Let's boost US ties but diversify our trade and investments

SANTORINI, Greece – The stunning election victory of Democratic presidential bet Barack Obama signals not only change for the world’s largest economy, the US, and real high hopes for reforms and recovery, it might also signal less active involvement in the Philippines as a military partner. Since America was our biggest source of investments for over a century, that is sad news, but not the end of the world for our Philippine economy.

I suggest we not only diversify our trade and investments with neighbor China, but also other Asian countries, the cash-rich Middle East and even non-traditional partners like oil-rich Russia.

A drop of about 30 percent in US investments and a rethinking of US military presence in the Philippines – that was the news in the Business section of The Philippine STAR after Obama’s win. Interestingly, on the same day that the US was awakening to a new Obama presidency and our headline news was dominated by this phenomenon, not so much attention was given to another piece of significant news right next door in Taiwan – the trade agreement being finalized and signed between the highest mainland China envoy to ever visit political archenemy Taiwan.

We should learn from our nearest geographical neighbor Taiwan in the realm of realpolitik, diversify our trade and investments with even past enemies, non-traditional friends like Russia, the Middle East, western European powers like Germany and UK. Why only look towards the US? Here in my visit to various countries in Europe, they love Obama so much – almost 80 percent of Greeks supported him over McCain; in Germany I think 90 percent of the people there like him – but all over Europe they are diversifying trade and investments.

It is amazing how much new foreign investment from oil-rich Russia is flowing into Eastern Europe, even to England. To President Gloria M. Arroyo, I suggest that instead of angling for a meeting with the new White House occupant, like the way she eagerly sought Bush meetings in recent years, that GMA continue her China visits and that she assiduously court the favor of Putin in new global power Russia.

Instead of always just going to Saudi Arabia, I recommend that GMA also visit Qatar, the United Arab Emirates, even anti-Bush Iran and the controversial Hugo Chavez of extremely oil-rich Venezuela. Business is business. We can and should separate our close historic, strategic and diplomatic ties with America with the imperatives of Philippine national economic interest.

John Forbes, senior adviser of the American Chamber of Commerce of the Philippines Inc., raised the warning about US investments in the Philippines and Asia yesterday at the “Election Watch” organized by the US Embassy at the SM Mall of Asia. “You find a global recession. The International Finance Institute projects a 30-percent reduction in foreign investments in 2009. That, I think, will happen here,” Forbes told reporters. “I think you’ll have a reduction in all investments in Asia and the Philippines will be included.”

He was apparently referring to the Institute of International Finance Inc., a global association of financial institutions created in 1983 in response to the international debt crisis.

Congratulations to new President-elect Obama. We must win his friendship and make the Philippines still their most trusted ally in ASEAN. America is still a force for good and for democracy on earth, but we need to decisively diversify our trade and investments with the rest of the world.

America, like Europe has been since the decline of their colonial-power status, will still be a world power, but as I have written so many times before, the end of the fabled American Century is here now. The world as we know it is changing forever, and we need to do so also for the sake of our long-term economic strength, well-being and independence.

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