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GMA Should Apologize
By Antonio C. Abaya
Written August  25, 2004
For
Philippines Free Press,
September 04 issue


We are supposed to be impressed that Malacanang is suddenly on a cost-cutting binge and did not even serve merienda to leaders of Congress and members of the Cabinet when they met for a two-hour conference last August 24.

Only tea and coffee were served to the high-powered guests, in keeping with President Arroyo�s own assessment last Aug. 23 that �we are already in the midst of a fiscal crisis and we have to face it squarely � wielding our courage, resourcefulness and solidarity as a nation and people�.� That bad, huh?

But where were her �courage, resourcefulness and solidarity� when her husband Mike Arroyo celebrated his natal day last June 26 with a birthday bash in Malacanang in which 1,700 invited guests feasted and drank and danced up to three in the morning? At a conservative P1,000 per head, that party must have cost at least P1.7 million, excluding bands and drinks. How many malnourished children could that have fed for six months?

Just two or three days earlier, President Arroyo had been intoning her new mantras of �frugality, simplicity and austerity.� Mr. and Mrs. Arroyo should have announced beforehand to the 1,700 invitees that only tea and coffee were going to be served. That would have thinned the actual arrivals considerably, but it would, at the very least, have shown to the Arroyos who their real friends were, and who were clinging to them just for what they can suck out from their proximity to the corridors of power.

I wrote about this in my column of July 01, titled �
Credibility� (archived in www.tapatt.org) and I warned that �in the coming months and years, credibility will be the most important capital that she can bring to bear as she grapples with the myriad problems besetting this country�..�

No sooner said or written than our most daunting problem loomed before us like a giant menacing shadow that threatens to rob us, our children and grandchildren of all light.

Whether the crisis that we now face is a fiscal crisis or a financial crisis or a debt crisis, it certainly did not begin the day after Mike Arroyo�s birthday. And she, especially, as a trained economist, must surely appreciate that more than most of their 1,700 guests.

Wrote I: �She can promise ten million jobs, computers in every school, power and water in every corner of the archipelago, automated elections, even the Philippine flag planted on the moons of Saturn. But if she is not credible, those promises would go in one ear and out the other without connecting any neurons in anyone�s brains�.�

A leader is credible only when she leads by example, when she practices what she preaches. That leader loses that credibility when there is a yawning gap between what she says and what she does. That leader can regain credibility if she humbly apologizes and begs for forgiveness when she makes a mistake. That leader cannot regain credibility if she is arrogant and refuses to admit that mistake or apologize for it.

That this country was heading towards the precipice was apparent long before the eleven UP economists dramatically forecast last Aug. 22 an impending cataclysm �in two or three years.� Many writers, including this one, have warned before that the ballooning budget deficit and the ever increasing foreign and domestic debts, when coupled with a chronically poor tax collection effort, was pushing this country towards bankruptcy.

Many economists and writers, including this one, have long ago pointed out that only the remittances of our OFWs were keeping this economy afloat by providing the much-needed foreign exchange to service our debts and to pay for the imports of this import-crazed country, given our relatively weak export sector and our definitely emaciated tourism industry, in contrast to the strong manufacturing exports and booming tourism industry which have made our neighbors more successful than we are.

One of the significant points raised in the paper of the UP economists was the size of the national-government deficit between 1993 and 2003. The data show that between 1993 and 1998, that deficit was modest (which President Ramos achieved by selling the family jewels like Petron, National Steel, and Fort Bonifacio).

It was under President Estrada and President Arroyo, both of whom had no more jewels to sell that anybody wanted to buy, that the deficit grew and grew and grew, reaching its highest level in 2002, under the stewardship of Arroyo and the Poster Boy of her Cabinet then, Finance Secretary Jose Isidro Camacho, for which both should apologize.

Camacho, who was directly in charge of keeping expenses down and revenues up � at both of which he failed � was quoted in media (
Inquirer, Aug. 25) as saying: �How can I not agree (with President Arroyo, that we are in the midst of a fiscal crisis) when I said it myself (last year).�

Was he expecting a reward for his prescience? He is like a house-owner who neglected his leaky water tank, accumulated more and more unpaid bills with water vendors, turned on all the taps, and then warns that his household will soon run out of water.

President Arroyo may now admit, if only to herself, that her blind embrace of free trade and globalization, inherited from President Ramos who started it in his watch, has been a disaster for this country. The millions of jobs lost in manufacturing and agriculture, the thousands of producers forced to close, the decision of some multinational companies to stop or reduce their industrial activities here in favor of just importing their products from their other Southeast Asian facilities��..are due to free trade and globalization and the resultant flood of imports that have inundated our economy.

And this has not been compensated for to the same degree by any surge in other sectors of the economy where we supposedly have a comparative advantage. Except in the export of manpower. But even that must be considered a net loss since it has resulted in weaker family ties as well as in the loss of many of our best public and private school teachers, our best doctors and nurses, our best engineers and accountants��whose negative impact on our society will be felt most by future generations.

Neither her Medium Term Development Plan nor her 10-Point Legacy mentions anything about developing broad-based manufacturing industries as generators of jobs and taxes � which our neighbors developed in the 1970s and 1980s and became the basis of their prosperity. Instead she chose to focus almost exclusively on agriculture.

During my one-on-one with her in September 2001, I pointed out that one hectare of agricultural land, when planted to rice or corn, cannot sustain even one family for even one year. But if converted into a manufacturing zone, that one hectare can sustain several hundred families. Her answer merely side-stepped the issue: �The debate between agriculture and manufacturing is a 19th century debate,� she sniffed.

Such haughty disdain shows President Arroyo�s ideological bias against manufacturing and her continuing commitment to free trade and globalization, under which this country has apparently been crossed out as a manufacturing country and has instead been assigned the role of exporting its skilled and semi-skilled manpower to do the dirty menial work in the developed countries.

President Arroyo (and former President Ramos) should both apologize for having led us down this foolish path to self-destruction. *****

The bulk of this article appears in the September 04, 2004 issue of the Philippines Free Press magazine.


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Reactions to �GMA Should Apologize�


I agree wholeheartedly that the government may or is not doing enough to cut the fat. However, let us focus on the here and the now because we can not undo what was done days, weeks, months and years ago. I appreciate your insights and conside your articles very evenhanded and fair.

jojo vicencio, [email protected]
August 30, 2004

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Dear Tony,

Thank you for sending me your commentaries, more power.

The biggest problem, if I may say so, is our policy and institutional frameworks are locked in discredited strategies, systems and procedures that have bedeviled every administration since the end of WW II.

Imagine, for instance, if the Philippines were chosen to host the Summer Olympics like Greece. Do you think we would finish the infrastructure needed in 10 years? Our way of life has been handicapped by our own stupidity - consider how the funds would be released by DBM, the public biddings to be held, the legal protests of losing bidders, the TROs to be issued by stupid judges, etc.

The systems and procedures in place supposed to ensure transparency and level field are actually suffocating the nation. The losses from these systems and procedures are much greater than if government contracts were negotiated with three (3) bidders thoroughly vetted and tested to be most qualified for a given contract.

In most instances, the most troublesome are bidders who believe their connections with the powers-that-be are enough to win contracts, never mind if they don't have the resources, experience and expertise for a given job.

Please think about this, regards.     

Frank Wenceslao, [email protected]
August 30, 2004

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Dear Mr. Acabaya,

Are we really have a budget deficit or simply because they over compute the
budget.?

As many said most of the budget goes on corruption, instead in projecst it
goes to the pockets.

Transparancy is the best so everybody can know where and how all those
budget were being spent. Why when we talk about transparancy deadma lang ang
politicans, dahil doon sila kumikita kung walang transparancy.
We know the root of the problem at yon ay sa corruption, corrupt staff of
BIR, politician at mandarayang negosyante of course kasabwat ang BIR. Gusto
nila gamutin ang sakit ng ulo sa pamamgitan ng pag-inom ng gamot sa sipon. 
I mean why do we need to put additional tax e ang kailangan lang natin e
alisin lahat ng bulok sa BIR at iba pang sangay ng gobierno.

May malalang sakit ang gobierno e bakit gagamutin natin e mamayan. At saka
please let us not panic sa pagtaas ng gasolina, sa lahat ng mundo kahit dito sa arab countries
tumataas din ang gasolina.  And beside bumaba naman uli.

For the mean time habang kulang ang budget , unahin muna nilang gastusan ang
importante at kailangang kilangan.

Tungkol naman sa tax instead na koryente taasan at gasolina taasan na lang
ang sigarilyo at alak. Anyway humina man ang sale ng product ng mga ito ok
lang hindi naman marunong magbayad ng tax si Lucio Tan ng tama.

Linisin ang BIR at Commision on audit, ibitay ang salaula sa bayan bago tayo
ang patayin ng mga iyan sa hirap.

Gobierno ang may sakit sila una ang gamutin para hindi mahawa ang mamayan.

Anyway as an OCW I'm willing na ibalik ang tax sa amin kung yon ay
makakatulong at kung maari i-allocate nila yon sa enerhiya natin para hindi
na nila taasan ang koryente na isa sa basic need ng tao at negosyong
tumatakbo.

Ang isa pa kailangan itaas natin ang value ng peso, isa yan sa reason na
kaya tayo hirap walang value na pera natin. Dont let the market dictate it ,
dito sa abroad 15 years na ako mahigit hindi gumalaw ang exchange rate dito,
the government dictate it. It doent mean kung mataas ang monetary value ng
isang bansa e hindi na competitivesa export market, why U.S. ,Japan at
europe.

Are we realy have a good economist and managers? or kulang na tayo sa
kaalaman.

At higit po sa lahat tigilan muna natin ang ingay, tulad ng ingay ng mga
mababatas, ingay sa kalsada ng mga nagproprotesta, ingay ng baril; sanhi sa
labanan ng military, MILF at NPA. ingay ng sasakyan huwag gamitin ng hindi
kailangan lalo na yong mga sasakyan mallakas kumain ng gasolina. Let us give
chance for peace. Mahirap bang gawin ito???

Sinubukan na natin ang lahat ng gulo sa pilipinas kasama na kudeta pero it
dont help us and it dont work. PLEASE SUBUKAN NAMAN NATIN ANG KATAHIMIKAN AT
PAGKAKAISA. HINDI PA NATIN ITO SINUSUBUKAN. MANAWAGAN NAMN KAYO SIR, PATI NA  MILITARY, NPA AT MILF, SIMBAHAN , GOBIERNO, MAMAMAYAN ESTUDYANTE, MAMAHAYAG, NEGOSYANTE, MAHIRAP MAN O MAYAMAN. KATAHIMIKAN NAMAN ANG IBULONG NATIN SA  LAHAT.

GUSTO BA NATIN ANG MASAGANANG ANG PAMUMUHAY, TULAD NG ISANG BAHAY KAILANGAN TAHIMIK UPANG MAISAAYOS ANG LAHAT.

Alexander Carranceja, [email protected]
August 30, 2004

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Thanks for interesting view on the "great event".  Not exactly any good example for the millions of ordinary people who have to tighten their belts in order to prevail...

The power of the example is great, and even more heavy when shown by the leaders. 

But Tony, do you know if Vicky Toh was there too???
I'm just tsismoso *LOL*

Greetings,

Rolf V. Olsen, [email protected]
Norway, August 30, 2004

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That was a great article. I have for sometime been telling people that Ramos destroyed our industries by giving in too much on tariffs because he was in front rather than in the background. As a result the Philippines had no capability for negotiating what Ramos already gave away.

Manoi Alcuaz, [email protected]
August 30, 2004

However, are apologies enough for the damage they have done to our poor country?

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(Forwarded)

Dear Freddie,

What do you think about Tony A's latest on GMA's philiosophy on
industrialization vs agriculture?

I think Tony is right. You cannot feed a family on a hectare of rice but a
hectare of manufacturing can feed hundreds.

I suspect GMA is still wallowing in the fact that she had two (2) Ph. D.
degrees in Economics.

You cannot feed a hungry nation on two useless doctorate degrees. You have
to be realistic and practical!

I believe GMA has the disease that afflicts many Filipinos: Forma.

Frank Jimenez, [email protected]
West Orange, NJ, August 30, 2004

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I totally agree with you that it is the mismanagement and lack of complete understanding of the implications of globalization and free trade that have contributed to the dismal state of the Philippine economy. And I do not see any enlightenment from our leaders on what is to done, what policies and strategies to implement that will solve our woes nor any true will to do so. Add to this that all the branches of government have become dysfuntional.  Sad to say, I just see a continuing spiral down the abyss...with pallatives that dont really work such as the number, este the color coding scheme..etc. etc.

Nonoy Yulo, [email protected]
August 31, 2004

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Dear Mr. Abaya,

If you are right and I think you are, GMA should at least explain, if not
apologize, if only to set the communication lines in the proper perspective.

From the grand celebration of  Mike Arroyo's birthday party to the very
frugal merienda at Malacanang exhibits a major policy shift in so short a
time.   This strange actuation calls to mind the several "pulong bayan" she
initiated right after assuming her new six-year term, which I also find
strange.  I expected her to roll up her sleeves right after election, but
instead she went around to ask people what they want. Were these meetings
really necessary?  Surely, after three years in office, one would know
exactly what the problems and priorities are.    What bothers me is this: 
is she acting like a panic-stricken owner of a burning house, or is she
trying to show that she is doing something?

Yours truly,
Virgilio Leynes, [email protected]
September 01, 2004

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It�s enough if she puts her money where her mouth is.

She won't apologize. All I expect is for her to provide leadership by example. But even that isn't forthcoming. Already her trip to China shows how we ought to regard her preachings and injunction to all to live austere, simple lives.

It's downhill all the way from here on.

Vicente C. de Jesus, [email protected]
September 02, 2004

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