Philippine ’86 Economic Growth Reverses Slide

The government announced Thursday a slight upturn in the economy in 1986, the first gain since the 1983 murder of President Corazon Aquino’s husband sent the nation into the worst economic crisis since World War II.

The 0.13% growth rate in the gross national product for 1986 reversed a decline of 9.5% over 1984 and 1985, Press Secretary Teodoro Benigno said, quoting a report by the National Economic and Development Authority.

“The forecast is bullish, the mood is upbeat,” Benigno said. “Unless things unforeseen happen, the economy will continue to grow and the momentum will be established possibly to a growth level of 6.5% in 1987.”

The Philippine economy tumbled in the wake of political uncertainty generated by the Aug. 21, 1983, assassination of opposition leader Benigno S. Aquino Jr., falling world prices for key agricultural exports and a massive flight of capital.

Growth to Provide Jobs

The unrest set off by the assassination of Aquino as he returned from exile in the United States culminated in the ouster of President Ferdinand E. Marcos in a military-led rebellion, and Corazon Aquino’s accession to the presidency last February.

Press Secretary Benigno said the 1986 growth rate and forecasts for this year were outlined by economics official Solita Monsod during a Cabinet meeting Wednesday. He said the government expects sustained economic growth to provide jobs for an estimated 700,000 Filipinos joining the work force each year.

The economic recovery program, a critical component in Aquino’s campaign to combat a Communist insurgency, also depends largely on a successful rescheduling with the nation’s 483 foreign creditor banks of $3.6 billion in commercial loans falling due beginning this year.

Fighting in the Communist insurgency halted Dec. 10 for a 60-day cease-fire, and talks are under way between government and rebel representatives aimed at ending the 18-year-old rebellion.

‘Arrogance’ Charged

On Thursday, Antonio Zumel, spokesman for the Communist-led National Democratic Front, warned that the negotiations are heading for failure because of “arrogance” by government negotiators.

“We are appalled by the heightening arrogance with which the negotiating panel of the Aquino government has been regarding the NDF’s earnest proposals for the dismantling of fascist structures,” Zumel said.

“If the government is going to behave this way so soon after the peace talks had started--arrogantly dismissing our well-considered proposals out of hand--we are afraid that, much to our regret, the talks are headed for total failure.”

The “substantive” stage of the talks began Tuesday with the two sides adopting a government proposal to address poverty and unemployment as a solution to the Communist rebellion.

Rebel Proposals Rejected

Zumel said the rebel proposals for discussions on such issues as repeal of Marcos’ decrees were “imperiously” turned down by Teofista Guingona, the chief government negotiator.

“Do Mr. Guingona and others in the Aquino government now feel like little gods that they can rule perfectly without taking into account the views and proposals of others?” Zumel asked.

Guingona, who had warned the rebels against continuing to impose revolutionary taxes on villagers during the cease-fire, also reacted sharply to the rebel demand that “repressive” decrees by Marcos be repealed immediately. “Nobody should tell us what decrees should be lifted,” he said.