At the opening of the 32nd Philippine Business Conference yesterday at the Manila Hotel, PCCI president Donald Dee expressed optimism and confidence that the country remains on track for an economic takeoff in spite of a budget deficit posted for September this year.
According to Dee, the business sector does not look at the deficit figure on a monthly basis.
More precisely, Dee clarified, the business sector looks at the overall fiscal stability of the government. Likewise, Dee dismissed the possible negative effect of intermittent political turmoils such as the current suspension of Makati Mayor Jejomar Binay. "Political issues should not affect business," Dee stressed.
However, Dee also emphasized the need for the government to ensure that due process and transparency be observed. The business sector, Dee said, would want to see a "clean, clear and quick" resolution of political disputes.
He added that government should ensure that it is not arbitrary in its practices and that it does not favor one over another. "They cannot be arbitrary. There must be a process followed," Dee insisted, referring to allegations that the suspension of Binay is motivated by politics.
He agreed with the observation of World Bank country manager Joachim Von Amsberg that the Philippines could be on the verge of a takeoff if it is able to surmount certain constraints.
Dee acknowledged "it is very easy to fall back into complacency."
In fact, the forthcoming elections, Dee warned, could be a pitfall especially if the government loosens its grip on expenditures. According to Dee, "it is very tempting to play politics at the expense of the economy."
He stressed that "to overspend may create inflation." In a related observation, US Ambassador Kristie Kenney, who was the plenary speaker at yesterday’s opening, noted the Philippines’ advantages in competing in the global economy.