The increases underscore how government is turning over to profit-oriented private companies the fulfillment of state obligations and the oppressive burdens that the people are forced to deal with because of it. Notably, the private companies come from the same business groups that have close ties with the administration such as the MVP and Ayala groups along with their foreign partners, which through Aquino’s PPP program now control Metro Manila’s light rail system and water supply. Underlying the train fare and water rate hikes is economic neoliberalism, which preaches that governments shift control of economic factors and activities away from the public sector to the private sector. Governments do this through, among others, the privatization or corporate takeover of state roles and functions such as the PPP deals in LRT/MRT and the water sector. Complementing privatization is the so-called user-pays principle or the idea that consumers should pay for the full economic cost of the goods or services that they consume. It also means that only those who directly benefit should pay, instead of the burden being shared mostly by those with the capacity to pay under a system of progressive taxation.
Posted on: Fri, 09 Jan 2015 08:08:59 +0000
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