06/30/2005, 00.00
PHILIPPINES
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Philippines: Agriculture Minister steps down

His choice is motivated by a desire to "clear my name, not as a politician but as a citizen". Meanwhile inflation and social insecurity are on the rise even as experts warn: "No one, for now, can take President Arroyo's place".

Manila (AsiaNews) – Arthur Yap, Filipino Agriculture Minister, resigned today in protest against accusations of fiscal evasion and corruption leveled against him. Addressing a press conference, he said: "I am convinced this is the only way to clear my name, not as a government cabinet member but as a citizen of the Republic. I am not guilty."

Yap is one of the politicians closest to President Gloria Macapagal Arroyo, who portrays the fight against corruption as one of the key priorities of her government program. In recent weeks, a series of scandals linked to her family and government have drastically reduced her popularity to the extent that – in a bid to win back credibility – she admitted to involvement in a corruption maneuver in the 2001 elections. Her admission came only after the publication of an audiotape in which a feminine voice – suggested to be President Arroyo's – talked about corruption with one of the electoral commissioners.

 Even the president's family is embroiled in this drop in credibility: her husband, brother-in-law and son are implicated in an inquiry into gambling being conducted by the Senate of the Philippines. On Wednesday 29 June, Jose Miguel Arroyo, the president's husband, left the country "to avoid a situation which could damage and cause doubts to arise about the presidency", according to Arroyo's statement.

Several opposition MPs have called in one voice for the president's removal, but political analysts say the move is unfeasible, given that there is no political figure in the country's political scenario capable of taking her place.

AsiaNews sources in Manila talk of a "calmer" situation on the whole compared to last week, when popular protests against scandals and bad government were flanked by a heavy military presence on the streets of the capital. The situation however remains tense and the protests are "only the tip of the iceberg": the trigger behind the protests – often violent – among the Filipino people is really the country's disastrous economic situation.

The Filipino Finance Department said the country's consolidated public debt – the overall government and state-owned companies' debt – has increased by 10% in the first three months of 2005: at the moment the debt is of 56.4 billion pesos (one billion US dollars). Economic analysts say this amount of public debt is "unsustainable": most of the public funds are pumped into paying it off, with consequently less government investments and expenditure. According to official information, the sum necessary to pay capital rates and interest, which aggravate the public debt, has risen from 39% of total government output in 2001 to 68% in 2004: one-third of the overall state budget goes to paying interest on debts.

President Arroyo's government partly inherited this situation, but it is also partly responsible. The government decision has been to repeatedly increase taxes – both indirect and taxes on companies – in 2004 and 2005, as well as IVA. The increase in prices caused by these taxes, especially for food and energy, together with the fiscal policy, has resulted in a serious 8.5% inflation rate in the first five months of 2005. This in turn has led to social insecurity. Scarcity of jobs on the market prompts around eight million Filipinos a year to emigrate. Poverty in the country is on the rise: in 2002, 20% of families did not have access to drinking water and 21% did not have electricity for domestic use.

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