America's greatest challenge

In recent days after the euphoria of electing the first African-American president has died down, reality is starting to set in with the sobering news that more than 10 million Americans are now jobless, and the American auto industry is in deep trouble with billions of operating losses. Obviously, the state of the US economy is one of the worst seen ever in its history. Immediately after Barack Obama was declared winner, US intelligence officials led by Director of National Intelligence Mike McConnell gave the president-elect a briefing which was out-of-the-ordinary under ordinary times, outlining the grim economic situation America is facing.

Obama must have really been overwhelmed by the information, collated all over the world, regarding the extent of damage that has been caused by the current financial crisis and how it will greatly affect the security of the United States and the world for that matter. One can imagine how he must have probably thought to himself: “What have I gotten myself into?” Actually, it showed when during his first press conference, Obama was asked by CNN’s Candy Crowley that now that he is privy to a lot of intelligence (information) that he did not have access to before, was there anything he found out that has given him pause? Obama’s face turned sober as he replied: “I’m going to skip that (question).”

Former Reagan and Clinton adviser and now CNN senior political analyst David Gergen also remarked that this is probably one of the first times that the Secretary of the Treasury would have a role as important as that of the Secretary of State. As Obama himself aptly put it, it would be difficult for Americans to dig themselves out of the hole they find themselves in. No one can certainly dispute that Americans are facing “the greatest economic challenge” in their lifetime – but there’s also no mistaking the fact that any policy decisions made by the president-elect could affect not only the US but the rest of the world.

Even before he formally assumes office in January, business leaders across the world are weighing every hint or pronouncement Obama makes. There are many however who believe that the end-result could only be good since a revival of the US economy will bode well for world economy. Even his tax plans, Obama emphasized, are meant to create jobs and grow the US economy.

Everyone has been blaming outgoing US president George W. Bush for the bad economic shape the US is now in. But in fairness to Bush, many believe that Bill Clinton might have had a part in the way things have turned out, pointing to the fact that he left “an international trading system in paralysis,” and was unable or unwilling to address the high rate of inequality despite the booming economy. Critics also lamented that Clinton had an “unambiguous legacy” in the area of international trade and that he left the US “more exposed than ever before the international economy.” As it is, the US trade deficit during his time ballooned to over $400 billion.

That is not to say that Bush is blameless. To a certain extent, he is. The war in Iraq - which some estimate has cost $3 trillion to date – has greatly affected the US economy. But the fact of the matter is, the 9-11 attack succeeded in severely damaging the US economy – which was what Osama bin Laden had wanted all along as seen in the attack on the twin towers of the World Trade Center – a symbolic assault against America’s financial might. The extent of the damage has been so far reaching that Barack Obama’s plan to withdraw the US troops in Iraq in 16 months may be unrealistic at this time. We are told even two terms may not be enough to undo the damage that this has wrought on the US. 

When Obama takes over on Jan. 20 next year, he will really have his hands full. That’s why he is getting as many people as possible, crossing party lines to help him. And as one Scottish newspaper put it, he will inherit one of the most “unappetizing in-tray of problems that need to be confronted” and attended to immediately. For his sake and for all of us living on this earth, we certainly hope he succeeds.

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Boracay ‘land grab’

GMA’s Proclamation 1064 declaring Boracay Island as government property was upheld by the Supreme Court. This has generated a lot of bitter protests, and was big news in the South China Morning Post. The decision has affected so many people, but our friend Iñigo Zobel, the wealthiest in the Zobel clan, had perfect timing and was able to sell for a large amount his hilltop property that has a 360-degree view of the island to Dodie Puno, brother of DILG Secretary Ronnie Puno. It just goes to show that wealthy people still have all the luck.

While I believe in the great potential of tourism in boosting our economy and have been supportive of efforts to strengthen the industry, the most important thing is to prevent the unregulated and destructive construction happening in many tourist areas particularly in Boracay. Rampant construction of facilities is taking its toll and is aggravating the problem of pollution in the area due to the contamination of groundwater and the sewage system that can no longer sustain the uncontrolled population growth. There is absolutely no semblance of zoning in Boracay.

At the end of the day, we must carefully balance monetary gains with the need to protect critical areas from degradation because the consequences could come back to haunt us sooner than we think.

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