The business (and pleasure) of economic cooperation
MACTAN CITY, Cebu, Philippines — Amid torrential Manila rains causing tremendous traffic and the dark cloud of global recession looming, warm and sunny Mactan City welcomed finance ministers and business executives from 21 participating Asia-Pacific Economic Cooperation (APEC) nations to three days of discussions that aimed to lay the groundwork for what is now called the Cebu Action Plan.
After mentioning the series of successful socio-economic reforms in his government that would serve as key benchmarks in the four-point agenda, President Benigno Aquino III optimistically welcomed over 400 delegates to the resort city.
“My positivity is reinforced by the Cebu Action Plan—named after one of the most progressive provinces in our nation—to which our economies are committing. I am told that it ticks all the right boxes: better financial integration among APEC members fosters an environment ripe for investment; greater transparency as regards government funds maximizes efficiencies, and more importantly, the benefits enjoyed by our peoples; and a renewed commitment to improve and finance infrastructure that will lay the necessary foundations for continued growth. Not to mention, the Cebu Action Plan will also help equip us to respond to some of the gravest threats to our economies in the form of natural disasters, particularly those caused by the new normal of climate change,” the President said.
Yet, with the refreshing view of the Hilutungan Channel not too far away on the horizon, the President reinforced his cordiality with the Filipino brand of hospitality. “I hope that, apart from my welcome, you will be able to feel the warm welcome of the Cebuano people, who are renowned for their musicality and hospitality. After all, you are in the Philippines’ Queen City of the South, and I hope you can take time off your busy schedules to enjoy its pristine beaches, its vibrant metropolis, and most importantly, its people, who are living proof that it is indeed more fun in the Philippines.”
The President sees a healthy mix of business and pleasure defining APEC Philippines 2015, which will culminate in Manila this November.
One of the city’s first and leading five-star resorts, Shangri-La Mactan, successfully set the tone and pace for the meetings, complementing its relaxed, luxurious atmosphere with efficient yet seemingly effortless service. At the helm of it all was newly installed general manager Nicholas Smith.
“This city has been able to enjoy over a month’s worth of meetings,” he said. “After 22 years of being in the region, it’s great for us to be able to close it all out with the Finance Ministers Meeting, with the President coming to visit. Here we are today with over 400 delegates, X amount of security, a thousand of our staff servicing three large ballroom areas and 50-plus big cabins upstairs.”
The long-time hotel professional was unfazed by the sheer scale and significance of the event, confident that the international hotel chain would acquit itself with flying colors. “We have great confidence in banqueting facilities, and are able to support such huge events,” he said. “It’s a great recognition of the facilities that we can offer.”
Bridging the financial gap
Better financial integration constitutes the first pillar of the Cebu Action Plan, where remittance cost reductions, alternative access to financial services, accessibility in micro-financing for SMEs, and easier cross-border investments will better generate inclusive economies among the APEC states. For the Cebuanos, however, this concept is nothing new.
One of the key hubs of the Manila-Acapulco galleon trade, Cebuano businesses have managed to keep the economic and cultural benefits of cross-border trading by making it as relevant today as it was almost half a millennium ago.
“I wanted to give a modern twist to what Cebu fashion is,” said Cebu fashion czar Phillip Rodriguez, after unveiling his three-suite “Handumanan” (Cebuano for “memoire”) collection to an audience of delegate spouses in the heritage restaurant of Circa 1900. “I celebrate the 450 years of the galleon trade with the Manton de Manila. The Spanish people first thought that it was from Manila, but it was actually a Chinese shawl sold by Chinese merchants here. It was brought to Mexico and then Spain through the galleon trade.”
Through the same historical economic exchange, cacao reached the Philippines from Mexico, making us one of the few growers of the raw material for chocolate in Southeast Asia. “My dream has always been to tell the whole world that we Filipinos exist in chocolate making,” said Casa de Cacao’s Racquel Choa as she treated the APEC spouses to an afternoon cup of rich sikwate, done in her grandmother’s heirloom batirol. “I grew up in the mountains. I used to not know chocolate comes from cacao, so it was a discovery for me, too.”
Now her chocolate business has grown to a specialty chocolatier and café in the city called The Chocolate Chamber, exporting her Philippine chocolates to the rest of the world. “Nobody knew this little girl who used to enjoy our tablea. Now here I am, showcasing this tradition,” Choa added.
Acclaimed multimedia visual artist Toym Imao was tasked to mark the Cebu Action Plan and APEC Finance Ministers Meeting with a 12-foot brass sculpture. “We’re talking about countries connected by maritime trade,” Imao said. “The sea would somehow have to figure since it’s the earliest routes between nations.They first gave me the four pillars of the Cebu Action Plan, and I decided to give it an appreciation at the surface level, at the same time, a sense for discourse underneath.”
Imao showcased the form of the traditional Filipino vessel, the balangay, encased in four posts, with a sail of 21 components representing all participating nations, and a torch of overlaying brass as crown. “The torch represents the beacon. Everyone gathers around the light, to discuss or tell stories,” he said. “I do hope that, somehow, this particular representation captures the issues that are needed to be addressed in this gathering.”
Indeed, the representation proved predictive, as one of the successes of the APEC Finance Ministers Meeting was the creation of the Asia Region Funds Passport, which inspires and facilitates cross-border investment and funding among APEC countries with relative ease.
Clean-cut self-sufficiency
Over a hearty breakfast and cups of coffee at Shangri-La Mactan’s The Tides, I caught up with Budget Secretary Butch Abad right before he addressed the ministers on the benefits of fiscal transparency in creating sustainable economies.
“It’s always good to be able to rely on your own resources, as what we have been able to do for the past five years,” the secretary said, crediting the efficient tax-collection efforts of another key figure at our breakfast table, BIR commissioner Kim Henares, as well as his government’s transparent and efficient public spending, which, he believes, can be attributed to our newfound “Economic Darling of Asia” status. “If we can continue to do that, then we can depend less on external resources and therefore effectively insulate ourselves from the volatilities of the (global) financial markets.”
When asked on how he aims to share this gospel of fiscal integrity with the rest of the APEC states, Abad said, “They’re seeing a new paradigm of growth where, even if you don’t do structural economic and political changes, but you push anti-corruption and good governance programs vigorously and earn the trust of your people, this can lead to sustainable growth.”
This approach to public accountability and efficient weaving of government efforts is best seen in the Jean Goulbourn barongs that served as the official dress for the meetings. “One of the requirements was to make it look fresh, crisp,” Goulbourn said. “We are in Mactan so we went for resort dressing. I’ve always been fascinated by our clothes, our embroidery, our weaving, but I sincerely believe that some of our wardrobe should be tweaked so we can wear them every day.”
The Silk Cocoon designer created a two-piece collection: a pale gray short-sleeved polo barong and long-sleeved white barong —both stylized versions of the Filipino’s business standard of gusot-mayaman linens. Goulbourn took it a notch further by adding dynamic Maranao motifs and iconic Pinoy accents like jeepneys.
“I think the APEC and this honor of the Department of Finance of choosing me is a sign of how I should keep these traditions alive,” Goulbourn says. “Now with greater free trade and economic cooperation between countries, it is so much easier to get the best of what we can do out there.”
Weather-proof Economies
The Cebu Action Plan also calls for financial resiliency amid increased market volatilities and disaster risks among the APEC countries, through well-designed insurance mechanisms, particularly in social requirements for health, water and security.
The southern metro is no stranger to economic calamities. Once the bustling hub of international manufacturing, particularly in the home and fashion accessories segments, the waning demands in the 1980s largely decimated the number of export producers in the region. Those few who remained managed to do so by shifting their market attentions, and have since re-established Cebu as a creative economic powerhouse.
Straight roads to progress
And finally, the Cebu Action Plan aims to champion the profits of public-private partnerships, long-term financing, and increased urban and regional connectivity to address the region’s growing infrastructure needs. Here, the APEC Connectivity Blueprint is designed to open up new avenues for economic growth, promote mutual assistance and cooperation, and advance economic prosperity and modernized communities in the APEC economies, particularly those that are developing at breakneck speed.
Right before addressing the financial ministers and executives in the Eric Paras-designed meeting lounges, replete with Vito Selma and Kenneth Cobonpue furniture, Public Works Secretary Babes Singson shared his take on proper infrastructure design and spending in this contemporary climate.
“From 2010 to 2015, we have increased our infrastructure outlay by four times, so it’s a significant increase. And the Aquino administration committed to increase infrastructure investments to five percent of the GDP by next year,” Singson noted. But these road projects, he revealed, are not limited to the metropolitan highways, but geared to the other reaches of the country where developments are better needed. “We’ve been focusing our convergence programs, looking at tourism, access to airports, seaports, and RORO ports, and most of these affect local roads, not just national roads, which really increases economic activities in the rural areas.”
Host city Cebu showcases this progressive stance with existing and planned developments. The Cebu Business Park was the model for proper public-private partnerships way before its time. The 50-hectare master-planned development used to be a sleepy golf and country club until, in the late ’80s, was transformed by the governorship of Lito Osmeña into a regional commercial hub through a partnership with Ayala Land, the developer’s first foray outside Metro Manila. Now the hub integrates business, residential, sports, recreation and leisure facilities, and hosts the presence of multinational firms in the Visayan region. In the same vein, the Mactan-Cebu International Airport is the first-ever public-private airport venture in the country and the first resort airport in the world, slated for completion in 2019.
Showstopping success
As the spotlights faded and the talks ended, APEC took its final turn with an unprecedented accomplishment. “We originally gave our ministers an hour to deliberate, but they were able to pass the Cebu Action Plan after only 10 minutes, without objections,” reported DOF Assistant Secretary and International Finance Group OIC Maria Edita Tan. “I believe it’s a success that would serve as a precursor to the success of the APEC as a whole, later this year.”
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The yearlong APEC meetings in the Philippines will culminate this Nov. 18-19, with the theme ”Building Inclusive Economies, Building a Better World.” For more information, follow their social media feeds on facebook.com/apec2015ph or @apec2015ph.
