Improvement

As of this writing, the US government remains in a partial shutdown mode, the first time in over 17 years. The last shutdown occurred in 1996 for 26 days under President Bill Clinton. The impasse continues between President Obama and House Republicans on matters relating to the budget (particularly in respect of funding the “Obamacare” health program) and the debt ceiling. It should come as no surprise that when the Republicans passed their first version of a spending bill earlier this month they inserted an amendment which would defund the health care plan entirely. In response, the Democratic-controlled Senate rejected the bill and filed their own version with Obamacare funding reinserted. What ensued was a game of legislative ping-pong. Both sides dug in their heels and the Republicans approved another bill which would delay Obamacare for one year while permanently abolishing a tax on medical devices. This was likewise rejected. Now much is at stake amidst this frustrating stalemate, President Obama accuses Republicans of “blackmailing America by demanding spending cuts and changes to healthcare reforms in exchange for voting to re-open the government and raising the debt ceiling before an October 17 deadline.” In a one-hour press conference he minced no words: “the greatest nation on earth shouldn’t need to get permission from a few irresponsible congressmen every couple of months to pay its bills.”

With respect to the budget, the problem could have been obviated if there was an automatic re-enactment of the previous year’s budget in case a new appropriations law is not passed similar to Article VI, section 25(7) of our 1987 Constitution. This way, a government’s day to day operations will not be held hostage by the bickerings of the executive and legislative branches.  On the other hand, such a provision weakens Congress’ “power of the purse” and tilts the balance of power in favor of the President. Instead of a budget “hold-over,” however, US Congress has been funding the government through multiple short-term, stop-gap “continuing resolutions.”

In respect of the debt ceiling, the “D-day” (i.e., doomsday in case the matter is not resolved) is October 17 when the US Treasury needs to raise additional funds from the international capital markets to refinance maturing obligations. The US Constitution similarly prohibits the payment of any public monies out of the Treasury unless pursuant to a budget appropriation. So if the Treasury is not authorized to make additional borrowings, then it will lead to a default which will certainly send shock waves to the world financial system, an event which may erase the global economic gains of the past several years. Incredibly, some Republicans have suggested that allowing the US to default wouldn’t be as damaging as global economists say. President Obama, however, reminded them that, “this is our word. This is our good name. This is real.”

The Philippines has had its fair share of debt-related problems especially after the “borrowing sprees” from 1965 to 1986.  To protect against the recurrence of such practices, Article VII of the new Constitution now provides that the President may only contract loans with the prior concurrence of the Monetary Board.  The latter is then obligated to submit a quarterly report to Congress which can pass legislation to curb any excesses and protect the public interest.

 In both instances, one can argue that the Philippines has improved on practices it copied from its former colonial master.     

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10 years after: Speaking of improvements, Iloilo has definitely advanced. The last time I visited was in late 2003. I accompanied PPCRV’s Ambassador Tita de Villa and two other trustees in a series of meetings including one with Archbishop of Jaro Angel Lagdameo.  My recollection of those person-to-person meetings was positive, but my general impressions about the province were not.  Aside from the sumptuous seafood lunch at Tatoys which I thoroughly enjoyed, I did not leave the place with good memories. 

I remember the airport being poorly ventilated and cramped. The city traffic was not only disorderly but seemingly always at a standstill. The Iloilo river looked dirty and smelly. Business seemed to be slow and static. 

I remember being told that Iloilo used to be the queen city of the south and this was quite evident by the majestic churches and grand old houses. But I remember these structures as being unkempt and not really being taken care of.  In short, the city’s general atmosphere was bleak and dreary.

Ten years later, much has changed. You are welcomed to a new and bright airport. I expected to go down the tarmac upon arrival but was pleasantly surprised to go through a tube. The road from the airport to the city was wide. There were also various ongoing road and infrastructure projects. Billboards of the Philippines’ top developers were announcing their projects in the city.

I believe that the key to any city’s redevelopment is the state of its river. The Iloilo River has undergone a significant transformation. Not only is it clean but it has evolved into a useful tool for culture, recreation and commerce.

The river walk promenade is delightful for runners, strollers and lovers. The port is being expanded through an ambitious reclamation project to accommodate more ships and cargo. And the ferries to Bacolod and other nearby islands are comfortable and convenient.

The old airport was teeming with new buildings being constructed. There is also a world class convention center being built. Even if there are more vehicles, traffic is much improved. The churches and houses are in better shape. Large malls and fast food chains abound. There seems to be a “buzz” in Iloilo — a new found optimism and dynamism in the air. I understand that many of the projects are funded by both the national and local governments. Perhaps this can be a model of PDAF being put to good use.

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“Truth never damages a cause that is just.” – Mahatma Gandhi

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