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Seeking Funds For National Development, Freeing The Country From The Debt Trap1 As evident in the analysis

of the 11 selected segments of the PDP, the Philippines needs to immediately implement basic economic reforms to build the base for a strong people-centered economy, specifically through implementing land reform, agricultural modernization, and industrialization. All these reforms, more especially industrialization, require capital and aside from tax reforms that will be discussed later in this segment of the dissertation there are other ways to raise capital for industrialization endeavors, without seeking foreign investors whose interest at times clash with the Philippines national interest. Instead of foreign investments, Filipinos must use indigenous capital to develop their country. Stopping foreign debt payments and decreasing domestic debt payments should be implemented so that the country will be able to instantly raise capital for the implementation of various socio-economic reforms. To jumpstart this, the Philippine government needs to cancel automatic debt appropriations by junking Section 31 of Presidential Decree 1177 (imposed by the Marcos dictatorship), and also Section 26, Chapter 4, Book VI of Executive Order 292 (Administrative Code of 1987) which is almost an exact copy of Section 31 of PD 1177. This is an act related to international debanksterization, as stopping foreign debt payments for a decade would certainly weaken the control of multinational financial institutions and their local tentacles on the countrys economy. To justify the need for

Part of a draft dissertation (2013) for a PhD in Southeast Asian Studies (Centro Escolar University-Manila). The endnotes are still incomplete. This was posted for the benefit of citizens who need instant information on Philippine debts. San Juan, David Michael M. A Dependency Theory Critique of Selected Segments of the Philippine Development Plan (PDP 2011-2016)

temporarily stopping debt payments, it is necessary to briefly discuss the nature of the countrys debt problems. In a span of 13 years, (2000-2013), the Philippine government spent 8,240,289,000,000 pesos for debt payments. Using just this amount, the Philippine government can easily put up job-generating firms and factories for its citizens. A table showing detailed debt payments and debt data from the Bureau of Treasury is supplied: Philippine Debt Payments1 and Outstanding Debts2 in Pesos (2000-2013)
Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 20133 GRAND TOTAL Interest Payments 140,894,000,000 174,834,000,000 185,861,000,000 226,408,000,000 260,901,000,000 299,807,000,000 310,108,000,000 267,800,000,000 272,218,000,000 278,866,000,000 294,244,000,000 278,996,000,000 312,799,000,000 333,900,000,000 3,637,636,000,000 Principal Debt Total Payments Outstanding Debts 2,166,710,000,000 2,384,917,000,000 2,815,468,000,000 3,355,108,000,000 3,811,954,000,000 3,888,231,000,000 3,851,506,000,000 3,712,487,000,000 4,220,903,000,000 4,396,640,000,000 4,718,171,000,000 4,951,188,000,000 5,437,104,000,000 5,800,000,000,0004

Payments 86,949,000,000 99,605,000,000 172,098,000,000 243,582,000,000 340,771,000,000 379,144,000,000 544,266,000,000 346,269,000,000 340,464,000,000 343,421,000,000 395,555,000,000 443,754,000,000 416,975,000,000 449,800,000,000 4,602,653,000,000

per year 227,843,000,000 274,439,000,000 357,959,000,000 469,990,000,000 601,672,000,000 678,951,000,000 854,374,000,000 614,069,000,000 612,682,000,000 622,287,000,000 689,799,000,000 722,750,000,000 729,774,000,000 783,700,000,000 8,240,289,000,000

Unfortunately, Philippine debts pile up even as the government pays its creditors humungous sums every year. It must be noted that in 1947, the second year of the the Roxas administration, Philippine debts stood only at 62,964,649.98 pesos 5. In the year 2000, Philippine debts have ballooned to 2,166,710,000,000 pesos. At the end of 2013, Philippine debts are expected to reach 5,800,000,000,000 pesos. From 2000-2013, the Philippine government would have shelled out 8,240,289,000,000 in debt payments, yet

instead of wiping out its debts, the amount of its debts more than doubled! It is not surprising that such horrendous scheme imposed by the IMF and the World Bank is called as debt trap by some in the academe, a scheme where the Third Worlds wealth goes to the First World financial institutions and its tentacles in the Third World, pushing the Third World to permanently trap itself in the vicious cycle of acquiring more and more debts. As the country pays its debts, its debts multiply because it uses new loans to pay for old ones at a rising interest rate, most of the times. It is unable to use its national budget to develop income-generating industries that will enhance its selfreliance. The humungous funds allotted for debt payments mean lesser and lesser budget too for badly needed social services such as education and health care (which in turn would have ensured that the countrys citizens will be educated and healthy enough to effectively contribute to the countrys development endeavors). Hence, the country must free itself from the debt trap if it is to achieve genuine growth and development. The solution lies in issuing a moratorium on debt payments for at least 10 years, so that the savings could be used as capital for establishing industries, modernizing agriculture, and implementing other reforms. After 10 years, the country will be able to pay all its debts from the profits it has gained from industrialization. Aside from temporarily stopping debt payments, debt repudiation is another option that can be implemented to gain funds for national development. According ro a research by the African Forum and Network on Debt and Development o AFRODAD (20076), from 1986 to 2006, Filipinos paid US$1,900,000,000 billion, 23,000,000,000 and CHF (Swiss Franc) 107,100,000 to those who funded the Bataan Nuclear Power Plant (BNPP). This anomalous and overpriced nuclear plant was established by the

Marcos dictatorship. It was built at the foot of Mount Natib (a dormant volcano) at a fault line, and it was unable to generate even just one megawattt of electricity.The BNPP is just one of the examples of anomalous debts that should be repudiated. With regard to the process of debt repudiation, the Philippines must coordinate with other Third World countries so that it will be able to promote the abolition or condonation of Third World debts to First World countries just like what anti-debt activists from the Jubilee South campaign for.

African Forum and Network on Debt and Development (AFRODAD). Illegitimate Debt 04

& Underdevelopment in the Philippines: A Case Study. Harare, Zimbabwe, 2007. Web. January 2012. < >