PANANAW MULA SA PALASYO

The Wall Street Journal Asia, in its issue of August 31, bannered the economic turnaround of the Philippines.

Writer James Hookway, who has written much about the Philippines, chronicled how the Philippines, once known as “the perpetual sick man of Asia” has been making an unexpected recovery.

“This year, the nation's economy is expected to post its fastest growth rate since the early 1990s, despite the economic shadow cast by the global credit squeeze sparked by problems in the U.S. mortgage market. The Philippine economy grew at a 7.5% annual rate in the second quarter. The stock market has soared over the past two years, although it has faltered recently. Foreign investors are coming back, attracted by the Philippines' young population -- the average age of its 89 million people is 22 -- and the widespread use of English, a legacy of its past as an American colony. The call-center business is thriving,” Hookway wrote.

Hookway gives much of the credit to President Arroyo whose politically risky tax reforms “showed investors the nation was serious about putting its house in order after years of half-hearted attempts to cut its budget deficit.”

Hookway quoted the President in a recent interview as saying: "I knew the risks, but I decided that if we had to bite the bullet, then that's what we would do.”

The reforms have yielded huge dividends.  For the first time in a generation, we now have the much needed revenues with which the President intends to improve the lives of the people. Her mantra nowadays is “Invest. Invest. Invest.”

Invest where?

The President intends to invest in human capital and physical infrastructure which will make our country even more competitive and more progressive. You will notice this in the proposed 2007 budget. The biggest proposed increases in expenditures are in education, health, social services and in roads, ports, airports and agricultural infrastructure. 

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In her speech at the dinner in honor of the delegates to the 39th ASEAN Economic Ministers Meeting, the President highlighted the central role that international relations plays in the respective economic reform agenda of the ASEAN-member countries.

Recognizing the importance of advancing the region’s shared interests, the ASEAN nations have taken the first step to solidifying the ASEAN community and integrating it into one seamless economy with the drafting of the ASEAN charter.

The President herself admits that it is still too early to make comparisons with the European Union, but expects the ASEAN charter to be a potent tool for the free movement of goods, ideas and skilled talent, with common product standards, marginal transaction costs, a stable and harmonized policy environment, and strengthened regional linkages and connectivity.  For ASEAN to become a truly expanding union, the President believes we must also continue to nurture our relationships with our key partners -- China, Japan and South Korea.  

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The President spent National Heroes Day at Xavier University in Cagayan de Oro, where she honored our soldiers, policemen and allies for the capture and elimination of key figures of the Abu Sayyaf and Jemaah Islamiya.   She chose to commemorate the occasion in Mindanao specifically to salute all the heroes for peace of Mindanao, and to underscore the fact that peace will bring about a new era of economic development that is starting to bear fruit in Mindanao.

Some of the gains from our economic measures, including the passage of the VAT law, are being used to modernize the AFP and the police and improve their fighting capabilities.  At that gathering, the President instructed Defense Secretary Gilbert Teodoro to draft an executive order authorizing the increase in the combat pay of our soldiers and marines. 

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Malaysians are still talking about Vina Morales who recently won, together with Filipino rock band Kiwan, during the recent regional music competition held in Kuala Lumpur. According to our Ambassador to Malaysia, Victoriano Lecaros,  the Malaysians were naturally rooting for their local entry but when Vina started to sing ‘Pangako sa Yo’, the Malaysians joined in the singing. That’s when Lecaros said he knew Vina would make it.

I learned that  Filipino  TV soap operas,  including  the one  where Vina  sang the theme song ‘Pangako sa Yo’,   enjoy   high Malaysian viewership.  Another Filipino performer who has a huge following in Malaysia is Jericho Rosales, thanks again to Philippine soap operas which are shown on local TV with Malaysian subtitles, as well as CDs which are flooding the market.  “Jericho could run for a public office in Malaysia and win,” according to Lecaros.

By the way, Lecaros was conferred by President Arroyo last Friday the Order of Lakandula, rank of Grand Officer, for, among others, his successful public information handling of the Asean Summit in Cebu last January and for helping facilitate, while then Ambassador to Vietnam, the participation of Vietnam in the three-party (together with the Philippines and China) joint seismic exploration in the South China Seas.  Congratulations, Vic. Keep it up!

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