O.P.S.   Yearender 2005

By: Ignacio R. Bunye (December 24, 2005)

Perhaps the greatest challenge in my dual role as the Presidential Spokesperson and Press Secretary at this time in our history is that I work in one of the most robust democracies in the world. There is great democratic space where freedom of expression is practically unrestrained - probably an extreme reaction to the martial law years when the press and freedom of expression were suppressed. 

In a highly competitive media environment where news tends to be circulation- or ratings-driven, our communications team has to deal with fast moving issues affecting the Presidency. We have to ensure that not just the President's position on each issue but more importantly, her strategic programs and core messages are effectively communicated.

As Presidential Spokesperson and Press Secretary, it is important that I remain firmly committed to a strong, vibrant government and democracy and a strong free and open press, on the one hand, and to the reforms and the Presidency of President Arroyo, on the other. My job is to balance both and to focus on preserving, protecting and defending both aspirations.

It is the job of the press to get all the information to exercise its role as a watchdog of Government. It is my job to give all the information I can to the press in a way that guarantees the smooth run of governance and helps the President attain her goals for the country.

Going to the Malacanan press briefing room almost daily, to meet what has come to be known as the ‘Malacanan brat pack’ , is like walking a tight rope. I have to balance my loyalties to a free and open press while being restrained to respect the sanctity of communications with the President. Sometimes the press says I give too little, and sometimes I think the press slants the story too much. This is the reality in which we interact and operate.

During those briefings, I get thrown a lot of curved balls by the press and I have accepted this is as part of the hazards of the job. I have learned that belligerency and fighting back will always be treated negatively. One must learn to remain composed and not get riled up by sometimes irritating questions.

The second biggest challenge, not just for me but also for all the members of her official family, is keeping up with a principal, who even her detractors concede, is one of the most hard working presidents we have ever had. Matching the President's enormous capacity for hard work and determination to understand each policy issue down to the smallest detail could stretch her cabinet to the limit. Woe to any cabinet member who has not read and internalized her Medium Term Philippine Development Plan (MTPDP).

The President’s strategic programs are summarized in her Medium Term Philippine Development Plan (MTPDP) and presented in capsule form in her ten-point agenda (BEAT THE ODDS) which she first enunciated during her inauguration in June 30, 2004.

At the root of these are two key reforms: fiscal and economic reforms or Phase One Reforms and the political reforms which form part of Phase Two Reforms.

At the end of the day, when historians write about the Arroyo Presidency, these are the two reforms for which we would like her to be remembered. To our mind, they are the reforms, and I would dare say the only reforms, that would really matter if we are to move our country towards first-world status in twenty years.

To say that 2005 has been a challenging year would be an understatement. President Arroyo fought the most bruising political battle of her life. She beat off efforts to unseat her in the streets and in the halls of Congress. In the process, she proved to her detractors that she is stronger than any of them ever imagined or would care to admit.

Members of her cabinet took a good share of the slings and arrows in defending her, but together with the President, we survived the political onslaught.

We believe that the worst of the political turmoil is now behind us. Unfortunately, the controversies and the resultant political noise, almost sidetracked the vital fiscal reform program.

At the start, promoting the Reform Vat was like selling a refrigerator to an Eskimo. To begin with , it is already difficult under any circumstances to convince the people to part with their money and to pay taxes.

But push these we must, because we believe they are vital for the long-term stability and well-being of the nation and its people. These were tough but necessary measures, a bitter pill so to speak, that may cause discomfort today for some, but will reap rewards and build a better future for our children tomorrow.

Eventually, the Reform Vat, which forms the lynch pin of the Arroyo fiscal recovery program was passed by Congress, and successfully defended in the Supreme Court.

Safety nets to temper the effects of VAT were immediately put in place. With nothing to legally impede the implementation of this measure, confidence in the Philippines immediately experienced a tremendous rebound. The peso jumped from its sickbed to become almost overnight the ‘darling currency’ of Asia, if not of the world. The Phlippine stock exchange became the second most active in the region. Foreign direct investments are at an all time high. Tourist arrivals are increasing by leaps and bounds. And yes, OFW remittances keep coming in.

In sum, 2005 is not just the year that President Arroyo survived her biggest political challenge. It was also the year when she restored the fiscal health of the country and turned the economy around.

The next phase of economic reforms will be defined by bringing the benefits of Reform VAT directly to the people by creating jobs, improving incomes and providing better health, education and social services to our people

In 2006, 30 per cent of the additional revenues from the VAT reform measure will be invested in much-needed infrastructure and social services with the rest going towards deficit reduction.

Examples of the use of VAT-related revenues in 2006 Budget expenditure include the following: P2.9 billion in health insurance premiums for poor people, P14.5 billion to acquire and distribute 230,000 hectares of land to landless farmers, P17.0  billion  for the  Agriculture  and  Fisheries Modernization Act to enhance agribusiness development activities, which, in turn,  will  generate new jobs (154,256 jobs in rice and corn production, 322,000 jobs in coconut and abaca ) and improve people’s incomes.

 With economic recovery underway, the next step is political reform: hence, charter change.

In the 2004 elections, President Arroyo was the only presidential candidate who espoused charter change as part of her campaign platform. She believes that our present political system as well as many of our economic policies are no longer responsive to the fast-changing and highly globalized environment.

She took the first concrete step this year in pushing charter change when she created the Constitutional Commission (ConCom) which aimed to provide a framework for discussions and consultations. On the second week of December, the ConCom submitted its recommended revisions of the charter. These recommendations have been endorsed to Congress.

Already, discussions on charter change are beginning to heat up.

Both from a governance and communications perspective, we are looking at 2006 as another exciting year!

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