Workers slam $1 B commitment to IMF crisis fund

“Planet Earth to the Aquino government: The Philippines is still a poor country.”

This was labor center Kilusang Mayo Uno’s reaction to the Aquino government’s US $1-Billion pledge to the International Monetary Fund’s war chest for helping economies distressed by the current severe economic crisis.

KMU said the pledge, which was announced at the recent Group of 20 meeeting in Mexico by Bangko Sentral ng Pilipinas governor Armando M. Tetangco, Jr., will most likely be sourced from taxpayers’ money.

“What were they thinking? That amount can be used to improve social services such as education, health, and housing and build basic industries to generate employment,” said Elmer “Bong” Labog, KMU chairperson.

“The Aquino government is bragging about ending the country’s status as a borrower to the IMF, but this commitment still amounts to the same thing: the government will still be funneling huge sums of the people’s money to the IMF,” he added.

“This is no less than a plunder of the people’s money undertaken by an international financial institution with the aid of the Aquino government,” he said.

The labor center said the IMF uses its crisis fund to pressure countries into implementing austerity measures which have been the target of widespread protests in European countries.

“The Aquino government, which has been implementing an unannounced austerity program in the country, will most likely implement tighter austerity measures in the coming years to support austerity measures in other countries,” Labog said.

“This is revolting. The government is helping the IMF remove subsidies to social services, delay retirement, and reduce pensions of working people in other countries,” he added.

“The Aquino government has again shown that it is a loyal running dog of big capitalists and finance oligarchs who control the world economy,” he said.

The labor leader speculated as to where the Aquino government will draw the funds to fulfill the pledge.

“Where will the Aquino government get this huge amount? From a new tax measure, which will worsen the poverty and hunger being experienced by workers and the people?” he asked.

“From earnings from mining and other Public-Private Partnership projects? But we want an end to large-scale corporate mining and the implementation of PPP projects,” he said.