GMA may just have the last laugh

Almost immediately after the SONA, a lot of cynics and naysayers were snickering at GMA and her bold plans to pump-prime the economy and make this country "step into the future," as she put it. That SONA, ambitious as it may have sounded to GMA critics and faultfinders, reverberated in the international community, more importantly in the financial sector. An old friend of mine from Washington, DC called me up the other day to ask about the exciting things that seem to be happening in the Philippines. Apparently he got wind of news that the IMF-World Bank is looking at the Philippines in a more positive light, pledging $200 million for development projects. Early this week, the government received $7.4 billion worth of pledges for its infrastructure projects, the bulk of it coming from China and the rest from the World Bank, Asian Development Bank and Japan Bank for International Cooperation.

The comments of US Assistant Secretary of State for East Asia and Pacific Affairs Christopher Hill after he met with GMA confirms the feeling that Washington is happy with the reforms taking place in the country. American companies in the Philippines are happy with the country’s improved economic outlook, Hill revealed, stressing that the positive economic trends happening in the Philippines should be continued. US Embassy Manila’s counselor for economic affairs Robert Ludan said that while Washington does not usually comment on the credit standing of a country, the US sees continued improvements this year.

Promises to cut down red tape and make the process faster for business, plus the expansion of road networks through continuous highways connecting Metro Manila to nearby provinces were certainly welcome news to businessmen, who have long complained that inadequate infrastructure is hampering efforts to pour in more investments into the country.

Hill was particularly pleased at the reduction of the country’s budget deficit, pointing out that this allows government to focus on problems, especially infrastructure. Even the Economist Intelligence Unit (EIU) expressed optimism with the country’s debt capability remaining stable in the next one and a half years because of the reduction in the fiscal deficit. Government has been posting budget surpluses for the past few months especially in June with its record-breaking surplus of P12.7 billion partly because of enhanced revenue collections. The peso’s performance has been equally strong, going on an 11-week high of P51.48 to the dollar. Investors stayed upbeat after GMA’s SONA and her revelation of an ambitious infrastructure program – a clear indication that they have reason to believe things will get better.

Treasury bill rates also went down to 5.4 percent, with bid applications reaching P5.75 billion as against the debt offering of P1.2 billion. According to National Treasurer Omar Cruz, the government’s foreign borrowing has already been reduced from $950 million to $750 million or a $200-million reduction. Ramon Arnaiz, chairman of ATR-Kim Eng Securities, said leading global investment bank UBS is predicting a 40 percent increase in the stock market index before the end of the year.

Of course, the United States is closely looking at the country’s economic reform policies and other concerns like corruption. The US has committed $21 million from the Millennium Challenge account to fight corruption, but the amount is expected to increase by as much as 10 times once the US is convinced that government is doing its job in fighting corruption. As told to us by Ambassador Kristie Kenney when Max Soliven and I had lunch with her at the Ambassador’s residence the other week, the US plans to put in more money as long as movement in the country’s economic reforms continues and corruption is curbed drastically.

And it looks like the government is getting creative and high-tech in the fight against corruption, with the recent announcement by the British Council and the Office of the Ombudsman that they will be launching an interactive website where people can post inquiries and perhaps even give information about corrupt government officials. The P6 million funding for this project came from the European Union – perhaps an indication that the international community is supportive of GMA’s reform efforts.

GMA seems to have all the luck on her side because it certainly looks like things are looking up for her, and ultimately the country. But she believes that God is on her side, not luck – in spite of some bishops asking to search for "the truth." While there are still those holdovers from insisting on finding "the truth," refusing to believe that "the truth" could possibly be different from what they wish it to be – people are simply beginning to get weary of all the whining and complaining. Just take for instance the Lebanon OFW issue. Some of our legislators are again demanding for an investigation on the OWWA funds, but relatives of OFWs still trapped in the war-torn country are saying they should get done with the evacuation efforts first before legislators start the whole rigmarole of hearings and bickering and grandstanding all over again.

The truth of the matter is – people are just so sick and tired of the cynical, negativist and vicious society that we have today. The truth of the matter is – people just want to get jobs and have the chance to provide for their families. The truth of the matter is – people just want this country to move forward and catch up with its neighbors. And the real truth of the matter is – the majority of people simply want food on their table and couldn’t care less who is up there.

If GMA pulls off even 50 percent of her State of the Nation vision near the end of her term, then she may just succeed in becoming the "good president" that she says she has always wanted to be. If that happens, after all is said and done – she may just have the last laugh.

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