Urban poor group slams P72B stimulus fund [With 10B-peso fund to resettle urban poor, Binay told: ‘Don’t use public fund to aggravate our condition’]

PRESS RELEASE l 14 October 2011


QUEZON CITY, Philippines—A militant urban poor group denounces the Aquino administration’s P72.11-billion stimulation package, known as the Disbursement Acceleration Plan, announced on Wednesday by the president that shallbe used ‘to fortify the economy and cushion the impact of the global fallout from Europe’s debt crisis.’

Kadamay said the “package will not serve the interest of the people especially the poor, and will only aggravate their condition since P10-billion of which will be used to relocate some 106,000 urban poor families to far-flung relocation sites that lack sources of livelihood.” The group held today a picket-protest at the gate of the National Housing Authority during a visit by the Vice President Jejomar Binay who also stands as the head of the Housing and Urban Development Coordinating Council (HUDCC) to protest against the P10-billion resettlement fund and the apparent privatization in the housing sector.

According to the group’s statement: “The P10-billion peso resettlement fund will only beef up the investments of capital of low-cost housing developers and their cohorts in the housing agencies, while throwing thousands of urban poor families into relocation sites where they experience economic and social degradation.”

Aquino gave a breakdown of some of the planned expenditures under the stimulus package:

• P10 billion to resettle and relocate informal settlers and families in danger zones.
• P6.5 billion as support fund for local government units.
• P5.5 billion for various infrastructure projects under the Department of Public Works and Highways.
• P4.5 billion for the improvement of the Mass Rail Transit on Edsa.
• P1.868 billion for the upgrade of the Light Rail Transit.

He said “the criteria (they) used to choose these projects were simple. The stimulus will be spent on projects that will have high macroeconomic impact and will help the poor.”

According to Kadamay, “while the government is worried about the impact of Europe’s debt crisis to the Philippine economy, while it remains insensitive to the condition of millions of poor families whose condition is aggravated by ‘development’ projects under the Public-Private Partnership programs.”

“The government is even using the debt crisis in Europe to release public funds for the interest of big businessmen, while it implements privatization schemes in accordance to neoliberal economic policies.”

National Industrialization against the ill-effects of globalization
While Malacanang admits it is uncertain of what the negative effects of the world economic turmoil will have on the population since it is a developing story, the real solution according to Kadamay to shield our people from the effects of global crisis is not to upgrade our infrastructures and to attract more foriegn investors.”

“As proven in different times and in different countries, building our own industry independent to the dictates of the foreign market is the only effective shield against the claws of globalization. The P72-billion pesos should be spent instead in funding local industries that will harness the bounty of our natural resources,” the group added.

“If the government would implement a national industrialization program in scope funding vital industries in the regions and the countryside, it will also answer the long-standing problem of urban migration, and the housing problem in the country’s major urban centers,” the group ended.###

Reference: Francis Esponilla, Kadamay National Education Committee (09467350082)