Speech
of
His Excellency Fidel V. Ramos
President of the Philippines
On Ulat sa Bayan

[Delivered in Malacañang, January 2, 1997]

Faith in ourselves,
faith in the future

I SPEAK to you today—just one day after our celebration of New Year’s Day—because I know you would want to be informed of the labors and initiatives your Government will undertake in the new year. As in our personal lives we should not waste any time in carrying out our resolutions, so must we as a nation not tarry in acting on our resolves.

Our national spirit was forged by a ceaseless struggle for freedom, and when we Filipinos rose against our colonial masters and became a nation by our own aspiration and proclamation one hundred years ago.

Three days ago, we recalled that spirit when we marked the centenary of the martyrdom of Dr. Jose P. Rizal. Its recollection raised our sights once again on the nation we want to be—and will become.

Where we are today

Just 17 months and 10 days from now, we shall be marking the first centennial of independence. I believe 1996 will stand in our national annals as a time when we mastered the test of nationhood and met the challenge of development.

Our 70 million people—Christians, Muslims and indigenous peoples—are finally gathered under the single roof of our Republic.

When we sealed the peace agreement between Government and the Moro National Liberation Front, we did not merely end 25 years of separatist conflict in our southern regions. We ended the estrangement of our Muslim peoples from the national community.

This past year, we could say we have progressed from the point of takeoff toward sustainable development.

Economic growth is no longer a momentary event in our economic fortunes. It represents a basic change in national capacity—which for years to come will signify a more competitive economy and a more equitable society.

And finally, this past year, we truly won the respect and admiration of the world. In previous times, we Filipinos had astounded the world with feats of valor and of community—as at EDSA, when we showed other captive peoples the way toward democratic revolution in our time. Yet even that achievement did not lead to confidence that we Filipinos could master the challenge of organizing progress.

A great deal more to do

Today we have finally earned that confidence of the community of nations. As many world leaders have noted, we Filipinos have proved that development in the Asia-Pacific can take place under a democratic system.

But significant as this record has been so far, we have not reached the point where we can sit back and relax. Much has been done—but there is a great deal more to do.

So today I shall point the nation to the problems that remain and the challenges that even now press on our door.

Years ago, the malaise of national life was a sense of defeatism and pessimism that made national undertakings futile—even before we started them.

Today we must guard against a shallow optimism that believes all will now become well automatically; that we can just drift along with the tide to where we want to go.

Complacency will not serve us in facing the problems still ahead and the challenges posed by today’s world.

Some 33 percent of all Filipinos still can barely eke out a living; and many more must squat if they are to have a roof over their heads.

We are an open society where some still live in fear in their homes and in public places.

And we are a democracy that still must strengthen its institutions and refine its processes, so that ordinary people are truly empowered; and take part in making the decisions that shape their lives.

Abroad we face a world made smaller by the advances of science and technology Just as in life there is no free lunch, so are there no free rides in the global economy.

We get no more no less than we work and pay for.

Government has the responsibility of leading the way in meeting these challenges. But Government will get nowhere unless we all pull together—citizens no less than our institutions; our private sector no less than the public sector.

This is also the time to make demands on ourselves—to ask what we can do to contribute to the common life. Most of the time, we citizens speak of rights. This is also the time to speak of duty—as members of families, of communities and of a free society.

Give the best of what is in us

The details of what we have done and still must do are contained in the documented technical report that constitutes the bulk of my report. And they are there for all to see.

If we are to get the best for ourselves, then we must also give the best of what is in us. All must enlist in the task of national strengthening.

The first area for national strengthening is peace, public safety and security—where we now have the chance to build on major gains made during 1996. Peace and order are the first pillar of national regeneration.

All the progress we made on the economic and social fronts we have achieved because we stilled the guns of conflict and contained the forces of disorder in national society. And this we have done by extending the hand of peace to the disaffected; and by strengthening the rule of law against the criminally inclined.

We must also continue to pursue peace negotiations with the Communist Party and its representatives. Although the talks have proved difficult, I remain steadfast in the belief that agreement can—and will—be found. And I believe our communist brothers—like the military rebels and the southern separatists—will yet find their rightful place in civil society.

A war of attrition against crime

A different order of challenge is the threat posed by crime to national society—a challenge which must be met not by conciliation but by competent law enforcement and administration. Civil society has been lacerated by crime these past years. If there is one area in which the word “war” is appropriate, it is in our fight against crime.

The encouraging thing is that finally our efforts are beginning to tell—not only on the crime index, but on the level of public support for law enforcers. When the secretary of the Interior and Local Government is ranked the highest in approval ratings among members of the Cabinet, that surely is a sign Government is on the right track, and that we should intensify our efforts to support and strengthen the work of our national police.

The fight against crime is a war of attrition. But no one should doubt that—when the dust has settled—the law will be left standing.

The most important factor in conciliating rebel groups and in containing crime in society is no longer the matter of ideology but equal opportunity for ordinary people to be given their just share of jobs, justice and joy. So the success of the economy is central to our hopes.

National economic performance in the first three quarters of 1996 suggests we should hit 7 percent or a little more in the gross national product growth for the entire year. And gross domestic product growth will stand just a little less, at around 6.5 percent.

The key indicators speak for themselves

What is most encouraging is the fact of steady expansion. From nearly zero growth when we began in 1992, we have added—year by year—to national productivity and performance. Now we are reaching the high levels of growth which most of our vigorous neighbors have known for over a decade—and where we in our turn will strive to stay.

This is achievable—because we have proved our competence in fiscal and monetary management. And we have also unleashed the enterprise and creativity of our private sector.

The key indicators speak for themselves.

Inflation was at 8.7 percent for the first eleven months of the year. In September it was recorded at 4.4 percent—the lowest since 1992.

Interest rates—as measured by 91-day Treasury bills—averaged 12.4 percent from January to November 1996—nearly four percentage points lower than the level for the same period last year.

Exchange rates remained stable—with fluctuations in the peso-dollar rate hovering within a band of 13 centavos—compared with 95 centavos in 1995.

At a time export growth is declining in other countries, our exports continued to grow by 16.7 percent for the first 10 months of 1996. Our gross international reserves reached a record $11.6 billion in November.

Unemployment for the first three quarters of 1996 fell to 8.9 percent—the lowest since 1992.

Agriculture, which still constitutes the bulk of our economy, grew by 4.2 percent during the first nine months of 1996, compared with 1.8 percent during the same period last year.

Our infrastructure gap continues to close. Through the flagship system, we fast-tracked the implementation of critical public investments and focused strategic infrastructure projects within and between growth centers. And our build-operate-transfer scheme in infrastructure development has become a model for other countries with huge infrastructure requirements but limited resources.

These developments—taken together— constitute a powerful stimulus for continued progress. But we must match opportunity with effort, and manage with skill and efficiency.

As I have done throughout my presidency, I exhort our private sector—especially the growing middle class—to provide the engine of our sustained growth.

Investing in people

Time and again, we have heard it said that growth does not reach the poor and the underprivileged among us. And the argument is based on the fact that millions still live in poverty and deprivation in our country.

We cannot argue with the numbers—for many Filipinos are indeed still poor. But we can argue with the perception that growth is not touching the lives of more and more of them; or that we are not using a proper share of our resources for the welfare and advancement of the disadvantaged.

Growth does not take place in a vacuum. New and productive enterprises require the labor of many. The cost of public works projects is borne by ordinary citizens. And when development spreads—as it has—from Metro Manila to the 15 other regions in the countryside, that signals the entry of more and more communities into the circle of growth.

Above all, we have been most aggressive in responding to the idea that to sustain growth we must invest in our people.

The most important investments we make are those we devote to the education and health of our young Filipinos.

Our Social Reform Agenda is grounded on this strategic role of human development. It acknowledges the tremendous contribution of our human resources to economic growth. And it recognizes the even greater role they can play if we succeed in training all our millions of human assets for economic productivity and self-reliance.

Thus we must give great emphasis to our programs for the disadvantaged. The objective should be not only to provide them with a safety net—whose effects can never be lasting—but to provide them with jobs and livelihoods, training and credit—which enable citizens to make a living for themselves and their families.

A culture of self-reliance

The Philippines is not a welfare state; and as a people we are reared in a culture of self-reliance. It is Government’s duty to build on this sense of personal responsibility by striving to help every citizen help himself.

Thus, along with our education and health programs, we are carrying antipoverty interventions in targeted areas through the minimum basic-needs approach. Our programs and policies are area-based, sector-sensitive and locally managed.

And we hope to remove anxieties about funding by designing the proposed 1997 budget—still unpassed unfortunately—as a total antipoverty measure.

Integral also to sustaining our growth is the care and nurturing of the environment. Development—it is now clear-does not force a choice between growth and nature. We can have both with due diligence and care.

The way forward is a development policy that fully pays heed to the requirements of sustainable development—a policy we have adopted from the very beginning.

The way forward is for each family and community to help in the task of caring for the environment—which includes enhancing one’s surroundings, managing one’s waste and right-sizing one’s lifestyle in addition to the more massive programs for water, forests, marine life, sewerage, sanitation and other community needs.

Strengthening our ties with neighbors

The scale of the task is huge. But it is not overwhelming. The technology for rehabilitation of the environment is available—as we are now seeing in the steady revival of the Pasig River. The political will and the resources can be marshaled—when both the public and private sectors work together. And the sense of community spirit in this effort is there, as we are seeing in the magnificent work of many non-Government organizations.

The fourth pillar for national strengthening is our relations with other nations. We should all have realized by now how strategic foreign policy is to our economic recovery and national regeneration.

Just as Apolinario Mabini saw the great importance of foreign relations to the life of our first Republic, so for our Republic today our ties with the community of nations have been a source of growth and vitality.

We have come this far by strengthening our linkages with the global economy; by strengthening our ties with friends and neighbors—particularly in the Asia-Pacific—and by making common cause with the international community in building peace and stability.

Those who counsel isolation have been proved wrong by events—and by our own successes.

Our membership in the East ASEAN Growth Area, in the Asia-Pacific Economic Cooperation forum, in the World Trade Organization and in the United Nations—all these bear testimony to the importance of diplomacy in shaping the future. The expansion of our export trade and the flow of foreign investments into our country—along with the technology transfer they engender—these manifest the wisdom and the beneficence of engagement in the international economy.

And when we successfully hosted the fourth APEC Leaders’ Meeting, we established the Philippines as a capable player not only in East Asia but in the world.

I therefore see the year 1997 and the balance of my term as an opportunity and a challenge to consolidate our place in the international community

We should give attention to strengthening our representation in international councils and organizations. We should endeavor to strengthen our ties with old and new friends. And we should foster the spirit of international exchange—while taking heed always of Claro M. Recto’s counsel to nurture an independent foreign policy.

The challenge of leadership

These challenges lead to the most important challenge of all—the challenge of leadership.

By this, I do not mean Presidential leadership alone—but leadership of the triad of powers upon which our constitutional system rests. By tradition and by choice we have a system where government power is wisely dispersed and kept in balance. Other countries may have succeeded with their own systems; we are succeeding with ours.

So we can call upon our legislature, our judiciary and our executive for a higher quality of leadership, anchored on our national interests, that will take us effectively to the new century. This is the time for us to examine how the three branches can work together even better.

Our constitutional system has worked well because it reflects the overwhelming sense of our people that power should not be reposed in any single institution, let alone in one man.

In the legislature we have the seat of reason—which enables us to deliberate on the best policy that can serve the nation. In the presidency we have the seat of resolve—which enables us to act and carry out policy for the benefit of the nation. And in the judiciary we have the seat of review—which enables us to consider and judge when conflict and confusion arise.

These three legs of government constitute the vital foundations of our democracy. Were any of the legs missing, we would not be the functioning democracy we are today, and our people would not rest secure.

Now—as we approach a new century—I see no greater need than that we should strengthen these pillars of our democracy—buttressing them where they are weak, and improving their processes so they can act with greater dispatch.

Building up the bureaucracy

Within the presidency, the basic need is to strengthen the government bureaucracy. Good governance is much more than simply leadership. It is also about efficiency and effectiveness in the civil service, which forms the frontline of Government in our country.

We have paid lip service to this issue for a long time. It is now time to act. We must emplace once and for all the proper structure for the bureaucracy that best fits the needs of a new time. We must define new standards for government service and performance, so that we will know when Government is meeting its task, and correct it when it is not.

To be competitive in the world, we need not only world-class enterprises but also a world-class civil service. We need to bring into the bureaucracy the tools and standards of the knowledge society—where learning and competence can make the difference between success and failure.

I have been fortunate these past four and a half years to work with many able men and women in our administrative bureaucracy. And I would like to see the day when their service can be the benchmark for performance throughout the service—national and local.

Finally, let me say a few words about the task that must increasingly concern us as we near the 1998 elections. It is surely time to turn our attention to the need to totally modernize our electoral processes and our conduct of elections.

In this age of instant communications, it is a shame that we should still take weeks to sort out the mandate of our electorate. We tarnish the image of our democracy before the world every time we falter in the simple task of counting votes.

So let us begin—before the passions of partisan politics engulf us—the process of electoral reform and modernization. I would like to believe that this program of national modernizing and strengthening is a cause beyond party and beyond faction. It is a cause we Filipinos must all embrace.

It must be the cause of all our leaders, who seek to do right by our country and our people.

It must be the cause of ordinary citizens who desire to have more control—a stronger voice—in how they are governed.

And it must be, above all, the cause of our young men and women, who more than anyone will face the consequences of either our neglect or our solicitude.

Pole-vaulting into the 21st century

We cannot solve all our problems overnight; but we know now that, when we are united and resolute, we can master them as we have shown during the last four years. Stamina, resilience and daring—not instant fixes or miracles—took us over each obstacle we have hurdled.

We no longer should be satisfied with leapfrogging—for others are leapfrogging, too. Rather, our aim should be to pole-vault—over those who are merely leaping—into the 21st century. In vivid and memorable ways—during these past few years—we have discovered together what is common within our diversity as a people; what is simple behind the complexities of our public life, and what is enduring amid the tides of change.

I believe we know now the sources of vitality of the nation, and the ways whereby we can add to our strength and capacity. They are rooted in the spirit that brought our people to freedom a century ago.

This is fertile soil on which to plant for the future. So I ask you today to join me in this effort of national strengthening.

Let these final 18 months of this Administration crown our labors of reform and regeneration.

Let it prepare us for a secure and brighter future—for ourselves and for those who will follow us.