Economic or social volcano boom?

The economic history of this country is best characterized by a roller coaster with its cycles of booms and busts. It seems the roller coaster car we are riding in is currently on a downhill momentum pulled down by the increase in political divisions, poverty, the growing number of people, and not to forget pollution. Life is indeed getting harder as the surveys have indicated – people are burdened by rising unemployment, crime, corruption, as well as the rising prices of transportation, fuel, commodities, and taxes. But as the roller coaster car is about to enter the tunnel – there is still light at the end of that tunnel. Many foreigners see it but unfortunately we don’t. From the foreign perspective, there are several lights down that tunnel.

What is the use of political summits if it’s going to be all talk and political grandstanding. We don’t need that. What we need are immediate solutions to the ever growing number of problems of the country. In fairness to Joe de Venecia, we have to give him credit for the eternal optimist and master politician that he is since he’s always looking for ways and means to solve the country’s problems. If you remember – FVR during his 35 foreign trips, attracted a lot of interest in the foreign investment community with his classic "Boom-boom-boom" speech. That is the kind of boom we’d like to have, not the boom with gunpowder. The problem really lies in the economy and the challenge is in boosting it through several opportunities that are doable and within our reach.

The recent Supreme Court ruling on the legality of the 1995 Mining Act is definitely one such light at the end of the tunnel. It opened up the mining industry in the country and its vast potential as a leading producer of gold, copper, nickel and chromite. During the Philippine Mining Congress last February, investments from both foreign and local companies were expected to reach more than $3-Billion this year alone. Mineral resources cover an estimated 9-Million hectares or 30 percent of the country’s total land area. The DENR estimated the country’s mineral wealth anywhere between $800-Billion to $1-Trillion. The Philippines ranks third in the world in terms of gold endowment, fourth in copper, fifth in nickel, and sixth in chromite. It’s also rich in non-metallic materials such as marble, limestone, clay, among many others.

Just a couple of weeks ago, Australian firm Medusa Mining Limited signed a mines operating agreement with Vulcan Mining and has put an initial $1-Million for the development of the Panaon Island gold project in Southern Leyte. During Chinese President Hu Jintao’s visit to the Philippines, the two countries signed trade and investment deals worth $1.1-Billion. China was invited to invest in 23 mining projects.

The other light at the end of the tunnel is tourism. It is the one with the biggest immediate impact on the economy. Of course, tourism is dependent on the world’s perception of peace and order, which is key to tourist inflows. World tourism organizations have identified the country as one of the best tourism sites because of its breathtaking beaches and islands. A lot of tourists flock more to Thailand and Malaysia because they have been able to build the proper support infrastructure. It was crucial for these two countries to project the perception that they are safe places to visit as they implemented aggressive advertising and marketing campaigns. We can do the same. Ace Durano – our young and aggressive tourism secretary – needs all the help he can get as he markets the country with his limited resources. As foreigners see the country as paradise, we can put the economy back on track with its multiplier effect on jobs and businesses.

Even former German army officer Holger Horn fell head over heels with Bohol so he has taken it upon himself to save the coral reefs from dynamite fishing. Our friend – hotelier Arthur Lopez who is a Ace Durano’s consultant – is helping organize investors for targeted areas. More important, the Chinese and the Japanese are willing to relocate and retire here. If only it were safer here, people from China, Japan, Korea, and Taiwan would want to come here more often. All of these are going to translate into immediate jobs and investments.

Another light is the bigger demand for our OFWs nowadays. Although, we can’t depend on them forever, there is a potential for bigger growth in this sector with Iraq’s need for a minimum of 100,000 Filipino workers. The United States has insistently been asking us to send our people there. They really need our workers in Iraq because of the momentum in reconstruction and rehabilitation efforts. In Iraq, they earn as much as ten times than what they make ordinarily or five times more than what they normally make in other Middle Eastern countries. The US government has allocated a total of $18.44-Billion for some 2,900 reconstruction projects in Iraq. The strife-torn country has to build infrastructure for the delivery of basic services like water, electricity, roads and sewage disposal. The water and sewage projects alone would require drivers and operators for heavy construction equipment like loaders and dump trucks.

This is the right time for the government to consider the redeployment of our workers to Iraq once again because the situation there has considerably improved since the elections. It is time to put the Angelo de la Cruz caper behind us. But of course, the element of risk still remains. But with high risk come the attendant high rewards. No pain - no gain. Indian and Sri Lankan workers have beaten us at the starting gun even if Filipino workers are the ones preferred by the Iraqis. In spite of the current ban, the government should realize that illegal placement agencies are making fat profits anyway by smuggling Filipinos into Iraq through Kuwait and other neighboring states. That’s a riskier situation because greed and risk make a deadly combination in a volatile region. It is high time we sent a brave ambassador there. Maybe GMA can send someone she doesn’t particularly like to Baghdad. Or maybe we can recommend one to her. I’ll give you one guess who. No, but kidding aside, we really need to seize the moment before the moment seizes us.

Instead of holding political summits, we should just have an economic summit. The country’s leaders should prioritize economic amendments to the Constitution, especially the limiting of foreign ownership of land and other key industries. This is the perennial complaint of foreign investors.

At the end of the day, it all boils down to the economy. As they say, "It’s the economy, stupid." More business means more jobs, more tax revenues, and less political instability. When that happens, the economic roller coaster will gain the momentum necessary for it to go up once again. The consequence of inaction is much greater than many people can even begin to imagine. While there is still time, the choice is still ours – Do we want an economic boom or a social volcano boom?

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