‘Only the rich benefit from economic growth’

MANILA, Philippines - Only the rich are benefiting from the economic growth being claimed by the Aquino administration, the leader of the opposition bloc in the House of Representatives said yesterday.

House Minority Leader and Quezon Rep. Danilo Suarez lauded the administration for the country’s improved ranking among the world’s freest economies but said the poor have not felt its effect.

Based on the Heritage Foundation’s 2013 Index of Economic Freedom, the country’s ranking has improved from 107th to 97th. But the lawmaker said the country’s score of 58.2 is good enough to earn it a “partly free” label. He also cited the Heritage Foundation’s observation that the Philippines has inefficient judiciary which is susceptible to political interference. Furthermore, it cited as cause for “concern” the administration’s “loose regard for contracts.”

“How many valid government contracts have been questioned solely on the basis that it was executed during the past administration?” Suarez told reporters. “How can you expect foreign investors to place their money in government contracts when they cannot be assured of a reasonable expectation of a return on investments?” he asked.

“It is no wonder then that our recent economic highlights, such as our record-breaking stock market, are mostly private sector driven,” Suarez said.

“Let’s face it, the surge in the stock market is felt only by the A and B classes. The rich get richer and there is not much increase in the number of those joining the middle class. Also, most of the stocks in the market are owned by huge conglomerates,” Suarez said.

“These powerful groups of companies will continue to expand and grow unabated. An economy controlled mostly by a few groups or individuals is unhealthy, to say the least. Competition will be lost and prices will be dictated according to the whims of the economic elite,” he said.

A private sector-led economy, he said, also needs a push from government for it to be sustainable and more inclusive.

He said a recent Social Weather Stations survey showing 10.9 million households considering themselves as poor is proof that the private sector led economy is only benefiting the wealthier classes.

The survey also showed that self-rated food-poverty worsened across all areas: 24 percent to 28 percent in Metro Manila, 29 percent to 34 percent for the rest of Luzon, 47 percent to 54 percent in the Visayas, and from 45 percent to 63 percent in Mindanao, he said.

“The result of this survey, when compared with the rosy economic picture being peddled in the news, is not very surprising. The stock market is the playground of the wealthy, and it seems that the poor are much too hungry to play with them,” Suarez said.

He welcomed reports, however, that some of the administration’s public-private partnership projects - particularly school buildings - have taken off.