[Marxism] The global financial crisis: implications for Asia | Links

[glparramatta]

By *Reihana Mohideen*

The Wall Street crisis seems light years away from the side streets of 
Manila’s urban poor slums. For the labouring masses in the Philippines 
the capitalist system has been in crisis for some time now, unable to 
deliver life’s basic necessities: jobs and a living wage; affordable 
quality healthcare and education; and food security.

According to official National Statistics Office data poverty levels 
have increased between 2003 and 2006, and 2008 is expected to be the 
worst year since the 1998 Asian economic crisis. Between April 2007 and 
April 2008 the labour force grew by only 81,000, while the number of 
unemployed rose by 249,000, i.e. triple the increase in the labour 
force. In 2008 the number of employed persons fell by 168,000 and there 
was no employment generation in April of this year. Jobs were being lost 
at a time when prices and inflation were skyrocketing.

The global financial crisis, however, now threatens to affect the 
Philippines economy such that it impacts on the higher income families 
as well. It could threaten the employment of Filipino overseas workers 
whose remittances, amounting to a staggering US$14 billion-plus in 2007, 
have been the backbone of the economy at a time when foreign direct 
investment (FDI) has shrunk to almost nothing. According to Bangko 
Sentral ng Pilipinas 2007 data, some $1.5 billion was remitted from 
Asia, $2 billion from the Middle East, $2.3 billion from Europe and more 
than 50% of all remittances, amounting to $7.5 billion, came from the US.

Rumours are also rife that the state pension fund, the Government 
Service Insurance System, is heavily exposed to the US sharemarket and 
had invested in the now collapsed Lehman Brothers. Despite public 
concern, GSIS is refusing to release a detailed financial statement.

Full article at http://links.org.au/node/660

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