HSBC’s PH 2050 scenario, another PH 2000 – KMU

Labor center Kilusang Mayo Uno criticized today international bank HSBC’s forecast that the Philippines will leapfrog to become the 16th largest economy by the year 2050, saying this is another pipe dream like the “Philippines 2000” under Fidel Ramos’s government.

HSBC based its forecast on factors such as current income per capita, rule of law, democracy, education levels and demographic change.

“This is another pipe dream. The basic economic policies being implemented by the government today are similar to those that were implemented by previous regimes. These policies did not bring about development, but growing hunger and poverty among our workers and people,” said Elmer “Bong” Labog, KMU chairperson.

“Back in the 1990s, the Ramos regime tried to entice the people with dreams of ‘economic takeoff’ and becoming a ‘Newly-Industrializing Country’ by the year 2000. More than 10 years after 2000, we’re still dreaming of economic development while the government clings to the same policies,” he added.

“The Philippines is not performing well in any of the factors which the HSBC monitored. Maybe the performance of other countries is getting worse due to the crisis. This may increase our ranking but it will not mean genuine development for our people,” he said.

KMU said that only the income of the country’s wealthiest is increasing, that the rule of law and democracy in the country favor the elites, that education is suffering from decreased state subsidy and that population growth outstrips economic growth.

Rosy forecasts

The labor center noted an increase in rosy forecasts for the country’s economy, citing statements from investment bank Goldman Sachs, Citibank Philippines, and First Metro Investment Corporation.

“Given the worsening hunger and poverty amidst the intensifying global economic crisis, capitalists and governments need to assure people that progress is underway. They need to assure people that governments are on the right track with their basic economic policies,” Labog said.

“The Aquino government, in particular, badly needs help from these entities in assuring the Filipino workers and people that the country will soon develop. It is focusing on the Chief Justice’s impeachment trial to hide from view its inability to solve hunger and poverty,” he added.