PGMA's Speech during the Conference of Multinational Companies (The Wallace Business Forum)

PGMA's Speech during the Conference of Multinational Companies (The Wallace Business Forum)

Ceremonial Hall, Malacanang (11 March 2002)

THANK YOU VERY MUCH SECRETARY ROMULO.

OTHER CABINET MEMBERS AND PHILIPPINES GOVERNMENT OFFICIALS; MR. PETER
WALLACE; THE MOVERS AND SHAKERS OF THE BUSINESS, FINANCIAL AND BANKING
COMMUNITIES; EXCELLENCIES OF THE DIPLOMATIC CORPS AND HEADS OF
INTERNATIONAL ORGANIZATIONS; LADIES AND GENTLEMEN:

THANK YOU FOR COMING TO THIS GATHERING AND WELCOME TO MALACAÑANG. OUR
MEETING -- AND THE FACT THAT IT IS BEING HELD HERE IN MALACAÑANG -- I
BELIEVE, SIGNIFIES CONTINUING PARTNERSHIP AND COMMITMENT TO SHARED GOALS --
STABILITY, CONFIDENCE, PROGRESS.

WE HAVE ALL GONE THROUGH A DIFFICULT PERIOD NOT ONLY HERE IN THE
PHILIPPINES BUT ALL OVER THE WORLD. JUST OVER A YEAR AGO OUR INSTITUTIONS
IN THE PHILIPPINES OF GOVERNANCE STOOD ON THE BRINK BEFORE THE SITUATION
WAS RESCUED BY A REASSERTION OF PEOPLE POWER. OUR ECONOMY WAS BUFFETED BY
DOMESTIC UNCERTAINTIES, THEN BY A GLOBAL SLOWDOWN.

TWO FACTORS WERE PARTICULARLY IMPORTANT IN HELPING US WEATHER THE EXTENDED
PERIOD OF DIFFICULTY.

ONE WAS THE CONSTANT FLOW OF REMITTANCES FROM FILIPINO WORKERS OVERSEAS.
THOSE REMITTANCES HELPED TO OFFSET SOME AMOUNT OF CAPITAL OUTFLOW FROM THE
ECONOMY AND BOOST OUR INTERNATIONAL RESERVES TO THE ROBUST SITUATION IN
WHICH IT IS NOW, DESPITE OUR DECLINE IN EXPORTS.

THE OTHER WAS THE STEADFASTNESS OF INVESTMENTS IN THE COUNTRY. THOSE OF
YOU IN THIS ROOM TODAY, AND THE ENTERPRISES YOU REPRESENT, KEPT FAITH IN
THE CAPACITY OF FILIPINOS TO SORT OUT THINGS AND TO BRING OUR COUNTRY BACK
TO THE PATH OF PROGRESS. WE APPRECIATE YOUR FAITH IN THE PHILIPPINES.

ON OUR PART WE, THE ONE-YEAR OLD GOVERNMENT, HAVE DONE OUR BEST TO MANAGE
THE CRISIS, AND TO PREPARE TO BRING ABOUT BETTER TIMES AHEAD. WE AVERTED
THE RECESSION THAT SWEPT THROUGH MOST OF OUR PARTNER ECONOMIES. WE KEPT TO
OUR FISCAL TARGETS BY ENFORCING DISCIPLINE DOWN THE LINE. OUR CAPITAL
MARKETS HAVE REBOUNDED, RESPONDING TO THE LEADERSHIP AND MANAGEMENT THIS
GOVERNMENT HAS DELIVERED.

I DON'T NEED TO GO THROUGH THE DETAILS OF WHAT WE HAVE DONE IN THE PAST
YEAR BECAUSE ALL OF YOU HAVE KEPT A VERY CLOSE WATCH ON EVERY INDICATOR OF
OUR MARKET'S PERFORMANCE. AND WE ALL KNOW, AS PETER PRESENTED IN HIS
PRESENTATION, THAT THERE ARE FORMIDABLE CHALLENGES AHEAD. WE ALL KNOW THAT
WE HAVE TO AVOID PITFALLS. WE ALL KNOW THAT THERE ARE PARTS OF THE ECONOMY
THAT WE HAVE TO STRENGTHEN. WE ALL KNOW THAT WE MUST CONTINUE TO DO
REFORMS REQUIRED TO BUILD OUR COMPETITIVENESS AS THE GLOBAL ECONOMY
UNDERGOES REVITALIZATION.

BUT LET ME TAKE THIS OPPORTUNITY TO ASSURE YOU THAT WE HAVE OUR NOSES TO
THE WHEEL, SO TO SPEAK. DESPITE THE CHARACTERISTIC NOISES GENERATED IN THE
POLITICAL SPHERE, OUR ECONOMIC MANAGERS ARE KEEPING A TIGHT FOCUS ON THE
REFORMS THAT NEED TO BE UNDERTAKEN.

IN MY STATE OF THE NATION MESSAGE TO CONGRESS LAST YEAR -- AND MANY OF YOU
LISTENED TO THAT QUITE INTENTLY -- I SAID THAT TO CREATE JOBS, WE WILL
ATTRACT INVESTMENTS. TO ATTRACT INVESTMENTS, WE WILL ATTEND TO
MACROECONOMIC MEASURES AND CONCERNS.

FURTHERMORE, I SAID THAT IN ADDRESSING MACRO CONCERNS, WE WILL FOCUS ON
LONG-TERM STRUCTURAL ISSUES. WE STARTED WITH THE REFORM OF THE POWER
SECTOR, AND THIS YEAR WE ARE PRIVATIZING THE STATE-OWNED POWER
TRANSMISSION COMPANY. HAVING PASSED THE POWER SECTOR REFORM LAW AND ITS
IMPLEMENTING RULES AND REGULATIONS AFTER A TEN-YEAR WAIT, NOW WE ARE
TURNING TO OTHER BASICS LIKE INFRASTRUCTURE.

IN FOCUSING ON INFRASTRUCTURE, I ALSO SAID IN MY STATE OF THE NATION
ADDRESS LAST YEAR THAT WE WANT TO HARNESS THE PRIVATE SECTOR VIA THE
BUILD-OPERATE-AND-TRANSFER EXPANDED LAW. OUR PRIORITIES INCLUDE
TELECOMMUNICATIONS FACILITIES FOR HIGH-SPEED PRODUCTIVITY AT LOW COST,
ROADS TO TARGET TOURIST DESTINATIONS ESPECIALLY IN THE VISAYAS AND NORTHERN
LUZON, INFRASTRUCTURE FOR THE MODERNIZATION OF AGRICULTURE ESPECIALLY IN
MINDANAO AND SOUTHERN LUZON, MASS TRANSPORT INFRASTRUCTURE FOR METRO
MANILA, AND COMMUTER AND TRANSPORT SYSTEMS TO DISPERSE COMMUNITIES TOWARDS
SUBIC-CLARK AND CALABARZON.

I APPRECIATE THE PRESENTATION MADE BY PETER TODAY AND THE ADVANCE COMMENTS
MADE IN VARIOUS DETAILS OF THE SURVEYS THAT HAVE BEEN MADE AMONG THE
MULTINATIONAL COMPANIES.

IT IS MY PRACTICE TO LISTEN CAREFULLY TO SPECIFIC POINTS RAISED BY
BUSINESSMEN JUST AS I LISTEN TO SPECIFIC POINTS RAISED BY THE POOR.

WE RESPECT THE RULE OF LAW, JUST AS YOU DO IN MOST OF THE COUNTRIES
REPRESENTED HERE. THUS, WITH REGARD TO MINING AND RELATED ISSUES, WE
RESPECT THE ROLE OF THE SUPREME COURT ON THE SUITS INVOLVING THE MINING ACT
AND THE INDIGENOUS PEOPLES RIGHTS ACT. I PLACE MY COMPLETE FAITH IN THE
SUPREME COURT TO RESOLVE THESE ISSUES WITH WISDOM AND PATRIOTISM.

IN THE MEANTIME, LET ME REITERATE ALSO WHAT I SAID IN MY STATE OF THE
NATION ADDRESS ABOUT OUR GROWTH SECTORS OF THE 21st CENTURY.

I HAVE SAID OVER AND OVER AGAIN THAT WHAT WE ARE PROMOTING ARE THE
FAST-GROWING INDUSTRIES WHERE HIGH-VALUE JOBS ARE MOST PLENTIFUL. ONE OF
THEM IS INFORMATION AND COMMUNICATIONS TECHNOLOGY OR ICT. WE REALIZE THAT
IT IS OUR ENGLISH LITERACY IN ADDITION TO OUR APTITUDE AND SKILLS THAT GIVE
US A COMPETITIVE EDGE IN ICT.

TO PREPARE OUR YOUTH TO CONTINUE THE PHILIPPINE TRADITION OF PRODUCING
KNOWLEDGE WORKERS -- AS ALREADY INDICATED IN THE PRESENTATION OF PETER --
WE ARE UPGRADING MATHEMATICS, SCIENCE, AND ENGLISH TEACHING IN BASIC
EDUCATION.

ALSO, I AM ASKING THE SECRETARY OF FINANCE TO STUDY THE FEASIBILITY OF
REMOVING TAXES AND DUTIES ON COMPUTERS TO SPEED UP PEOPLE-ACCESS TO
INFORMATION TECHNOLOGY.

ASIDE FROM ICT, WE ALSO HAVE THE COMPETITIVE EDGE IN TOURISM -- AS AGAIN
MENTIONED IN PETER'S PRESENTATION -- IN THE NATURAL WONDERS OF OUR COUNTRY
AND THE NATURAL WARMTH OF OUR PEOPLE. AND AS I INDICATED EARLIER, WE HOPE
THAT THE PRIVATE SECTOR INFRASTRUCTURE INVESTORS WILL SUPPLEMENT US IN OUR
EFFORTS TO PROVIDE ROADS TO THOSE WONDERS AND THE MEANS TO TAKE THE
TOURISTS THERE.

WE HAVE BEEN DEVELOPING A PHILIPPINE POSITION FOR THE NEW ROUND OF THE
WORLD TRADE ORGANIZATION WHICH WILL CHARACTERIZE THE WORLD OF THE 21st
CENTURY IN THIS FIRST DECADE. THE NEW ROUND IS BILLED AS A DEVELOPMENT
ROUND. FOR THE PHILIPPINES, MAINSTREAMING TRADE INTO THE WIDER DEVELOPMENT
AGENDA OF ADDRESSING POVERTY IS A CENTRAL CONSIDERATION TO REACHING A
COUNTRY POSITION. TO HELP FRAME PHILIPPINE NEGOTIATING OPTIONS, WE ARE
IDENTIFYING PRODUCTS AND SERVICES, FIRST, WHERE WE ARE CURRENTLY
COMPETITIVE; SECOND, WHERE WE ARE NOT CURRENTLY COMPETITIVE BUT NECESSARY
CONDITIONS CAN BE DEVELOPED TO MAKE US COMPETITIVE; THIRD, WERE WE ARE
CURRENTLY NOT COMPETITIVE AND CANNOT BE COMPETITIVE BUT MUST BE GIVEN
SUFFICIENT TRANSITION TIME FOR SOCIAL AND EQUITY REASONS; AND, FOURTH,
WHERE WE ARE NOT COMPETITIVE AT ALL AND THESE PRODUCTS AND SERVICES CAN BE
TRADED OFF FOR RECIPROCAL CONCESSIONS.

THE DEVELOPMENT OF THE PHILIPPINE POSITION LOOKS, IT'S SUPPOSED TO LOOK AT
POSSIBLE INCENTIVES TO OFFSET COMPARATIVE DISADVANTAGES. I AM ASKING OUR
ECONOMIC MANAGERS TO WORK ON THIS PLAN WITH GREATER URGENCY. NEDA, AT THIS
POINT, SHOULD BE LEADING THIS STUDY, THOUGH SOME OF YOU HAVE EXPRESSED
DISCOMFORT OVER WHAT IS PERCEIVED AS OVER CENTRALIZATION OF DECISION-MAKING
AT THE NEDA. I BELIEVE, HOWEVER, YOUR DISCOMFORT IS NOT ABOUT
DECISION-MAKING REGARDING THE RELATIVE COMPETITIVENESS OF OUR ECONOMIC
SECTORS, RATHER I CAN PERCEIVE IT IS ABOUT THE APPROVAL PROCESS FOR
CONTRACTS WORTH MORE THAN 50 MILLION PESOS. IF YOU RECALL, IN A
MUCH-APPLAUDED ANNOUNCEMENT EARLY IN MY PRESIDENCY, I DEVOLVED THE FINAL
AUTHORITY FOR APPROVING CONTRACTS WORTH 50 MILLION PESOS AND ABOVE FROM THE
PRESIDENT TO THE NEDA BOARD TO REMOVE A SOURCE OF GRAFT IN MALACAÑANG. NOW
LATELY, BACKED UP BY THE CABINET, WE ARE FURTHER DEVOLVING THIS APPROVAL
PROCESS BACK TO THE CABINET SECRETARIES EXCEPT FOR SPECIFIC CONTRACTS
REQUIRED BY LAW TO BE APPROVED AT A LEVEL HIGHER THAN THE DEPARTMENT HEAD.

I HOPE THIS ADMINISTRATIVE ORDER TO BE SIGNED SOON WILL ADDRESS YOUR
CONCERNS ABOUT OVER CENTRALIZATION OF DECISION-MAKING AT THE NEDA.

I APPRECIATE YOUR SINCERE CONCERN FOR MAKING OUR ECONOMY MORE EFFICIENT AND
OUR GOVERNANCE MORE RESPONSIVE.
I ENCOURAGE YOU TO HAVE MORE REGULAR MEETINGS WITH ESPECIALLY THE SECRETARY
OF TRADE AND INDUSTRY, WHO IS THE ONE IN CHARGE OF MAKING SURE THAT YOUR
CONCERNS ARE MET -- EVEN REGARDING PEACE AND ORDER, HE CAN BE THE ONE TO
PUT YOU TOGETHER WITH OUR PEACE AND ORDER AUTHORITIES SO THAT YOU CAN DO
YOUR SPECIFIC PLANNING FOR THAT CONCERN THOUGH WE HAVE BEEN DOING IT WITH
SOME DEGREE OF SUCCESS, I BELIEVE, WITH THE FILIPINO-CHINESE COMMUNITY.
THESE DIALOGUES ARE DESIGNED FOR MEANINGFUL FEEDBACK FROM, AND CONTINUING
INTERACTION WITH THE FOREIGN CHAMBERS OF COMMERCE.

ALL OUR EFFORTS AT FOSTERING ECONOMIC GROWTH WILL BE MEANINGLESS UNLESS WE
ARE ABLE TO BRING IMMEDIATE RELIEF TO THE 40 PERCENT OF OUR POPULATION
TRAPPED IN POVERTY. AND I AM COMMITTED TO BRING ABOUT THE CONDITIONS THAT
WILL ENABLE OUR COUNTRY TO WIN THE BATTLE AGAINST POVERTY WITHIN THE
DECADE. SUCH CONDITIONS SHOULD BE SUSTAINABLE AND ROOTED IN BROADER
POPULAR ACCESS TO PRODUCTIVITY AND VALUE CREATION.

YOU, THE BUSINESS COMMUNITY, ARE THE REAL EXPERTS IN THE CREATION OF VALUE.
THERE CAN BE NO REAL HEADWAY GAINED IN THE WAR AGAINST POVERTY UNLESS WE
IMPROVE OUR ECONOMY'S CAPACITY FOR VALUE CREATION.

THERE ARE THOSE WHO HAVE TRIED TO POLITICIZE POVERTY BY TRYING TO
IMPART A SUBLIMINAL MESSAGE THAT THE SOLUTION TO POVERTY LIES IN
GOVERNMENT DOLE-OUTS AND SUBSIDIES. WE DO NOT CONDONE A CULTURE
OF DEPENDENCE WHICH IMPAIRS POPULAR EMPOWERMENT, AND DESTROYS INITIATIVE
AND INNOVATION.

AND THERE ARE OTHERS WHO HOPE TO CONVERT OUR IMPOVERISHED COMMUNITIES INTO
BREEDING GROUNDS FOR DISCONTENT, RAGE, DISSIDENCE, EVEN TERRORISM. THIS IS
EVEN A WORSE ENEMY BECAUSE IT LEADS TO SOCIAL DISINTEGRATION.

THE TRAIN OF PROPAGANDA AND VIOLENCE THAT FOLLOWS POVERTY IS HEARD AND SEEN
ALL OVER THE WORLD. BUT IN THE COLDNESS OF REASON, WE KNOW THAT POVERTY IS
MAINLY THE CONSEQUENCE OF LIMITED ACCESS TO PRODUCTIVE OPPORTUNITIES. AND
ONLY BY EXPANDING THESE OPPORTUNITIES MAY POVERTY BE REDUCED, AND FINALLY
DEFEATED.

AS I SAID IN THE BEGINNING OF THIS SPEECH, INVESTMENTS PLAY A KEY ROLE IN
CREATING THESE OPPORTUNITIES. ENTERPRISES, WHETHER SMALL OR LARGE, SUCH AS
THE ONES YOU REPRESENT IN THIS COUNTRY, ARE VALUED ALLIES IN OUR BATTLE
AGAINST POVERTY. IN THIS AWARENESS, WE ARE PREPARED TO WORK HARD IN ORDER
TO REDUCE THE COSTS, AS WELL AS THE RISKS, OF DOING BUSINESS IN THIS
COUNTRY.

WE WILL CONTINUE TO WORK ON THE PEACE AND ORDER SITUATION. WE WILL
CONTINUE TO PUSH OUR GOOD GOVERNANCE CULTURE. WE WILL CONTINUE TO CUT
GRAFT THROUGH SHAVING OPPORTUNITIES FOR IT. WE WILL CONTINUE TO MOVE
PEOPLE, RESOURCES AND PROCESSES THAT PROMOTE GOOD GOVERNMENT. WE WILL
CONTINUE TO CLEAN UP THE REGULATORY MILL BY HARNESSING HONEST EXECUTIVES
AND LESSENING, IF NOT REMOVING ALL TRIGGER POINTS FOR STEALING.

WE RESOLVE TO REMOVE GRAFT AS A SOURCE OF UNCERTAINTY AND UNPREDICTABILITY
IN INVESTMENT DECISIONS. WE ARE DETERMINED TO CUT DOWN THE WASTE OF
SCARCE PUBLIC RESOURCES AND INCREASE PUBLIC INVESTMENTS.

IN MY VIEW, GOOD GOVERNANCE RESTS ON THREE PILLARS. FIRST, A SOUND MORAL
FOUNDATION TO GUIDE OUR LEADERSHIP AT ALL LEVELS. SECOND, A PHILOSOPHY OF
TRANSPARENCY IN ALL GOVERNMENT ACTIONS. THIRD, AN ETHIC OF EFFECTIVE
IMPLEMENTATION THROUGHOUT THE BUREAUCRACY.

WE MUST EXORCISE THE CULTURE OF CORRUPTION THAT DELAYS THE MATURATION OF
DEMOCRACY.

IMPROVEMENTS IN THE QUALITY OF CORPORATE GOVERNANCE WILL NOT ONLY HELP
DIMINISH THE CULTURE OF CORRUPTION, IT WILL ALSO MAKE OUR ENTERPRISES MORE
EFFICIENT AND REDUCE RISKS OF FAILURE, AS WE HAVE SEEN IN THE CASE OF
ENRON.

MULTINATIONAL ENTERPRISES HERE IN THE PHILIPPINES ARE ACTIVE IN THE
FORMATION OF A RESPONSIBLE CORPORATE GOVERNANCE CULTURE IN THIS COUNTRY,
GUIDED BY THE BENCHMARKS IN MANAGERIAL EXCELLENCE SET ALL OVER THE WORLD.

BY AND LARGE, THE COMPANIES YOU BELONG TO SET GOOD EXAMPLES OF CORPORATE
CITIZENSHIP. REPRESENTED IN THIS ROOM TODAY ARE SOME OF THE MOST RELIABLE
CORPORATE TAXPAYERS IN THE COUNTRY. AND I MUST CONGRATULATE YOU ALL FOR THAT.

BEYOND ALL THESE, HOWEVER, I SHOULD LIKE TO CALL ON YOU TO EXPAND YOUR
CORPORATE SOCIAL RESPONSIBILITY PROGRAMS.

THESE PROGRAMS WILL BUILD STRONGER BRIDGES BETWEEN WORKPLACES AND
COMMUNITIES. THEY WILL LEAD THE WAY FORWARD IN IMPROVING OUR OVERALL
CAPACITY TO GENERATE VALUE.

EFFICIENT ENTERPRISE DOES NOT ONLY IMPROVE PRIVATE PROFITABILITY. IT
BENEFITS THE LARGER SOCIETY. THIS IS A MESSAGE WE MUST CLEARLY DELIVER AND
DELIVER WELL IF WE ARE TO DEVELOP A MODERN PRODUCTIVE CULTURE FOR OUR
PEOPLE BECAUSE IN THE END, AFTER ALL THAT'S SAID AND DONE, THAT MODERN
PRODUCTIVE CULTURE IS WHAT WILL MAKE YOUR BUSINESSES CONTINUE TO BE
PROFITABLE AND BECOME EVEN MORE PROFITABLE AND IT IS WHAT WILL MAKE OUR
COUNTRY FINALLY WIN THE BATTLE AGAINST POVERTY WITH YOUR PARTICIPATION.

THANK YOU.

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