The Manila Times March 10/2005
World Bank takes a bashing by Patricia Esteves, Maricel V. Cruz and Ma. Theresa Torres

Lawmakers on Wednesday denounced as blackmail the World Bank's warning that the country's international donors would increase their assistance to the Philippines only if the government speeds up the passage of fiscal reform measures, including the va­lue-ad­ded tax bill.
Senators and congress­men alike assailed the World Bank for trying to impose its will on Congress.

Senators Juan Ponce En­rile and Edgardo Angara were one in saying that the World Bank cannot dictate to lawmakers to approve the bill that would raise the VAT from 10 percent to 12 percent.

"They cannot tell us how we will pass the law. We will pass the law according to our judgment of what it should be," Enrile said.

He said the World Bank should know that Congress must craft and pass the kind of VAT bill it thinks acceptable and fair to Filipinos.

Angara thinks it was very presumptuous of the World Bank to dictate to the country how it should run its affairs.

"It can suggest to us the bill we will have to take but not the details of how we would craft the VAT bill," Angara said.

Senate President Franklin Drilon brushed aside the World Bank’s warning, saying it is "just a reminder that Congress has to pass fiscal and tax reforms that would generate P80 billion in revenues" for the cash-strapped government.

Last year Congress passed the sin tax bill that would net P15 billion in revenues.

But Drilon stressed that the Senate would pass a VAT bill based on what it views as the national interest and not on the basis of the World Bank’s prescription.

Congressmen were equally incensed.

Exequiel Javier of Antique and Marcelino Libanan of Eastern Samar in a joint statement advised the foreign lending institutions to stop dictating to Congress what to do because even without their instructions, the Arroyo administration is doing everything it can to fulfill its economic reform agenda.

Javier said the grants being extended by the World Bank to the Philippines do not give it the license to dictate to the country, especially if it involves an "additional burden to the people."

"There is no need to pressure us on the VAT bill, since we have prioritized it pursuant to the urgent fiscal agenda of President Arroyo," Javier, vice chair of the House Committee on Justice, said. "The World Bank cannot tell us to immediately pass the VAT bill. We have to abide by the rules and follow the procedure."

Libanan said the warning of the World Bank shows its outmost neglect for the plight of the people.

"The World Bank should not blackmail the government, which has been espousing self-reliance through generation and saving to raise money for the government to carry out its development agenda," Libanan said.

Party-list Rep. Teodoro Casiño of Bayan Muna said the World Bank still had the temerity to blackmail the country when 85 percent of government revenues already go to debt servicing.

"If they really want to help, how about condoning our debts?" Casiño said.

Rep. Rozzano Rufino Biazon of Muntinlupa believes the World Bank will still extend loans to the country even without the VAT bill. "It will just give smaller loans with higher rates. Its threat should not matter to us. What we should think about is higher revenue, lower deficit," Biazon said.

Malacañang denied reports the government is under pressure from the multilateral donors to pass the fiscal reform bill.

Press Secretary Ignacio Bunye said the World Bank should leave it up to Congress to determine what VAT version to approve.

Malacañang appeared disappointed by the Senate’s rejection of the Palace-backed proposal for an additional 2-percent VAT.

The Senate Committee on Ways and Means of Sen. Ralph Recto supported the retention of the 10-percent VAT but lifted the exemptions on some goods and services.

Bunye said the legislative and the executive are working together to help generate more funds to deal with the country’s chronic debt problem.

it's not the first time World Bank and IMF is been known to do $hit like that. That's why it's become a symbol of imperialism, than what's it's intended emergency and devlopment agency.

from http://www.inq7.net

^time were different. when Daddy Macapagal came to office, it was the ripe age of Modernization. i mean it was the same time we had the Oppurtunity which was wasted.

same time it was Mexico, Argentina, and others were close to change of the phase, but it was ruined by Marcos', who instead of using the money to use for modernization put it in his bank account.

also under his rule corruption and disintegration of govt. (ironically under his "tight fist")

sadly, other countries moved on. PI remained stagnant. Of the East Asians who started developing after WW2, only Japan Singapore and Korea made it to the second phase.

You know this post can of does add a little proof to Dreaming-Philosopher’s conspiracy theories about the rich.

i say, it is not about chances passing, it still about corruption... we do have great potential no matter the time...
it's just that the incumbent government does not have the political savvy and political will to do something about it... they are all for show and fanfare with nothing substantial to show... much ado about nothing...
imagine Raul Gonzales (one of the justices, i think) saying we ignore the survey that says the Philippines is 2nd most corrupt country in Asia... duh! why not say, let's murder those thieving bastards and straigthen our government? bah!
pinag-iinit ba ang ulo ko!

2 Yeah, it was Raul Gonzalez who said that. How the hell do you that as a leader of a nation?

You know this reminds me of something Dalawapo said about Filipinos ignoring the problems of the country. It would be sad if he is correct. Though, it could explain the ranking of Filipinos as the 6th happiest people in the world. Ignorance is bliss.

before Marcos the govt in fact is really much much better than it was afterwards. and uncorrupt as it is now.

corruption actually became apparent only and mostly during Marcos's time. reason being

1. the govt. elected was dissolved

2. the govt. became only those favored by the dictator

3. once the dictator is gone, the military that was given power and autonomy is no longer as submissive and below the civilian govt. ie Honasan and RAMM, Ramos' and Enrile's troops in the People's Power, the Arroyo's (the last two years) almost coup from armed forces and junior officers.

4. the people forgot how to rule themselves. very apparent, look up the '86-'87 drafting of a new govt. and constitution, the people had seem like they forgot how to run govt (in fact the Catholic Church had to help out)

sad nga kuya item eh, kasi medyo ganoon nga ang nagaganap sa usaping talamak na pagnanakaw ng mga nasa posisyon sa pamahalaan... sabi sa isang column sa dyaryo, tila mas malaking pagnanakaw, mas hindi nakikita ng mamamayan! asar!

Flip, tama ka... hindi na nga alam ng tao ang diwa ng demokrasya... at, i still go for the quote: the government that governs least governs best... (kanino na nga ito?)