Top 15 families control 50% of Philippines GDP - a growing, global human tradegy

October 3, 2004

In an upcoming five-part series, Asia Times Online's Pepe Escobar

explores both the makings and the makers behind the social

catastrophe a once rich and promising nation (called " the next

Japan " 40 years ago) has become. We won't preempt his findings but

will note some equally astonishing and disturbing, but

incontrovertible, facts.

Unsustainable demographics. The total population of the Philippines

will reach nearly 84 million by the end of 2004. After slowing

somewhat in the 1980s and '90s, the population growth rate has once

again accelerated to 2.36% per annum, or a doubling rate of just 30

years. The total population could exceed 200 million well before

2050. However, the Catholic Church, to which the great majority of

Filipinos belong, continues to prohibit contraception.

Declining per capita income. High population and mediocre GDP growth

make for a noxious mix. In real (inflation-adjusted) peso terms, GDP

per capita has remained virtually unchanged since 1980 (P12,619 vs

P13,139 in 2003). In US dollar terms, it peaked at $1,180 in 1996,

and in 2003 had declined to $953.

Growing poverty. Incidence of poverty - the inability to provide for

basic food (adequate caloric intake) and shelter - increased from

36.8% of the population in 1997 to more than 40% in 2002. Thirty-

eight percent of families do not have solid-structure shelter.

Access to safe drinking water declined from 81.4% of families in

1999 to 80% in 2002. Twenty-one percent of all families and 44% of

families in the lower 40% income group have no electricity.

Super-rich in undiminished control. The Philippines boasts an

unenviable Asian, perhaps global, record among major nations. One

family, the Ayalas, controls 18% of total stock-market-listed

corporate assets. Moreover, the country's top 10 most powerful

families control 56.2% of such assets. Just over 50% of total GDP is

controlled by the top 15 families. In sharp contrast, only 2.8% of

listed corporate assets are owned by the 15 top families in Japan.

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