President Estrada is supposed to be enjoying a 100-day "honeymoon" with the business community as well as a "grace period" accorded by the Catholic Church. Economic indicators remain favorable and continued growth is expected this year. The President's ratings are down in the latest survey of Pulse Asia, but the polling firm emphasized that his approval rating of 53 percent last December -- down from 61 percent in September and 74 percent in May -- can still assure him of victory in case snap presidential elections are called.
While there is general optimism, however, some groups have issued warnings on matters that bear watching. Yesterday, the Asian Development Bank said delays in the implementation of crucial reforms particularly in the financial sector can hobble the nation's recovery from the Asian economic crisis. The ADB, in a report, said the nation's recovery "appears to be gaining momentum" but delays in completing the reforms are becoming "a major source of concern" for investors.
In particular, the ADB cited the need for speedier action on privatization as well as reforms in taxation, banking, the power sector, capital markets and public expenditure management. The bank also noted other problems including rapid population growth, outdated technology, underdeveloped rural areas and low savings.
For its part, the Makati Business Club warned the other day of "danger signals" including the "absence of a clear agenda and flip-flopping decisions" as well as graft and corruption and perceptions of cronyism. The concerns were raised in the MBC's latest Executive Survey Outlook, which showed the nation's top businessmen cautiously optimistic about economic prospects for the year.
As pollsters including Pulse Asia have pointed out, the President still enjoys substantial popular support despite the continuing slide in his ratings. But the decline indicates growing dissatisfaction whose causes the President must address. Instead of accusing unnamed groups of trying to destabilize his government, he can consider the concerns raised by the MBC and the ADB. These can help him determine areas that need improvement in his administration.