INTRODUCTION
We meet today in the environment of a global economy that is changing with breath-taking speed. We do our best to make sense of passing events and to turn them to our best advantage.

Ten years ago, nobody had heard of AFTA, WTO, APEC, NAFTA and the rest of this new alphabet soup of acronyms. They have set into motion an irreversible trend that will continue well into the 21st century, posing serious threats to the survival of complacent and inefficient enterprises, and even nations, that once relied heavily on import restrictions and high tariff walls for protection.

On the other hand, there are those dynamic and productive firms, led by visionary leaders, that look at these same developments in terms of opportunities to be seized. They see the huge market potential and the corresponding access made easier by innovative trade and investment pacts. They accept the challenge of developing the comparative advantage needed to win in global competition.

These progressive companies identify clearly who their target customers are and what these customers need, then proceed to develop products and services that consistently satisfy what customers need.

For far too many years, our economy suffered because our capitalists and managers — indeed, government itself — fell prey to the illusion that protection of certain industries was the key to growth. A few business cartels and families did flourish — but the rest of our people languished in the mire of inefficiency and fractious partisan politics.
REFORMS UNDER THE RAMOS PRESIDENCY
As your president, I made up my mind on day one of my administration to reverse these errors of the past. I implemented several basic policy changes, some of which had been initiated by the previous administration:

* We enacted in the last five (5) years, 162 new laws, 65 in economic reform, 58 in social reform, and 39 in political reform.

* Through extensive privatization, we intensified the effort to take government out of businesses that were better left to the private sector.

* We continued tariff reforms to reduce input costs and inflation and spur local enterprises to become more competitive against imports.

* We liberalized foreign-exchange regulations and let the market determine the peso-dollar exchange rate through the Philippine dealing system.

* We offered better incentives for both local and foreign investors, thus improving the investment climate.

* We liberalized key industries like banking, telecommunications, air transport and shipping, among others, thus effectively dismantling their monopolistic or cartelized mechanism. We invited more players to increase competition, improve services, and being down prices — all to the benefit of our people.

* We accelerated the devolution of authority and resources to local governments units (LGUs) and encouraged them to take their own initiatives in local development and entrepreneurship many responded quickly and enthusiastically.

* Under the PEZA Law, we identified and are developing some 65 key investment and growth centers in our sixteen (16) administrative regions throughout the country where our limited resources could be concentrated for greater effectiveness.

* We paid more attention to export development and promotion, focusing on these key industries and products for which we currently enjoy, or can develop, the required competitive advantage.

* We joined the mainstream of international trade by ratifying the GATT Uruguay Round and joining the World Trade Organization, by hosting last year’s meeting of heads of APEC economies, and by participating actively in the implementation of the ASEAN Free-Trade Agreement.

* We intensified the process of extricating government from business activities best left to the private sector. This massive privatization has resulted in the transformation of non-performing government-owned or controlled assets into productive and competitive enterprises.

Through the fund inflows from privatization efforts and through judicious management of government expenditures, we have reversed the chronic decades-long deficit position of government finances and have been enjoying since 1994 a consolidated public-sector surplus.
MOBILIZING THE PRIVATE SECTOR
We have been able to effectively mobilize the private sector, to gather their support and commitment, to contribute significantly to infrastructure investment through an expanded build-operate-transfer program that is recognized internationally as a successful model.

Knowing that development cannot endure without peace, we pushed forward the peace process with the Reform the Armed Forces Movement/Soldiers of the Filipino People/Young Officers Union (RAM/SFP/YOU) and the Moro National Liberation Front (MNLF), ending the bloody armed conflicts with these two groups. We are pursuing negotiations with the two remaining sources of armed rebellion: the National Democratic Front/New People’s Army (NDF/NPA) and the Moro Islamic liberation front (MILF).

Our most important partner in these endeavors, has been the private sector itself. Two specific steps we have undertaken should reinforce this partnership even further:

First, we initiated the formulation of the national action agenda for productivity. The agenda serves as the blueprint for the country’s integrated approach to productivity, which will be the key to the country’s bid to “pole-vault” into the 21st century.

The agenda was a joint undertaking between the private sector and government, defining objectives, strategies and action plans that delineate the roles of each while at the same time coordinating them.

The agenda considers the public sector as supportive of private production in increasing total factor productivity. As policy-maker, the government is responsible for providing the environment that will facilitate:

A) the accumulation of capital;

B) the promotion of research and development (R&D) and science and technology (S&T) applications;

C) the enhancement of human resource development (HRD); and

D) international competitiveness of domestic enterprises.

Second, we are supporting the creation of the Philippine Quality Award (PQA). Based on the criteria and assessment process of the internationally-accepted Malcolm Baldridge National Quality Award of the USA, the PQA will provide Philippine enterprises with a set of standards similar to those against which the world’s leading organizations are measuring their business quality performance.

In our nation’s drive toward global competitiveness, this award shall serve as the highest level of national recognition for outstanding overall organizational performance — and not just profitability.

Just three weeks ago, on October 3, I signed Executive Order 448 “Establishing the Philippine Quality Award and Creating the Philippine Quality Award Committee”. The order provides for platinum, gold, silver, and bronze awards to be given for excellence, mastery, proficiency and commitment, respectively, in the promotion and practice of quality.
KEEPING OUR FOCUS
Let me end on a note of challenge to all of you. I am aware that some of you are tempted to throw up your arms in despair because of the economic storm that we are going through.

But do you remember what condition the economy was in, because of political instability, during the years 1983 to 1991?

Even the severest trials need not cause the collapse of a country that has its priorities and values right.

Indeed, we are facing some serious economic challenges — but tell me who is not. If you think I like it that this happened on my watch, think again — for we have been fighting the poverty of Filipino families and the Filipino nation itself with strategic laws and people empowerment projects, involving the entire range of immediate, short-term, mid-range and 21st century pole-vaulting plans, programs and projects — in the global, national and barangay arenas.

The important fact to remember is that we are in a strong position to ride out these temporary difficulties, to surmount these challenges, and to move forward steadily to achieve growth with equity.

The examples of Japan, Germany, South Korea, Israel and Singapore, among others, show us that a nation will progress and prosper, in spite of the adversities of war, civil unrest, rebellion, and colonization, if its people are united in achieving clearly defined national objectives. All these crises we have undergone — and all these hardships Filipinos have overcome.

A common characteristic among the nations cited is their business enterprises exerted their energies to be competitive in those areas where they enjoyed a potential comparative advantage.

They identified their strengths and based their competitive strategies their comparative advantages. They did not limit themselves to their domestic markets. They improved their capability to produce high-quality products at competitive costs and prices and with consistently reliable delivery, and then went out to international markets. In short, quality and productivity were at the very core of their plans and efforts.

Your theme of this 16th National Quality and Productivity Congress: “Fast-tracking Global Competitiveness Through Quality and Productivity” follows the tested path to economic progress. Our enterprises should certainly do plenty of fast-tracking, and even pole-vaulting, if we are to catch up with our vigorous neighbors.
CLOSING
We can learn much from the experiences of others and, certainly, from our own past mistakes. Let us therefore press on and do the right thing — by ourselves, for our people, and for the future of this great nation.

I wish you all success in the pursuit of the higher mission of transforming your respective enterprises. Given enough motivation and inspiration, we Filipinos can stand toe to toe with the world’s best. If we believe we can, we will. Kaya natin ito! Kaya ito ng Pinoy!!

Mabuhay ang Pilipinas!

Maraming salamat at mabuhay tayong lahat!