By George F. Lee, Star-Bulletin
Philippine Vice President Gloria Macapagal-Arroyo
says her country's economy is one of the
brighter spots in Asia
Philippine VP
urges investing
in her country
Despite the Asian economic crisis,
By Susan Kreifels
the Philippines has seen its exports
reach record highs
Star-BulletinIf there's any silver lining on the Asian economic crisis, the Philippines vice president says it's shining on her country.
The Philippines had been the "sick man" of Asian economies. But it has already suffered the pain of economic reform, often at criticism for accepting the demands imposed by the International Monetary Fund. And it's paid off.
"We have a cold while our neighbors are experiencing the flu," said Gloria Macapagal-Arroyo, on a two-day unofficial visit here to promote investment in the Philippines.
"We had to swallow the bitter pill of reform while the others were spoiled by protectionism. The Asian crisis, in a way, was a blessing to the Philippines. It's shown we have the fundamentals in place and it's a good place to invest."
The country has not gone unscathed by the crisis. The peso has lost about 45 percent of its value, unemployment is about 14 percent, and interest rates have soared. Taxable income has fallen, and the foreign debt of $45 billion eats up $6 billion a year in interest and principal.
Still, the Philippines showed slight economic growth during the first quarter of this year while other Asian economies were virtually collapsing, she said, and Philippine exports continue to hit record highs.
Philippine President Joseph Estrada, recently elected on a promise to help the poor, has focused on providing cheaper food and housing for Filipinos. One way for the cash-strapped government to pay the bill is by floating a $1 billion bond, Macapagal-Arroyo said.
The vice president, who will speak at a lunch today at the Ala Moana Hotel, said Estrada's initiatives provide fertile ground for Hawaii businesses, and she encouraged them to attend a trade mission to her country in November. The lunch is sponsored by the Filipino Chamber of Commerce of Hawaii and the state's Department of Business, Economic Development and Tourism.
She said Estrada has also given urgency to a measure that would allow 100 percent foreign ownership in the retail trade.
On the Asian crisis, Macapagal-Arroyo said IMF reforms, which have been criticized by some as no longer appropriate, in the long run helped her country. But she added that new and easier reforms should be sought to replace painful steps, such as raising interest rates, that discourage business.
And she said new policies must be developed to temper "unbridled globalization" and protect countries from threats like huge transfers of money from one place to another.
Other Asian countries have balked at reform and free-market policies. Prime Minister Mahathir Mohamad of Malaysia recently imposed currency controls and cut loan rates to boost the recession-plagued economy there.
Macapagal-Arroyo, an economist, said Malaysia is "worth watching. If he succeeds, this can apply to other Asian countries...If he doesn't succeed, he does the world a favor by learning from him."
On U.S.-Philippine relations, the vice president believes the Philippine Senate will ratify a pact that will pave the way for resumed military exercises between the two countries. The Senate in 1991 tossed out the U.S. bases there.
Opponents fear the pact would allow the United States to bring nuclear weapons into their country. They also want legal jurisdiction over any crimes committed by U.S. military members while there.
But she said the majority of Filipinos want closer ties with the United States. Senators will look at the pact to make sure "there's no greater surrender of sovereignty in the Philippines than the rest of Asia."
Macapagal-Arroyo said polls show Estrada still enjoys wide popularity and trust 10 weeks into office.
She was a strong contender for president herself. A former senator, she garnered a record number of votes in the upper house while there.
The vice president is the daughter of the late Philippine President Diosdado Macapagal, who served before deceased Ferdinand Marcos.
She and her 82-year-old mother will make a "sentimental visit" today at the Kahala Mandarin Oriental Hawaii. Her father stayed there in 1964 during a state visit to the United States.
Clinton scandal is
By Susan Kreifels
merely ‘much ado’ for
many in Philippines
Star-BulletinIn a country that recently elected as leader a self-confessed womanizer, many Filipinos believe Bill Clinton, like any president, is "entitled to his private life."
"People will judge a president as a public servant by how he behaves in his public office and duty to people," said Philippines Vice President Gloria Macapagal-Arroyo, who was Clinton's classmate at Georgetown University during 1964-66.
While America ponders whether Clinton should be impeached for allegations stemming from an affair with former White House intern Monica Lewinsky, Macapagal-Arroyo said she and many Filipinos think the attention is "much ado."
"I personally think he should finish his presidency," said the vice president, who has met with Clinton several times since he took office. But she stressed that she didn't want to dwell on U.S. domestic matters.
"The American people should get on with the economy, which has been doing quite well. You should be proud (of it), and with your role of helping provide security and peace."
She said she believes many Europeans, Americans and Filipinos share her view.
Her country just elected the former swashbuckling actor Joseph Estrada as president. Estrada has admitted his womanizing and heavy drinking of the past but said that he's reformed. News reports there say he has fathered seven children with five different women out of wedlock. Still, he enjoyed a landslide victory.
"As President Estrada said, a president is entitled to his private life," Macapagal-Arroyo said. "This reflects the attitude of many Filipinos."
Estrada has been quoted as saying "Clinton has the scandals, but I have the sex."
Macapagal-Arroyo said Filipinos have an "idle curiosity" about Clinton's affair -- like they do about the lives of Filipino movie stars or Great Britain's Princess Diana, who died last year. But they have too many other things on their minds, "like making sure the economy stays afloat."
