I have made a minor change in my column title, because wealth connotes something very materialistic when it is something more than just material things. It should encompass the wealth of Life. As I grow older and wiser in years, I have come to realize this more and more.
So henceforth, this column, aside from discussing about management of material wealth, will also cover other lifestyle assets, such as the social, intellectual , spiritual and other wealth which are important to everyone and should be managed.
Looking back the past twelve months, 2007 was a fairly good year for the country in many aspects. The economy as measured by the growth of the Gross Domestic Product (GDP) and the Gross National Product (GNP), will have grown by 6.8% to 7.2%, which is more than respectable by a developing country’s standard. This should bring down the unemployment rate to the upper 6% range and lower the number of families in the poverty level threshold. This was achieved with the inflation rate or price level increase, kept in the 3% to 4% range, even with the world oil prices hitting the $95 to $100 a barrel. That the SM Malls are reporting a 10% increase in sales over the previous year attest to this growth of the economy, with most sectors enjoying increased sales, even with the lower exchange rate for the OFW’s dollars.
The government will report a balanced budget for 2007. Even if this was achieved via the proceeds from privatization or sales of government assets, this is still an achievement. Most of these assets had been a drag on government finances, and will generate more recurring revenues once they are owned by the private sector. On the whole, the government finances and the economy were managed better this year. The only fly in the ointment, and a big fly at that, is the level of graft and corruption in the government. We have not made much progress in this, so the political situation in 2007 was dicey. The corruption scandals, such as the ZTE, lamp posts, political handouts, and a slew of national and local government corrupt practices are fodder for coup de tat and other destabilization moves. In prior and more opportune times, there were enough scandals in 2007 to topple the government. President GMA is lucky that the tipping point had not been reached in 2007, due to the unattractiveness of the alternatives and the favorable economic environment.
Even with the political noise and disruptions, there was social stability in the country in 2007. There were no major natural calamities that happened compared to previous years (it happened in other countries this time), the OFW dollars and foreign investments were still increasing, the little improvements in the lives of people gave hope, and the innate spirituality of Filipinos led to social stability. In many surveys, the Filipinos lead as the happiest people in Asia and the world, inspite of the country’s lower per capita income and poverty level. We are grateful for the relative peace in the country.
The year 2008 promises to be another year full of hope for an even better economic achievement and social stability, if the government plays its cards correctly. There is an 80% probability of achieving the same economic growth rate or even better, given the good starting position we ended 2007, the benign world economic environment expected for 2008, and the soft landing of the Chinese economy. More so, if the level of graft and corruption in government is reduced by 50%, as this P250 billion (20% of the P1.25 trillion National Budget) will add at least 1% to the GDP growth.
Watching and talking to the throngs of people who attended the dawn masses last Christmas, and in the Christmas parties, gave me the sense of the enormous amount of value and gratitude that we Filipinos have for good health and family peace. While we believe material wealth as important, it is not our end all. We do count our blessings, and it is not only the material things.
May your best times of the last year be the worst times of the coming New Year.