Political noise dampens RP growth, says Nograles

Political noise dampened the country’s economic growth last year, Speaker Prospero Nograles said yesterday.

“We could have performed better if not for the relentless, economically devastating political noise,” he said.

Nograles expressed elation over the report of the Asian Development Bank that the Philippines is no longer Asia’s economic laggard and the World Bank’s statement that fiscal reforms have prepared the country for possible convulsions resulting from the economic slowdown in the United States.

“The ADB report is very refreshing news, but we really have to listen to the warning of ADB deputy director general Thomas Crouch that many Filipinos may be back to poverty if we cannot get our act together,” he said.   

Despite projections of slower growth this year, he said he was optimistic that the “Filipino’s proven resiliency, the country’s sound economic fundamentals and the vigorous reforms in governance will fuel the nation’s economic resurgence.”       

He recalled that with the people’s resiliency and unified action on the part of the executive and legislative branches of government, the Philippines was the least affected in Asia of the 1997 financial crisis that saw weaker economies collapse.

Fidel Ramos was the country’s president when the financial crisis began in Thailand and quickly spread across Asia. Pangasinan Rep. Jose de Venecia Jr. was the Speaker of the House of Representatives and Edgardo Angara was Senate president.

Ramos had to get the cooperation of De Venecia, who was his ally, and Angara for Congress to approve a package of reforms that protected the economy from the devastating effects of the crisis.

Angara was then with the opposition. He and his Laban ng Demokratikong Pilipino joined the administration before the May 2007 elections, in which he won a new Senate term as part of President Arroyo’s Team Unity senatorial ticket.

Nograles said he hoped that the two chambers of Congress would act together in propping up the economy in the wake of rising rice and fuel prices and the worldwide economic slowdown.

“I am hoping that poisonous politics will not again overwhelm the government’s all-out programs to sustain economic growth and spread the benefits to the rural and urban poor,” he said.

He said the World Bank statement “reflects a brighter side for the country because it points out that growth was high during the past year under a controlled inflation level and with interest rates going down.”

However, he noted the prognosis made by Bangko Sentral Gov. Amando Tetangco that the “high inflation curve” could be longer this year because of high rice and fuel prices.