Wednesday, April 16, 2008 Editorials: Global economic showdown
ARRAYED in the current skirmish over the perceived slowdown of the global economy are, on one side, the country’s wage earners majority of whom are surviving below the poverty level and, on the other side, the government of Gloria Macapagal Arroyo.
The issue is the price of basic commodities, starting from the staple cereal, to meat and fish, food dishes and medicines.
The international economic slowdown has recently brought together the so-called Group of Seven nations to map out a response and to “explore how best to prevent another financial crisis.”
In the Philippines, the problem of the shortage of rice and corn supply has driven prices to heights never before experienced by the buying masses.
The price of even yellow corn is in a race with those of rice and finely milled corn grit.
Unless government is able to arrest the spiraling prices, these commodities will already be beyond the reach of poor wage earners.
Wages
The pressure on government to raise the salaries of private sector and government employees has become tremendous, forcing President Arroyo to call on the regional wage boards to act.
The problem, though, is that the wage hike may not be enough.
In Cebu, the National Food Authority has increased the rice allocation per government unit to 30 sacks per week from the original quota of just 20 bags.
Distribution is posing a problem, however, since unscrupulous persons might take advantage of the situation, something that has happened before under similar circumstances.
Bigger problem
Meanwhile, an important Group of 24 Developing Countries meeting “has urged advanced nations to step up financial aid to help them deal with higher food an energy prices and the turmoil in global financial markets.”
The group also expressed the need for “the United States and other major industrialized nations to deal decisively with the current economic and financial crises.”
They want the nations to carefully monitor financial markets.
In essence, what started in the Philippines as a threat to mass survival due to shortages in rice and corn has been traced to a bigger problem of global economic slowdown.
It has become a case of the poor or developing nations against the wealthy, industrialized countries of the globe—a case of the “haves” as against the “have nots.”
