Washington Sycip

I have always known and admired the achievements of Washington Sycip in the world of business. At a conference in Paris, I introduced him as the “guru of Filipino business”. Today, some two decades later, I can claim to know and admire Wash even more as the socially compassionate human being.

During his 90th birthday celebration at the Makati Shangri-La Hotel, he said:

“There are three causes that I am passionate about. To reduce the high percentage of poverty in our country, I am convinced that we should concentrate our attention in three areas”: 1. Every Filipino child should have a complete basic education; 2. Cost of credit for the poor; 3. Health of the rural poor.

He then proceeded to cite the organizations which supported the three causes. In the hope that others will support these organizations, allow me to summarize why Wash has selected them:

1. Synergeia Foundation led by Dr. Nene Guevara. The foundation works closely with local and national government and communities to improve the learning and teaching processes in public elementary schools. Its programs aim to improve the proficiency in reading and math of students in Grade 1-6. They have a track record of reducing the dropout rate from 80 percent to 30 percent.

2. Philippine Business for Education led by Ramon del Rosario, Jr. which aims to improve the state of basic education by providing quality training to teachers and filling in the resource gaps.

3. Center for Agriculture and Rural Development (CARD) led by Dr. Aris Alip. It is the largest and most prestigious microfinance institution in the country. CARD has more than 700,000 clients. It has a portfolio of over P3 billion with a repayment rate by its poor borrowers of 98.4 percent.

4. Zuellig Family Foundation established by the brothers, Gilbert and Stephen Zuellig. The foundation measures itself by comparing their achievements in the selected municipalities annually to the UN Millenium Development Goals. Every year, ten municipalities are adopted and provided guidance and support in terms of health leadership and better health systems for the mayors, health officers and barangay leaders as well as support for birthing clinics. They pride themselves in having reduced maternal and infant mortality to zero in some areas of the Muslim South.

He concluded his speech: “I personally hope to continue using my time and resources for these worthy causes for the remaining years of my life because as the great philosopher (Lao Tzu) also said, ‘If I keep a green bough in my heart, the singing bird will come’.” In other words, for as long as you keep yourself useful, life will be worthwhile“.

There is a legal Latin term: “Res Ipsa Loquitur”. Literally, it translates to – the thing speaks for itself. In the case of Washington SyCip, I would like to say that his achievements speak for themselves. Nothing more need be said about him. Happy Birthday Wash!

Aquino administration’s achievements and challenges

The Aquino Administration and the BSP deserves credit for adopting the right fiscal and monetary policies that have convinced rating agencies to raise the Philippine debt standing to near investment grade. Moody recently raised our sovereign debt ratings by two notches citing improved fiscal condition and lower inflation and interest levels. In raising Philippine debt to BB+ or just one notch below investment grade, Fitch said the country’s stable economic outlook and improved fiscal position were the main reasons behind its revised rating.

This improved outlook should help buoy foreign investors’ confidence in the country. However, issues not related to economic outlook but to how we treat foreign investors could dampen this enthusiasm. European investors’ confidence has certainly not been helped by the experience of the European companies involved in such major projects as Fraport NAIA Terminal 3, the Laguna Lake Rehabilitation, and the Ro-Ro expansion.

Mining prospects have also been turned off by the ban on open pit mining in Tampakan, South Cotabato. I am not debating the merits of each project but certainly their review or suspension will not help investor’s confidence in our observance of the sanctity of contracts. More than anything else, investors look at stable legal and regulatory framework, on which basis they made their good faith commitment to invest. The issue regarding the Tampakan mining will certainly raise questions about how dependable the approval given by the national government to invest and start operations when this is questioned by the local government.

The recent Supreme Court decision regarding PLDT will also be a source of concern for the foreign investment community.

Let us not get carried away by these ratings and neglect fundamental issues like providing a stable policy and regulatory regime for foreign investments. Doing so risk seeing these ratings reverse faster than the time it took to painstakingly raise them to this level.

Rizalino S. Navarro

I just learned of the untimely death of Roy, my close friend and fellow Cabinet member during the Ramos administration. I join his many friends and associates in expressing my deepest sympathy and condolences to Sally and the family. May he rest in peace.