SELID. IB 2005/2B - Communist Party of sel.109-243.pdf/ as a borderless source of raw materi-als....

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Transcript of SELID. IB 2005/2B - Communist Party of sel.109-243.pdf/ as a borderless source of raw materi-als....

  • B- 2/2005

    109The economic,political & social impactof imperial-isms dictates


    GGLLOOBBAALLIISSAATTIIOONN is the present stage ofthe imperialist drive for global hegemo-ny, which came in the wake of the dis-mantling of the USSR and of the socialistcommunity in Eastern Europe around oneand a half decades ago. It is characterizedby the penetration of imperialist financecapital everywhere, particularly in theformer socialist and socialist-orientedcountries, as well as in the non-alignedcountries, all of which formerly resistedimperialist dictation and exploitation atthe time when there was a strong social-ist system that was a counter-balance toimperialism.

    This stage is also characterized by theimperialist drive to tie-up or reign-in to-gether the international community notonly as an expanded investment area,but also as a supra-national market fortransnational products and services, aswell as a borderless source of raw materi-als. Absent the alternative example ofthe former socialist community wheresocial responsibility was paramount,globalisation today means unbridled im-perialist profiteering at the expense ofsocial services and job security, of nation-al sovereignty and territorial integrity, ofthe lives of whole peoples, and of worldpeace and security.

    TTHHEE PPHHIILLLLIIPPIINNEE EEXXPPEERRIIEENNCCEE.. The economiesof most of the developing countries areconstrained by the dictates of imperial-ism, as concretely set in the policies ofderegulation, liberalization and privatisa-tion laid down by the World Bank, theInternational Monetary Fund and theWorld Trade Organization. In the case ofthe Philippines, which has a neo-colonialsystem where the government acts asthe caretaker for imperialist interests, thebureaucracy is run by agents of imperial-

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    ism, with the central bank, the monetaryboard, the finance and other departmentshaving to do with the economy being ad-ministered by members of the Filipinoelite who have previously been em-ployed with, or have trained under, theWB/IMF and/or the WTO.

    Also permanent fixtures in other exec-utive departments as well as in legislativeoffices are US and other imperialist adviso-ry and consultancy firms, as well as theirrelated foundations and non-govern-mental organizations, inflicting them-selves on our country by dishing out pre-scriptions and recommendations to fur-ther deregulate and liberalize business ac-tivities, and to further privatise or evenabolish the remaining state sector of theeconomy, as recipes for national progress,even as continued compliance with suchdictates over the past decades has only re-sulted in consistent economic decline.

    The continued economic decline ofthe Philippines, in comparison with otherdeveloping countries, is usually ex-plained only as the result of local corrup-tion or lacklustre compliance with WB-IMF-WTO dictates, however, the massesof our people are more and more realiz-ing that our economic under-develop-ment is precisely the result of the longchain of WB-IMF-WTO dictates.

    DDEERREEGGUULLAATTIINNGG TTHHEE EECCOONNOOMMYY.. Based onthe experience of the Philippines, the ma-jor imperialist dictates related to the pol-icy of deregulation are the following: Keeping the economy open to foreign

    economic penetration, and granting

    investment incentives to foreign in-vestors (which incentives are not evenextended to local entrepreneurs).

    Allowing foreign investment in al-most all business areas (including ar-eas where foreign capital could com-pete with, and even overwhelm, localentrepreneurs).

    Allowing local borrowings by foreigninvestors -from banks and other finan-cial institutions, and even through thelocal floating of stocks (public offer-ings at the stock market). It is tragicthat instead of directing foreign in-vestments toward selected industriesthat need development, it is the inter-nal savings of the Filipino people thatare being harnessed by foreign capi-talists for purposes determined solelyby their selfish profiteering interests.

    The granting by the government ofcontingent liability guarantees, or theso-called sovereign guarantees onthe foreign debt of the private sector.With the business failure of these pri-vate borrowers, the responsibility forthe payment of their foreign borrow-ings is transferred to the government,and therefore becomes the burden ofthe masses of the Filipino people.

    The automatic appropriation of fundsin the national budget for the pay-ment of at least the interest on thegovernments foreign debt.

    Allowing the full repatriation of profitsand even capital from the local opera-tions of transnational corporations.

    The disregard for safeguards to pro-tect the environment, whenever im-

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    perialist countries would want totransfer certain hazardous industries.An example of this was the transfer tothe Philippines of the copper sinteringplant which was originally used inJapan to treat its copper ore importsfrom Australia. When the sinteringplants waste discharge into the seacaused the Minamata disease, thewhole plant was transferred toMindanao Island in the Philippineswith the blessing of the Philippinegovernment. In another case, tailingsfrom a copper mine operated by aCanadian-based transnational corpo-ration (Placer Dome) in the island ofMarinduque caused the poisoning oftwo rivers and the adjoining sea in1996. Instead of undertaking correc-tive measures and giving compensa-tion to the people affected by the car-cinogenic discharge, the transnationalcorporation simply abandoned thesite immediately after the disaster.And just last month, tailings with dan-gerous levels of cyanide from a goldmine operated by an Australian-basedtransnational company (Lafayette NL)in the island of Rapu-Rapu caused thepoisoning of 2 creeks and the adjoin-ing sea, and thereby destroyed thelivelihood of the fishing communitiesin the island.

    IIMMPPOORRTT RREEGGUULLAATTIIOONN.. Regarding the im-perialist policy of liberalization, thiscontinues to be enforced with particularseverity in the area of import liberaliza-tion, which resulted to two (2) major

    economic disasters for the Philippines: the closing down of many industries

    and handicraft factories which cannotcompete with low-priced non-agri-cultural imports; and

    the ruin of farmers and livestockgrowers who cannot compete withlow-priced agricultural imports. Industry closures have led to higher

    unemployment and the reduction in themembership and clout of unions in gen-eral. In the agricultural sector, hard hitwere rice and corn farmers in view of theremoval of previous production incen-tives, and the freezing of support pricesto levels of over a decade ago. Our locallivestock raisers and vegetable farmersare also heavily hit.

    Import liberalization is also ananti-industrialization schemeunder which developing coun-tries are consigned to consum-ing imported finished products,diverting their attention awayfrom the goal of developing theirown internal capacity to manu-facture their needed products.

    In the Philippines, import liberaliza-tion has led (on the one hand) to the clo-sure of more job-sustaining factories, and(on the other hand) the mushrooming ofsupermarkets, department stores andshopping malls selling imported goods.

    PPRRIIVVAATTIISSIINNGG TTHHEE SSTTAATTEE SSEECCTTOORR.. Regardingthe imperialist policy of privatisation, thiswas first introduced through structural

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    adjustment loans extended to thePhilippine government by the WorldBank in 1980. In the wake of the collapseof the socialist governments in the formerUSSR and in Eastern Europe, privatisationwas even more forcefully enforced. Thefall of the Marcos dictatorship in 1986,which was responsible for the expansionof the state sector of the economy in thePhilippines (through debt-financing) inthe 1970s, became a chance for imperial-ism and its Aquino puppet regime to un-dertake large-scale privatisation.

    Government television and radio sta-tions, airlines, telephone companies, ironand steel mills, ship repair facilities, fertiliz-er plants, local waterworks and electricplants, light rail transit systems and ex-pressways, petroleum companies and mil-itary camps were privatised, with most ofthe proceeds from privatisation simplydisappearing. A few years ago, the coun-trys biggest water distribution system(that in Metropolitan Manila, the nationalcapital region) was privatised, with US andFrench companies financing the take-over.The promised decrease in water supplyrates and development/expansion of facil-ities never materialised; the cost of waterwas simply raised a number of times. Nextfor privatisation are the national railway,the national power distribution grid, andthe national postal service.

    The very lucrative government pen-sion funds for private-sector and state-sector workers (the Social SecuritySystem, and the Government ServiceInsurance System, respectively), as wellas some warehouses used to store securi-

    ty stocks of food grains, plus some hospi-tal and educational facilities, are also be-ing considered for privatisation. There iseven a trend to privatise the system ofjustice, with litigants now increasinglybeing referred to private conciliators andarbitrators, instead of regular courts. As aresult of an international arbitration case,the Philippine government continues topay millions of dollars every year to theWestinghouse Corporation of the USA foran unfinishe