Economic surge: Opportunity for structural reform

The unprecedented growth surge of 7.8 percent displayed by the Philippines for the first quarter — overtaking China’s 7.7 percent growth rate — offers President Noynoy Aquino a rare opportunity to push through with structural changes and continue the aggressive reforms that have been a major hallmark of his nearly-three year term. The exceptional growth — said to be the highest recorded since the beginning of Aquino’s term in 2010 and the third consecutive time the figures reached over 7 percent – is underpinned by a revitalized manufacturing sector, sustained remittance inflows and most definitely the recent midterm elections that spurred government and consumption spending even early last year.

The Philippines seems to be on a roll considering a series of remarkable achievements like the credit rating upgrades from ratings agencies. But as the World Bank noted, there is no silver bullet that could resolve deep-seated structural issues that may derail the current upward trajectory as far as the economy is concerned. At this time when the administration continues to enjoy high trust ratings judging from the results of the recent elections, the President should fast-track the necessary structural changes and reforms to sustain the momentum and point the country towards the “irreversible path of inclusive growth” as the World Bank put it.

While it is not yet totally clear what caused the explosion at the high-end Serendra Complex at the Fort last Friday night — this kind of incident can cause a major blow to the economy. In fact, we were at a private dinner in a restaurant in Greenbelt with US Ambassador Harry Thomas, Israeli Ambassador Menashe Bar-On and Australian Ambassador Bill Tweddell when we were informed of the explosion. I got the sense right away that members of the Security detail of the US Ambassador were all getting antsy. And to think we were just talking about the travel warning issued to their citizens by major countries traveling to the southern part of the Philippines.

Anyway, whatever happens, we must continue with the momentum of reform that could help sustain the country’s economic growth in the long term such as Charter reform. As pointed out by former UP president and reform advocate Jose Abueva, the country could become caught in a vicious cycle of political decay and economic underdevelopment if we fail to institute simultaneous structural, social, institutional, policy and constitutional reforms. Only those who have vested interests will want to perpetuate the entrenched political system, Abueva noted.   

The fact of the matter is that the most credible person to implement Charter change is none other than President Noy because people are absolutely convinced he has no hidden political agenda meant to prolong his term beyond 2016.  Which is why it is crucial for this administration to totally remove the perception of politics and politicking in the equation. From what I’m told, the Liberal Party has already decided that Mar Roxas will be fielded as its presidential candidate to be the successor of President Noy.

With the economy moving very well, the President does not even have to be entangled in the political sphere to maintain his clout. And since he is not running for reelection, he can be totally independent and continue with his aggressive pursuit of reforms without being stymied by political quid pro quos. I must admit that I have seen for myself how, to a certain extent, President Aquino would show no hesitation in arriving at a decision that would be completely devoid of political considerations especially in critical aspects of good governance and reform. A good example was his choice of Ma. Lourdes Sereno as Chief Justice – which stunned everyone since it came out of left field.

As they say, one cannot really argue with success, and no question President Aquino seems poised for more success in the course of his tenure as seen in the economic surge and upcoming international events that the Philippines will be hosting, such as the World Economic Forum in East Asia next year and the much-anticipated 2015 Asia Pacific Economic Cooperation Summit in 2015. Hosting a prestigious, major international conference like the APEC will be a fitting culmination to the term of President Noy before he steps down in June 2016.

This early, organizers are already scouting for possible venues to hold the high profile ministerial and sectoral meetings. A number of places are being considered such as Boracay, Misibis, Cebu, Subic, Tagaytay and Davao. Balesin has also been mentioned as an outstanding choice particularly for the APEC Leaders’ Summit, the highlight of the international event. We have just come from there with some US officials who were very pleased with the high-end resort (located off the coast of Quezon) particularly the security and the runway which an American military officer described as impressive.

Balesin has first-rate facilities, excellent cuisine plus superb amenities at the seven themed villages that can accommodate even a queen. But as usual, politics is figuring once again with some people close to the administration whispering against Balesin simply because the developer happens to be Roberto “Bobby” Ongpin. This is the kind of garbage mentality we should throw away because it does the country great disservice. In fact, Bobby said he does not even have to be present and would gladly open up the place for the country.

For too long, Filipinos have been divided by the politics of vendetta. Let’s hope this administration will not succumb to this especially now that we are primed for more accomplishments as seen in the recent economic surge. Opportunity comes knocking but once.

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