Global warming was the urgent topic on the heels of United Nation's Kyoto protocol signed by seven of the G8 which aims to cut emissions of carbon dioxide in space by mankind. Strangely, Pres. Bush had pulled out then, and didn't sign the 2001 Kyoto protocol, reasoning that the international project would be too costly, and wrongly excluded the developing countries.
On African poverty, the G8 confab agreed to write off the debts of eight poor nations from banks/creditors belonging to G8 nations. The common plight of these African debt-stricken nations is their utter penury recently exacerbated by long droughts resulting in incapacity to pay even minimal debt servicing.
The kind gesture of G8 must have inspired Speaker Jose de Venecia who, even on the onset of the "Hello Garci" fiasco, was in Europe to explore debt easing off from our creditors. On his return, he was all smiles for his successful trip, citing Italy's PM Berlusconi and Germany's chancellor as very receptive to his "debt-for-equity" proposal.
As given: Our foreign debt stands at $55B, or over three trillion pesos; about P245B stands to service the interest and principal; of the estimated 2006 P1.05 trillion national budget, one third is for debt interest; the over P3 trillion total debt excludes P598B guarantees on securities issued by GOCCs like the PAGCOR; debt repayments include the $2B Bataan Nuclear Power Plant white elephant being scuttled for its Marcosian vintage; that the government hardly stands on its feet about to collapse on its face, unless it continues to borrow some more; and, that with no Debt Cap law to stem the borrowing frenzy, our debt will further balloon and soar higher in fiscal outer space which even NASA couldn't hope to reach.
Given such grim scenario, what appears as a quixotic battling against our debt windmill on the part of the Speaker, merits our support. As the saying goes, there's no harm in trying. Anyway, if one fails, instead of try and try again, why... let our leaders go jump into the lake...
The Speaker's brainchild is not begging for outright debt write-off. His proposal to ease off the debt burden and interest servicing, is to request creditor countries like the G8 and creditor banks, such as, the International Monetary Fund, World Bank, Asian Development Bank, etc., as well as the Paris Club and OPEC, for a fair shake which Joe DV calls "debt-for-equity".
Simply put, the Speaker whose innovative organizing acumen in patchwork, but life-saving measures in times of crisis, that has been proved time and again, proposes one-half or 50 percent of the IOUs of poor debtor countries, remains as debt. The other half be treated as "equity" of the creditor banks/entities in the debtor-country's "development" and "anti-poverty" projects that are undertaken.
While specifics aren't spelled out, DOF Usec Bonoan assures that the mechanics have already been worked out. Obviously, these are now with PGMA as she attends the UN Global Summit in New York this September 12 to 14. This role transcends GMA's ceremonial honor of presiding the UN Security Council as its chair now.
GMA will present Joe DV's proposal to the UNGS, already indorsed by UN Sec. Gen. Kofi Annan. Creditor banks/entities will also be formally presented the proposal with the co-sponsorships of 99 other poor debtor countries heavily burdened by their debt servicing.
Reportedly, benevolent and well-off countries led by G8, particularly France, Germany, Italy, and Japan, among others, appear to be attentive to the novel idea of Joe DV.
Without losing face and international credit standing - and not be a pariah before world creditors - many debt-ridden nations like the Philippines may have a breathing spell, that is, by 50 percent ease off out of its annual debt servicing burden.