Paperboat growth

The National Statistical Coordination Board (NSCB) is upbeat that the economy is now slowly recovering, citing the upward trend in almost all leading economic indicators (LEI).

This is a welcome development especially since we have been experiencing a tailspin in our economy for quite a time. And this is ironical, considering that economics is supposed to be the forte of the President, she being a holder of a doctorate in that field. But who would not want the economy to recover if it would result in the upliftment of the economic condition of the citizenry?

But here lies the problem. Economic recovery in this country has always been confined on paper. It had never redounded to the benefit of the masses. It has always been on economic statistical data only and never on real life conditions of the people. Gauged from the number of Filipinos who had admitted having skipped a meal or two in one day in three months, we can readily deduce that life is indeed getting worse, as far as the poor are concerned.

It is very apparent now that when experts say there is an improvement in the economy, slight or substantial, this improvement does not trickle down to the ordinary man. This phenomenon is best explained by the components of the LEI itself. Take for example the consumer price index. This particular indicator will surely go up, even if slightly only, especially during the holiday season and opening of classes.

But this does not necessarily mean that the buying capacity of the populace has already improved. Undeniably, a substantial chunk of the population is unemployed, underemployed or simply engaged in menial and itinerant work only, thus their buying capacity is very limited. Besides, because of the hand-to-mouth existence of most of our countrymen, it is not hard to understand that all their income is used up buying consumer goods.

The movement of the 10 other indicators, except perhaps electric energy consumption, could not be said to be directly affecting the masses. Even this particular indicator is largely influenced not by the small household electric energy consumers but by the bigger ones. So, looking at the whole thing, we still can’t really conclude that the slight growth in the economy as observed by the NSCB can already give hope to the ordinary folk.

I still will agree with the position of social development economists that the best economic indicator is the quality of life the poor actually have. No matter how the government trumpets the dawning of economic recovery in the country, but if such does not actually change the life of the marginalized, that growth still amounts to nothing. –Jesse E.L. Bacon II, Daily Tribune