The following is the situation as summed up by the Central Committee of the Communist Party of the Philippines. Many of the trends will be very familiar to readers. To quote ·

"As a consequence of the current economic and financial crisis, it becomes easier for the imperialists to take over the entire economy, all the natural resources and every kind of business activity in the Philippines. But even as there is a bargain sale of assets in so many financially bankrupt countries, the current global crisis of overproduction in all types of goods dissuades and prevents the imperialists from bringing in productive capital for the comprehensive and balanced development of the underdeveloped countries.

The newly-installed Estrada regime has publicly admitted that the entire economy and the reactionary government are bankrupt. But it is foolhardy in further pursuing the policies of investment and trade liberalisation, deregulation and privatisation and keeping the economy at being an exporter of raw materials, low-value-added semi-manufacturers and contract workers, importer of finished products and ceaseless beggar of foreign loans.

The Estrada regime is trampling upon the national sovereignty of the Philippines and selling out national patrimony. It is removing all national restrictions on foreign investments and giving to the multinational corporations 100 per cent ownership of natural resources, banks, telecommunications, mass media and retail trade. But the multinational corporations come in only to take over the most profitable assets and to prevent the comprehensive and balanced development of a self reliant economy.

The foreign monopoly capitalists are assured of "national treatment" and unlimited ownership of assets, tax reductions and exemptions, currency convertibi1ity, unrestricted movement of capital and super profit remittances, foreign debt repayment, wage reduction and anti-union laws, exploitation of women and children and the plunder and pollution of the environment.

The privatisation of remaining public assets is being accelerated. The multinational enterprises and the big compradors are taking over at giveaway prices profitable state assets in

Major financial, trading, and productive enterprises, in public utilities and social services. As during the Ramos regime (previous administration -Ed.), the non-recurring revenues from privatisation are dissipated in budgetary spending.

The tax burden imposed on the toiling masses and the middle social strata is being increased, especially in the form of personal income and indirect taxes. At the same, the imperialists and the local exploiting classes practice all forms of evading payment of taxes. The comprador-bourgeois regime extends tax amnesty to the biggest tax evader, as in the notorious case of Estrada's big crony Lucio Tan. Tax collection will certainly fall far below the corrupt and unproductive spending of the reactionary government. The regime is set to cover the budgetary deficit by increasing the public debt.

The foreign trade deficit will continue to grow. However, it can be lessened by the decrease of imports for export-oriented manufacturing due to the global crisis of overproduction. The mass layoffs in the sweatshops have aggravated general unemployment. The chain reaction runs up to the reduction in the number of those who could previously afford to buy cars and apartments on installment. The whole economy is reduced to its semi-feudal fundamentals, dependence on raw material production for export and export of cheap labour.

Mass unemployment is already grave due to the bankruptcies and production cutbacks. Those who remain employed are required to accept wage freeze or even lower nominal wages and longer working hours. Under the policy of labour flexibility, job security and hard won benefits are thrown out the window. Temporary and parttime workers are replacing regular workers . Unions are thereby busted and prevented from arising.

The incomes of the tolling masses and the middle social strata are drastically reduced by the peso devaluation and by the soaring prices of basic commodities and social services.

Social unrest is widespread in both urban and rural areas .... "end quote.