Martial Law 45th anniversary: US imperialism and the Marcos dictatorship

Marcos, his family and cronies would not had been able to plunder and repress the country the way they did without the support of the US. Marcos lasted for as long he did because he was backed by an imperialist superpower.

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(Ferdinand Marcos with US President Richard Nixon in a motorcade during the latter’s Philippine visit in 1969 | Photo from filipiknow.net)

We mark the 45th year of the Martial Law declaration by highlighting the numerous atrocities and massive corruption of Marcos. Amid the rising fascism of the Duterte regime and systematic bid to revise history, reminding the people of the crimes of Marcos and evils of tyranny is more relevant than ever.

But we should not forget as well the role of the US as the country’s foremost colonial patron in the Marcos dictatorship. This is important to better understand why in today’s global/regional context (e.g. China’s rise and weakened US hegemony) and Philippine context the US, to advance its agenda, would also support the Duterte regime in its consolidation of political power through tyranny and fascism.

Marcos, his family and cronies would not had been able to plunder and repress the country the way they did without the support of the US. Martial Law and the Marcos dictatorship were useful for American economic and military interests in the Philippines and the region. Marcos lasted for as long as he did because he was backed by an imperialist superpower. Until of course when the political and economic crisis and social unrest intensified to a point that it was no longer beneficial for US interests to sustain Marcos’s tyrannical and corrupt rule.

The years before Marcos declared Martial Law were characterized by a surge in people’s protests – the First Quarter Storm (FQS) – against the exploitative and oppressive social order represented by the corrupt Marcos regime amid a worsening global and national economic crisis (soaring prices, massive unemployment and landlessness, ballooning public debt, etc.). The political instability threatened not only Marcos’s survival but US political, military and economic interests in the Philippines. To restore “stability”, the Marcos regime imposed Martial Law.

What were the US interests that Marcos and his dictatorship served?

At that time, the US was embroiled in the costly Vietnam War, a Cold War-era proxy war between the US and the former USSR. The Philippines under Marcos served the American war by deploying thousands of Filipino troops to help the US forces. Note that before he became President, Marcos was opposed to the sending of our troops to Vietnam. But once in Malacañang, Marcos changed his stand due to US pressure and because he knew that he would need US patronage to remain in power.

But beyond the deployment of Filipino troops, far more strategic for the US were the Subic Naval Base that their naval forces (US Seventh Fleet) used for repair and replenishment throughout the Vietnam War as well as the Clark Air Base that served as their key logistics hub. After the US’s disastrous defeat in the Vietnam War, Subic and Clark became even more important for the US in order to maintain its military presence and operations in Asia.

The US backed the fascist regime in exchange for the dictator’s assurance that the Philippines will continue to allow the stay of US military bases. Days before he publicly announced Proclamation 1081 that placed the entire country under Martial Law, it was reported that Marcos phoned then US President Richard Nixon to get his commitment of support. When Marcos imposed Martial Law on September 21, 1972, the US reportedly stationed 40,000 troops at its Subic Naval Base to “meet any contingency” arising from the dictator’s declaration.

Aside from its military agenda, the US also used the Marcos dictatorship to retain its privileged position in the Philippine economy and the exploitation of our natural resources. The Laurel-Langley Agreement of 1955 which gave full parity rights to American citizens and businesses or equal access like Filipinos to domestic agriculture, timber, mineral, public utilities, and land expired in 1974. But with his Martial Law powers, Marcos issued decrees that effectively maintained the neocolonial economic privileges of the US such as reversing court decisions that disallowed American ownership of landholdings in the country.

Indeed, as a 1973 press report read: “The most encouraging aspect of President Marcos’s assertion of one‐man rule has been the disappearance of the anti‐foreign feeling that had been mounting in the press and the Constitutional Convention in the year preceding the proclamation of martial law.” Prior to Martial Law, the 1970 Constitutional Convention was formed to rewrite the then prevailing 1935 Constitution. The US was concerned that the new charter would affect its military bases and economic interests in the country. Under Martial Law, Marcos arrested some members of the Convention and reconvened it to write the 1973 Constitution that favored Marcos’s and the US’s agenda.

On top of ensuring that the policy environment under Martial Law remained favorable to US interests, American businesses and politicians were also actually in cahoots with Marcos and his cronies in plundering the economy and public coffers. American banks provided odious debts that funded Marcos’s projects riddled with corruption.

Perhaps nothing is more notorious than the hugely overpriced white elephant US$2.3-billion Bataan Nuclear Power Plant (BNPP) that the US Export-Import Bank and American Express bankrolled together with the Bank of Tokyo. Through payoffs worth US$18 million to Marcos via his crony Herminio Disini, American firms Westinghouse and Burns and Roe bagged the lucrative contract to design and build the BNPP. Built on an earthquake zone, the BNPP was never operated for public health and safety while billions of dollars in payments went to American banks and firms at the great expense of the Filipino people.  

Finally, the US also undermined the Filipino people’s quest for justice to make the Marcoses accountable for their crimes. This as real justice would mean making the colonial masters of the Marcos regime liable as well. According to a May 2016 report by The Guardian, the US Central Intelligence Agency (CIA) knew that Marcos stole US$10 billion but refused to tell the Philippine Commission on Good Government (PCGG) what they knew because apparently, American businesses such as those involved in the BNPP and political figures would be implicated as well.

Marcos also allegedly bribed high ranking US politicians and helped illegally fund the presidential bid of US presidents Jimmy Carter and Ronald Reagan, said the same Guardian report. The US systematically covered up its link with the corruption of and plunder by the dictator. For instance, the documents that the American authorities seized from Marcos when he fled to Hawaii in February 1986 have been allegedly redacted to hide transactions involving US organizations when they were turned over to the Philippines.

Today, the Duterte regime has been playing a leading role in revising the history of Martial Law and in the political rehabilitation of the Marcoses. This serves his own fascist agenda of establishing a Duterte dictatorship. He has already imposed Martial Law in Mindanao in what could be a dress rehearsal for a nationwide Martial Law.

Would the US support Duterte and connive with his regime in plundering and repressing the people the way it propped up the Marcos dictatorship? For all the President’s anti-US rhetoric (or more precisely, anti-Obama rants) and moves to deepen ties with US rival China, the Duterte regime has continued to foster ties with the country’s neocolonial master.

US military presence and intervention is felt more than ever with American troops and attack and surveillance drones deployed in Mindanao as part of Duterte’s military campaigns. US military bases remain through the Enhanced Defense Cooperation Agreement (EDCA) while joint military trainings including urban warfare continue under the Visiting Forces Agreement (VFA). For all its rhetoric about human rights, the US would work with any fascist dictatorship, even with someone as unpredictable as Duterte, to protect its interests and influence in the region especially amid a growing challenge from China as well as Russia.

Thus, when we protest against Martial Law, fascism and tyranny, we should protest not just for the violation of our human rights but also for the violation of our sovereignty as a people. ###

SONA 2017: Business interests with ties to Duterte to benefit from Martial Law extension

President Rodrigo Duterte with his Martial Law administrator Defense Secretary Delfin Lorenzana and implementor Armed Forces Chief General Eduardo Año (Photo from Al Jazeera)

As expected, the so-called supermajority in Congress granted the extension of Martial Law that President Rodrigo Duterte asked for. Martial Law would be in effect in Mindanao until the end of the year.

Malacañang said that with the extension, the country could now “get on with the job of nation-building and contribute in the attainment of the full promise of Mindanao.” The Duterte administration intends to “transform Mindanao into a land of fulfillment”.

How exactly Martial Law could contribute in “nation-building” is unclear. What is clear is that the 261 lawmakers who rubber-stamped the presidential request have further built up the nation’s fear of an authoritarian regime that Duterte wants to establish.

Martial Law in Mindanao and its extension could indeed be just a dress rehearsal and forebodes an of all-out fascist rule that Duterte and his Martial Law generals plan to unleash on the entire country.

Meanwhile, the “attainment of the full promise of Mindanao” pertains to the unrestrained exploitation of the region’s resources. Despite decades of corporate plunder, many areas in Mindanao are still not yet fully exploited.

Business interests with ties to the President appear to be among the beneficiaries of the extension of Martial Law in Mindanao.

Investment opportunities

The World Bank, for instance, in an August 2016 report said that: “Mindanao has 10 million hectares of land, of which 59.4% or 6.066 million hectares are classified as forestlands… if properly delineated, and rights are defined, can potentially increase the land inventory for large- scale investments.”

It noted that of the 6.07 million hectares of forestlands in Mindanao, only 700,000 hectares are covered by industrial forest management agreements, mainly by corporations. There are 700,000 hectares more that are still not covered by any form of tenure instrument. Another 400,000 hectares of public forests that are unclassified – all potential areas for big corporate investments.

In addition, of the remaining 4.14 million hectares of alienable and disposable (A&D) lands in Mindanao, a huge 2.24 million hectares have not been covered by the Comprehensive Agrarian Reform Program (CARP). These millions of hectares of forest and A&D lands offer enormous opportunities for investment and profits.

“If we push for massive agri investments in Mindanao, we need to start looking at the availability of these lands for consolidation to achieve economies of scale,” said the Mindanao Development Authority (MinDA), a government body created to among others promote and facilitate investments in the region.

Under the Duterte administration, MinDA and the Philippine Economic Zone Authority (PEZA) are also working to fast-track the Mindanao Ecozone Masterplan. The plan will develop existing and new economic zones around Mindanao to increase trading activities and attract more foreign investments.

There are 81 accredited ecozones in the region covering agro-industry, manufacturing, information technology and tourism. The Duterte administration is currently conducting an inventory of areas in Mindanao that can be developed as “ecozone cities”.

But many of these supposedly idle areas or available lands are actually occupied by lumad and peasant communities. Their firm resistance and the strong presence of the New People’s Army (NPA) are the biggest obstacles to the massive expansion in Mindanao of corporate plantations, big mining companies, and export-driven industrial enclaves – and the construction of hard infrastructure to support their operation.

The resistance is not against development but against the land and resource grabbing and massive displacement of local communities that often accompany big-ticket investment projects in Mindanao. That is why the NPA, and the lumad, farmers and farmworkers are the real targets of the extended Martial Law in Mindanao.

Big business interests

Indeed, Duterte’s Martial Law is apparently more about providing security to big investors who want to further exploit Mindanao. And it appears that the business sector feels encouraged by the strongman rule that Duterte is imposing. The organizers of the recently held Davao Investment Conference (ICON), for instance, reported record-breaking confirmed attendance, including about 100 foreign investors.

In an earlier report, the organizers said ICON participants include the country’s biggest conglomerates like San Miguel Corp. (SMC) as well as 30-40 “big Chinese investors”, among others.

SMC and the Chinese are among those most aggressive in expanding in Mindanao particularly in establishing vast plantations and constructing infrastructure. Chinese investors have been reportedly discussing with the Duterte administration the possibility of a 6,000-hectare tea plantation in a territory controlled by the Moro Islamic Liberation Front (MILF).

Duterte has been actively seeking Chinese patronage, mainly in the form of official development assistance (ODA) or loans as well as military assistance. Among those that the administration is pitching to China are multi-billion infrastructure projects in Mindanao including expressways, coastal roads, seaport and airport development, and the Mindanao railway system.

On the other hand, SMC (together with Malaysia’s Kuok Group) is developing about 18,495 hectares of forestlands covering four Davao del Norte municipalities for oil palm production. Just last August 2016, SMC also opened a 2,000-hectare industrial estate in Malita, Davao Occidental that also has a 20-meter deep seaport that can accommodate container vessels.

Earlier, the conglomerate was reported to be looking at a total of 800,000 hectares of lands for development as commercial farms in Zamboanga del Norte, Zamboanga Sibugay, Sarangani, Davao del Sur, South Cotabato, North Cotabato and Agusan del Norte.

Of course, SMC’s top man Ramon S. Ang is known to be “close” to Duterte. The SMC president was among Duterte’s campaign contributors in 2016 giving an undisclosed amount and perhaps other forms of support as Ang wasn’t even listed in the official Statement of Contributions and Expenditures (SOCE).

Ang also offered to buy Duterte a private jet (worth as much as US$65 million) that he could use as President while donating Php1 billion to the Chief Executive’s pet campaign, the war on drugs.

Meanwhile, Duterte’s former campaign spokesperson and Irrigation chief Peter Laviña and his group Philippine Palm Oil Development Council Inc. has been reportedly lobbying the government since Aquino’s time to develop at least 300,000 hectares of Mindanao lands for palm oil production targeting MILF territories as well as CARP and lumad lands.

These are some of the big business interests in Mindanao that stand to benefit from the state repression of local communities opposed to their operations. Apparently, Martial Law is more than what President Duterte, his Generals and their allies in Congress are telling us. ###

Martial Law: Lorenzana and Año’s “innovative” approach not just vs. Maute?

Defense Sec. Delfin Lorenzana and AFP Chief of Staff Gen. Eduardo Año (Photo from Frances Mangosing/inquirer.net)

Is Martial Law Defense Secretary Delfin Lorenzana and armed forces chief (and now Martial Law administrator) Gen. Eduardo Año’s “innovative” approach to end the armed conflict in Mindanao and to achieve the military establishment’s self-imposed target of wiping out armed groups in the region before President Rodrigo Duterte’s first State of the Nation Address (SONA) in July?

Is it actually aimed not just at the Maute and other terrorist groups but also legitimate rebel forces, including those that the Duterte administration is pursuing a negotiated peace agreement with?

At the start of the year (January 9), Lorenzana declared that the military would crush the Maute group (and Abu Sayyaf) in six months. To achieve the stated target, Lorenzana said they would use an “innovative” approach. “We are going to do something new or innovative to finish this problem once and for all,” Lorenzana said as quoted by the Philippine Daily Inquirer.

Armed Forces of the Philippines (AFP) Chief of Staff Gen. Año followed up Lorenzana’s declaration with the deployment of more than 50 Army battalions in Mindanao. It is said to be most massive AFP troops deployment ever with the avowed goal of “wiping out” the Abu Sayyaf, Maute group, and Bangsamoro Islamic Freedom Fighter (BIFF). The military is set to assess the progress of this bold counter-insurgency target in June.

By end of January, Lorenzana reported that the “all-out war” against the Maute and other terrorist groups is already in full swing, using the military’s ground, sea, and air assets (including newly purchased FA-50 fighter jets).

The AFP’s operations against Mindanao’s terrorist groups under the Duterte administration have actually started long before the January pronouncements of Lorenzana and Año. In its report for the first 100 days of Pres. Duterte, the AFP said that it has already launched 579 “massive focused military operations” against the Abu Sayyaf, Maute and BIFF that resulted in the neutralization of almost 150 terrorist personalities (killed, surrendered, or captured).

Prior to the Marawi clashes, the AFP said that the Maute group has been suffering heavy blows from the sustained military campaign. On April 24, the military reported that the Maute group’s main camp in Lanao del Sur has already been seized and occupied by state forces, with some 30 of its members supposedly killed in the combat operations.

Meanwhile, hours before Lorenzana and other Cabinet officials, who were in Russia, announced Pres. Duterte’s Martial Law order late Wednesday (May 23) night, officials on the ground were saying that the Marawi situation is already under control. (See Timeline)

With an already sustained campaign and deployment of huge military resources, what justifies the Martial Law declaration? And why the entire island of Mindanao when the incident that supposedly triggered it is only in Marawi City?

Apparently, for Lorenzana, the target of Martial Law is not just the Abu Sayyaf and Maute group in Marawi City but also the New People’s Army (NPA). In justifying the declaration of Martial Law over the entire island of Mindanao, Lorenzana, as quoted by MindaNews, said: “Because there are also problems in Zamboanga, Sulu, Tawi-tawi, also in Central Mindanao, the BIFF (Bangsamoro Islamic Freedom Forces) area, and also some problems in Region 11 (Southern Mindanao) yung pangongotong ng NPA (extortion by the New Peoples’ Army)”.

Lorenzana and the military establishment have been carrying out a sustained campaign to undermine the peace talks with the NPA, Communist Party of the Philippines (CPP), and National Democratic Front of the Philippines (NDFP). The DND/military propaganda against the CPP-NPA-NDFP has been clearly aimed to delegitimize the peace talks such as Lorenzana’s terrorist tagging of the rebel group just before the last round of formal peace talks between the NDFP and government panels started last April. NPA units have been the strongest in Mindanao with a string of successful tactical offensives against the military and police as well as against abusive businesses operating in the region such as mining companies and plantations.

Martial Law does not single out Maute, Abu Sayyaf or BIFF. It opens everyone in Mindanao – including those that the AFP and DND are accusing of as being NPA members or sympathizers and CPP front organizations – to the many abuses and atrocities of state forces. Gen. Año who will be the administrator of Martial Law has been notorious for committing such grave human rights abuses under the military’s anti-NPA campaign.

The human rights situation in Mindanao and throughout the country has already been appalling – with the military and police as among the main perpetrators – even without Martial Law. We do not need to imagine what will happen to human rights under a military rule, we just need to remember the Marcos dictatorship. ###

Junking the Marcosian debt policy for people’s needs

Despite its trappings of reformist language, the Aquino administration’s budget proposals are still reflective of the same anti-people and anti-development policy thinking of the past regimes; and still emasculated by the Marcosian automatic debt servicing

Continued from Part 1

Until today, under post-Martial Law so-called democratic regimes, the Marcosian policy of automatic debt servicing and the heavy debt burden continue to cripple the capacity of government to provide sufficient social services and attend to the basic needs of the people. In an earlier research, think tank Ibon Foundation noted that Filipino taxpayers will continue to shoulder the Marcos debts until 2025, more than half a century since the late strongman imposed Martial Law.

The most controversial and biggest white elephant funded by Marcos debts and paid for by taxpayers was the $2.3-billion Bataan Nuclear Power Plant (BNPP). While we have already completed the payment for the BNPP that has never produced a single kilowatt of electricity, government continues to look for funding sources for the maintenance of the mothballed nuke plant.

These issues take more significance every time Congress prepares the national budget. Since taking over, the Aquino administration has been peddling the deception that unlike in the past, government’s priority now is the provision of social services and empowerment of the people through well-funded programs that directly benefit the poor. But as already noted, automatic payments for principal and interest continue to eat up the largest portion of public resources, including in the so-called 2013 “Empowerment Budget” of the Aquino administration.

Still way short

The Department of Budget and Management (DBM) describes its proposed 2013 national budget as an “Empowerment Budget” because it supposedly heeds the people’s demand to ensure that government resources are used for their benefit. One indicator, said the DBM, is the increase in the budget allocation for social services, which will get the lion’s share of the proposed ₱2.006-trillion budget at 34.8%, up from last year’s 33.8 percent.

Of the proposed budget for social services (₱698.4 billion), the combined allocation for basic education, health and housing is pegged at ₱365.6 billion, which represent the proposed budget for the Education and Health departments, and government’s housing programs excluding those for the soldiers and police. But this amount is just about ¼ of the needed budget to reasonably meet the demands of the people for such services. Based on urgent needs as well as international standards, it is estimated that the budget for basic education, health and housing alone should be about ₱1.4 trillion. Of the said amount, basic education accounts for ₱885 billion (as estimated by the ACT Teachers); health, ₱440 billion (Coalition for Health Budget Increase or CBHI); and housing ₱ 97billion (Ibon).

Resources for social services

There are possible sources of funding for such huge needs of basic social services but it requires a substantial reorientation in government policies and shift in priorities. Based on the 2013 budget, for instance, there are some ₱860 billion that can be tapped, partially or wholly, to fund basic education, health and housing.

Of the said amount, the largest portion is comprised of the national government’s debt service burden, which is pegged at ₱782.2 billion for principal amortization and interest payments. The rest comes from programs and projects whose concept and/or expected benefits are disputed such as the conditional cash transfer (CCT) program, public-private partnership (PPP), counterinsurgency-related initiatives, privatization obligations from past projects, and tourism promotion and development. (See Table 3)

Debt servicing still represents the biggest drain in the country’s already limited resources. Adding principal amortization to interest payments, debt servicing comprises almost 32% of what the Aquino administration is planning to spend in 2013. At ₱782.2 billion, debt servicing is bigger than the budget for all social services in the current budget proposal, pegged at ₱698.4 billion or 28% of the budget including principal amortization.

As pointed out, the culprit is the Martial Law-era automatic debt servicing policy of government. This policy has greatly undermined the constitutional duty of Congress to allocate funds that will meet the pressing needs of the people. Under EO 292, government computes all public debt obligations that have to be settled and automatically sets aside the needed amount to ensure timely payments.

Meanwhile, Congress has to make do with whatever is left of government’s meager resources to budget for the social and development needs of the people. What makes this whole situation more unjust and oppressive is that most of the country’s public debt has been used for projects and/or programs that were tainted with corruption, did not benefit the people or worse, had caused more hardship to the poor. Examples include the power privatization loans from the Asian Development Bank (ADB) which have already reached around $1.3 billion since 2002.

There are many other odious loans that should be reviewed, renegotiated and/or altogether cancelled to reduce the debt burden. But EO 292 deprives Congress and the Filipino people of this policy option.

Debt-funded dole

Even the much ballyhooed CCT program is being partly funded by foreign debt worth $805 million from the ADB and the World Bank, adding to the country’s debilitating debt burden. And while adding to the debt burden, the CCT’s positive impact on alleviating poverty is also suspect. Between 2009 and 2012, the number of CCT beneficiaries ballooned from 594,356 households to more than 3 million (or an enormous 407% increase); the national budget for CCT during the same period also swelled from ₱5 billion to ₱39.4 billion (or a whopping 688% hike). But self-rated poverty, as measured by the Social Weather Stations (SWS) worsened from an average of 48% in 2010 to 51% this year.

Privatization and debt

Funding PPP initiatives, on the other hand, is problematic given the country’s experience with privatization in the past two decades. PPP schemes in the water and power sectors, for instance, have resulted in soaring and exorbitant user fees. Aquino’s plan to tap PPP to construct school buildings and health facilities is fe

ared to further marginalize the poor as fees skyrocket to ensure the profits of participating private contractors while aggravating the indebtedness of government.

In fact, the national budget has long been being undermined by the impact of such onerous PPP contracts. Case in point is the controversial build-lease-transfer (BLT) contract to run the metro rail transit (MRT) where the Aquino administration is pushing to implement a fare hike of as much as 100% to pass on to commuters the government’s debt obligations and guaranteed profits of the private investor. Another is the National Power Corp. (Napocor) which after a decade of privatization and doubling of electricity rates is still mired in deep debts reaching almost P1 trillion, portion of which will be directly shouldered by consumers through the universal charge.

Other reforms

Budget items related to government’s counterinsurgency campaign can also be diverted to basic social services. Poverty alleviation initiatives like the Payapa at Masaganang Pamayanan (Pamana) and CCT being used as part of the Oplan Bayanihan actually undermines the peace and development process by marginalizing efforts to address the root causes of insurgency (i.e. peasant landlessness) based on the fundamental principle of social justice while perpetuating the conflict and rampant human rights violations.

Aside from these items in the proposed 2013 budget, revenue generation can also be significantly increased by improving collection efficiency, reforming the tax system to maximize collections from the rich and reversing the neoliberal policies that deprived government of revenues such as trade liberalization as well as the numerous fiscal incentives to attract investors. Around ₱867 billion in new revenues can be raised from these reforms, based on Ibon estimates.

Fiscal policy for development

A national budget is important because it sets how government will use its resources. For backward countries, the issue of budget takes a more crucial role considering the scant public resources available amid the massive needs of the people and economy. In fact, for the Philippines, government needs to take a bigger responsibility to ensure that the people’s most basic needs such as education, health and housing, among others are met adequately given the chronic poverty and job scarcity.

At the same time, government must sensibly use the budget to invest in programs and policies which create the most favorable conditions for sustainable development and industrialization that will, in turn, create long-term jobs and address poverty. To achieve this, government needs a fiscal policy – tools on raising revenues and ways to spend them – that redistributes wealth and best serves the interests of the people, in particular the poor and marginalized.

Alas, despite its trappings of reformist language and deceptive increases in allocation for social services, the Aquino administration’s budget proposals, including the 2013 budget, are still reflective of the same anti-people and anti-development policy thinking of the past regimes; and still emasculated by the Marcosian automatic debt servicing. (end)

Martial Law legacy: debt servicing, top priority from Macoy to Noynoy

Image from gmanetwork.com

Last September 21, the country marked the 40th anniversary of the imposition of Martial Law by the late strongman Ferdinand Marcos. Those dark years were notorious for the numerous cases of human rights atrocities committed by the military; for the unprecedented cronyism; and for the massive and flagrant ransacking of state coffers by Marcos, his relatives and friends.

Seldom pointed out is how the Marcos dictatorship also instituted national policies that further tied our pre-industrial economy to perpetual backwardness and bound a great majority of our people to acute poverty. Seldom pointed out is how the anti-Marcos faction of the ruling elite led by Cory Aquino who supposedly restored democracy, and her successors – including son, incumbent President Benigno Aquino – have upheld and continued these policies to the serious detriment of the country and the people.

One such policy was automatic debt servicing. Guaranteed payments of the national debt, even if they were incurred under questionable circumstances; went to the pockets of corrupt government officials; and/or used to fund programs and projects that harmed the economy and the people is a testament to the still dismal state of governance and democracy in the country 40 years after Martial Law was imposed.

That the Marcosian policy of automatic debt servicing continues to deprive the people of much needed social services contradicts assertions by the Aquino government of a pro-people national budget. It has hyped, for instance, its proposed 2013 ₱2.006-trillion national budget as “Empowerment Budget”, building on its previous packaging of “Reform Budget” (2011) and “Results-Focused Budget” (2012). Underlying all these budget proposals is the theme of “daang matuwid” (straight path) and “kung walang corrupt, walang mahirap” (without corruption, there’s no poverty).

But behind the pro-people packaging is the reality that the priorities and programs of government, as reflected in its national budget, remain unresponsive to the urgent social needs of the poor and development requirements of the country. From the late strongman Macoy to the son of supposed democracy icons Noynoy, keeping the creditors assured has always been the top priority in crafting the national budget.

Current debt data

Marcos’s borrowing spree – from less than $1 billion when he first became President in 1966, the foreign debt ballooned to $28 billion by the time he was kicked out of Malacañang twenty-years later – set off the crippling debt burden that the country has had to endure. To keep the foreign loans coming, which had become the dictatorship’s largest source of corruption (one estimate claimed that Marcos pocketed at least ⅓ of foreign loans), Marcos issued Presidential Decree (PD) 1177 or the Budget Reform Decree of 1977 that automatically appropriates for debt servicing regardless of how much is left of the country’s resources to fund basic social services. The late President Corazon Aquino affirmed this policy through Executive Order (EO) 292 or the Administrative Code of 1987.

As of July 2012, the outstanding debt of the national government, according to the Bureau of the Treasury (BTr) stood at ₱5.16 trillion, of which ₱3.12 trillion (61%) come from domestic creditors and the rest, ₱2.04 trillion (39%) from foreign lenders.  When President Aquino assumed office in June 2010, that debt was pegged at ₱4.58 trillion (₱2.59 trillion, domestic; ₱1.99 trillion, foreign). Since taking over, the Aquino administration has added more than ₱580 billion to the debt burden, or an average of more than ₱23 billion a month (July 2010 to July 2012). During the Arroyo administration, the outstanding debt of the national government was growing by a monthly average of ₱21 billion (January 2001 to June 2010).

Meanwhile, looking at the foreign debt data (which include public and private debt, with the former accounting for 77% of the $62.9-billion total as of March 2012) as monitored by the Bangko Sentral ng Pilipinas (BSP), it appears that the country’s external loans have been accumulating most rapidly under the current Aquino administration with an average of $268.81 million per month. It is the largest monthly growth in foreign debt among all post-Marcos administrations. (See Chart)

A news report on the latest debt data noted that each Filipino now owes the national government’s creditors some ₱53,715 (based on the latest estimated population of 96 million by the National Statistical Coordination Board of NSCB). A minimum wage earner in the National Capital Region (NCR) will need to give his salary for 120 to 131 workdays if he will be forced to pay for his share of this debt; or 232 days if he is from the Autonomous Region in Muslim Mindanao (ARMM).

Meager allocation for social services

But the real impact of such heavy debt burden is felt by the poor in the meager allocation that important social services get from government because limited resources are being siphoned off by automatic debt servicing. And Aquino is proving to be worse than Arroyo in this respect. Under the Aquino administration, government has already shelled out ₱1.45 trillion for debt servicing from July 2010 to July 2012. It’s equivalent to ₱58.05 billion a month, almost ₱10 billion bigger than Arroyo’s ₱48.18 billion a month during her prolonged 9 ½-year term. (See Table 1)

Further, debt servicing relative to total expenditures (including principal repayments) is pegged at almost 59% under Aquino, compared to 42% under Arroyo; and relative to total revenues collected, it’s 76% under Aquino and 66% under Arroyo. These figures mean that that the absolute increase in debt servicing in the past two years is exerting more pressure on public resources which could not cope with the country’s growing expenses, including the need to pay for government’s mounting debts. To finance its expenses, including payments for past debts, the Aquino administration is borrowing more.

Debt servicing continues to eat up a huge portion of the national budget despite claims by the Aquino administration that social services are now being prioritized by government. The expenditure program from 2011 to the proposed 2013 national budget, for instance, shows that the budget for debt servicing (including principal amortization) is equivalent to an average of 2.5 times that of the budget for education; 6.4 times, health; and 11.2 times, housing. (See Table 2)

To be concluded

Failed health system and the Health 43

Image from http://www.bayan.ph

In a poor country where one out of every two people dies without receiving any medical attention, 50 percent of the population do not have access to health care, 40 percent do not have access to essential medicine, 10 mothers die daily due to pregnancy and childbirth-related causes, and 100 municipalities are doctorless and nurseless[1] while more than 7,700 nurses, 83 doctors, and 196 professional midwives leave the country yearly[2] to work abroad, trainings to equip ordinary citizens attend to the basic health needs of poor and neglected communities should be welcomed.

And a government that is sensitive to the needs of its people should support such initiative, or at least be thankful to medical professionals and volunteers who give their skills, knowledge, time, and resources in order to help bridge the widening gap between the need and availability of health services in the country.   

So when 43 health workers – including two medical doctors, a registered nurse, a registered midwife, and 39 community health workers – while conducting a training-seminar, were illegally arrested, and later tortured, by the police and military on outrageous claims that they were making bombs, you know at once that something is seriously, terribly wrong.

Community-based health programs

The Council for Health and Development (CHD), which together with the Community Medicine Foundation Inc. (CMFI) organized the training-seminar attended by the 43 health workers, is the national organization of non-government community-based health programs (CBHPs) in the Philippines. It raises resources for the CBHPs including reading, education, and training materials as well as financial support. The group, which is registered in the Securities and Exchange Commission (SEC) as non-stock and non-profit, also conducts trainings and consultations with CBHPs.[3]    

Since 1973, non-government CBHPs has formed part of the Philippine health care system. From simply providing training for paramedics in far-flung and neglected rural communities, CBHPs have overtime become part of the common people’s aspirations and struggles.[4]

Programs considered as CBHPs aim to respond to the basic health needs of the people through education, training, and services. Unlike episodic health campaigns such as breastfeeding or immunization programs, for example, CBHPs deal with the health issue in a holistic approach, i.e. health problems of the community are recognized to be inter-related with the economic, political, and cultural problems of the society. Thus, they do not provide solution to health problems but assists and facilitates in laying the foundation of a health system that is governed by the people at the community level.[5] Maybe this concept of CBHPs is too “communist” for the Armed Forces of the Philippines (AFP) and the Philippine National Police (PNP)?

But the CBHPs have long been recognized even by the United Nations (UN). In the late 1970s, CBHPs were institutionalized globally following an international conference on primary health care organized by the World Health Organization (WHO) and the UN International Children’s Emergency Fund (UNICEF). That conference officially recognized the role of paraprofessionals or auxiliary health workers in lieu of physicians in the rapid extension of health services in the Third World. They were to play a key role in achieving universal access to health services.[6] In fact, CBHPs in the Philippines were recognized by the UN Development Programme (UNDP) as among the most “innovative social organization and practices of the South.”

Lack of human resources for health

CBHPs and medical volunteers play a crucial role in the Philippines where there has been a noticeable trend of outward migration of doctors, nurses, midwives, therapists, and other medical professionals. From 1992 to 2006, the country has already deployed 115,871 professional nurses as overseas Filipino workers (OFWs); 2,945 professional midwives; and 1,247 medical doctors. The Philippines is the biggest “exporter” of nurses in the world.[7] The Philippine General Hospital (PGH) alone is losing as much as 500 nurses every year out of their 2,000 health workforce.[8]

These exported medical professionals tend to be well-trained, skilled, and experienced because of their specializations but are enticed to go abroad mainly due to economic factors. Nurses in the Philippines, for instance, are volunteers or casuals without plantilla positions and thus do not enjoy job security and other benefits. The Philippines has been mass producing nursing graduates every year not to attend to domestic health demands. A 2000 estimate, for example, said that 85 percent of the total demand for Filipino nurses are found abroad. Health workers employed in the country, meanwhile, endure low and variable wage rates that do not allow them to earn decent living wages.[9]

The obvious and immediate end-result of this phenomenon is a shortage in health professionals to meet the country’s own requirements. One indicator is the health professional to patient ratio. In some hospitals, one nurse attends to as much as 60 patients[10], which have implications on the quality of health services. A separate report claimed that the nurse to patient ratio in some government hospitals in the Philippines even reached 1:100 while the international standard is pegged at only 1:4.[11]

Meanwhile, processed data from the World Health Organization’s (WHO) online database show that there is only one doctor for every 2,000 Filipinos and one nurse/midwife for every 167. The WHO said that countries with fewer than 2.5 health care professionals (physicians, nurses, and midwives) per 1,000 people failed to achieve adequate coverage rates for selected primary health care interventions as prioritized by the Millennium Development Goals (MDGs) framework.[12]

Consequently, the 2007 Philippines Midterm Progress Report on the MDGs shows that based on the country’s current pace, the 2015 deadline on health-related targets will not be achieved. As of 2006, the number of maternal deaths per 100,000 live births was pegged at 162. The MDG target is to reduce the maternal mortality ratio to 52. Meanwhile, access to reproductive health care was pegged at 50.6 percent while the UN goal is 80 percent access.[13]

Government neglect, double injustice

The exodus of Filipino health professionals is reflective of the backward state of the Philippine economy and aggravated by wrong policies and priorities of past and present governments. The export of labor including medical professionals has been a flawed government policy since the Marcos years to provide jobs and generate dollars for the economy. In recent years, government has even intensified the export of health workers such as through the 2008 ratification the Japan-Philippines Economic Partnership Agreement (JPEPA), which supposedly guarantees access for Filipino nurses and caregivers to the Japanese health labor market.

These policies combine with total government neglect to provide basic social services including health. At an average of 1.8 percent national budget allocation since 2001, the Arroyo administration has allocated the smallest portion of the country’s budget for health services among all post-Marcos governments.[14] Actual spending is even worse. In 2008 (latest available data), public spending for health comprised only 1.2 percent of total spending (while debt servicing for principal and interest accounted for 47.6 percent).

Lack of public health services has forced many Filipinos to rely on their own. In a 2009 survey, Sun Life of Canada found out that 76 percent of Filipinos are concerned about paying for health treatment and an overwhelming 85 percent rely on their own savings when they get sick.[15] But because of poverty, medical needs are largely not met as indicated by the alarming national health statistics

Official poverty statistics show that there are 27.6 million poor Filipinos or 32.9 percent of the total population,[16] although independent estimates such as IBON’s claim that as high as 8 to 9 out of every 10 Filipinos do not meet decent living standards.

The situation is more severe and more felt in the countryside, where an estimated two out of three poor Filipinos live. These are the people that CBHPs serve in remote barangays and sitios where government services such as health are absent.

Thus, by arresting and torturing the 43 health workers, the Arroyo administration and its armed forces have twice committed a grave injustice – first against the victims and their families, and second against the countless poor people long neglected by government and that these health workers serve. ###

Sources, references, and notes   


[1] Galvez Tan, Jaime Z. (2004), “The brain drain phenomenon and its implications for health: 10 strategic solutions for action by Filipino leaders”, p. 5, paper read at the International Conference on the Medical Workforce sponsored by the United States Educational Commission for Foreign Medical Graduates (ECFMG), Washington DC, 4-7 Oct. 2004

[2] Based on 1992-2006 (latest available data) cumulative OFW deployment per skill and per country as compiled by the Philippine Overseas Employment Administration (POEA 

[3] Council for Health and Development website, http://www.chdphilippines.org/about.php 

[4] __________ (2001), “Community-based health programs”, p. 7, Examples of Innovative Social Organizations and Practices of the South”,  Vol. 6, UNDP Special Unit for South-South Cooperation

[5] Ibid., p. 6

[6] Ibid., pp. 3-5

[7] Lorenzo, Fe Marilyn E., RN, DrPH et al. (2005), Migration of health workers: Country case study Philippines, Institute of Health Policy and Development Studies, National Institute of Health, University of the Philippines, pp. 14, 21, International Labour Office, Geneva, 2005 

[8] Op. cit., Galvez Tan (2004)

[9] Op. cit., Lorenzo (2005), 18-19

[10] Ibid., p. 44

[11] Makilan, Aubrey SC (2005), “Poor pay, working conditions are driving health professionals abroad”, Special report (last of three parts), Bulatlat.com, Vol. V No. 43, 4-10 Dec. 2005, http://www.bulatlat.com/news/5-43/5-43-poor.htm

[12] World Health Organization Statistical Information System, Human resources for health, WHO website, http://www.who.int/whosis/indicators/compendium/2008/3hwo/en/index.html

[13] __________ (2007) “Philippines Midterm Progress Report on the Millennium Development Goals”, p. 15

[14] IBON Features (2010), “Violations of economic, social rights severe under Arroyo administration”, Bulatlat.com, 12 Dec. 2009, http://www.bulatlat.com/main/2009/12/12/violations-of-economic-social-rights-severe-under-arroyo-administration/

[15] Dumlao, Doris C. (2010) “Most Filipinos have nothing to leave their children, study shows”, Philippine Daily Inquirer, INQUIRER.net website, 6 Feb. 2010 http://business.inquirer.net/money/breakingnews/view/20100206-251545/Most-Filipinos-have-nothing-to-leave-their-children-study-shows

[16] National Statistical Coordination Board, Philippine Poverty Statistics, NSCB website, http://www.nscb.gov.ph/poverty/2006_05mar08/table_2.asp

Mission accomplished? Arroyo lifts martial law

Photo from Reuters

Of course, the decision by Mrs. Gloria Arroyo to lift martial law in Maguindanao last night (Dec. 12, 9PM) after one week must be welcomed. But looking at the bigger picture, the people must also be alarmed. Why, what are the dangers?

The lifting of Proclamation 1959 preempted Congress and the Supreme Court (SC) from deciding on the legitimacy of martial law. As such, questions on its legality have remained unresolved. House Speaker Prospero Nograles and Senate President Juan Ponce Enrile already said that they are adjourning the joint session on Proclamation 1959 on Monday, Dec. 14. As for the SC, it is hoped that it would still pursue the seven petitions versus martial law filed before it last week. The SC is supposed to determine whether or not Mrs. Arroyo abused her constitutional power to declare martial law.

As of this posting, however, there is still no official announcement from the SC. It only said its order for Malacañang to answer the petitions will stay. But the SC also added that the executive can manifest that martial law has been lifted (and thus the subject of the petitions no longer exists). If it decides to discontinue hearing the petitions, then we are in an even more precarious situation. Mrs. Arroyo can just impose martial law at whim, anywhere, using flimsy grounds like concocted rebellion. All she has to do is lift it before Congress and the SC can intervene. And then she can get away with murder.

With elections just around the corner, this is dangerous since military rule can be used to sabotage the polls. Imagine a scenario when martial law is declared on Election Day, or days before to lay the ground for fraud or election failure in certain areas. These unnerving possibilities are not farfetched especially with an incumbent President who will at all costs prolong her stay in power. The lifting of Proclamation 1959 did not ease fears of what Sen. Miriam Santiago called a “conspiracy” to expand martial law outside Maguindanao. We can thus expect more beheadings, hostage takings, clan wars, bombings, etc. in the months leading to the 2010 elections.

The other danger involves the cases facing the Ampatuans. Five members of the Ampatuan clan have already been charged with multiple counts of murder for the massacre. One of them is main suspect Datu Unsay Mayor Andal Ampatuan Jr. But other important members of the clan, including its patriarch Andal Sr. have been charged with rebellion instead. Pundits noted that the rebellion charge is actually an escape route for the Ampatuans. Because most of them were accused with a political crime (i.e. rebellion) and not a criminal case (i.e. murder), there is more room for compromises including pardon or even acquittal.

There is also a chance that evidence such as the caches of arms and ammo seized from the Ampatuans during martial law could be questioned in courts. Ampatuans’ lawyers may argue that such evidence was illegally seized under Proclamation 1959, whose legitimacy was not resolved. Thus, martial law was effectively used to dilute the case versus the warlord clan.

Executive Secretary Eduardo Ermita said they lifted martial law because it has already achieved its objectives. If these objectives are to make Proclamation 1959 a dry-run for future wider martial law and to weaken the criminal liability of the Ampatuans, then it is indeed mission accomplished for Malacañang.