagementofthe nationseconomy,

the subservience ofourleaderstotheimpositionsofforeigncreditors,the neo-colonialrule leveledonourpeoplesheadbythe Americans-- theyresultedinacrisisof

catastrophicproportion. ThisMarchasurveyyielded33 percentofthe totalpopulationorroughly27millionFilipinosdonothaveenoughfoodontheirtable.


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For59 years,we have beentoofaithfultothedemandsofourcreditorsandcolonialmasters,yetthose 59 yearssawno

improvementinthe livesofthe greatermajorityofourpeople. Indeed,the situationworsensineachpassingday. Surely,somewhere,somethingwentwrong;someone committedamistake. Butwhoisit

toblame? Andwouldblamingsolveanything?


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Butthese questions,thoughtheyneedanswers,cannotbe solvedbyone personalone. Itwouldtake

perhapsgenerationsandthe jointeffortofalltoachieve ourgoalnationalsocio-economic,socio-politicalandsocio-culturalrecovery. Yet, eventhisrecoverywouldhardlybe possible ifthere isnopersonalandsocialrenewalinspiredbyaunified

consciousness. Ourproblemmakesitripe forarevolution!Yes,arevolutionbutnotabloodyonenoranupheavalledbythe masseswhose steamfailedtofuelagenuine change. Instead, therevolutionwe needisone thatbeginsinthe radicalchange inthe mindsetofeachandeveryindividual,aradicalchange inourvalues.


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Atthisjuncture,we are calledtotaskasFilipinocitizenstoexamine ourselves,

ourvalues. Ourresponsibilityisimmense. Yet,ourresourcesare someager. However,itisnotonlyourfuture whichisatstake, butthe futureofthose whowillcome afterus.


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Idontwanttosoundlike aprophetofdoom.FormyfaithdictatesthatIkeepmyheadup

andlookatthe brighterside oflife. Buteventhe prophetsofthe Oldwhere themselvesbelligerent andstraightforwardintheircallfor change. We,therefore,shouldactno

lesslike themforwe Christianstooareprophets.

Maythisshortpresentation therefore hopestoleadthe waytothe birthofprophetsamong

usfortheyare neededtobringthisnationtothe pathofGodssalvation.

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