Many are trying to dismiss the
gains of People Power Revolution. Others even have the nerve to incite the public
with the idea of “moving on”. Such
actions must not be allowed.
There is no gain
in disregarding history. The past
provides lessons that will serve as guide for the future. Forget them and risk repeating the same
mistakes.
The
People Power Revolution is not only a political act. It is not only a gathering of millions of
Filipinos from February 22-25, 1986 for the sake of overthrowing the despot
former President Ferdinand Marcos Sr. It
is not only a cry for restoration of democracy. It is also the much needed turn around for a
dying economy.
Let us look into the
statistics:
Gross Domestic
Product
Gross Domestic
Product is a primary measure of an economy’s health. It can be measured in three ways:
- Output measure: Summation of the value of all goods and services produced in the economy
- Expenditure measure: Aggregate of household spending, government expenses, investments and net exports
- Income measure: Total profits and wages generated by all sectors of the economy
Annual growth
rate of GDP, therefore, shows whether or not there is progress in the people’s
quality of life or in the economy’s health.
A positive growth rate means that there is an increased in a nation’s
total productivity, expenditure and income.
A negative number represents the reverse – the country is suffering a
crisis.
As the data
below suggest, in the years before 1988, the Philippines recorded below zero
(negative) values in its GDP’s annual growth rate. There were decreases in the
country’s productivity, expenditure and income.
Figure 1. Philippines’ GDP Annual Growth Rate 1982-2017
This
economic fall happened despite the massive lending and expenditure of the
government. Aggressive constructions
were seen during Martial Law, including the haunted Manila Film Center. Loans were sought from local and
international banks. Projects were bid out but, with the hard bite of nepotism
and cronyism.
The main reason
behind the country’s financial stagnation amidst large expenditure is the lack
of circulation. Only few were benefited.
Certain individuals hoarded public funds and used them for private
interests. As economist Emmanuel De Dios
pointed out, “main characteristics distinguishing the Marcos years from other
periods of our history has been the trend towards the concentration of power in
the hands of the government, and the use of governmental functions to dispense
economic privileges to some small factions in the private sector.”
Inflation Rate
Inflation is the
rise in the general level of prices of goods and services. The higher the inflation rate, the faster
goods and services become more expensive.
As can be seen
in the figure below, the highest spikes in the inflation rate occurred during
the dictator’s regime. The rapid surges
in prices were so clear and palpable that it became a central issue in the campaign
for the snap election.
Citing as
example round scad (galunggong), a
variety of fish usually eaten by the masses, Corazon Aquino hit on the unprecedented
rose in prices:
"Noong 1965, ang galunggong ay tinatawag na pagkain ng
mahirap. Noon pong 1965, ang isang kilo ng galunggong ay P1.50 lang.
Ngayon po, ang isang kilo ng galunggong ay P26. Sino ba ang pangulo mula 1965
hanggang ngayon, na pati galunggong ay inagaw na sa hapag ng mga mahirap at mga
api (In 1965, galunggong was called the poor man's fish. In 1965, one kilo of
galunggong was just P1.50. But now, one kilo of galunggong is P26. Who was the
president from 1965 until today, who took galunggong away from the dining
tables of the poor)?"
Figure 2. Philippines’ Inflation Rate from 1958 to 2015
Exchange Rates
“The EDSA revolution
not only brought political and economic change but also provided a much needed
jolt for the stock market,” wrote renowned stockbroker and fund manager Wilson Sy in his
column in PhilStar, entitled The 1986
EDSA revolution and the Phl stock market (2/29/2016).
Sy further
added:
“As
we show in the table below, local stocks surged in the weeks and months
following the People Power revolt. There was also increased stock market
activity, as the change in government and the restoration of democracy served
as catalysts for an economic turnaround. The Philippines became the best
performing stock market in the world in the 18 months that followed the 1986 EDSA
revolution.
Performance
of stocks after the 1986 EDSA revolution
Indeed, the
People Power Revolution restored business confidence. It gave hope that the Philippines is still a country worth investing in.
Poverty Rate
What
can we expect to see from a country devoured by corruption, nepotism and cronyism?
Undoubtedly, there will be wide
inequality. The masses are poor and hungry, while a chosen few are rich and are
satisfying their Imeldific lifestyle.
Based on the Family
Income and Expenditure Survey (FIES), poverty rate in the Philippines jumped
from 41 percent in 1965 to 58.9 percent in 1985. The agriculture sector was hit
the hardest as former President Marcos and his cronies diverted government
finances into manufacturing and service sectors. The botched Bataan Power Plant is a major
example of the misplaced priority of the tyrant’s administration.
Present
time, the Philippine Statistics Authority registered the country’s poverty
incidence at 21.6 percent in 2015. This
is more than half of the staggering poverty situation during the years of authoritarian
rule.
Never Again
A lagging economy with
prices of goods and services spiralling uncontrollably, business confidence
falling drastically and income inequality widening enormously – that is the
country’s state during those Dark Ages. What
golden age of Philippine economy are others talking about? There is none. Data, etched in the country’s records and
history, clearly paint a gloomy situation for the nation and for the Filipino
people.
Should
we allow the same tragedy to occur again, worse, in our lifetime? Surely, we must answer – Never Again.
