Btalk Yearend 10-11 January 2013 Final Final

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    January 10-11, 2013U.P. School of Labor and Industrial Relations (UP SOLAIR)

    UP Diliman, Quezon City

    YEAREND 2012:

    The Deceit of Good Economic

    and Good Governance

    Economic andPolitical BriefingBirdtalk

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    2 !"#$%&'()(*+'%,)-%.(/+0+',/%"1+23)4 ! 10-11 January 2013

    IBON Foundation114 Timog Avenue

    Quezon City 1103 Philippines

    Tel. Nos: +63 2 927-7060 to 62

    Fax: +63 2 929-2496

    www.ibon.org

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    % %%%%%%%%%%%%%%!"#$%&'()(*+'%,)-%.(/+0+',/%"1+23)4 ! 10-11 January 2013 3

    The year 2012 ended with the Philippines seemingly moving forward on many counts.

    There was rapid economic growth, record highs in the stock market and gross

    international reserves (GIR), looming investment grade credit ratings, higher foreign

    !"#$%&'$"&()"*(!"+,$)%!"-(+.,/.,)&$(/,.0&%1(23$(/.4!&!+)4(%+$"$(5)%()4%.(,$4)&!#$46(%&$)*6(

    especially compared to the decade of turbulence during the previous Arroyo administration.

    In particular the traditional political opposition was restrained and as yet unwilling to test

    the administrations perceived core of public support. There were also apparent advances

    !"(%.'$(+."&,.#$,%!)4(/!$+$%(.7(4$-!%4)&!."()"*8(".&)9468($#$"(!"(&3$(:.,.(),'$*(+.";!+&(!"(

    Mindanao.

    Yet many things which were arguably more meaningful remained unchanged. Despite

    supposed economic good news and a degree of political stability the majority of Filipinos still

    faced record joblessness, stagnant earnings, rising prices and growing poverty. Domestic

    manufacturing and agriculture continued their long-term decline. Corruption did notmeasurably decrease and old disagreeable political ways continued such as in the run-up

    to the 2013 mid-term election and even on the part of the administration. State-sponsored

    3

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    4 !"#$%&'()(*+'%,)-%.(/+0+',/%"1+23)4 ! 10-11 January 2013

    Aquinos Faulty Economics

    The Aquino administration touted the 3rd quarter growth of the gross domestic product (GDP) as a sign

    of a strong economy and called the Philippines the roaring lion of Asia. According to the Aquino

    administration, the spectacular 7.1% growth along with the upgraded credit outlook and a booming stock

    !"#$%&'#%(%)&'&*%'+,))%++'-.'/&+'%)-0-!/)'1-2/)/%+'/0'2%"3/04'&*%')-,0'&-'3%6%2-1!%0&7'

    80'+-'."#'"+'3%6%2-1!%0&'/+')-0)%#0%3'*-9%6%#:'"'*/4*';

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    % %%%%%%%%%%%%%%!"#$%&'()(*+'%,)-%.(/+0+',/%"1+23)4 ! 10-11 January 2013 5

    8&'!"5'A%'#%)"22%3'&*"&'&*%'4-6%#0!%0&'"22-)"&%3'/0'IJKI'"0'/0.#"+,)&,#%'A,34%&'9-#&*'=*1KZI'A/22/-0:'

    IW7VM'*/4*%#'&*"0'&*%'/0.#"+,)&,#%'A,34%&'/0'IJKK7''\O%%'Table 3^'O&/22:'4-6%#0!%0&'/06%+&!%0&'/0')-0+,)&/-0'9"+'0-&'%0-,4*'&-'"&")&'.-#%/40'3/#%)&'/06%+&!%0&'\R&A".%,?&',.BC*4&D7"*.%*&EF''&"04&EF'E&G".&2+0,."0.

    &&&&&&&&&&&&&&EFFF&

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    6 !"#$%&'()(*+'%,)-%.(/+0+',/%"1+23)4 ! 10-11 January 2013

    !"## !"#! !"## !"#!

    #$%&'()*+,-+(./%0+1-)1'/%23(.4-(5%617%2)48)1' !$! 9$# 9$: #$;!"#$%&'()*+)&,#!-.#/0&,1+&2 3"4 5"6 7"4 8"9

    :"#/'1;'-%

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    % %%%%%%%%%%%%%%!"#$%&'()(*+'%,)-%.(/+0+',/%"1+23)4 ! 10-11 January 2013 7

    importance, especially in the context of the Philippine economy, if construction builds national industries

    e.g. chemicals, textile, and steel. But its current growth is not because of supporting industrialization

    A,&'-025'A"+%3'-0'&*%'A--!'/0')-0+,)&/-0'-.'.")/2/&/%+'.-#'&*%'.-#%/40')"1/&"2X/0&%0+/6%'"03'%D1-#&X

    -#/%0&%3'[=Y'+%)&-#:'/0'1"#&/),2"#:'&*%'A,/23/04'-.'!-#%'-.B)%'+1")%+:'"03'&-'"')%#&"/0'%D&%0&:'#%+/3%0&/"2'

    units.

    F))-#3/04'&-'&*%'+,#6%5')-03,)&%3'A5'&*%'a"&/-0"2'O&"&/+&/)+'Y.B)%'\aOJ^:'&*%'6"2,%'-.')-0+,)&/-0'/0'

    the 3rd'G,"#&%#'-.'IJKI'9"+'!"/025'3#/6%0'A5'"'KJJM'/0)#%"+%'/0'&*%'6"2,%'-.'0-0X#%+/3%0&/"2'A,/23/04'

    construction, from Php14.2 billion in 3rd quarter 2011 to Php28.2 billion in 3rd'G,"#&%#'IJKI7'C-0+,)&/-0'

    -.')-!!%#)/"2'A,/23/04+'"))-,0&%3'.-#'LK7IM'-.'&*%'&-&"2'6"2,%'-.'0-0X#%+/3%0&/"2')-0+,)&/-07'Y025'S7WM'

    -.'&-&"2'6"2,%'-.')-0+,)&/-0'/+'"))-,0&%3'.-#'A5'/03,+/"2')-0+,)&/-07'

    F2+-:'/03,+'12"5%#+'"&/A,&%'&*%'A--!'/0'#%"2'%+&"&%:'#%0&/04'"03'A,+/0%++'")&/6/&/%+'&-'/0)#%"+%3'[=Y'

    ")&/6/&/%+'"03'#%!/&&"0)%+'-.'-6%#+%"+'R/2/1/0-'9-#$%#+'\YRb+^7'[=Y'")&/6/&/%+'"#%'2"#4%25'3#/6%0'A5'R

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    8 !"#$%&'()(*+'%,)-%.(/+0+',/%"1+23)4 ! 10-11 January 2013

    !"##$! !"#!$! !"## !"#!

    %&'()$*+,-'. #/"0" #1!""0" #!!02 3""0"

    !"#$%&'()*+,-#).(#/+012+,$.3$1" 456 756 88956 :;854

    W(3)#.+]5+D5+N5+! 859 ?958 :9B5@< 8*@B@58

    L)$1M).()2+D0#1$1". ?6657 8?857 AB58 :B@54

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    10 !"#$%&'()(*+'%,)-%.(/+0+',/%"1+23)4 ! 10-11 January 2013

    ;#-9/04'+%)&-#+'"#%'"2+-'/#-0/)"225'*"6/04'*/4*'0,!A%#+'-.'@-A+'2-+&7'R-#'%D"!12%:'9*-2%+"2%'"03'#%&"/2'

    trade grew by 7% in 3rd'G,"#&%#'IJKI'A,&'@-A'2-++%+'/0'Y)&-A%#'IJKI'#%")*%3'LIS:JJJ7'?"0,.")&,#/04'"2+-'

    despite growing faster in the 3rd'G,"#&%#'#%)-#3%3'ZW:JJJ'@-A'2-++%+'/0'&*%'+"!%'1%#/-37'c%"2'%+&"&%'"2+-'

    #%)-#3%3'WT:NJJ'@-A'2-++%+`'B0"0)/"2'"03'/0+,#"0)%'")&/6/&/%+'#%)-#3%3'KW:JJJ'@-A'2-++%+'"03'"4#/),2&,#%'

    #%)-#3%3'VTZ:IJJ'@-A'2-++%+7''\O%%'Table 6)

    !"#$%&'' !"#$%&'%$!

    ()#*+$,-.+)/01 23455& 264773 833%9

    :;;

    R&S'$%*!-M$,$0(#+($/,*+,-*T)B),0)*F/MI&'0/#1*L/%$+'

    ******L)%$(1*23:=6 23>7> 22>

    C-&%+($/,* 232>6 23A67 27

    N)+'(

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    % %%%%%%%%%%%%%%!"#$%&'()(*+'%,)-%.(/+0+',/%"1+23)4 ! 10-11 January 2013 11

    O-:'9*"&'/+'+1%)&"),2"#'"A-,&'&*%'4#-9&*>'E*%'FG,/0-'4-6%#0!%0&'/+'"2+-'*51/04'&*%'#%)%0&')#%3/&'

    ,14#"3%+:'+-04'1%+-:'#%)-#3X*/4*'+&-)$'!"#$%&'/03%D:'#%)-#3X*/4*'4#-++'/0&%#0"&/-0"2'#%+%#6%+'\;8c^:'"03'

    /0)#%"+%3'/06%+&!%0&+7'E*%+%'"#%'+/40+'-.'4--3'%)-0-!/)+:'"))-#3/04'&-'&*%'FG,/0-'4-6%#0!%0&:'"03'-.'

    +%04&*%0%3'!")#-%)-0-!/)'.,03"!%0&"2+'"03'4--3'4-6%#0"0)%7'E*%'FG,/0-'4-6%#0!%0&'%G,"&%+'&*%+%'

    &-'3%6%2-1!%0&7'

    E*%'/03/)"&-#+'&*"&'!"&&%#'e',0%!12-5!%0&:'1-6%#&5:'"03'#%"2'/0)-!%+'e'*-9%6%#:'"#%'0-&'!%0&/-0%37'

    C#%3/&',14#"3%+'+/!125'!%"+,#%'&*%')-,0H+'"A/2/&5'&-'1"5'"03'3-'0-&'*"6%'"05&*/04'&-'3-'9/&*'

    3%6%2-1!%0&7'E*%';8c'!%"09*/2%'/03/)"&%+'&*"&'&*%'%)-0-!5'*"+'&*%'),##%0)5'&-'1"5'.-#'/!1-#&+'"03'

    -&*%#'"0+")&/-0+'/06-26/04'.-#%/40'),##%0)57'F'+-04'+&-)$'!"#$%&'"03'+-04'1%+-'"#%'#%(%)&/6%'-.'*-&'

    !-0%5'/0(-9+'3,%'&-'.-#%/40')"1/&"2H+'+%"#)*'.-#'1#-B&"A2%'+*-#&X&%#!'-11-#&,0/&/%+'"!/3'+2,44/+*'gO:'

    U,#-1%"0'"03'f"1"0%+%'%)-0-!/%+7''?-#%-6%#:'/0'+&-)$'!"#$%&'"3/04:'4"/0+'-025'"))#,%'&-'&*%'2/+&%3:'

    ,+,"225'A/4:')-#1-#"&/-0+'"03'+&-)$*-23%#+7'h"+&25:'.-#%/40'/06%+&!%0&+'"#%'0-&'")&,"225'A,22/+*`'&*%'gOiK7K'

    A/22/-0'.-#%/40'/06%+&!%0&'/0'f"0,"#5XO%1&%!A%#'IJKI'9"+'!,)*'2-9%#'&*"0'&*%'"00,"2'"6%#"4%'-.'gOiI7I'

    A/22/-0'/0'IJJWXIJJT'-#'&*%'"00,"2'"6%#"4%'-.'gOiK7V'A/22/-0'/0'IJJJXIJJT7'

    ?-+&'-.'"22:'%6%0'*/+&-#/)"225'&*%+%'/03/)"&-#+'*"6%'0%6%#'A%%0'#%2%6"0&'&-'&*%')-,0&5H+'#%"2'3%6%2-1!%0&'

    /0'&%#!+'-.'3%6%2-1/04'"4#/),2&,#%:'0"&/-0"2'/03,+:'@-A'4%0%#"&/-0:'"03'1-6%#&5'#%3,)&/-07'E*%+%'"#%'

    !%"0/042%++'/03/)"&-#+'&-'&*%'"6%#"4%'R/2/1/0-:'"+'&*%5'3-'0-&'"0+2"&%'&-'"0'/!1#-6%!%0&'/0'2/6%2/*--3'

    "03'9%2."#%7'E*%'1-++/A/2/&5'-.'2-9%#'/0&%#%+&'#"&%+'-0'.-#%/40'2-"0+'.-#'/0+&"0)%'*"+'0%6%#'A%%0'+%%0'"+'

    "0'/03/)"&-#'&*"&'&*%'4-6%#0!%0&'9-,23'+1%03'!-#%'!-0%5'.-#'+-)/"2'+%#6/)%+7'

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    12 !"#$%&'()(*+'%,)-%.(/+0+',/%"1+23)4 ! 10-11 January 2013

    +/40/B)"0&'/0)#%"+%'/0'&*%'0%&'%0#-2!%0&'#"&/-'/0'+%)-03"#5'%3,)"&/-0'.-#'%D"!12%'&*"&'!"5'%D12"/0'&*/+'

    phenomenon.

    j-,&*',0%!12-5!%0&'/+'"2+-'*/4*'"&'KW7ZM:'*/4*%#'&*"0'1#%6/-,+'5%"#H+'KZM'"03'!-#%'&*"0'&9/)%'&*%'

    0"&/-0"2'"6%#"4%7'E*%'A/44%+&'1%#)%0&"4%'-.'&*%',0%!12-5%3'"#%'*/4*X+)*--2'%3,)"&%3'/03/6/3,"2+'"&'ZW7ZM'

    -.'&-&"2',0%!12-5%3:'9*/)*'/0)#%"+%3'.#-!'ZZ7LM'/0'Y)&-A%#'IJKK7

    g03%#%!12-5!%0&'/!1#-6%3'+2/4*&25'A,&'#%!"/0%3'*/4*'"&'KTM:')2"/!/04'L7KV'!/22/-0'1%-12%'/0'Y)&-A%#'

    IJKI:'.#-!'KT7KM'/0'Y)&-A%#'IJKK7''F!-04'&*%'%!12-5%3:'-0'&*%'-&*%#'*"03:'B6%'-,&'-.'KJ:'-#'KV7SW'

    !/22/-0'1%-12%:'"#%'/0'1--#'G,"2/&5'9-#$'\+%2.X%!12-5%3:'9-#$/04'/0'1#/6"&%'*-,+%*-23:'"03'9-#$'9/&*-,&'

    pay in farm or family-owned business).

    !"#$%

    &'()'*#

    +,-#(,./#,"*

    012

    !"#$% 345367 38898 75:73 365;(,)/%#/('5?@,-A'(B?$*C?@"('-#(B 6< 89: D ED

    !"#$%&'()*+,&-($-"+.-/+01#)2(#3 45 678 9 :9

    0$2;$-" < < < ?%")*- 12033 12704 125'3 12544 32473 32311

    A"#&B.C*&8$9"+&:"+;* 1?%")>*.#&-*KB.B#B".&,B.;*&1$#*,&K"+C*&?I+?",*,&"K&;">?$+B,".F&&!CB,&B,&-".*&9)&;">?I#B.H&,I9,#B#I#*&%$9"+&K"+;*&?$+#B;B?$#B".

    &&&&&+$#*,&P8:DEQ&RC*+*&;C$.H*,&B.&"KKB;B$%&+*?"+#*-&$..I$%&$/*+$H*&8:DE&$+*&$??%B*-"C*&8:DE&B.&1?%")>*.#Q&-*KB.B#B".F!&G&?+*%B>B.$+)

    4+,56#7&A$#B".$%&J#$#B,#B;,&LKKB;*&!"#$%&'$%()&*+%,)-

    !"#$%&'(&)%*&+"#,-&.,-/%&0123/"4,-56&7/4,#%-&89::&"12&89:86&"12&;

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    14 !"#$%&'()(*+'%,)-%.(/+0+',/%"1+23)4 ! 10-11 January 2013

    ;-$-049%/'\c-A/0+-0+'h"03'C-#17:'f;'O,!!/&'P-23/04+^`'"03'F5"2"'\F5"2"'h"03:'F5"2"'C-#17:'["0$'-.'

    the Philippine Islands).

    E*%'A/44%+&')-#1-#"&/-0+'/0'&*%'=*/2/11/0%+'"2+-'+"9'&*%/#'/0)-!%'"03'1#-B&"A/2/&5'4#%9'!-#%'&*"0'/&'3/3'

    3,#/04'&*%'1#%6/-,+'"3!/0/+"&/-07'R#-!'IJKJXIJKK:'&*%'&-1'K:JJJ')-#1-#"&/-0+'4"/0%3'"0'"6%#"4%'"00,"2'

    /0)-!%'-.'=*1LSJ7JI'A/22/-0')-!1"#%3'&-'"0'"6%#"4%'-.'=*1ZIK'A/22/-0'"00,"225'3,#/04'&*%'1#%6/-,+'

    "3!/0/+"&/-07'E*%'1#-B&"A/2/&5'-.'A/4'A,+/0%++',03%#'&*%'FG,/0-'"3!/0/+"&/-0'/+'"2+-'*/4*%#'"&'"0'

    "6%#"4%'-.'KK7KM'"00,"2257'\O%%'Table 10)

    !"#$%

    &'()'*#

    +,-#(,./#,"*

    012

    !"#$% 34567 38898 387 34:63

    ;;

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    % %%%%%%%%%%%%%%!"#$%&'()(*+'%,)-%.(/+0+',/%"1+23)4 ! 10-11 January 2013 15

    !"#"$%&'() !"##$%&'() *'+,-.$%/) !"#"$%&'() !"##$%&'() *'+,-.$%

    !"#$%&'()*+,&-($-"+.-/+01#)2(#3*+.-/+0$24$-" 567895 56:879 ;85 98; ?*

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    16 !"#$%&'()(*+'%,)-%.(/+0+',/%"1+23)4 ! 10-11 January 2013

    Water

    E*%'FG,/0-'4-6%#0!%0&'/+'+%&'&-'!"$%'&*%')-#1-#"&%'&"$%-6%#'-.'9"&%#'!-#%'%D&%0+/6%'"03')-!12%&%'A5'

    1#/6"&/Q/04'&*%'9"&%#'#%+-,#)%'/&+%2.'&*#-,4*'==='1#-@%)&+'"03'A5'1#/6"&/Q/04'&*%'9"&%#'3/+/)&+7''

    E*%'1,A2/)'*"+'A-#0%'&*%'1#/)%'-.'9"&%#'1#/6"&/Q"&/-0'/0'&*%'=*/2/11/0%+'+/0)%'&*%'?%-1-2/&"0'b"&%#9-#$+'

    "03'O%9%#"4%'O5+&%!'\?bOO^'9"+'1#/6"&/Q%3'/0'KTTL'&-'&*%'&,0%'-.'gOiL'A/22/-0:'-0%'-.'&*%'B#+&'"03'

    A/44%+&'1#/6"&/Q"&/-0'3%"2+'"&'&*"&'&/!%7'E*%'1#/6"&/Q"&/-0'-.'&*%'?bOO'9"+'&*%'#%+,2&'-.'"'b-#23'["0$'1#-1-+"2'/0'-#3%#'.-#'&*%'9"&%#'"4%0)5'&-'1"5'/&+'3%A&+'"03'"2+-'/&+'/06-26%!%0&'/0'&*%'9*-2%'1#/6"&/Q"&/-0'

    1#-)%++7'E*%'9"&%#'+,1125'.-#'?%-'?"0/2"'9"+'+-23'&-'A/4')-#1-#"&/-0+'"03'&*%/#'1"#&0%#+:'9*/)*'9%#%'

    42-A"2'4/"0&'9"&%#'"03'%0%#45'"0+0"&/-0"2')-#1-#"&/-0+l'F5"2"'C-#17'"03'&*%'[#/&/+*'g0/&%3'g&/2/&/%+k

    [%)*&%2'"03'[%01#%+'P-23/04+'"03'&*%'R#%0)*'O,%Q'h5-00"/+%'3%+'U",D'\Y03%-^7'E*%'1#/6"&/Q"&/-0'3%"2'

    "22-9%3'&*%'&9-')-0)%++/-0"/#%+'&-'#,0'"'6/&"2'+%#6/)%'2/$%'"')-!!%#)/"2'-1%#"&/-0'&*#-,4*'"'1#/)/04'

    mechanism.

    b"&%#'1#/6"&/Q"&/-0'*"+'"22-9%3'9"&%#'+,1125'1#-6/+/-0'/0'?%-'?"0/2"'&-'A%'#,0'.-#'1#-B&7'O/0)%'

    9"&%#'1#/6"&/Q"&/-0:'9"&%#'#"&%+'+-"#%3'A5'"+'!,)*'"+'K:JJJ'1%#)%0&7'\O%% Chart 2^'E*%'"6%#"4%'&"#/..'-.'

    ?"50/2"3'b"&%#'O%#6/)%+'80)7'\?bO8^'*"+'@,!1%3'.#-!'=*1Z7TV'1%#'),A/)'!%&%#'9*%0'/&'B#+&'&--$'-6%#'

    &*%'?bOOH+'9%+&'Q-0%'+%#6/)%'"#%"'&-'=*1NI7TI'/0'IJKI7'

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    % %%%%%%%%%%%%%%!"#$%&'()(*+'%,)-%.(/+0+',/%"1+23)4 ! 10-11 January 2013 17

    [-&*'?bO8'"03'?bC8'*"6%'"00-,0)%3'"0-&*%#'9"&%#'#"&%'*/$%'+&"#&/04'f"0,"#5'IJKN7'8&'9/22'"..%)&'KN'

    !/22/-0'1%-12%'/0'?%-'?"0/2"'"03'0%"#A5'1#-6/0)%+7'E*%'?bOOXc%4,2"&-#5'Y.B)%'"22-9%3'&*%'&9-'

    9"&%#')-0)%++/-0"/#%+'&-'#%(%)&'"'N7IM'"3@,+&!%0&'/0'C-0+,!%#'=#/)%'803%D'\C=8^'-0'&*%/#'A"+/)')*"#4%7'

    R-#'&*%')-!!-0'?"50/2"3'"03'?"0/2"'9"&%#')-0+,!%#+'-#'&*-+%'9/&*'"'!-0&*25')-0+,!1&/-0'-.'NJ'),A/)'

    !%&%#+:'&*%/#'!-0&*25'A/22'9/22'/0)#%"+%'A5'=*1II7WI'"03'=*1V:'#%+1%)&/6%257'

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  • 7/28/2019 Btalk Yearend 10-11 January 2013 Final Final

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    18 !"#$%&'()(*+'%,)-%.(/+0+',/%"1+23)4 ! 10-11 January 2013

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  • 7/28/2019 Btalk Yearend 10-11 January 2013 Final Final

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    % %%%%%%%%%%%%%%!"#$%&'()(*+'%,)-%.(/+0+',/%"1+23)4 ! 10-11 January 2013 19

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  • 7/28/2019 Btalk Yearend 10-11 January 2013 Final Final

    20/38

    20 !"#$%&'()(*+'%,)-%.(/+0+',/%"1+23)4 ! 10-11 January 2013

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  • 7/28/2019 Btalk Yearend 10-11 January 2013 Final Final

    21/38

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  • 7/28/2019 Btalk Yearend 10-11 January 2013 Final Final

    22/38

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  • 7/28/2019 Btalk Yearend 10-11 January 2013 Final Final

    23/38

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  • 7/28/2019 Btalk Yearend 10-11 January 2013 Final Final

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    24 !"#$%&'()(*+'%,)-%.(/+0+',/%"1+23)4 ! 10-11 January 2013

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  • 7/28/2019 Btalk Yearend 10-11 January 2013 Final Final

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    % %%%%%%%%%%%%%%!"#$%&'()(*+'%,)-%.(/+0+',/%"1+23)4 ! 10-11 January 2013 25

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    economic crisis, has this year inked free trade deals with two Latin American countries and started talks

    9/&*'&*%'=*/2/11/0%'4-6%#0!%0&'.-#'&*%'1#-+1%)&+'-.'"0'UgXc='REF7'E*%'FG,/0-'4-6%#0!%0&'*"+'"2#%"35'

    A%4,0'")&/6%25'3-/04'&*%')-0+,2&"&/-0+'/0'-#3%#'&-'1#-)%%3'9/&*'&*%'0%4-&/"&/-0+7'80'R%A#,"#5:'&"2$+'

    A%&9%%0'&*%'&9-'4-6%#0!%0&+'9%#%'+&"22%3'"+'&*%'=*/2/11/0%+'9"0&%3'&-')-0+,2&'9/&*'A/4'A,+/0%++'/0'&*%'

    =*/2/11/0%+'B#+&'A%.-#%'1#-)%%3/04'9/&*'&*%'0%4-&/"&/-0+7'E*%'FG,/0-'4-6%#0!%0&'/+')-!!/&&%3'&-'!"$/04'

    0%)%++"#5'+,)&,#"2')*"04%+'/0'-#3%#'.-#'&*%'0%4-&/"&/-0+'&-'!-6%'.-#9"#37'8&'/+'),##%0&25'-0'+%)-03'#-,03'

    -.'&*%')-0+,2&"&/-0+'9/&*'&*%'A,+/0%++'+%)&-#:'%+1%)/"225'A/4'A,+/0%++'/06-26%3'/0'&*%'&,0"'"3%'"03'-&*%#'"4#/),2&,#"2'1#-3,)&+7'b/&*'"4#/),2&,#"2'1#-3,)&+'"+'&*%'1#/!"#5'%D1-#&'-.'&*%'=*/2/11/0%+'&-'&*%'Ug:'/&'9/22'

    A%'&*%'A/4')-!!%#)/"2'B+*%#+'9*-'9-,23'4"/0:'9*/)*'*-9%6%#'+*"22'"4"/0'A%'"&'&*%'%D1%0+%'-.'&*%'+!"22'

    B+*%#.-2$7

    Conclusion

    E*%'FG,/0-'"3!/0/+"&/-0'+%%!+'&-'*"6%'%!%#4%3'.#-!'IJKI:'3%+1/&%'&*%'2")$'-.'!%"0/04.,2'#%.-#!+'"03'

    &*%'%!1&/0%++'-.'/&+'4--3'4-6%#0"0)%'12"&.-#!:'"+'!-#%'+-2/3'/0'!"0"4/04'&*%'%)-0-!57'8&+')2"/!'-.'m4--3'

    %)-0-!/)+n:'*-9%6%#:'/+'A-2+&%#%3'-025'A5'B0"0)/"2'"03'+1%),2"&/6%'4"/0+'&*"&'."/2'&-')-0)%"2'1%-12%H+'

    *"#+*%#'%)-0-!/)')-03/&/-0+7'E*%'+-X)"22%3'+1%)&"),2"#'4#-9&*'*"+'-025'#%6%"2%3'&*"&'+,)*'4#-9&*'*"+'

    A%%0'")*/%6%3'A5'%2/&/+&'"03'1#-X.-#%/40'0%-2/A%#"2'1-2/)/%+'"03'"&'&*%'%D1%0+%'-.'&*%'&-/2/04'1%-12%7'

    o;--3'%)-0-!/)+H'*"+'"2+-'*%/4*&%0%3'/0%G,"2/&5'A%&9%%0'&*%'4#-9/04'1#-B&+'-.'"'.%9'"03'&*%'4#-9/04'A"0$#,1&)5'-.'+!"22'A,+/0%++'"03'1-6%#&5'-.'&*%'!"@-#/&57

    E*%'FG,/0-'4-6%#0!%0&H+'-1&/!/+!'"A-,&'m!"/0&"/0/04'*/4*'4#-9&*n'/0'IJKN'+*"22'A%'"+'+*-#&X&%#!'"+'/&+'

    seeming stability in dealing with the countrys chronic crisis. The global economic crisis is intensifying

    "03'+*"22')-0&/0,%'&-'/!1")&'"36%#+%25'-0'%)-0-!/%+'+,)*'"+'&*%'=*/2/11/0%+:'&-'9*/)*'&*%'FG,/0-'

    4-6%#0!%0&'*"+'-025'#%+1-03%3'9/&*'!-#%'"03'*"#+*%#'42-A"2/Q"&/-0'1-2/)/%+7'b/&*-,&'#%6%#+/04'.#-!'+,)*'

    1-2/)5'3/#%)&/-0:'4#-9&*'/+',0+,+&"/0"A2%'"03'3%6%2-1!%0&'"03'!%"0/04.,2')*"04%+'+*"22'#%!"/0'%2,+/6%7

    ?"2.,0)&/-0/04'3%!-)#")5

    T*%'FG,/0-'"3!/0/+"&/-0')-0+-2/3"&%3'/&+'1-2/&/)"2'1-+/&/-0'/0'IJKI'e'/&'+,))%++.,225'0%,"2/Q%3'former president Arroyo and her political allies, gained the support of foreign and domestic bigA,+/0%++:'!"/0&"/0%3'"')-#%'1,A2/)'.-22-9/04:'"03'+-2/3/B%3'/&+'A")$/04'.#-!'&*%'g0/&%3'O&"&%+'\gO^7'E*/+'

    9"+'")*/%6%3'/0'&/!%'.-#'&*%'?"5'IJKN'!/3X&%#!'%2%)&/-0+'"03')-##%+1-03/04'!"0%,6%#/04'&-9"#3+'&*%'

    IJKV'0"&/-0"2'%2%)&/-0+7

    Yet the administration has continued to be undermined by the absence of real reforms and tangible

    %)-0-!/)'1#-4#%++7'822,+-#5'B0"0)/"2'"03'+1%),2"&/6%'4"/0+'9%#%'*51%3'A,&'+&/22')-,23'0-&'3%")&'.#-!'&*%'

    2"#4%#'#%"2/&5'-.'/0)#%"+/0425'*"#+*'%)-0-!/)')-03/&/-0+'-0'&*%'4#-,037'U6%0'&*%'A"00%#'"0&/X)-##,1&/-0'

    )"!1"/40'*"+'A%%0')#/&/)/Q%3'"+',+/04'%D%),&/6%'1-9%#'.-#'1"#&/+"0'1,#1-+%+'"03'".B#!/04'#"&*%#'&*"0'

    remedying elite abuse of the countrys political institutions. Dissatisfaction thus continued to spread while

    +-)/"2',0#%+&:'9*/)*'O&"&%'#%1#%++/-0'*"+'0%6%#'A%%0'"A2%'&-'1,&'3-90:'$%1&'4#-9/047'

    E*%'!/3&%#!'%2%)&/-0+'+/40"2'&*%'+&"#&'-.'1#%1"#"&/-0+'.-#'&*%'0%D&')*"04%'-.'4-6%#0!%0&'/0'IJKV'9*%#%'&*%'

    FG,/0-'.")&/-0'-.'&*%'%2/&%'9/22'+%%$'&-'+&"5'/0'1-9%#'9*/2%')-0&%03%#+'9/22'+%%$'&-'#%12")%'/&7'Y23X+)*--2'

    1-2/&/)$/04'9/22'2/$%25'A%)-!%'!-#%'-A6/-,+'"03'.-+&%#'1,A2/)'#%"2/Q"&/-0'&*"&'&*%#%'*"6%'0-&'A%%0'"05'+&%1+'

    &-9"#3'#%"2'1-2/&/)"2')*"04%7'E*%'#,2/04')-"2/&/-0'9/22'!"D/!/Q%'/&+'"36"0&"4%+'A,&'/&'/+'0-&'"++,#%3'&*"&'/&'

    will come out of the elections much more consolidated or strengthened.

  • 7/28/2019 Btalk Yearend 10-11 January 2013 Final Final

    26/38

    26 !"#$%&'()(*+'%,)-%.(/+0+',/%"1+23)4 ! 10-11 January 2013

    =,A2/)'3/+"11#-6"2'/0'"05')"+%')"0'-025'4#-9'"+'@-A2%++0%++'"03'1-6%#&5'9-#+%0:'"+'&*%'/0%G,/&5'-.'-025'

    a few growing wealthier becomes more glaring, and as further economic good news are pre-empted by

    the lingering global crisis. The unintended consequences of the Philippines complicity in the growing

    gO'!/2/&"#5'1#%+%0)%'/0'&*%'#%4/-0'"2+-')"00-&'A%'3/+!/++%3'2/4*&257'E*%')-!/04'5%"#')-,23'&*%0'+%%'&*%'

    A%4/00/04'-.'&*%'%03'-.'&*/+'1%#/-3'-.'#%2"&/6%'1-2/&/)"2'+&"A/2/&5'"+'&*%'1#-A2%!+'-.'"0',0#%.-#!%3'+5+&%!:'

    of a malfunctioning democracy, come to the fore.

    Seeking political stability

    E*%'FG,/0-'"3!/0/+"&/-0')-0+-2/3"&%3')-0-2'-.'&*%'6"#/-,+'A#"0)*%+'-.'4-6%#0!%0&'/0'IJKI'"03'$%1&'

    .")&/-0"2')-0(/)&+'/0')*%)$7'F.&%#'"'&%0&"&/6%'+&"#&'&-'/&+'&%#!'/&'#%4#-,1%3'"03',+%3'/&+'%2%)&-#"2'2%4/&/!")5'

    and momentum of popular support to secure its political position.

    Y6%#)-!/04'/0/&/"2'*%+/&"&/-0'/&'%6%0&,"225'!-,0&%3'A-23')-,0&%#"&&")$+'"4"/0+&'/&+'!-+&'/!!%3/"&%'

    1-2/&/)"2'-11-0%0&';2-#/"'?")"1"4"2XF##-5-:'.-#!%#'1#%+/3%0&'"03'0-9'#%1#%+%0&"&/6%'-.'="!1"04"'

    1#-6/0)%:'"03'*%#'"22/%+7'E*%'.#-0&"2'3%B"0)%'-.'&*%'O,1#%!%'C-,#&'9*/)*'),2!/0"&%3'/0'&*%'+,))%++.,2'

    #%!-6"2'-.'C*/%.'f,+&/)%'c%0"&-'C-#-0"'/0'&*%'B#+&'+%!%+&%#'-.'IJKI'%..%)&/6%25'%2/!/0"&%3'c%17'

    F##-5-H+'*/4*%+&X2%6%2'"03'!-+&'+"&%4/)"225')#/&/)"2'1-2/&/)"2'"225'\)-!12%!%0&/04'&*%'%"#2/%#'#%!-6"2'

    -.'Y!A,3+!"0'?%#)%3/&"+';,&/%##%Q^7'O/0)%'&*%'F##-5-')"!1'3-%+'0-&'-&*%#9/+%')-!!"03'"05'+,11-#&'

    among the general public it is now a politically spent force.

    =#%+7'FG,/0-'A#-$%'O,1#%!%'C-,#&'"3/&/-0'-0'+%0/-#/&5'"03'"11-/0&%3'?"7'h-,#3%+'O%#%0-'"+')*/%.'

    @,+&/)%7'a-&9/&*+&"03/04'&*%'"11"#%0&'A/"+'-.'=#%+7'FG,/0-'.-#'&*%'0%9')*/%.'@,+&/)%'&*%'O,1#%!%'C-,#&'

    3-%+'0-&'"11%"#'1"#&/),2"#25'/0&/!/3"&%3'9/&*')"2),2"&%3'"A+%0)%+'A5'@,+&/)%+'3,#/04'*%#'-"&*X&"$/04'

    "03'("4')%#%!-0/%+:'&*%'%0'A"0)'#%6-$/04'*%#'-#3%#'-1%0/04'"'c%4/-0"2'C-,#&'F3!/0/+"&/-0'Y.B)%'

    /0'C%A,'C/&5'9/&*-,&'",&*-#/&5'.#-!'&*%'%0'A"0):'"03'G,%+&/-0+'1,A2/)25'#"/+%3'"A-,&'*%#'#"/2#-"3/04'

    &*%'"11-/0&!%0&'-.'&*%'*/4*')-,#&H+'+1-$%+!"0'"03')*/%.'-.'/&+'1,A2/)'/0.-#!"&/-0'-.B)%7'C*/%.'f,+&/)%'

    Serenos independence from the administration is still to be tested.

    c%17'F##-5-'9"+'#%2%"+%3'-0'A"/2'/0'f,25'9*%0'&*%')-,#&'3%)/3%3'&*"&'&*%'6-&%X#/44/04')"+%'"4"/0+&'*%#'

    9"+'9%"$'A,&'&*%0'#%X"##%+&%3'/0'Y)&-A%#'-0')*"#4%+'-.')-##,1&/-0'#%2"&%3'&-'&*%'"22%4%3'!/+,+%'-.'=*1NVV'

    !/22/-0'/0'=*/2/11/0%'C*"#/&5'O9%%1+&"$%+'Y.B)%'\=COY^'.,03+'A%&9%%0'IJJS'"03'IJKJ`'+*%'#%!"/0+',03%#'*-+1/&"2'),+&-357'R-#!%#'"3%'!/0/+&%#'c-A%#&-']7'Y041/0'/0'&,#0'9"+'")),+%3'.-#'"22%4%3'A%*%+&'

    2-"0+'/0'9*"&'*"+'A%%0'+1%),2"&%3'&-'A%'"'!"0%,6%#'-0'&*%'B0"0)%+'-.'F##-5-'"03'"&'2%"+&'-0%'-&*%#'

    1#-!/0%0&'1-2/&/)"2'."!/25'.-#'9*-!'Y041/0'1,#1-#&%325'.#-0&+7'E*/+'*"+'"2#%"35'#%+,2&%3'/0'&*%'.#%%Q/04'

    -.'+-!%'KJJ'-.'Y041/0H+'A"0$'"))-,0&+'/0'IJ'A"0$+'"03'B0"0)/"2'/0+&/&,&/-0+7

    F'1%#)%/6%3'+%2%)&/6/&5'/0'=#%+7'FG,/0-H+'"0&/X)-##,1&/-0'3#/6%'*"+'#"/+%3')#/&/)/+!+'&*"&'&*%+%'"#%'!-#%'

    attacks against political opponents than a genuine thrust for accountability and the rule of law. By 2012

    &*%'"3!/0/+"&/-0'6/+/A25'3%!-0+"&%3'/&+'9/22/040%++'&-',+%'0-&'@,+&'2/0%'"4%0)/%+'A,&'"2+-'C-04#%++'

    "03'+,)*'"+'&*%'F0&/X?-0%5'h",03%#/04'C-,0)/2'\F?hC^'.-#'1"#&/+"0'1-2/&/)"2'1,#1-+%+7'E*%'*%"65X

    *"03%30%++'%+1%)/"225'A5'"0'"3!/0/+"&/-0'&*"&'"6-9+'4--3'4-6%#0"0)%'"03'#%.-#!'*"+'#%/0.-#)%3'&*%'

    persistent problem of State powers and institutions being used for narrow political purposes. In any case,

    &*/+'1-2/&/)"2'!,+)2%X(%D/04')-,12%3'9/&*'=#%+7'FG,/0-H+'3%4#%%'-.'+&%"35'1-1,2"#'+,11-#&'*"+'+%%!%3'&-'keep the traditional political opposition uncharacteristically restrained.

    E*%'FG,/0-'"3!/0/+"&/-0'*"+'"2+-'A%%0'+5+&%!"&/)'/0'A,/23/04',1'/&+'/!"4%'"+'"'4-6%#0!%0&'&*"&'

    A#%"$+'&*%')-,0H+'"3/&/-0'-.')-##,1&'"03'%2/&%'4-6%#0!%0&:'/+')-0)%#0%3'"A-,&'&*%'1--#:'"03'3%2/6%#+'

    economic results. In many ways it deftly exploited the public frustration and yearning for good news

    &*"&'")),!,2"&%3',03%#'&*%'1#%6/-,+'F##-5-'"3!/0/+"&/-07';-6%#0!%0&'1#-1"4"03/+&+'12"5%3',1'

    %6%#5'1-++/A2%'1-+/&/6%'3%6%2-1!%0&'0-'!"&&%#'*-9'/0+/40/B)"0&'9*/2%'3-9012"5/04'0%4"&/6%'%03+'

  • 7/28/2019 Btalk Yearend 10-11 January 2013 Final Final

    27/38

    % %%%%%%%%%%%%%%!"#$%&'()(*+'%,)-%.(/+0+',/%"1+23)4 ! 10-11 January 2013 27

    0-'!"&&%#'*-9')-0+%G,%0&/"27'E*%'1#%+/3%0&'*/!+%2.'%6%0'1,A2/)25'A%#"&%3'!%3/"'-,&B&+'&*"&'*%'+"9'"+'

    ,0)--1%#"&/6%7'E*/+'/!"4%XA,/23/04'*"+'A%%0'/!1-#&"0&'&-'+*-#%',1'*/+'"3!/0/+"&/-0H+'2%4/&/!")57

    The anti-Arroyo campaign is the main basis for claims that the administration was serious in cracking

    3-90'-0')-##,1&/-07'E*%'!"++/6%'!,2&/XA/22/-0'*/4*X1#-B2%'+*-#&X&%#!')-03/&/-0"2')"+*'"0+.%#'\CCE^'

    +)*%!%',03%#'&*%'="0&"9/3'="!/25"04'=/2/1/0-'=#-4#"!'\Z=+^'e')-+&/04'=*1ZZ7N'A/22/-0'@,+&'/0'IJKN'"03'

    )2"/!/04'&-'%6%0&,"225'#%")*'-6%#'.-,#'!/22/-0'A%0%B)/"#5'*-,+%*-23+'e'/0'&,#0'/+'&*%'!"/0'A"+/+'.-#'&*%'

    "3!/0/+"&/-0'&-'1#-@%)&'"')-0)%#0'.-#'&*%'1--#7'=-6%#&5'/+'+-'9/3%+1#%"3'&*"&'%6%#5'4-6%#0!%0&'*"+'&-'%+&"A2/+*'+-!%'$/03'-.'"0&/X1-6%#&5')#%3%0&/"2+7

    E*%'"3!/0/+"&/-0'A,/2&',1'/&+'1,A2/)'/!"4%'9/&*'&*%'*%21'-.'$%5'+,11-#&%#+7'P,03#%3+'-.')/6/2'+-)/%&5'

    4#-,1+:'/0)2,3/04'+-!%'&*"&'9%#%'1#%6/-,+25')#/&/)"2'-.'4-6%#0!%0&:'9%#%'%02/+&%3'"+'")&/6%'1"#&0%#+'

    /0'"3!/0/+"&/-0'"0&/X)-##,1&/-0'"03'"0&/X1-6%#&5'1#-4#"!+'"&'&*%'0"&/-0"2'"03'2-)"2'2%6%2+7'R-#'&*%/#'

    1"#&:'/0&%#0"&/-0"2'"4%0)/%+'+,)*'"+'&*%'b-#23'["0$'"03'&*%'F+/"0'

  • 7/28/2019 Btalk Yearend 10-11 January 2013 Final Final

    28/38

    28 !"#$%&'()(*+'%,)-%.(/+0+',/%"1+23)4 ! 10-11 January 2013

    E*%'"3!/0/+"&/-0'/+')-0+)/-,+'-.'*-9'gO'/0&%#.%#%0)%'"03'1"-0"4%'*"6%'A%%0'3%)/+/6%'/0'&*%'1"+&l'

    +,11-#&/04'&*%0'2"&%#'3/+"11#-6/04'-.'?"#)-+'2%"3/04'&-'U

  • 7/28/2019 Btalk Yearend 10-11 January 2013 Final Final

    29/38

    % %%%%%%%%%%%%%%!"#$%&'()(*+'%,)-%.(/+0+',/%"1+23)4 ! 10-11 January 2013 29

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    \R?R^'.-#'IJKI'9"+'!-#%'&*"0'3-,A2%3'.#-!'"0'/0/&/"2'"22-)"&/-0'-.'gOiKZ7V'!/22/-0'&-'gOiNJ'!/22/-07'

    E*%')-,0'"2+-'#%)%/6%3'/&+'+%)-03'3%)-!!/++/-0%3'gO'C-"+&';,"#3'+*/1'2"+&'5%"#7'E*%'gO'!/2/&"#5'

    .,#&*%#'"00-,0)%3'&*"&'/&'12"00%3'&-'1#-6/3%'"'1-9%#.,2'2"03XA"+%3'#"3"#'"03'3%6%2-1'"'a"&/-0"2'C-"+&'

    b"&)*'C%0&%#'-+&%0+/A25'&-'/!1#-6%'+%),#/&5'/0'&*%'b%+&'=*/2/11/0%'O%"'\O-,&*'C*/0"'O%"^7'E*/+'!/2/&"#5'

    "/3'/+'1-#"5%3'"+'3%6%2-1/04'=*/2/11/0%'3%.%0+%')"1"A/2/&/%+'A,&'/+'!-#%'.,03"!%0&"225'"A-,&'.,#&*%#'

    3%6%2-1/04'&*%'FR='"03'&*%'=*/2/11/0%+'"+'"'+,A-#3/0"&%'2/0$'/0'gO'!/2/&"#5'.-#)%'1#-@%)&/-0'/0'&*%'#%4/-07

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    -,/4*&'!/2/&"#5'")&/-0'e'/0)2,3/04'&*#-,4*'#%!-&%25X)-0-22%3'3#-0%+'-#'3/#%)&'"&&")$+:'A-!A/04+'"03'

    /06"+/-0'e'&-'"36"0)%'/&+'4%-1-2/&/)"2'%03+7

    E*%'gO'/+'"2+-'/0)#%"+/04'/&+'3/#%)&'"03'/03/#%)&'/0(,%0)%'-6%#'=*/2/11/0%'1-2/)5X!"$/047'E*%#%'9/22'A%'

    sustained pressure to implement neoliberal policies that open up the economy and are biased against

    0"&/-0"2'+-)/"2'"03'%)-0-!/)'3%6%2-1!%0&7'E*/+'/+'"2#%"35'&"$/04'12")%',03%#'&*%'%D1"0+/6%'=R;'9*/)*'/+'

    1,+*/04')*"#&%#')*"04%:'/06%+&!%0&'2/A%#"2/Q"&/-0:'2%4"2'"03'@,3/)/"2'#%.-#!+:'"03'B+)"2'#%.-#!+7'8&'/+'"2+-'

    +/40/B)"0&'&*"&'&*%'gO'*"+'"'2-04'#%)-#3'-.'-11-+/04'&*%'%!%#4%0)%'-.'3%!-)#"&/)'"2&%#0"&/6%+'/0')-,0/%+'

    around the world and will likely do so in the Philippines as well, if the time comes.

    E*%'=*/2/11/0%+H'#--!'&-'!"0%,6%#'-0'.-#%/40'1-2/)5'/++,%+'9/22'A%')-0+"/0%3'+,)*'"+'/0'&*%'),##%0&'

    &%##/&-#/"2'3/+1,&%+'/0'&*%'-/2X'"03'4"+X#/)*'b%+&'=*/2/11/0%'O%"'\O-,&*'C*/0"'O%"^'9*/)*'/+'"2#%"35'

    %!%#4/04'"+'&*%'!-+&'+/40/B)"0&'/0&%#0"&/-0"2'!/2/&"#5'("+*1-/0&'/0'O-,&*%"+&'F+/"7'F+'/&'/+:'&*%'=*/2/11/0%'

    1-+/&/-0'/+'A%)-!/04'.#"!%3'"))-#3/04'&-'gO'1"#"!%&%#+'+,)*'"+',03,25'+%++/04'!/2/&"#5'#"&*%#'&*"0'

    3/12-!"&/)'"+1%)&+'"03'1,+*/04'.-#'"'!,2&/2"&%#"2'"11#-")*'&-'-1%0'&*%'9"5'.-#'"0'/03/#%)&'#-2%'A5'&*%'gO'

    /0'&*%'3/+1,&%7'E*%+%',00%)%++"#/25'#"/+%'&%0+/-0+'"2&*-,4*'/0'"'9"5'&*"&')-06%0/%0&25'+%#6%+'gO'/0&%#%+&+'

    for a greater military and diplomatic presence in the region.

    h%++'&*"0'&*#%%'5%"#+'/0&-'/&+'&%#!:'&*%'FG,/0-'"3!/0/+"&/-0'/+'"2#%"35'0-&"A2%'.-#'#%6%#+/04'&*%'*/+&-#/)'3%)/+/-0'&-')2-+%'&*%'gO'A"+%+'/0'KTTI'"03'.-#'4#%"&25'"))%2%#"&/04'&*%'2-++'-.'&*%')-,0H+'+-6%#%/40&5'

    6/+XrX6/+'&*%'gO:'/&+'.-#!%#')-2-0/"2'!"+&%#'"03'),##%0&'0%-)-2-0/"2'1"-07

    Advancing elite interests

    E*%'#%2"&/6%'1-2/&/)"2'+&"A/2/&5'")*/%6%3'9"+'0-&',+%3'&-'"36"0)%'"'4%0,/0%25'#%.-#!/+&'"4%03"'A,&'#"&*%#'

    !%#%25'A%)"!%'!-#%'."6-#"A2%')-03/&/-0+'.-#'.-#%/40'/06%+&-#+'"03'3-!%+&/)'A/4'A,+/0%++'&-'!"$%'

    )-!!%#)/"2'"03'+1%),2"&/6%'1#-B&+7'E*/+'*"+'A%0%B&%3'B0"0)/"2'"03'+1%),2"&/6%'/0&%#%+&+'e'+,)*'"+'/0'&*%'

    +&-)$'!"#$%&:'A"0$/04'"03'B0"0)%:'"03'#%"2'%+&"&%'e'"03')-0/A,&%3'&-'A,/23/04'%2/&%')-0+%0+,+'/0'+,11-#&'

    of the Aquino administration.

    h"+&'5%"#'.-#'/0+&"0)%'3/3'0-&'+%%'&*%'"3!/0/+"&/-0'#%6%#+%'"05'-.'&*%'4-6%#0!%0&H+'2-04X3/+)#%3/&%3'0%-2/A%#"2'42-A"2/Q"&/-0'1-2/)/%+'A%0%B&/04'!"/025'.-#%/40:'%2/&%'"03'#%")&/-0"#5'/0&%#%+&+7'803%%3:'/&'

    /+'%6%0'/#-0/)'&*"&'-0%'-.'&*%'!-+&'/!1-#&"0&'.")&-#+'.-#'&*%'B+)"2'&,#0"#-,03'2"+&'5%"#'&*"&'1#-!1&%3'

    1-+/&/6%'"++%++!%0&+'.#-!'#"&/04+'"4%0)/%+'"03'.-#%/40')#%3/&-#+'/+'&*%'#%4#%++/6%'*/4*%#'6"2,%X"33%3'&"D'

    \]FE^'/!1-+%3'A5'&*%'6/2/B%3'F##-5-'"3!/0/+"&/-0'"03')-0&/0,%3'A5'=#%+7'FG,/0-7'E*%'"3!/0/+"&/-0'

    "2+-'#%&"/0%3'&*%'#"04%'-.'/0)%0&/6%+'.-#'.-#%/40'/06%+&-#+'%6%0'/.'&*%+%'"#%'"&'&*%'%D1%0+%'-.'0"&/-0"2'

    3%6%2-1!%0&7'

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    30 !"#$%&'()(*+'%,)-%.(/+0+',/%"1+23)4 ! 10-11 January 2013

    E*%'FG,/0-'"3!/0/+"&/-0'/+'&-'+-!%'3%4#%%'"A2%'&-'1#-@%)&'/&+%2.'"+')2%"0:'-11-+%3'&-')-##,1&/-0:'"03'

    +5!1"&*%&/)'&-'&*%'1%-12%7'8&',+%3'&*/+'1-+/&/6%'/!"4%'&-'1,+*'.,#&*%#'1#-X%2/&%'!%"+,#%+'+,)*'"+'*/4*%#'

    &"D%+'\-0'"2)-*-2'"03'&-A"))-^'"03'4#%"&%#'1#/6"&/Q"&/-0'-.'*%"2&*'"03'%3,)"&/-07

    j%&'&*%#%'/+'"2#%"35'+1%),2"&/-0'&*"&'&*%'/0.#"+,)&,#%X*%"65'1,A2/)X1#/6"&%'1"#&0%#+*/1'\===^'1#-4#"!'/+'

    +&"22/04'2%++'3,%'&-'"'3%&%#!/0%3'%..-#&'"&'"0+1"#%0)5'A,&'#"&*%#'3,%'&-'&*%'3/.B),2&/%+'-.'"11-#&/-0/04'

    )-0")&+'A%&9%%0')-!1%&/04')-#1-#"&%'/0&%#%+&+7'806%+&-#+'1,A2/)25'*"/2'&*%'4-6%#0!%0&H+'==='1#-4#"!'

    but informally express concerns about the regularity of biddings and security of contracts.

    R-#'/0+&"0)%'&*%'5%"#'%03%3'9/&*'"')-0-6%#+/"2'

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    % %%%%%%%%%%%%%%!"#$%&'()(*+'%,)-%.(/+0+',/%"1+23)4 ! 10-11 January 2013 31

    E*%#%'/+'.-#'/0+&"0)%'"'3/+1#-1-#&/-0"&%')-0)%#0'9/&*')-!1%&/&/6%0%++'#"0$/04+'"03')#%3/&'#"&/04+'9*/)*'

    "#%'@,+&/B%3'"+'#%G,/+/&%+'.-#'0"&/-0"2'%)-0-!/)'1#-4#%++'A,&'"#%'#%"225'-025'#%2%6"0&'&-'+*-#&X+/4*&%3'

    1#-B&X+%%$/04'A5'A/4'A,+/0%++7'E*/+')-0)%#0'*-9%6%#'"0+2"&%+'/0&-'$%%1/04'2"A-#')-+&+'2-9'&*#-,4*'

    9"4%'#%1#%++/-0'"03'"6-/3/04'1#-&%)&/-0'.-#'R/2/1/0-'%0&%#1#/+%+'9*/)*'#%+,2&%3'/0'4#-9/04'/0)-!%'4"1+:'

    9-#+%0/04'/0%G,"2/&5'"03'+!"22'%0&%#1#/+%+')2-+/047''8&'"2+-'!%"0+'/0)#%"+/04'#%6%0,%+'&*#-,4*'"'#%4#%++/6%'

    tax system that burdens the poorest rather than taxing big corporations and rich families, such as through

    &*%']FE'"03'&*%'0%9'+/0'&"D'2"9'1"++%3'2"+&'5%"#7

    Y0'&*%'-&*%#'*"03'&*%'FG,/0-'"3!/0/+"&/-0'*"+'"2+-'."/2%3'&-'&"$%'&*%'+/3%'-.'."#!%#+'"03'9-#$%#+'-0'

    &*%/#'6/&"2')-0)%#0+7'=--#'2"03'3/+/A,&/-0'"))-!12/+*!%0&'/0'IJKI'4/6%+'&*%'FG,/0-'"3!/0/+"&/-0'&*%'

    3,A/-,+'3/+&/0)&/-0'-.'3/+/A,&/04'&*%'2%"+&'2"03'"!-04'&*%'B6%'"3!/0/+"&/-0+'+1"00/04'&*%'),##%0&'

    "4#"#/"0'#%.-#!'1#-4#"!'+&"#&%3'/0'KTSL'e'+&/##/04'1%"+"0&'1#-&%+&+'0-&'@,+&'/0'&*%'/)-0/)'P")/%03"'h,/+/&"'

    A,&'%2+%9*%#%'")#-++'&*%')-,0'/0'h,Q-0:']/+"5"+'"03'?/03"0"-7'

    R"#!%#+'9"4%3'2-)"2'+,442%+'/0'="04"+/0"0:'a,%6"'U)/@":'[,2")"0:'["&"04"+:'C"1/Q'"03'[,$/30-0'

    \2"03X4#"AA/04^:'8+"A%2"'\A/-%&*"0-2'1#-@%)&^'"03'?/+"!/+'Y#/%0&"2'\1"2!'-/2'12"0&"&/-0^:'#-+%'"4"/0+&'&*%'

    %0)#-")*!%0&'-.'!/0/04'-0'&*%/#'2"03'"03'&*%'3%+,)&/-0'-.'&*%/#'2/6%2/*--3+'/0'["&"04"+'"03'a%4#-+'

    1#-6/0)%+:'"03'-11-+%3'!/2/&"#/Q"&/-07'E*%'p/2,+"04'?"4A,A,$/3'04'=/2/1/0"+'\p?=^'"2+-'*%23'#%4/-0"2'

    )-0+,2&"&/-0+'),2!/0"&/04'/0'"'0"&/-0"2'+,!!/&'&-')"!1"/40'.-#'&*%'3/+/A,&/-0'-.')-)-'2%65'.,03+'9-#&*'

    +-!%'=*1WL'A/22/-0'\1-++/A25'"+'!,)*'"+'=*1SJ'A/22/-0^'&-')-)-0,&'."#!%#+'/0+&%"3'-.'A%/04',+%3'A5'&*%'

    FG,/0-'"3!/0/+"&/-0'.-#'/&+'1#%.%##%3'1#-@%)&+7

    =#%+7'FG,/0-'1%#+-0"225'#%@%)&%3')"22+'.-#'"'=*1KIW'")#-++X&*%XA-"#3'9"4%'*/$%'-0'h"A-#'

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    % %%%%%%%%%%%%%%!"#$%&'()(*+'%,)-%.(/+0+',/%"1+23)4 ! 10-11 January 2013 33

    \h

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    34 !"#$%&'()(*+'%,)-%.(/+0+',/%"1+23)4 ! 10-11 January 2013

    Unrelenting traditional politics

    E*%'FG,/0-'"3!/0/+"&/-0'3-%+'0-&'*"6%'"'1-2/&/)"2'#%.-#!'"4%03"'A%5-03'/&+'"0&/X)-##,1&/-0'#*%&-#/)'

    "03'2"+&'5%"#')-0B#!%3'&*/+'9/&*'+)"0&'!-6%!%0&'"4"/0+&'"3/&/-0"2'1-2/&/)"2'1#")&/)%+'!,)*'2%++'&*%'

    domination of entrenched elites. The administration coalition itself has been accused of patronage politics

    and wielding political largesse.

    The LP has grown by un-discriminatingly accepting new members following Pres. Aquinos ascent to the

    1#%+/3%0)5:'.-#'/0+&"0)%'3-,A2/04'&*%'0,!A%#'-.'h='!%!A%#+'/0'C-04#%++'.#-!'&*%'-#/4/0"2'ZZ'9/00/04'

    candidates to the current 92. Defections are normal upon presidential election results with lawmakers

    4#"6/&"&/04'&-9"#3+'&*%')*/%.'%D%),&/6%'&-'"++,#%'&*%/#'1-#$'A"##%2'.,03+7'E*/+'2-4/)'*"+'A%%0')-0B#!%3'

    9/&*'&*%'FG,/0-'"3!/0/+"&/-0'6/+/A25'3%05/04'1-#$'A"##%2'.,03+'&-'/&+'-11-+/&/-0:'/0)2,3/04'1#-4#%++/6%'

    party-list groups, while dispensing this liberally to its allies. The 2013 budget has also been criticized for

    A%/04'"0'o%2%)&/-0'A,34%&H'9/&*'"059*%#%'.#-!'=*1KJJXNJJ'A/22/-0'1%+-+'/0'6"4,%:'#%3,03"0&'-#'-&*%#9/+%'

    suspicious items.

    E*%'#,0X,1'&-'&*%'IJKN'%2%)&/-0+'*"+'"2#%"35'+%%0'"22%4%325'1-2/&/)"225X!-&/6"&%3'"&&")$+'/0'0-0Xh='"22/%3'

    A,&'%2%)&-#"225X)#/&/)"2'1#-6/0)%+'e'"4"/0+&'="04"+/0"0'4-6%#0-#'F!"3-'U+1/0-'\a=C^'9*-'/+'4-/04',1'

    "4"/0+&'P%#0"0/'[#"4"0Q"'\h=^:'"03'"4"/0+&'/0),!A%0&'C%A,'4-6%#0-#';9%03-250';"#)/"'9*-+%'A#-&*%#:'

    ="A2-'f-*0';"#)/":'/+'#,00/04'"4"/0+&'P/2"#/-'

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    % %%%%%%%%%%%%%%!"#$%&'()(*+'%,)-%.(/+0+',/%"1+23)4 ! 10-11 January 2013 35

    1,+*%+'&*#-,4*'/&'9/22'A%'9/&*'&*%'?"#)-+%+'+&/22'3%05/04'"05'9#-043-/04'"03:'3%+1/&%'0,!%#-,+')#/!/0"2'

    "03')/6/2')"+%+'B2%3'"4"/0+&'&*%!:'0-0%'-.'&*%'*%/#+'-#')#-0/%+'+,))%++.,225'1#-+%),&%3'.-#'12,03%#/04'

    4-6%#0!%0&'.,03+7'Y0'&*%')-0"#5:'&*%'?"#)-+%+'*"6%'#%4"/0%3'"03')-0+-2/3"&%3'&*%/#'1-2/&/)"2'A"+%'9/&*'

    "'+%0"&-#'\#%1-#&%325'"/!/04'.-#'&*%'1#%+/3%0)5^:')-04#%++9-!"0:'"03'4-6%#0-#+*/17

    Y0'&*%'-&*%#'*"03'&*%'+/042%'!-+&')-0)#%&%'2%4/+2"&/6%'!%"+,#%'&*"&'&*%'FG,/0-'"3!/0/+"&/-0')-,23'*"6%'

    &"$%0'&-'1-++/A25'/0/&/"&%'#/112%+'-.')*"04%'#%!"/0+'+&"22%37'F'R#%%3-!'-.'80.-#!"&/-0'\RY8^'2"9'4/6/04'

    )/&/Q%0+',03/2,&%3'"03'!%"0/04.,2'"))%++'&-'4-6%#0!%0&'1"1%#+:'3-),!%0&+'"03'#%)-#3'9-,23'A%'"'&"04/A2%'

    step towards institutionalizing a mechanism to check State abuses. Pres. Aquino pledged to back the bill

    3,#/04'*/+')"!1"/40'A,&'&*%'h=X3-!/0"&%3'C-04#%++'*"+'+,))%++.,225'3%2"5%3'&*%'A/22'.-#'&*%'2"+&'&9-X"03X

    a-half years.

    E*%'5%"#'IJKI'&*,+'%03%3'9/&*'&*%'6"#/-,+'"36"0&"4%'-.'&*%'#,2/04')2"++%+'6/+XrX6/+'&*%'3%!-)#"&/)')2"++%+'

    /0&")&'"03'%2/&%'1-2/&/)"2'#,2%'/0'&*%')-,0'".B#!%37'F'2%6%2'-.'+&"A/2/&5'*"+'"2+-'A%%0'#%")*%3'9*/)*'9/22'

    likely remain so in the short-term barring a yet unforeseen radical rupture in the political scene around the

    IJKN'!/3X&%#!'%2%)&/-0+',0&/2'IJKV7'

    1/'0+(2304%5'604%7(/8"7*

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    -.'"'1#%2/!/0"#5'gOX+,11-#&%3'3%"2'9/&*'&*%'?8hR7'E*%'+-X)"22%3'.#"!%9-#$'"4#%%!%0&'A#/04+'&*%'1%")%'

    1#-)%++'9/&*'&*%')-,0H+'2"#4%+&'?-#-'"#!%3'4#-,1'.-#9"#37'F')-##%+1-03/04'B0"2'1%")%'3%"2'9/22'A%'

    6%#5')-0+%G,%0&/"2'/0'1%#&"/0/04'&-'-0%'-.'&9-'!"@-#'"#!%3')-0(/)&+'/0'&*%')-,0'"+'9%22'"+'/0')-6%#/04'

    1#-6/0)%+'#/)*'/0'.%#&/2%'"4#/),2&,#"2'2"03:'!/0%#"2+'"03'*53#-)"#A-0'%0%#45'#%+-,#)%+7

    ?-#%'3%&"/2+'"A-,&'&*%')-##%+1-03/04'0%9'1-2/&/)"2'%0&/&5')"22%3'["04+"!-#-:'1-9%#X'"03'9%"2&*X

    +*"#/04:'"03'1,&&/04'3-90'-.'"#!+'9%#%'3,%'/0'

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    36 !"#$%&'()(*+'%,)-%.(/+0+',/%"1+23)4 ! 10-11 January 2013

    )%"+%B#%'3%)2"#%3'/0'&*%'

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    % %%%%%%%%%%%%%%!"#$%&'()(*+'%,)-%.(/+0+',/%"1+23)4 ! 10-11 January 2013 37

    !""#$

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    !"##$%01(%&1 #.# ,. #2, 2$# !! #,/ 3 !, 3 #-$$

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    567$($589*:$6;8+*?*$7?@'@AA@1*< B)67$($B0>@;10'$)*9;+80>@+$68;1>$;=$>?*$7?@'@AA@1*@F*1?*$567$01:$8*A;8>*:'J$=;8+*:$>;$0:9@>$>;$M*@1G$B75$9*9M*8@;$O@10'P&?0Q$RGJ$K*'*A0FQ$C;'&9M@;

    $$$$$$O&'>01$S&:080>$;1$O*A>*9M*8$!2T$>H;$U!V$+@L@'@01JQ$C*M&$;1$X+>;M*8$/T$0$J$G&08:Q$?@H;$U!V$+;9A01@;1;$0:9@>$

    $$$$$$M*@1G$*8?*$B75N$>?8**$U-V$';+0'

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