Tuesday, January 29, 2008

Debunking Myths on the RP Oil Crisis

from Vencer Crisostomo's StudentStrike

As the government's "energy summit" starts today, it is becoming more obvious that the government does not really intend to stop the oil price hikes, but instead insists on pursuing foolish efforts pretending to do so. Worse, it wants to address the oil crisis by intensifying liberalization and deregulation schemes -- the same culprits which drove the oil prices to unreasonably high levels during the past decade.

The fact that the summit, with the theme "$100/per barrel, crisis or opportunity", was funded by Asian Development Bank (ADB), the World Bank (WB), the Japan International Cooperation Agency (JICA) and the United States Agency for International Aid -- the same institutions that pushed for deregulation -- tells a lot.

Nothing we can do?

The government's stubborn refusal to address the roots of the crisis banks on the public's misconceptions regarding the oil price hikes. Government representatives and "economic analysts" propagate the false notion that "there is nothing we can do" with regards to the rising oil prices, that it is "inevitable," and that the rise of oil prices is only "natural" as this is what the "world market" dictates.

This line of analysis ignores the studies made by research and consumer groups saying pump prices have been overpriced by as much as P4.50/liter from 2001-2007 and that oil companies engage in price manipulation schemes; the most obvious among which is the automatic price increases implemented as soon as world prices rise, regardless of reserves they have bought before the increase.

According to reports, oil companies get at least P200,000 PER HOUR in super profits from this pump overpricing scheme. This would amount to billions in profits annually at the expense of the consumers. The only "natural" thing about this robbery scheme is that it has been done to us almost on a daily basis for a more than a decade.

Myth: The increases in oil pump prices are justified and are reasonable because world market prices are increasing.

Fact: The oil companies have been overpricing their products and exploiting increases in the world market to rake super profits. We should investigate these and stop the oil companies from unjustly increasing prices.


Crude arguments

As to the argument that "spot market" prices dictate the prices of local petroleum products, this is another part of the quackery the government and oil cartel make up in order to jack up profits. First off, the oil companies do not buy their products from the "spot market," and definitely not in "spot market" price levels. They buy their crude products, in far cheaper prices, from their own mother companies and overprice their products via "transfer pricing" schemes. We must understand that these oil giants monopolize the production process from oil exploration to gas station distribution.

According to studies, only half of the crude prices per barrel amount to the real costs of production; the other half goes to the pockets of the oil giants. No wonder that in 2006, Exxon Mobil, the top among the oil giants, raked $25.3 billion in runaway profits -- the largest among all TNC's ever.

And as if the moral consequences of this plunder isn't enough to bring them all into the dark depths of hell, they even play their little games to artificially and continuously jack up world crude prices in their favor. There isn't really any reason for oil prices to increase as much, for according to the oil crude producers, the supply is stable and there are enough reserves to keep the world turning for another four decades. Speculation -- that game capitalists play to jack up prices, at the expense of the world's peoples -- and the big oil monopolies manipulation of oil supply, are the real evils that cause the skyrocketing world price increases.

Myth: Oil price hikes are inevitable because of the rising costs of crude in the "spot market."

Fact: The rising costs of crude in the world market are mainly speculative and prices are artificially jacked up. Big monopolies are benefiting big time with their evil racketeering schemes.


Crisis or opportunity?

Is there really nothing we could do? Of course not. Fact is that there are alternatives other than energy conservation, liberalizing by tariff reduction, "carpooling" and other idiotic "solutions" that our government wants us to accept.

We should stand up against the plunder being done by these oil giants and bring the prices down to reasonable levels. We should take steps towards nationalizing our oil industry in order to free our economy from its dependence to these profit greedy oil cartels. We must reverse the neoliberal policies which brought us to where we are now.

True, in crisis there is opportunity. But either this becomes an opportunity for us to reform and turn away from the problematic policies we have wrongly embraced, or this becomes an opportunity for the greedy monopolies to further exploit our nation's people and resources. Unfortunately, under this puppet regime, and with the myths its lapdogs continue to propagate, we can expect the latter.
#

For more information check out the LFS primer on the oil crisis here.


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Tuesday, January 22, 2008

How to "People Power"

from Vencer Crisostomo's Studentstrike

Many activists and Filipinos are reminiscing their EDSA 2 moments today and most are reminding themselves of how great those days were, how ecstatic, idealistic and determined the people were then, and how, after seven years of suffering under this puppet regime, we badly need that People Power spirit with us again -- one that's even greater than what we had before.

Not a few of the people I have been talking to, in urban poor communities, the working class, and even middle class folks, wish of seeing that glorious day when the rotten and corrupt Arroyo government gets forced to step down from office by hundreds of thousands of people marching in the streets, accompanied perhaps by churchmen and anti-Arroyo military commanders.

There is a reason the nation gets excited when events of large political significance, such as the Manila Peninsula take-over, occur: people are praying for that "moment," for that "spark," hoping the the event would be beginning of the end for the regime. Heck, maybe the stock market stability that day in Makati showed that even the businessmen were not that worried over what's going to happen with their money anymore. That people have really had enough already.


Mass movement not sparks and moments

Many are now starting to understand though that "moments" don't necessarily lead to People Power. Not especially under a government like Arroyo, which is extremely desperate and hell-bent in its efforts clinging to office. Looking back, we might have already had a lot of those "moments" under this regime: scandals, controversies, issues, mass resignation of cabinet officials, military dissent, strong church opposition. But the more decisive of the factors, massive street protests -- hundreds of thousands of people in collective will and action --- still has to be developed.

People Power 2 didn't happen overnight. It wasn't as if the nation just suddenly woke up on the other side of the bed and decided to go to the streets because they believe they are destined to do so. Before the refusal of the Senate to open the second envelope, tens of thousands of people have already participated in massive rallies, vigil protests and student walk-outs against an array of issues: all-out war, VFA, budget cuts in social services, price hikes, government corruption, etc. Various formations and organizations ranging from anti-Estrada to progressive to revolutionary, have emerged and have swelled their ranks, making them capable of leading multitudes in the streets.


"Think big"

How do we, the youth and students in particular, revive mass protests during these times? How do we create that muscle which "powers" people's uprisings, and thus prove ourselves deserving of being referred to as "cutting-edge" and "spearhead" of social movements? How do we create People Power in our schools and communities?

First, we must look back at what happened at EDSA and believe that we can lead historically significant and radical activities. Student leaders and activists at present must learn how to "think big" and plan activities way beyond the pocket rallies and media actions we do several times a month. Successful strikes, nationwide walk-outs, peace camps, gigantic street protests, however complicated they are, all begin with simple ingredients. Among them: a little imagination and a strong determination to win.

In order for the student leaders to capture the imagination of the student population, they must come up with definite programs of action, must comprehend the requirements for the fulfillment of which, while being able to implement particular tasks and attain short term objectives. They must desist from implementing rigid and short-sighted plans, in false hope that constantly repeating the same "standard" tasks, will someday lead to something fruitful. Young activists in schools today must share radical visions and plans of action, and must work hard collectively to reach such. We cannot just wait for uprisings to suddenly happen, instead, we must painstakingly strive to fulfill the requirements of building strong mass-based organizations, highly politicized studentry, broad alliances, and others.


Broad Actions

Students must be mobilized in their tens of thousands in different activities in-campus and off-campus. Mass organizations and progressive alliances must thus realize the need for creative, broad, activities, that will engage not only the relatively advanced sections of the studentry but the population as a whole. While maintaining that the militant actions are the more decisive, they must also utilize broad forms of protest.

In danger of being branded TH (trying hard), the relatively advanced student organizations must also be careful not to artificially conduct "broad" and "creative" forms of protest (which might look broad in character but does not really engage the broad population), but instead develop the initiative of traditional groups and sectors.


Sinong papalit?

Contrary to government and reactionary propaganda, I don't believe that most young people are "tired" of people power and are disillusioned. Most young people who ask "sinong papalit?", ask the question not in a cynical manner. Rather, they are seriously asking for genuine, long-term solutions to our country's crisis -- solutions that progressives must readily articulate and propagate. People are not tired of People Power, rather, they are starting to see the limitations of regime change and are trying to understand the long-term solutions to the problems of our country.

Activists should thus engage more young people in discussions regarding Philippine society in general and the need for revolutionary change. Discussions about the semi-colonial and semi-feudal nature of our society and its basic problems and how to change it, must flourish in the campuses. The people are asking, and this fact requires us to be, more than ever, ready to respond. Analysis and discussions of current issues are well and good, but activists must not stop there, they must be able to deepen theirs and the masses' knowledge of the roots of these issues and basic problems of society.


A step in the right direction

While we stress that what's most important now is our systematic and conscious organizing, propaganda and mass work, activists must also be ready for twists and turns, sudden "moments," historically significant events and turn them to our favor. We must also learn how to adjust when we fail to reach particular objectives. Mass actions might not always be successful in terms of attaining its tactical, immediate target, but if led consciously, will, for sure, always bring fruit for the strengthening of the long-term struggle for change and will always be a step in the right direction.


We can and we must, for our country's sake, work together to develop another People Power uprising. One that's more conscious and organized. One that's ready to defeat the regime's fascism. One that will push the people's movement as well as the entire country forward, and will be a significant stride in the struggle for truly meaningful change.#


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