Global recession—this is the logical outcome of two decades and a half of implementation of neo-liberal “globalization”. Today capitalist crisis hammers on lives and livelihood of billions of workers and other toiling masses all over the world. The current global recession broke open the myth of globalization
The crisis has long been looming to explode. Various schemes of the world’s capitalists to boost profit have reduced the income and capacity to pay of workers and of other toiling masses. Outsourcing; contractualization; and downright reduction of the workers wages and benefits are but a few examples of their schemes. Globalization rendered bankrupt many medium-sized producers of the world over through the uncontrolled influx of surplus products from industrialized countries to relatively backward ones.
In the US and in other industrialized countries, unrestrained giving out of loans especially for housing temporarily concealed the decreasing buying capacity of the people. The rapid rise in housing prices fanned speculations in this field. Through speculation and high interest of loans, the accumulated capital of financial institutions earned enormous profits. And to further widen from which their money could earn more profits, financial capitalists created diverse instruments and financial schemes such as securities, credit insurance, etc.
For almost two decades, big banks and financial institutions held sway in amassing billions in profits while pushing a growing number of people into abject poverty. But when the market for housing contracted and their prices soared, many of those consumers that bought overpriced houses could no longer pay.
Banks experienced shortage in money. The value of the financial instruments they were holding shrunk or perished. They restricted lending and the artificial market disappeared like bubble. The real state of the people’s livelihood was exposed. The problem in lending and the shrinking market translated into diminished production. The world financial crisis turned into a world recession in production and services.
Foreign investment apparently declined. This was immediately reflected at the stocks exchange and hit even the industry and service sector. Plans for expansions in the country were impeded, despite the fact that capitalization comparatively declined.
Doubtlessly, capitalists immediately passed on their crisis to the workers. In different parts of the world, especially at industrialized countries, millions lost jobs. Like bubble, they lost security in their jobs, education and health care. Wages dropped. Millions of families were thrown out of the houses that the banks locked.
Almost all governments in the world allotted money to rescue the rapidly falling economy. But instead of allotting these funds that were usually loaned to rescue the workers and other toiling masses that are experiencing severe hunger and homelessness, these were allotted for big banks and businesses. This is triple beating for the masses: they are victims of the crisis, deprived of public funds and burdened by additional public loans.
The crisis is still worsening and its end is not yet in sight.
In the Philippines, the bankruptcy of an economy that has no foundation or of an economy that is anchored on foreign economy is bared
The import-dependent, foreign investment-led and service provision-centered Philippine economy is slowly burning out like a candle. Philippine exports have dropped by 41%. Badly hit were the electronics parts and car industry. Production was reduced or factories shutdown. The price of exported coconut oil and copra has also dropped.
This immediately meant massive job cuts for Filipino workers. More than 65, 000 workers has been laid off from factories of electronics, car, garments, handicraft/furniture and other exported products and it is estimated that this will reach 300,000 by the end of June while 60,000 workers are estimated to be working at less than 40 hours a week.
More than 15,000 OFWs went home due to layoffs. Many others remained overseas taking chances at finding other jobs. Despite the 26% increase in OFWs in 2008, remittances registered a 15% growth only. Last December, only a 0.21% growth was recorded. It is expected that actual decline of OFW remittances will be seen this 2009.
The continued dumping of foreign surplus products to our local markets worsens our economy. Local production cannot hold out in the market resulting to diminished profits or bankruptcy for local producers.
Costs of social services are rising: water, power, tuition fee and hospitalization. In desperation, many resort to committing crimes.
Capitalists further make use of contractualization and repression of workers
Instead of taking responsibility for the crisis and the havoc it wrecked upon the people, capitalists use their crisis to justify intensified exploitation and repression of workers. As an example, the tuna producers of General Santos City agreed not to raise their workers’ wages In almost all industries, haggling for additional benefits and wage increase becomes very tricky.
Forced retirement of regular workers, to give way to the hiring of contractual ones when production resumes, continues to be the employment policy of the day. In the process, it weakens unions and unionism. And in cases when unions have asserted themselves, capitalists resort to temporary closure, with the crisis as their pretext, and opening again under a new name to facilitate hiring of contractual workers. These are clearly anti-worker maneuvers, to which the Arroyo administration turns a blind eye.
The government is insensitive to people’s suffering
GMA is busy with her junkets, supposedly to beg for jobs that will employ Filipinos abroad. The Arroyo’s government is occupied with contracting loans for its deficits and budget for cover-up-top-gap responses to the crisis. She is occupied with giving rewards to her most faithful partners in various crimes they committed against the country and in her manipulations to remain in power beyond 2010 through charter change and other schemes. The toiling masses cannot expect anything from a government that defends and runs a system that has brought us nothing but suffering and misery, a government that refuses accountability to its people.
Struggle for social change!
The mammoth devastation hammering on the people today proves the rottenness of the current system. Experience taught us that the solution to the crisis does not lie in the hands of the people who are supposed to account for it. And the vastly damaging effects of the crisis show that getting uninvolved or silent will not exempt any one from the crisis. As long as this system exists, crises of this kind will lash on everyone especially on us—the marginalized sector.
Only through the concerted effort of workers and other toiling masses can we protect, assert and fight for our interest and betterment. Only through making a stand can we build a better future for our children. It is high time to take control of our own lives and future. Achieve social change! This is imperative.
Struggle for social protection or temporary relief against this crisis!
Along with our fellow overseas workers, let us, in unison, renounce and fight the global capitalist system that is riddled with crisis. Let us oppose its neo-liberal designs and policies. In the Philippines , let us assert and fight for an economy that cares for the toiling masses and will redress the century-long injustice we had been enduring. Let us work for a genuine agrarian reform and for the development of national industrialization.
Immediately, let us demand for temporary relief from this crisis. For this, we will demand for foreign and local capitalists that amassed thousands of profit for more than two decades from the neo-liberal policies to take responsibility for this crisis. This government that implemented and benefited fro the neo-liberal programs and brazenly stole public finds must be made to account and pay.
To pay for the immediate ease from this crisis, together we will push for the suspension of the annual debt payments especially for debts that found their way into private bank accounts; the collection of taxes from foreign-owned businesses that have long been exempted from payment; the raising of income tax of multi-millionaires and billionaires; and the retrieval of public funds stolen by bureaucrats. Our demands are justified. Unite and Struggle!
Beginning this May one, with solid strength and unity let us highlight and pursue the following demands:
JOB SECURITY, NOT CONTRACTUALIZATION!
RESPECT OF RIGHTS, NOT REPRESSION!
SUBSIDY FOR THE UNEMPLOYED!
AFFORDABLE HOUSING, FREE EDUCATION and HEALTH CARE for the POOR!
ADDITIONAL TAX for FOREIGN INVESTORS, TAX EXEMPTION for WORKERS and the POVERTY STRICKEN MASSES!
RENOUNCE the SCOURGE OF GLOBALIZATION!
RELENTLESSLY PURSUE THE STRUGGLE for TOTAL SOCIAL CHANGE!
