Economic managers helped defuse coup

It’s the economy, stupid.

At the height of President Arroyo’s latest political crisis last week, it was her economic managers — not security officials — who presented a human face in Malacañang’s efforts to defuse the tension.

In fact, during Mrs. Arroyo’s first appearance before the media — albeit not at a press conference — since she declared a state of national emergency Friday last week, she talked about the rollback of fuel pump prices with two of her economic managers, Trade Secretary Peter Favila and Energy Secretary Raphael Lotilla.

The economic managers, taking six-hour shifts, also manned the Situation Room at the ground floor of the Presidential Guest House 24 hours a day since Thursday night so they would be available to answer questions for the President, other Palace officials and the media, as well as to help monitor and assess the stream of information.

"The basic issue of the whole thing, at least for the administration, is the economy. The body politic is actually the biggest stakeholder in the country’s economy," Albay Rep. Joey Salceda, one of Mrs. Arroyo’s close advisers said. "I think it is the economy that saved her."

Salceda, a noted economist and chairman of the House committee on appropriations, said the administration is not losing sight of the country’s economic future even when fighting off coup attempts.

"I think the administration is determined to fight off the downward force of political instability on the economy. It wants to show that we’re still connecting," he said.

In signing Proclamation 1017, the President said the series of actions designed to topple the government "are hurting the Philippine State — by obstructing governance, including hindering the growth of the economy and sabotaging the people’s confidence in government and their faith in the future of this country."

"These actions are adversely affecting the economy," she said.

With the exception of Justice Secretary Raul Gonzalez, none of the so-called "hawks" in the Cabinet were present at the press conference at the Palace where Press Secretary Ignacio Bunye announced that authorities have thwarted a coup attempt. Whether this was intentional or not, Bunye did not say.

The succeeding media briefings were held by Michael Defensor, Budget Secretary Rolando Andaya Jr., Socio-economic Planning Secretary Romulo Neri, Finance Secretary Margarito Teves, Favila and Lotilla.

Foreign analysts said the administration may have learned a lesson from the bloody December 1989 coup attempt, where, from a Gross Domestic Product (GDP) of over six percent, the country’s growth plunged to three percent the following quarter.

"It brings to mind what (former chairman of the United States Federal Reserve) Alan Greenspan said during the first Gulf War in 1991 — that he knew that the US already won, not by watching CNN but by looking at the oil prices," the analyst said.

Andaya and Neri said economic managers received daily input from Mrs. Arroyo, who was giving instructions, asking questions and feeding information — showing her true concern at the height of the latest crisis.

"Paramount in her mind was to insulate the economy from all these political upheavals," Andaya said.

Favila said the country’s economic managers were also busy allaying fears of various business sectors and industries on the proclamation — especially when Gonzalez announced that there could be basis for a possible takeover of vital utilities.