Militant think tank sees 7 major challenges for Aquino

Seven major challenges are likely to confront the new administration —apparently of Sen. Benigno Simeon Aquino III — as he assumes the presidency on June 30, a militant think tank said. IBON Foundation said that while the challenges are gigantic, they can be addressed if Aquino’s administration “has the readiness to act." “The country is at the dawn of a new administration and the most natural feeling for many is optimism. This optimism for change is a nation’s response to nine years of economic and political disarray under the Arroyo administration, and indeed from worsening poverty and backwardness," it said. Aquino’s initiatives in his administration’s first 100 days will be crucial in setting directions for the country, the group added. IBON said among the challenges Aquino must face are the economic crisis involving persistent domestic weaknesses and the onset of renewed fiscal turmoil. Also, Aquino must address the unstable political situation from unrelenting political ambition that the recently concluded polls have only momentarily stabilized. IBON stressed the need for people-oriented reforms founded on a genuinely nationalist development agenda, which also creates a strong base to face the inevitable next global economic shock. “On the political front, the general public has long been denied of, and thus desires inclusive and democratic governance, which should be viewed as opportunity for the next administration to launch meaningful political actions," it added. 7 major challenges The group said the first major challenge is the setting up of a reliable process of holding the Arroyo clique accountable for its offenses. It said this will contribute to lessening political instability, as well as serve as the groundwork for repairing the damage to the country’s political institutions. A second challenge is to immediate address the country’s fiscal troubles in a "pro-people manner." This includes lifting the reform value-added tax (EVAT) as a first step towards a progressive tax regime, reducing fiscal and other incentives given to foreign investors, and resuming collection of tariffs particularly on imports used chiefly by foreign export-oriented interests, as well as basic agricultural products and food. On the expenditure side, government should ease up on debt payments by subjecting these to more sensible prioritization such as stopping payments on onerous and odious debts; negotiating better credit terms; and giving preference to creditors more amenable to the country’s development efforts. Also, it should cut back on militarization, and crack down on the corruption causing gross leakages of public funds to private pockets. The third challenge is raising public spending on vital social services of education and health to improve the welfare of a crisis-battered population. A fourth is repudiation of obsolete globalization policies that have caused so much damage to the domestic economy. It said government must formally declare a standstill on further globalization policies that have put domestic producers at a disadvantage to foreign competition such as multilateral, regional and bilateral deals. Also, it pushed for a multi-stakeholder review of how to provide necessary protection and support for local agriculture and industry. “Among others, immediately maximizing tariff space that the government has foregone such as in the World Trade Organization (WTO) and other deals will send a strong signal of decisiveness to pursue development," it said. The fifth is government formulating an explicit strategy for building domestic economic foundations and reducing the reliance on external sources of growth. This reduces the emphasis on an export rebound or in remittances as keys to recovery, IBON said. “An initial major effort is decisive implementation of a real agrarian reform program that speedily distributes land to the tillers," it added. A sixth involves more equitable distribution of the gains from economic activity to its direct producers through just wages and benefits for workers and a fair share of farm output for the peasants. The seventh is giving momentum to the democratization process by immediately stopping state-sponsored attacks on progressive forces. “The militarist approach to the country’s armed conflicts also needs to be repudiated towards genuinely seeking to address the roots of poverty and underdevelopment– the peace processes with the National Democratic Front of the Philippines (NDFP), which has socioeconomic reforms as its next agenda, and the Moro Islamic Liberation Front (MILF) are important," it said. Underlying all these is the basic need to build a real democracy that advances social progress, IBON said. “This would give greatest priority to the right of the majority of Filipinos to work, education, health, housing and life. Giving such priority means not sacrificing these rights by invoking the right of landlords to land, of corporations to profits, and of elites to exploit others. The country deserves to be optimistic but the conditions for that optimism have to be there and, if not, built," it said. — LBG, GMANews.TV