The Privatization of Social Services in the PDF

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The Privatization of Social Services in the Philippines Since the past decade, the Philippine government has been passing what used to be government-owned and controlled companies into the hands of private sectors. To name a few, here are the information technologies like the Philippine Long Distance Telephone Company (PLDT), the Philippine Post Corporation (Philpost) (Bree, “Information Technology in The Philippines”), and other companies like the National Power Corporation (Napocor) for electric supply and Manila Water and Sewerage Services (MWSS) for water supply. Despite the privatizations of some social services, I still think that the government’s decision was wrong, it should stop privatizing some other social services and it should begin taking control of them again. Government’s privatizing some of the crucial social services is like abandoning one of its primary responsibilities to the people. NAPOCOR was re-privatized in the late 1980s and it was transferred to its former owner, The Manila Electric Company or, Metro Regional Anggat Lightning Cooperative also known as Meralco (Paterno, “At the Threshold of Fresh Synergies: Meralco in 2010”). The MWSSwas also privatized in 1997 and, became Maynilad Water Services, Inc. and Manila Water Company, Inc. or Maynilad (Chia, “Water Privatization in Manila, Philippines. Should Water be Privatized?”). A Filipino basic need like water and electricity should be managed by the government because the role of the government is to serve the very interest of its people, and the people’s primary interest is to suffice their basic needs. The Philippine Airlines, Inc. (PAL), the dominant air carrier in the Philippines which operates both locally and internationally was privatized in 1992 (Encyclopædia Britannica, “Philippine Airlines, Inc.”), and PLDT, the only telecommunications industry in the Philippines since telecommunications have emerged, was privatized in 1995, and along with its privatization was the implementation of the Public Telecommunications Policy Act of 1995 (RA 7925) to allow free market in the telecommunications (Bree, “Information Technology in the Philippines”). Transportation like air transportation, and communications like telephone and cellular communication should also be managed by the government. Air transportation is risky for it is prone to mass destructions. The government should ensure and protect its people whenever they are prone to disasters. Telephone and cellular communications should be handled by the government for it could be a way to do crimes like kidnap for ransom and money extortion. Unlike what the private owners of telecommunications who are very loose in selling a subscriber identity module card or sim card, the government has all means to regulate the ownership of a phone number. Government should not just entrust the people’s safety to private sectors whose primary aim is to earn money. Despite of these things, privatization is not all bad especially during the times when government was proven ineffective and private sectors come into picture. There are government-owned and controlled companies which experienced bankruptcies that had been rescued by private investors. Private investors who won the bidding of MWSS continued to provide water to the people and agreed to pay the previous foreign debt of $1 billion (Chia, “Water Privatization in Manila, Philippines. Should Water be Privatized?”). Manila Harbor, the abandoned and neglected major seaport that links Metro Manila to Visayas and

Mindanao is now the North Port Passenger Terminal Complex, a world-class terminal that could carry three million passengers a year after being managed by Harbour Center Port Holdings Inc. and San Miguel Corporation (Palabrica, “Privatized Public Services”). Because a private company’s aim is to profit, privatization also promises a more efficient and improved services for its customers’ satisfaction. Water services after being privatized likewise improved. The total number of employees working for Maynila Water and Maynilad was 49% less than that of MWSS, the total number of people served also rose from 7.3 million to 8.6 million and water availability rose from 17 hours to 21 hours in five years of ownership (Chia, “Water Privatization in Manila, Philippines. Should Water be Privatized?”). What used to be a government regulated and solely-owned oil company has now been opened to free market. The oil companies has been fierce and aggressive this decade because of the other emerging small oil companies and Petron only the remaining member of the big three companies (others were Chevron and Shell). The competition is getting stronger and small companies are selling relatively cheaper oils (Gamboa, “Oil Deregulation Still Going Well”). While it could be said that privatization rescues the ineffectiveness of government’s responsibility to some social services, it remains a fact that privatization of social services doesn’t serve the interests of the people. Along with the privatization of social services is the higher cost of products and services since gaining profit is the aim of engaging into business. Unlike the government who must think of social services as its responsibility rather than business, private investors think the other way around. Maynilad rate increased from 2.32PHP to 6.75PHP and Manila Water increased from 4.96PHP to 15.46PHP in their first five years (Chia, “Water Privatization in Manila, Philippines. Should Water be Privatized?”). We are also aware of the inundated rate hikes Meralco gives every less than a year, and this year, Meralco announced a rate hike of 3.44PHP per kilowatt hour. It marks the highest of all rate hikes of Meralco in the history (Dumlao, “Meralco Staggers Rate Hike After Protests”). If it will be compared to the previous months, for example, the Meralco rate in June 2007 which is 1.89 per kilowatt hour, then the recent rate of Meralco is so much higher compared before (Department of Energy, “Meralco Rates”). Some of the people will be doomed to this kind of set-up because these people will no longer have the access to the privatized social services anymore. The basic wage is 466PHP for nonagriculture and 429 for agriculture and others (National Wages and Productivity Commission, “Daily Minimum Wage Rates”), and it will just be enough for food and shelter because of the continuing higher cost of living in the Philippines. According to Heydarian: “Since the 1990s, the Philippines — today one of the world’s fastest growing economies — has gradually transitioned towards a market-economy. The banking sector was liberalized, stateowned enterprises were privatized, most trade barriers were eliminated and public services were transferred into private hands. Yet, average real wages have stagnated, poverty rates have remained in the double-digit territory, and unemployed rates have even increased during the recent boom times. For many critics, the price of water and electricity have become increasingly inaccessible, while big oil companies can allegedly dictate market prices without much regulatory scrutiny. In short, the state has withdrawn, the private sector has taken over, but old problems persist — or have been exacerbated.” (“The Privatization Dilemma: Regulatory Prices in the Philippines and Emerging Markets”).

Privatizing social services might gear towards efficiency and world-class services, while some might do well in this kind of system, many more will still be left behind. The government should make decisions with care; it should not take only some into consideration and by doing that, the government would look only on one side of the coin. According to the Preamble of Philippines, its people must “promote the common good” and by privatizing social services, it would mean that there will be underprivileged and that the government is neglecting its responsibilities to some of its citizens which is the poor. Government-owned and controlled corporation The phrase government-owned and controlled corporation (GOCC), sometimes with an "and/or",[1] is a term in the Philippines used to describe government-owned corporations that conduct both commercial and non-commercial activity. Examples of the latter would be the Government Service Insurance System, a social security system for government employees. There are over 200 GOCCs.[2] GOCCs both receive subsidies and pay dividends to the national government. Under the GOCC Governance Act (Republic Act 10149; Government Owned and Controlled Corporations (GOCC) Governance Act of 2011), GOCCs are overseen by the Governance Commission for Government-Owned or Controlled Corporations (GCG).[3] The Governance Commission is the "government’s central advisory and oversight body over the public corporate sector" according to the Official Gazette of the Philippine government.[4] The Governance Commission among other duties prepares for the President of the Philippines a shortlist of candidates for appointment by the president to GOCC boards.[3] Many but not all GOCCs have their own charter or law outlining its responsibilities and governance.

List of government-owned and controlled corporations See also: Category:Government-owned and controlled corporations of the Philippines There are over 200 GOCCs.[2] Below is a partial list of GOCCs:[7][10] This list is incomplete; you can help by expanding it.            

Al-Amanah Islamic Investment Bank of the Philippines (AAIIBP) AFP-Retirement and Separation Benefits System (AFP-RSBS) Alabang-Sto. Tomas Development, Inc. (ASDI) APO Production Unit, Inc. (APO-PUI) Aurora Pacific Economic Zone and Freeport Authority Authority of the Freeport Area of Bataan (AFAB) Bangko Sentral ng Pilipinas (BSP) Bases Conversion and Development Authority (BCDA) Batangas Land Company, Inc. (BLCI) Batong Buhay Gold Mines, Inc. (BBGMI) BCDA Management and Holdings, Inc. (BMHI) Boy Scouts of the Philippines (BSP)

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Bukidnon Forest, Inc. (BFI) Cagayan Economic Zone Authority (CEZA) Cebu Port Authority (CPA) Center for International Trade Expositions and Missions (CITEM) Central Bank-Board of Liquidators Chemfields, Inc. (CI) Civil Aviation Authority of the Philippines (CAAP) Clark Development Corporation (CDC) Clark International Airport Corporation (CIAC) Corregidor Foundation, Inc. (CFI) Cottage Industry Technology Center (CITC) Credit Information Corporation (CIC) Cultural Center of the Philippines (CCP) Davao City Water District (DCWD) DBP Data Center, Inc. (DCI) DBP Leasing Corporation (DBP-LC) DBP Management Corporation (DBPMC) Development Academy of the Philippines (DAP) Development Bank of the Philippines (DBP) Duty Free Philippines Corporation (DFPC) Employees Compensation Commission (ECC) Fiber Industry Development Authority (FIDA) First Cavite Industrial Estate, Inc. (FCIEI) Fisheries Development Authority Girl Scouts of the Philippines (GSP) Government Service Insurance System (GSIS) GSIS Family Bank (GSIS-FB) G.Y. Real Estate, Inc. (GYREI) HGC Subic Corporation (HGC-SC) Home Development Mutual Fund (HDMF/Pag-IBIG) Home Guaranty Corporation (HGC) Human Settlements Development Corporation (HSDC) Independent Realty Corporation (IRC) Instructional Materials Corporation Intercontinental Broadcasting Corporation (IBC-13) Jaen Water District (JWD) John Hay Management Corporation (JHMC) Kamayan Realty Corporation (KRC) Laguna Lake Development Authority (LLDA) Land Bank of the Philippines (LandBank) Land Bank Countryside Development Foundation, Inc. (LCDFI) LBP Insurance Brokerage, Inc. (LIBI) LBP Leasing Corporation (LBP-LC) LBP Resources and Development Corporation (LBRDC) Light Rail Transit Authority (LRTA) Local Water Utilities Administration (LWUA) Lung Center of the Philippines Mactan-Cebu International Airport Authority (MCIAA) Manila International Airport Authority (MIAA) Marawi Resort Hotel, Inc. (MRHI) Masaganang Sakahan, Inc. (MSI)

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Metropolitan Cebu Water District (MCWD) Metropolitan Manila Development Authority (MMDA) Metropolitan Waterworks and Sewerage System (MWSS) Metropolitan Waterworks and Sewerage System-Corporate Office Metropolitan Waterworks and Sewerage System-Regulatory Mid-Pasig Land Development Corporation (MLDC) National Dairy Authority (NDA) National Development Company (NDC) National Electrification Administration (NEA) National Food Authority (NFA) National Home Mortgage Finance Corporation (NHMFC) National Housing Authority (NHA) National Irrigation Administration (NIA) National Kidney and Transplant Institute National Livelihood Development Corporation (NLDC) National Power Corporation (NPC/NAPOCOR) National Research Council of the Philippines (NRCP) National Tobacco Administration (NTA) National Transmission Corporation (TRANSCO) Natural Resources Development Corporation (NRDC) Nayong Pilipino Foundation, Inc. (NPF) NDC-Philippine Infrastructure Corporation (NDC-PIC) North Davao Mining Corporation (NDMC) North Luzon Railway Corporation (NorthRail) Northern Foods Corporation (NFC) Occupational Safety and Health Center (OSHC) Palacio del Gobernador Condominium Corporation (PDGCC) Panay Railways Partido Development Administration People's Credit and Finance Corporation (PCFC) Performance Investment Corporation (PIC) People's Television Network, Inc. (PTV-4) Philippine Aerospace Development Corporation (PADC) Philippine Agricultural Development and Commercial Corporaion (PADCC) Philippine Amusement and Gaming Corporation (PAGCOR) Philippine Center for Economic Development Philippine Charity Sweepstakes Office (PCSO) Philippine Children's Medical Center Philippine Coconut Authority (PCA) Philippine Cotton Corporation Philippine Crop Insurance Corporation (PCIC) Philippine Dairy Corporation (PDC) Philippine Deposit Insurance Corporation (PDIC) Philippine Economic Zone Authority (PEZA) Philippine Export and Foreign Loan Guarantee Corporation Philippine Export-Import Credit Agency (PhilEXIM) Philippine Fisheries Development Authority (PFDA) Philippine Forest Corporation (PFC) Philippine Health Insurance Corporation (PhilHealth) Philippine Heart Center (PHC) Philippine Institute for Development Studies (PIDS)

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Philippine Institute of Traditional and Alternative Health Care (PITAHC) Philippine International Trading Corporation (PITC) Philippine Mining Development Corporation (PMDC) Philippine National Construction Corporation (PNCC) Philippine National Oil Company (PNOC) Philippine National Railways (PNR) Philippine Pharma Procurement Inc. (PPPI) Philippine Phosphate Fertilizer Corporation (PHILPOS) Philippine Ports Authority (PPA) Philippine Postal Corporation (PHLPost) Philippine Postal Savings Bank, Inc. (PPSB) Philippine Racing Commission Philippine Reclamation Authority (PRA) Philippine Retirement Authority (PRetA) Philippine Rice Research Institute (PhilRice) Philippine Statistics Authority (PSA) Philippine Sugar Corporation (PHILSUCOR) Philippine Veterans Assistance Commission (PVAC) Philippine Veterans Investment Development Corporation (PHIVIDEC) Phividec Panay Agro-Industrial Corporation (PPAC) Piedras Petroleum Company, Inc. (PIEDRAS) Pinagkaisa Realty Corporation (PRC) PITC Pharma, Inc. (PITC-PI) PNOC Alternative Fuel Corporation (PNOC-AFC) PNOC Development and Management Corporation (PNOC-DMC) PNOC Exploration Corporation (PNOC-EC) PNOC Renewables Corporation (PNOC-RC) Poro Point Management Corporation (PPMC) Power Sector Assets and Liabilities Management Corporation (PSALM) Quedan and Rural Credit Guarantee Corporation (QUEDANCOR) Radio Philippines Network, Inc. (RPN-9) Securities and Exchange Commission (SEC) Small Business Corporation (SBC) Social Housing Finance Corporation (SHFC) Social Security System (SSS) Southern Philippines Development Authority (SPDA) Southern Utility Management and Services, Inc. (SUMSI) Subic Bay Metropolitan Authority Sugar Regulatory Administration (SRA) Technology Resource Center (TRC) Tourism Infrastructure and Enterprise Zone Authority (TIEZA) Tourism Promotions Board (TPB) Trade and Investment Development Corporation of the Philippines (TIDCORP) UCPB CIIF Finance and Development Corp. (UCPB-CDFC) UCPB Leasing UCPB Savings Bank (UCPB-SB) United Coconut Planters Bank (UCPB) Veterans Federation of the Philippines (VFP) Zamboanga City Special Economic Zone Authority Zamboanga National Agricultural College - Rubber Estate Corporation (ZREC)...