Staying the course

During the critical days of GMA’s administration, especially after the resignation of the Hyatt 10 in 2005 and the subsequent impeachment attempts and calls for her resignation, the consistent counsel given to GMA from those whom she sought advice from was simply to "stay the course." GMA did stay the course, doing what she had to do and carrying on with tight fiscal reforms that were even branded as unpopular. To her credit, she focused on these reforms, which are now paying off. In a speech at the Philippine Chamber of Commerce and Industry, GMA said she was able to steer the economy to where it should be — a fact confirmed by her economic managers and even the international business community. The country has P64 billion projected savings for 2007, which will be used in further pump priming the economy by building more infrastructure and providing more social services like education and healthcare for the people.

Being an economist, GMA was confident that she knew what she was doing, because the reform measures are now yielding positive results. Businessmen are bullish that 2007 will be a banner year, and even international investment analysts project a more positive outlook, predicting that this would be a year of expansion as the country finally breaks out from an economic slump. The California Public Employees Retirement System, the biggest pension fund in the United States, gave the Philippines high marks as a viable investment destination, surpassing other countries like Thailand, Indonesia and Malaysia. The upgrade in the country’s rating certainly shows that investors are beginning to recognize the improvements in the government’s economic reform agenda.

Since the last 10 years, the economy has never performed better than today. The stock market is up, registering high levels last seen in 1997. Local investments in tourism are picking up, the BPO industry is taking a bigger chunk of the market, and a lot of plans are in the pipeline to make the country an even more attractive business destination. The only issue we need to address, and which partly concerns foreign investors, is the assurance that the "rules of engagement" will be improved. We have to get over the Fraport-Piatco fiasco, which is still very vivid in the minds of many international investors. There were hopes to get the airport open early this year, but unfortunately, during my short conversation with airport manager Alfonso Cusi, he said they will most likely have a partial opening by the end of March, not a full opening in time for GMA’s April 5 birthday as promised. We need to get this done so we can move forward and forget about that Piatco fiasco.

Roosevelt’s line "the only thing we have to fear is fear itself" is happening to some people today with the coming elections. They’re worried that once again, we’ll shoot ourselves in the foot and the economy will go "kaput." When I told GMA about this apprehension during the Manila Overseas Press Club cocktails where she inducted the new MOPC officers, she replied, "That’s why people should vote straight for all the administration candidates."

GMA was obviously trying to drive home the point made by Senator Joker Arroyo that the administration ticket is focused on the continuation of political stability — a factor that will determine the economic path this country will take in the next few years. The bottom line is, people will no longer welcome any kind of trouble that may just push back whatever economic gains we are experiencing today.

Tourism secretary Ace Durano’s take on the elections is a little more positive. During a Manila Rotary luncheon meeting, he said the elections may prove to be the proverbial silver lining if it is perceived to be credible, because it would prove that the democratic system in this country is working. He feels the economy may even get better after the elections, and he expects tourism to grow bigger with tourism-related investments creating more jobs. Analysts are also confident that as long as government continues to focus on fiscal reforms, the stock market would continue its bullish trend. The reality for many is that political wrangling must take a backseat to economic opportunities.

It’s a given that cynics and GMA critics will continue to carp that the gains have not trickled down to the poor. Fact is, the economy has been mostly down in the last 10 years, and one could not surely expect, much less demand, an overnight, quick-fix solution. What is important today is for business to continue thriving so more jobs will be created, resulting in more tax revenues for the government. When the fiscal deficit goes down, there will be more money for infrastructure and other developments that will redound to the people in the form of more employment opportunities. This is already beginning to happen — but it takes time for everybody to feel the economic upsurge. We must remember that patience is a virtue, and as long as GMA and the country "stays the course" — we will definitely get there.

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