Looking back then moving forward

In the Bible, there is a story about Lot’s wife turning into a pillar of salt because she looked back during the destruction of Sodom and Gomorrah. But in our case, we should not worry about suffering the same fate as Lot’s wife if we look back at the past. We should look back and see the good things done by the past administration instead of being narrow minded and negative about it. As is often said, its time to roll up our sleeves and start working in the salt mines, so to speak. Certainly the business sector can look forward to a new administration tomorrow with the inauguration of Benigno “Noynoy” Aquino III as the 15th President of the Republic of the Philippines. A change in administration always brings fresh hopes and expectations, especially after nine years that have been described with mixed feelings and in disparate terms by various business sectors, from tumultuous to divisive to prosperous depending of course on one’s perspective.

But like in most new beginnings, many people – particularly those who did not see nor feel the supposed economic prosperity GMA’s administration has been bragging about – are wiling to extend their patience and wait for the fulfillment of the promises given during the campaign. Business especially is prepared to give the new administration the opportunity to set into motion the vision it presented to improve the business climate and turn the country into a much more viable business destination.

Aside from stamping out corruption, President Noy promised to level the playing field and provide a streamlined process for business transactions. A recent survey by the Political and Economic Risk Consultancy listed red tape as one of the biggest turn-offs for foreign business executives, with the Philippines having the most inefficient bureaucracy after India and Indonesia. “Free and fair” competition will flourish under an Aquino administration, he had said at the time, belying the widespread perception that in the Philippines, success in business also depends on one’s connections with the powers-that-be. The rules of the game, he stressed, will not take special relationships into consideration.

There is no question business sentiment is positive in anticipation of the inauguration, with local stocks expected to move upward this week. The economy is projected to do better than expected as remittances continue to be strong. In fact, the Bangko Sentral ng Pilipinas foresees foreign investments to reach $2.9 billion this year - much higher than last year’s $388.02 million. The Board of Investments’ target of P135.76 billion has been exceeded with P170 billion already recorded for the first half of this year - as investors continue to pump in more capital into the energy sector. The Department of Energy said several oil and gas exploration sites might be available for investors this year, with these projects expected to lessen our reliance on imported fossil fuel.

Interestingly, the head of the delegation sent by US President Barack Obama for the inauguration is US Trade Representative Ron Kirk, signaling the US government’s commitment to increase trade opportunities with the Philippines. But then again, we cannot rely too much on the US considering that it is also struggling with its own economic recovery, with the unemployment rate remaining at an extremely high level of 9.7 percent. Even the Federal Reserve admitted that financial conditions are “less supportive of economic growth.” Which is why the Philippines may have to look elsewhere for new partners, with China being a natural choice since its economic growth over the past years has been phenomenal. Putting the ZTE controversy behind us, it’s time to look forward with a new and transparent relationship with an economic powerhouse like China. The Chinese Ambassador has made it very clear - he would like to increase Chinese investments into the country.

Fresh expectations are buoying up the hopes of Filipinos, with everyone looking forward to the promised changes. But to really move forward, it is also important to look back and objectively assess whatever gains were achieved in the past to accomplish our vision for the economic future of this country.

There may be a lot of debate about GMA’s achievements, but one thing is certain: The Philippine economy never experienced a negative economic growth during her nine years in office - and as she proudly pointed out, marked by 37 quarters of “uninterrupted economic growth.” That much credit we have to give her because while the global financial crisis saw many countries going down on their knees, she kept the economy afloat. In terms of infrastructure - and this one even her most ardent critics cannot disagree with - the Arroyo administration outdid the past three administrations combined in building more roads, bridges, airports and ports. All these projects provided greater access to key destinations that have contributed to economic growth, most especially in literally “paving” the way to transporting goods faster, among the most notable of which is the 94-kilometer Subic-Clark-Tarlac Expressway project connecting Metro Manila with provinces in the North. The same goes for the nautical highway that lessened the hassle associated with traveling to Visayas and Mindanao through roll-on, roll-off (RORO) vessels.

If there’s one area where the current administration failed, it was population management. President Arroyo could not afford to openly go against anti-population management advocates purely out of survival. That is why in spite of the economic upturn, the economy did not expand fast enough to cope with the population growth which the UN world population commission described as “alarming.” GMA’s belated appointment of Dr. Esperanza Cabral as DOH Secretary was hailed by population management advocates. It may be too late, but better late than never. We are told that she will be reappointed by the new President. Now that is an absolutely good move by President Noy. After all, he firmly supports the RH bill and he can depend on a strong-willed lady like Secretary Cabral. This is definitely an excellent example of how we can look back - build from the past, then start to move forward

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