PRESS RELEASE
January 23, 2009

“The impending closure of Intel Corp.’s semiconductor facility in Cavite and the massive layoffs of IT workers not only in Texas Instruments but in different Business Process Outsourcing (BPO) firms are tell-tale signs of clear unpreparedness of the Philippine economy in surmounting the global economic crisis. There is no other person to blame here than Gloria Arroyo herself, for her overreliance on foreign investments in spurring economic growth instead of pursuing a comprehensive agenda towards national industrialization,” This was the statement of Terry Ridon, Spokesperson of the League of Filipino Students in his reaction to reports of the closure of Intel Corporation’s Cavite semiconductor facility and the layoffs of IT workers in Texas Instruments’ Baguio factory.

“No matter how optimistic the assurances of government functionaries, particularly the National Economic Development Authority (NEDA), that we can weather the economic crisis due to our supposedly sound economic fundamentals, what is clear in the case of the closure of Intel Corp.’s facility is that no amount of reliance on sunshine industries as BPOs and IT manufacturing can insulate the Philippines from the gravity of the global economic crisis, as the operation of these firms themselves are dependent on global economic demand, which at present, are clearly on a protracted downward spiral.” Ridon asserts.

Ridon adds, “Notwithstanding these, the dire situation of OFWs returning from abroad has shown how unreliable government policy on labor export of OFWs is in ensuring real and sustained economic growth. With the global slowdown in the demand of services, including domestic and semi-skilled workers, there is no doubt that serious consequences await OFW beneficiaries once their relatives return to the country in droves. This might even trigger a further escalation of the already critical economic situation we face today, which might include the foreclosure of home mortgages, the closure of small and medium enterprises, the default of educational loans, among others, all of which are small yet significant investments of OFWs in the country.”

Ridon further asserts, “As a result, the entire myth created by the Arroyo government of the hallmarks of our consumption-driven economy shall fall into pieces, because, in view of the spiraling of unemployment through OFW repatriation and closures of an already small manufacturing sector, our people shall soon be without any centavo to spend for Mrs. Arroyo’s consumption-driven economy.”

Ridon, finally says, “As long as the government continues to paint a sunny yet false picture of the economy while our people clearly sees a drab state of affairs, government rhetoric that we shall soon overcome will miserably fail. And the tide of dissent against this government will continue, not only in holding her accountable for her political crimes against the people through corruption and the slaughter of activists, but also for her failure and negligence in providing a clear program of confronting the looming economic crisis in our country.”