Press Release
August 17, 2009

BLAME CORRUPTION, NOT POPULATION GROWTH - LOREN

Sen. Loren Legarda yesterday told the administration to stop blaming population growth for the failure of the Philippine economy to improve the lives of the poor but to blame its failure to curb corruption, increase government efficiency and improve infrastructures.

Loren said that "widespread graft and corruption, lack of competitiveness, poor revenue collection, lack of infrastructures and lack of support for agriculture and local industries are among the causes for the increasing poverty of the Filipinos."

Loren was reacting to the statement of Finance Secretary Gary Teves in Santiago City that economic growth has not benefited the poor "despite all we had done � to find additional sources of funds to help alleviate our economic situation." He blamed high population growth for the increasing poverty.

According to Loren, "foreign and local investments have been deterred from coming to the country in adequate amounts because of the climate of corruption, inadequate infrastructures and faulty economic programming."

Loren said that "inefficiency and unabated corruption in the revenue-collecting agencies like the Bureau of Internal Revenue and the Bureau of Customs have resulted in their failure to meet their collection targets, resulting in huge government budgetary deficits."

Furthermore, according to Loren, "overspending by high government officials in frequent travels and perks, such as expensive dinners and first class accommodations in hotels and airplanes, and spending in useless projects, are draining our government coffers."

"Lack of government infrastructures, inadequate financial and technical support for agriculture and local industries have lowered the competitiveness of our country, and resulted in lowered production not only for exports but also for local consumption," Loren declared.

She cited report of the World Competitiveness Yearbook of the United Nations ranking the Philippines 43rd out of 57 in competitiveness ranking.

The Philippines' competitiveness grade had regressed the past five years having been ranked 40th in 2005, 42nd in 2006, 45th in 2007, Loren noted.

The economic performance of the country had deteriorated progressively since 2005 when it was ranked 36th, 45th in 2006 and 2007, and 42nd last year.

Loren said that government efficiency was ranked 42nd, on business efficiency, 32nd and infrastructure second to the last at 56th.

"These, including high perceptions of corruption, are the causes for our increasing poverty, not population growth," said Loren.

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