The Philippines remains among the top 10 developing nations with the most stable emerging economy based on a survey conducted recently by Lehman Brothers and Eurasia Group, a firm that analyzes political risk in selected countries.

The survey result, carried by The Economist in its August 16, 2003 issue, showed that the Philippines got 60 points out of a maximum stability score of 100.

The survey sought to measure a country’s ability to withstand crises and to avoid generating them.

In the same issue, the Economist cited the 4.5 percent gross domestic product (GDP) growth of the Philippines for the first quarter, higher than Malaysia’s 4.0 percent, Indonesia’s 3.4 percent, South Korea’s 3.7 percent, and Taiwan’s 3.2 percent.

The country’s GDP, however, decelerated to 3.2 percent for the second quarter of this year. Nonetheless, the Philippines performed better than its neighbors, with South Korea showing only a 1.9 percent growth while the GDP of Singapore contracted by -4.2 percent and that of Taiwan by -0.1 percent.

The deceleration of the economies in the region was due to global tensions arising from the US-Iraq war and the prevalence of severe acute respiratory syndrome (SARS).

In her keynote address at the closing session of the l5th general meeting of the Pacific Economic Cooperation Council, held September 3 in Brunei Darussalam, President Gloria Macapagal Arroyo said that her administration has been aggressively putting in place economic reforms to sustain growth and significantly improve the long-term prospects for the Philippines.

"We spent the first two years of my administration strengthening our macroeconomic fundamentals and it has paid off with consistent economic growth and low inflation," the President pointed out.

In the Lehman Brothers survey, Hungary emerged as the country with the most stable emerging economy, with a political-stability index of 73 points.

Following closely behind were Poland, with a score of 72, and Mexico at 69.

The political and economic stability index of the Philippines in July this year practically remained the same as compared to the same period in 2002.

Among the countries in Asia, only the People’s Republic of China and Thailand surpassed the Philippines’ stability index.

According to the index, Argentina, China and Turkey have all seen hefty increases in stability in the past year.

President Gloria Macapagal-Arroyo and Brunei Sultan Haji Hassanal Bolkiah have agreed to strengthen economic cooperation between the Philippines and Brunei Darussalam during their one-on-one meeting Wednesday at the Istana Nurul Imam in Bandar Seri Begawan.

The President met with Sultan Bolkiah after she delivered her keynote address at the concluding session of the 15^th General Meeting of the Pacific Economic Cooperation Council (PECC).

The Sultan of oil-rich kingdom, she said, could look into investment opportunities for the Islamic Bank of Brunei in developing and strengthening the capital of Amanah Islamic Bank, which is currently operating in the Philippines.

"We already have an Islamic bank in our country, but we need to strengthen it with new capital," the President said.

Another business opportunity that the two leaders discussed was the opening of a direct flight of the Royal Brunei Airlines to Davao City. Sultan Bolkiah agreed to such a suggestion from the President, noting that Davao is just 45 minutes air travel from the Sultanate.

In her speech before PECC delegates from 22 countries in the Pacific Rim, the President said that an important part of her administration’s program for the development of Mindanao "is its linkage with contiguous areas of neighboring countries - Brunei Darussalam, Eastern Indonesia and East Malaysia."

"We are pursuing with renewed vigor the promotion of the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area," she added.

The President also noted that agriculture and fishing are the most important industries in Mindanao and that her administration’s efforts to find markets for Mindanao exports are now yielding results.

Food exports from Mindanao, she noted, "are among our strongest product gainers, posting a 40 percent growth rate in the first quarter of 2003.

I am assuming the post of Secretary of National Defense for a few weeks and I see my role as a means of leading a speedy consolidation process. Now let me explain what I mean consolidation. It means number one, strengthening the chain of command, number two rationalizing our resources, number three sharpening the will to fight.

Let me explain each of these components of consolidation process. Strengthening the chain of command means ensuring the durability of every link from headquarters to field, from top to bottom, from combat to peacemaking. Policies must be translated into clear command directives understood up to the lowest level. The AFP must instinctively march and fight as one.

Let me explain the second component of consolidation, namely rationalizing our resources. Rationalizing our resources means putting them where they are most needed and where they are most effective in the attainment of the mission. By resources I mean both materiel and human resources. We must match soldiers, weapons and training to every specific task. We must move logistics to the field. Most of all, we must change the procedural system that breed corruption.

President Gloria Macapagal-Arroyo today enumerated the three major components of the consolidation process that she would like implemented at the Armed Forces of the Philippines (AFP) during her tenure as concurrent secretary of national defense.

In a statement she issued after the Joint AFP-PNP Command Conference held at Camp Aguinaldo in Quezon City, the President said she assumed the post vacated by former Secretary Angelo Reyes for a few weeks as a means of leading a speedy consolidation process within the AFP.

The command conference was attended by Interior and Local Government Secretary Joey Lina, National Security Adviser J. Roilo Golez, AFP chief of staff Gen. Narciso Abaya, PNP chief Director General Hermogenes Ebdane, the chiefs of the various AFP Commands and PNP directorates and major police offices.

The components of this consolidation process, the President said, are number one, strengthening the chain of command; number two, rationalizing the AFP’s resources; and number three, sharpening the will to fight.

The President said that strengthening the chain of command means ensuring the durability of every link from headquarters to field, from top to bottom, from combat to peacemaking.

"Policies must be translated into clear command directives understood up to the lowest level," the President said.

By rationalizing the resources of the AFP, the President said that this means putting them where they are most needed and where they can be most effective in attaining the objectives of their missions.

"We must match soldiers, weapons and training to every specific task. We must move logistics to the field," the President said.

She also emphasized that in rationalizing the resources of the AFP, there is a need to change the procedural system that breed corruption.

On the third component, the President said strengthening the soldier’s will to fight has to do with morale and tenacity, education and indoctrination, adding that there should be more dialogue across the echelons.

"Youth must be combined with experience in such a manner that everybody down the line has a stake in the nation," the President said.

The Armed Forces of the Philippines (AFP) is "united and committed" to fight those who will attempt to destabilize the government.

This was stressed today by Deputy Presidential Spokesman Ricardo Saludo during a news briefing in Malacaņang while President Gloria Macapagal-Arroyo was presiding at a joint AFP-PNP Command Conference in Camp Aguinaldo.

In her speech upon arrival from Brunei Wednesday, the President disclosed that certain personalities are engaged "in a continuous effort at destabilization."

Dismissing reports of a fresh coup attempt, Saludo said "there is no coup move…no move within the military toward toppling the government."

But Saludo also indicated that there are attempts to create an impression of instability by some anti-government elements.

He said that the military has undertaken counter moves to quash reports of restiveness in the military.

Saludo said that the Chief of Staff Gen. Narciso Abaya is conducting dialogues with all the officers and members of the AFP from the top echelon down to the soldiers in the battlefield.

"It is intended to help ferret out and address any grievances by some members of the armed forces," Saludo added.

He also reiterated the package of benefits that the government is extending to the soldiers such as the raising of salaries of the AFP personnel, providing housing, education and hospitalization and other medical care.

Earlier, in a statement, Abaya described the reported coup plots as "outright lies," adding that these rumors were intended to sow intrigue in the armed forces.

National Security Adviser Roilo Golez today confirmed that there were destabilization efforts by some sectors but these were successfully counteracted by the Armed Forces of the Philippines (AFP) and the Philippine National Police (PNP).

"There are efforts to recruit some members of the AFP but this has not been successful because the AFP has remained loyal to the President and the Constitution," Golez told newsmen after the joint AFP-PNP Command Conference at the AFP main building in Camp Aguinaldo, Quezon City.

The marathon command conference, held from 11:00 am to 3:30 p.m. was presided by President Gloria Macapagal-Arroyo, her first as concurrent defense secretary.

Golez said there is no truth to reports that some military generals have resigned. "This is obviously part of a disinformation effort," he said.

According to Golez, the AFP is on heightened alert "to meet very effectively any destabilization effort" while the PNP is in full alert as part of the regional alert against terrorism in the light of the sentencing of Abubakar Bashir of the Jemaah Islamiyah in Indonesia.

Interior and Local Government Secretary Jose Lina Jr. said they have identified the "hodge podge of disparate groups" out to destabilize the country but the AFP and the PNP are ready to face any challenge to safeguard democracy.

"We have identified them. If they commit any overt acts then we will be ready to file appropriate charges against them," Lina said.

Based on their assessment, Lina said these desperate groups will not be able to mobilize a large number of people "because they don't have a popular cause."

Just the same, Lina said both the AFP, PNP and the civilian government are prepared to cope "with any challenge to the democratic institutions of our society."

PNP chief Director General Hermogenes Ebdane, on his part, said speculations and destructive text messages only eat up much of their time because they have to monitor and sort out to find out which of them are part of a disinformation campaign or hard intelligence.

AFP chief Gen. Narciso Abaya said the media should not make a big story on the report of alleged monetary offer of P10 million to a general and P50,000 to a soldier that only came from unconfirmed text messages.

"I tried to confirm this and there is no such offer, nobody came out to say that money has been offered or dangled," he said.

Abaya confirmed there is a disinformation campaign going around, adding that he believes the disinformation campaign is part of a bigger destabilization plot.