'Cory's presidency turned economy around'

MANILA, Philippines - The plain housewife who led a repressed nation back into democracy in 1986 was likewise a driving force in turning the economy around, the country’s top business groups said yesterday. 

They said upon assuming power, President Corazon Aquino not only had to deal with growing political instability but also a rapidly deteriorating economy. But her immense popularity and sincere resolve to overcome the obstacles rubbed off on investors’ sentiment – investments came back in droves, businesses grew, and the economy prospered soon after.

The Makati Business Club (MBC), the Philippine Chamber of Commerce and Industry (PCCI) and the Federation of Philippine Industries (FPI) said business confidence rose to positive levels when Mrs. Aquino became president in 1986.

“The businessmen were euphoric. The economy grew by unprecedented numbers,” MBC executive director Albert Lim told The STAR in a telephone interview.

“The economy was declining during the Marcos time. There was no confidence in the country. The interest rates had to be raised by as much as 40 percent,” he pointed out.

He said in 1984, the year after the death of Aquino’s husband Sen. Benigno Aquino, the Philippine economy had contracted by 7.4 percent. The economy likewise declined in 1985 by 7.3 percent. 

However, when Mrs. Aquino took over, Lim said the economy turned around as gross domestic product (GDP) expanded by 3.4 percent. Growth further accelerated to 4.3 percent in 1987 and peaked at 6.4 percent in 1988.

 “From a low, our economy recovered and both foreign and local businessmen came back and started investing again in the country,” Lim noted. 

The growth years, however, were cut short when military rebels led by then Col. Gregorio Honasan, now a senator, staged several coup attempts. “It was good except for the coup,” Lim said. 

Nevertheless, Lim said the lasting effect of the Aquino presidency is the “legitimizing” of businesses. “During the Marcos

time his cronies were taking over. When Mrs. Aquino came, the cronies left,” Lim said. 

PCCI president Edgardo Lacson said Mrs. Aquino laid the groundwork for a better economy. He explained that during the time of Marcos, the banking system was not working. 

“There was a downward spiral of commerce. Businessmen had to bring cash because the credit notes from the Philippines had little or no value then,” Lacson said. 

“When she took over, everyone was euphoric. Investments came and all the basic industries recovered,” Lacson said. “Cronyism was tempered and businesses went back to its rightful owners.”

 Lacson said when Mrs. Aquino started to solidify the democratic institutions, business confidence was restored and businessmen, especially the local ones, started investing again. 

“She was a welcome change not only for politics but also for the business community,” Lacson said. 

FPI president Jesus L. Arranza added that aside from restoring business confidence, Mrs. Aquino’s assumption into power made almost all countries keen on helping the Philipines. 

“America was assisting us and almost all the other countries were willing to lend us money,” Arranza said. 

Unfortunately, Arranza stressed these positive elements were tempered by the coup attempts.