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PGMA's Departure Statement during the eve of her Attendance to the Boao Forum for Asia Annual Conference 2007
Departure lounge of the Ninoy Aquino International Airport (NAIA) Centennial Terminal 2 in Pasay City.
April 20, 2007

During our visit to China, which begins tonight, we look forward to witnessing a number of economic agreements that will create new jobs for Filipinos and support infrastructure development to raise the competitiveness of our country.

These commitments are testament to the progress we have made in enhancing our economic environment and the confidence of the international community in our country and economy.

As President of the Philippines and Chair of ASEAN, I am also delighted at the opportunity to join some of the world’s business and government leaders at the Boao Forum in Hainan to engage in a meaningful dialogue about Asia’s economic dynamism and our region’s increasingly important role in driving global growth.

Our participation in this pre-eminent leadership forum will also ensure that the Philippines continues to play an important role in promoting regional peace and security.

While our visit to China has been shortened, we will make the most of this opportunity to send a clear message to business and government leaders attending this year’s Boao Forum that we are bullish on our region’s future, but our challenge in Asia is to think outside the box, not live within it. And we must use every tool available to us – education, technology, microfinance – to lift up our poor, if we are to achieve equitable, sustainable growth.

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PGMA's Speech during the Official Opening and Welcome of the Boao Forum for Asia Annual Conference 2007
BFA Main hall, level 2 ICC Boao, Hainan Island People's Republic of China
April 21, 2007

Thank you very much Secretary General Long.

President Ramos, Chairman of Boao; Chairman Wu; Prime Minister Aziz; Mr. Gates; Mr. Chey; distinguished leaders of the business community of the whole world; and officials of the various governments who are participating in this conference; ladies and gentlemen.

First of all, I would like to congratulate my predecessor President Ramos for being reelected as Chairman of the Boao Conference. And I would like to thank President Ramos and his two counterparts from Australia and Japan for having initiated this very important forum nine years ago. Today's plenary raises a number of compelling points.

First point: to what extent will the current approaches to driving economic growth in Asia be able to sustain the social and environmental fabric in a responsible manner?

In other words to use the jargon of Boao, how do we have win-win? Rapid economic growth on one hand and a sustainable, social and environmental fabric on the other.

As our economic engines drive us to first-world status, we must not do so on the backs of the poor nor at the expense of our environment.

I am optimistic about the current approaches. I believe they can transform our economies and lift up the poor.

As a region we have a chance to get it right. We can emulate the best practices of development while avoiding the mistakes of modernization that have plagued many nations.

We must use very tool available -- education, technology, microfinance -- to lift up our poor, if we are to achieve equitable, sustainable growth.

In the Philippines we are investing aggressively in the I.T. backbone. We are bringing the internet to every high school and spending more pesos for education. We are bringing incentives to start small and micro businesses to build an entrepreneurial class. And I would like to say that in doing this, we have learned from the participants of this forum.

We have learned from Doctor Yunus the power of microfinance. And we have applied doctor Yunus' your trailblazing experience to millions of entrepreneurs, mostly women in the Philippines who have been able to lift their families out of poverty. Thank you for your contribution to the fight against poverty.

And the global success of Microsoft under your visionary leadership, Mr. Gates, has reminded us of the power of innovation to change the world for the better. We agree with you that technology is a powerful tool to liberate the potential of individuals and nations to grow and prosper. and learning from your wisdom and your achievements Mr. Gates, I'm happy to say that in the Philippines, the I.T. sector is the fastest growing sector in our economy today.

The second point raised in this forum is: how crucial is it for the region to have an approach with sustainable development as a priority and what is the role of innovation in this context?

Our answer is: it is essential for the region to have sustainable development as a priority.

The role of innovation in this context is vital along with political will. The Philippines is a case in point: we need to continue to develop a larger manufacturing base along with our booming service economy to create good jobs. At the same time, to have a win-win solution, we must also become more self-sufficient and cost effective in our energy consumption. There is no reason we cannot do both and have a win-win through innovation, proper policy planning and united political and civic leadership.
For instance, we have launched a bio-fuels program. It will rely on investment and innovation to create jobs, skills and self-reliance while keeping our environment clean. In this case, our model is brazil which has pioneered in biofuels. We must continue to learn around the world and in our region.

We have the opportunity in Asia to learn from other nations and create our own sustained path to development.

We must think outside the box, harness technology and use innovation to break the cycle of energy dependence and environmental degradation.

Third point: as growth in Asia transitions from being export-driven to domestically-driven, what impact will this shift bring to Asia's leading lights -- China, India and Japan?

The impact will likely be profound on all economies but particularly India and China, less so Japan because it is already an advanced industrial economy. We in ASEAN are delighted with the growth of China and India to add to the power of Japan in the region. In the Philippines, we benefit from this growth. It can only help lift up our nation as it lifts up the others, too. This is a good, positive, healthy development, but we must work together to add to, not subtract from, our quality of life.

Chairman Wu, China is a strong partner of ASEAN and a reliable friend of the Philippines, so let me spend a minute focusing on the implications of your surge. China's remarkable rise reflects the promise and challenge of the world in which we live. We see your dramatic growth lifting millions out of poverty and springing your nation squarely onto the world stage as a new global power. And you also understand the need to balance growth with concerns for the environment and quality of life.

China has unleashed the human potential of its vast citizenry by the effective use of technology, science and engineering. It will be these same elements that will help china bring balance to a new model of sustainable development. We are all eager for china to succeed. And Chairman Wu, we will watch closely as you manage the desires for growth, equity and environmental solidarity.

As China and India become true political and economic giants, their obligations to their neighbors will increase, separate from their obligations to their own citizens. Ascendance onto the world stage carries implications not just for economic development, but for management of our environment on a sustainable basis, and for maintaining broader peace and stability in the region and the world.

And speaking of stability for the region and the world, the relationship between China and Japan also has important implications for regional stability in Asia. And we are very happy to hear all the news all over the world about the increasingly cordial relationship between China and Japan. And I am happy to read even from the editorials of the newspapers in China that one of the reasons for the increasing relationship of trust between President Wu and Premier Wen and Prime Minister Abe of Japan has been your meeting in the Philippine island of Cebu last January.

Fourth point: what are the implications of this shift to each of these countries, to the businesses that operate within them, and their Asian neighbors vis-à-vis their political, economic and environmental relationships with these giants?

While it would be inappropriate for me to comment on how these changes would impact the internal fabric of China and India, I can begin to address how their growth and dynamism impact the rest of us.

As chair of ASEAN, we hope for greater economic integration between ASEAN and the robust' economies of China, Japan and India. Last January in Cebu, we led ASEAN to make a declaration on the ASEAN charter, which is a milestone in our region's history.

And I am very happy also to acknowledge President Ramos as one of the eminent persons putting together the concept of the ASEAN charter.

As part of this charter, we are pledging to become an integrated trading bloc by 2015. We are proud that ASEAN took a bold step forward by agreeing to move toward an E.U. style institution. This is the first step toward even closer political, security, and economic engagement. It will strengthen ASEAN and the ties with our special partners such as Japan, China and India.

From the strictly Philippine point of view, we welcome the surge in economic growth and development as a healthy development for our nation and our region. Japan and China are investing billions in the Philippines, and hopefully India will one day do the same.

The internal market demands and domestic consumption of these nations are having a direct and positive impact on our nation in terms of job creation, investment and balance of trade. We hope it continues.

Let me conclude with these final thoughts. I am bullish on Asia and our ability to help drive positive change in the world -- win-win.

The Boao Forum has once again brought together some of the world's leading lights to engage in meaningful conversation about the world and Asia's role in it. We must continue to build and strengthen institutions be they powerful NGO foundations like for instance the Bill and Melinda Gates Foundation or empowered entities like ASEAN and the East Asia Summit.

I am optimistic about our ability to work together as a region and to solve our own problems and in the process, create a new Asian paradigm for progress that will be a model for the rest of the world as other regions and other nations continue on their own path to progress.

Thank you.

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