Politics and money

(Baonghean) - Economics and politics are two closely related fields that influence each other. That is why in every relationship - allies or enemies - there are always issues of interests in both economics and politics. Similarly, when talking about the growth, prosperity or decline of a country, we implicitly understand that the impact of this change is present in both politics and economics.

Philippines has funding cut by US aid organization

Recently, the Millennium Challenge Corporation of the United States - a government-affiliated organization and also a support fund specializing in overseas activities - announced that it would stop its aid program for the Philippines due to concerns about human rights. This is considered an act of "punishment" for President Rodrigo Duterte's anti-drug campaign.

MCC’s previous five-year, $434 million assistance program for Manilla ended in May. The countries that will receive assistance include Burkina Faso, Sri Lanka and Tunisia.

Philippine President Rodrigo Duterte. Photo: Reuters

Washington has repeatedly criticized Mr Duterte’s violent anti-crime campaign. Philippine police have reported 2,086 deaths in operations since Mr Duterte took office on June 30. More than 3,000 others have been shot dead in unexplained circumstances, according to official police figures.

Mr Duterte insists that the police were acting in self-defense and that many of the deaths were in fact gang-related killings. Last week, Mr Duterte said he had personally shot and killed several criminals to set an example for the police.

While the US and the West strongly oppose Mr. Duterte's actions, surveys show that the majority of Filipinos support his policies, believing that this is the right measure to prevent the Philippines from becoming a den of crime.

A recently released survey shows that 77% of Filipinos are satisfied with what Mr. Duterte has been doing. As for the attitude of the US, it seems that Mr. Duterte is not very concerned, because in the face of constant criticism from his long-time ally, he even appears indifferent and reacts by showing his closeness to China - America's rival in the region.

Of course, things may be different when Donald Trump officially becomes the owner of the White House. While Mr. Duterte once made disparaging remarks about Mr. Obama, on the contrary, he seems very interested in the tycoon and the future of the relationship between the two countries in a new page.

Venezuela is in a new crisis

On Friday, December 16, Venezuela was engulfed in violence and chaos due to a new currency crisis. The government decided to abolish the most widely circulated currency, the 100-bolivare note, causing outrage among the people.

In the booing crowd, Venezuelans carrying bundles of 100 bolivar bills - once worth about 1,250 Vietnamese dong but now worthless - rushed to protest, blocking many roads and cursing President Nicolas Maduro. This scene took place in a series of cities across the country. In addition, many stores were also attacked and looted.

Venezuelans hold money during a protest on December 16. Photo: AFP

The government had previously given Venezuelans three days to dispose of all 100-bolivare bills. President Maduro justified the decision to abolish this denomination as a way to fight against mafia forces operating on the border with Colombia.

However, the introduction of this policy in the context of Venezuela's exhausted economy, despite the warnings of economists, has resulted in a new crisis as mentioned above.

The opposition party said the policy was evidence of the current president's intention to destroy the national economy and that Mr Maduro must leave office.

Inflation was severe, the 100 bolivars bill lost its value and had to be replaced by 500, 1,000, 2,000, 10,000 and even 20,000 bolivars bills, but still could not revive the economy in crisis.

New bills have yet to arrive at banks across Venezuela, and cash machines in the capital, Caracas, are empty, out of service, or have been looted. Venezuela’s economic nightmare shows no signs of abating anytime soon.

Hai Trieu

(According to Le monde)