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In Depth wth Foreign Debt
•The Growing Philippine Debt Crisis
•Praymer sa Pagpapatalsik Kay ERAP
•"Sobra nang Pahirap, Patalsikin si Erap!"
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In Depth with Foreign Debt
So what?
Taking into consideration the country's present population of 75.33 million and an exchange rate of P50 to $1, it can be assumed that every Filipino owes foreign creditors at least P 34,600. And to relate it to a Filipino worker who receives a minimum wage rate, this would mean six working months to pay his debt. Every citizen is burdened with taxes (direct and indirect) paid to the government. These collected taxes are then used in paying debt to foreign creditors instead of improving condition the Filipino families.
With a foreign debt of over $52 billion, the country has been allocating huge portion of its foreign exchange earnings to service the bloating foreign debt and please the foreign creditors, leaving very little for economic development. Over 40% of the national budget go to debt servicing, with little left for basic social services.
Where it all started!
The roots of the country's debt crisis can be traced way back during the 70's where developing countries looked to multilateral and bilateral institutions and commercial banks to finance their development projects. Fearful that their petrodollar deposits would sit idle, creditor banks extended credits to poor countries in the name of "development finance". The over-eagerness of the big creditor banks to lend billions of petrodollars to developing countries contributed to the increasing debt crisis. Another factor that lead to the bloating of external debt of the country was the borrowing spree which Marcos allies engaged in, to finance development projects which piled up debts which were later passed on to the government to assume.
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Copyright © 2001. The Supervixens.
Sheryle Pablo and Dinah Silverio. All Rights Reserved.
University of the Philippines,Diliman Q.C. |
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