Speech
of
His Excellency Fidel V. Ramos
President of the Philippines
At the opening of the 6th Asian Retailers’ Convention and Exhibition

Delivered at the Philippine International Convention Ceneter, Roxas Boulevard, Manila, October 6, 1993]

Asia’s vigorous markets

TODAY as we meet here in Manila, similar region-wide forums are also taking place in other Asian capitals. Virtually no week, no month and certainly no year passes by in which our regional associations—public and private—do not meet to consult and fine-tune their cooperative undertakings.

Today, the winds of change are blowing all over Asia—away from war and toward peace, away from the old insecurities and toward a new confidence in a better future. The Cold War is behind us; the deep-seated conflict in Cambodia has recently been resolved.

As peace and stability have arisen among us, economic progress has swept through our continent on a scale we have not seen before.

A time of cooperation

If this great tide of change is upon us, I submit that this is partially because we Asians are finally learning to live with one another. By that I mean not merely tolerating each other’s diversities but also living in active cooperation and pursuit of shared purposes.

Cooperation has seen us through the worst of natural and man-made catastrophes. Cooperation will also enable us to realize the great promise of progress to Asia in our time.

Already, Asia is the fastest-growing region in the world today. During the last ten years alone, economic progress has been rippling over in a positive chain reaction that is changing the face of all our countries.

One reason for this is internal. The countries that have progressed the most are those that set aside divisive partisan politics and consecrated themselves single-mindedly to the tasks of modernization and development. They have boldly embraced new market-oriented policies and resolutely implemented them. They have opened their doors to investments and trade. And they have invested heavily in their human resources.

But there is also another reason. And that is their resolve to link themselves to the global economy and to the economic fortunes of neighbors.

Economic synergy

Economic interdependence has bound separate nation-states together and reconciled even the most bitter enemies. Against the gravitational pull of mutual economic benefits, nationalist ideologies have given way to economic cooperation and synergy.

To progress, we have all come to recognize the importance of trade and investments freely cutting our cherished borders. To progress, we have also come to realize that we Asians must mold ourselves into a cohesive economic bloc in the world.

Today we see an increase in trade among the Asian nations involving agricultural and industrial products, technology transfer and exchange of human resources skills. Not long ago, Asian products could find their way only into small Oriental stores in the United States and Europe. Now they are steadily creating their own niche in the international market. Today, Asian products are displayed in the largest department stores and are making waves in international expositions all over the world.

Not long ago, our countries did their trade mainly with the Western countries and Japan. Today, we are doing more trade with one another here in Asia—such that what one country produces is sold in other countries. The high level of intra-Asian trade is clearly one of the most important factors in Asia’s rise to economic pre-eminence.

For this phenomenon, we must of course give credit to the economic planners and captains of industry of our respective countries. But equally, these economic miracles have been brought to birth by your community—the Asian retailers and entrepreneurs who have turned the entire continent into a vigorous market.

The role of retailers

In our quest for economic growth, you who are in the marketplace are the main catalysts. You who are directly in contact with the consumers play a vital role in promoting economic growth in your respective countries and throughout the region. As retailers, you determine the market forces. Economics dictates that the seller’s products are only good on the day they are sold to the consumers. And the continuous process of trade is ensured only if the seller’s products are patronized.

As this convention addresses the theme of “Retailing Opportunities into the Twenty-first Century,” we speak of the indispensable role of retailing as a catalyst of production and trade. As members of your respective national retail associations, you are vital links in the manufacturer-consumer chain. At the same time, as members of the Federation of Asian Retailers’ Association, you serve as a key bridge between Asian manufacturers and world buyers.

It is in this light that you must plan for the year 2000 and beyond. You must take stock of all that is abuilding in Asia today, of the exponential growth in productivity that is certain to happen during the balance of the twentieth century. And then you must formulate and implement a blueprint for the promotion and development of the retail industry in Asia.

In turn, we in Government must focus full attention and needed support to create a more conducive climate for expanded trade. All of us throughout the Asia-Pacific region ought to give our undivided support to our respective retail associations and include on the economic agenda the passing of liberal trade policies geared to enhance business opportunities.

Increased trade will benefit all. None of us should fear that the greater traffic of Asian products in our respective markets will diminish our respective changes to modernize and industrialize. Economic competition is not a zero-sum game in which one side wins what the other loses. In economic competition, everybody wins, and even the relative loser ends up richer than when he started.

The AFTA scheme

It is in this light that we in the Association of Southeast Asian Nations today have committed ourselves to creating AFTA—the ASEAN Free Trade Area. Over a period of 15 years, we envision a free-trade area in our region that will cover a wide range of goods and services.

AFTA will complete our efforts at economic unification designed to give our six countries the cultural variety, the talent pool, the business clout, the technological resilience and the attractiveness to investors required for us to become a major player in the global economy.

We in ASEAN do not see business competition as preventing economic cooperation. Indeed, we see cooperation as imperative.

For much the same reason, the whole of Asia has no reason to erect tariff walls for protection. It should not fear competition.

Regarding APEC (Asia-Pacific Economic Cooperation), I have stated on many occasions, the most recent being my letter of October 2nd to U.S. President Bill Clinton, the Philippine position as follows:

“Here in the Philippines, we are working to strengthen our democracy and the rule of law, while . . . restructuring an oligarchic economy left over from the past, not by returning to authoritarianism but by democratizing our economy and empowering ordinary people with equal opportunities and better capabilities to participate in nation building.

“And we realize our efforts to put our house in order and open up our economy can succeed only in the context of a global free-market system—a world without artificial barriers to trade, where people can produce, build, and progress together in harmony and tranquility.”

For his part, President Clinton wrote to me beforehand:

“Over the past two decades, the Asia-Pacific region has undergone historic economic transformation, APEC members now account for nearly half of the world’s output and most of the fastest-growing economies. In light of this, I believe it would be highly useful for leaders to come together just after the APEC ministerial conference to discuss the economic challenges and opportunities that the region faces as we enter the twenty-first century.”

The Philippine vision

In the Philippines, this need for open doors and less-and-less government intervention has been a long time coining. This Administration has addressed this need decisively.

Today, basic structural reforms are in place, and many more are on the way. At long last, we have begun democratizing the national economy.

Our reforms allow the wider participation of foreign investment in nearly every aspect of the economy, including commercial banking. We have freed all foreign-exchange transactions in the country. Over a five-year period tariffs on a wider range of products from many countries, including our Asian neighbors, are being brought down.

We are currently reviewing our taxation system to allow industries to come up with more socialized pricing schemes for their products. We have spearheaded dialogues and conducted consultations with the banking community to dovetail their credit policies with our concept of liberalized lending.

We have implemented the Magna Carta for small and medium enterprises with an active guarantee and financial back-up system. And we are now on the way to completely licking the power shortage that has prevented us from fully taking advantage of our opportunities.

All these are part of what we call “Philippines 2000″—our national strategy for sustained development over the next six years.

We, too, are looking forward to joining the ranks of the newly industrializing countries by the year 2000. We want to become part of the great Asian economic miracle.

To this effort, let me say now, the Philippine Retailers’ Association will have much to contribute. And it is already a measure of the Association’s commitment that it has ventured to host this convention and exhibition of Asian retailers here in Manila.

I now challenge the Filipino retailers here to immediately formulate their own plan to support “Philippines 2000.”

Winning the future

Ladies and gentlemen, meeting the challenge of the twenty-first century will not be easy—for our individual countries and for Asia as a whole. We are truly a continent on the march, but the rest of the world will surely also be on the move.

For us in Asia this is a time for opportunity. We must seize the moment. Working individually and at cross purposes, we will not achieve very much; indeed, we will likely fall behind other regions. Working together, we can redeem the promise of progress for Asia’s peoples.

Here in your Federation of Asian Retailers’ Associations, I am confident that you will do all to help redeem this promise of the future. I am certain that your Federation is more than capable of addressing the demands of the dawning new century.

Already, through this convention and exhibition, we can see how your Association can collectively pursue programs that promote economic growth in the region. Though from diverse cultural backgrounds, you are united and have remained united, bound by the quest for excellence.

I will end by saying here what I have said repeatedly to all my countrymen and to all my hosts in my travels through Asia: for Asians today, I believe nothing is impossible. We are industrious, we possess a high degree of creativity and innovativeness. We are resourceful and resilient, and we are all Asians, brother to one another, and we now know it!

Finally, take a new look at the Philippines. We are back in business, in the center of Asia and the Pacific, with a fresh posture of stability, dependability and solidarity.

Again to all of you, welcome to Manila. May you have a pleasant stay and a most fruitful conference.