Speech
of
His Excellency Fidel V. Ramos
President of the Philippines
To the Economist Intelligence Unit Roundtable with the Government of the Philippines

[Delivered at the Shangri-La Edsa Plaza Hotel, February 19, 1997]

Reforms will endure
beyond my term

I HAVE LOST count of the number of roundtables and conferences that Peter Wallace and the Economist Intelligence Unit have organized in order to bring our country to the attention of the international business community But I can tell you that we Filipinos—and I personally—treasure these meetings and the investor interest that they have produced for our country.

Today, however, a slightly different act is in order. For we meet in the wake of recent developments in our country that have caught international attention, and on the eve of a time of transition that excites much concern here at home and abroad.

These issues fall squarely into your top concern—whether there will be policy continuity and consistency in the Philippines after the national elections next year.

The durability of reform

In the advanced democracies, transition processes and personalities do not trigger much anxiety—the sense of policy consensus being strong and stable to adapt to changes of administrations. In our case, the concern is understandable, because we are facing for the first time international and domestic questioning about the durability of the reforms we have put in place over the last four and a half years.

Nothing that has happened in recent weeks should cause us to doubt that the reforms and the policies will endure beyond my term, which ends on June 30, 1998—because these are embedded in the laws.

I can assure you now that neither our liberalization programs nor our drive toward modernization has sustained a mortal blow to their continued implementation. What mainly concerns me most in the remaining months of my term is to achieve the completion of the basic policy structure—of which a few missing parts remain.

As we make our way through this time of debate in our country, I ask you only to have faith in the vitality of Philippine democracy. We have not come this far only to allow the reversal of the liberalization and democratic reforms that brought us to where we are today.

A people tested by adversity

We are a people tested in the crucible of crisis and adversity. And we will surely rise from this period renewed in our culture and capacity with a democracy fortified in its economic, social and political aspects.

When we look to the future, therefore, you may rest secure that the Philippines will remain an open economy and a functioning democracy. You have our assurance of our commitment to the time-tested principle of “a government of laws, and not of men.”

Fears that a new administration could mean a different Philippines in which to do business have no basis—because our policies, plans and programs are founded on a strong framework of law. The national momentum behind our modernization program will continue after the elections next year. There will be changes, yes, in our officialdom and in the emphasis some may give certain programs. But the basic thrust, I am confident, will remain. For surely our people will not give their support to any party or candidate that stands on the opposite side of reform and change.

Some people may veer a little or move slower, but most Filipinos believe that an open economy works. And is the way to go. Let’s face it. We have proved it in the economic success we have achieved—even in the face of the great crises of the early nineties.

As to infrastructure, do we care about it? Does a doctor care about his patients? A lawyer about his clients?

Anyway, the point I am making is that, as a civil engineer, I know that civil engineers care about their projects (they care about being civil too). I have a professional, official and personal interest in seeing to it that infrastructure is developed— and in getting it done. That is why a lot has been done.

In the past four years we have spent more than US$24.7 billion on infrastructure and utilities. This includes both Government funds and the huge level of private-sector involvement and assistance we have been able to get. Our efforts through privatization and the build-operate-transfer scheme have been praised as among the best and the most successful in our Asia-Pacific region.

Privatization will work here

For instance, I am confident that by the time the judicial review is over, the MWSS privatization program will push through. The people of Metro Manila, Rizal, Cavite and Laguna can look forward to better and cheaper water and sewerage services from the private sector. Privatization has worked in many sectors of national life. It will work here too.

Understandably, we have a lot of catching up to do in this sector because of the years of neglect. You look around and see inadequate roads, too few telephones, antiquated ports and overburdened airports and so on. What perhaps you do not see is just how much change there has been in four short years, and how much is beyond the drawing boards or is even being initiated now.

Overall we have today an excellent environment for business. Those who are already engaged here can testify to this. The policies are in place. We have the human resources to back you up. And even our bureaucracy is moving in pace.

It is a basic law of business: if you can make a profit, you will come. And we would like you to.

We need to create more than a million jobs every year. (Last year, we created 1.7 million and brought unemployment and underemployment down to their lowest level in decades.) And we need to expand our economy, widen its base, strengthen it, modernize it. All of which you can help us do.

The opportunity in technology

As we move into the 21st century, one prime opportunity is in technology. Information technology will be the front-runner of industry in the next few years and we intend to be at the forefront of that sector and the enterprises associated with it.

Already, as you know, electronics is our biggest product export. We would like software to be our biggest service export. This is why we support the United States in its call to remove the tariff barriers for computers and related products and services.

We also see hardware purely as a tool, just as a hammer is for a carpenter. A tool that can be used to create wealth far more than the value of the tool itself.

We have the skills, the language capability, the strategic geographic location and, soon, the infrastructure.

Which is not to say we will not support other industries. If you want to take widgets, that’s fine too. We will help you. We need widgets, too. At least I suppose we do.

Which finally brings me to your concerns about peace and order. The peace process on all three fronts is moving even better than the economy itself.

With regard to crime, we are well aware of our reputation—and not very happy about it. But much improvement has been made over these past four and a half years, especially in the integration of the five pillars of our criminal justice system. Annually, the crime rate has been going down. We are not passive before our shortcomings. And we will not stop until we become a truly safe and stable society ranking with the best in the world—though without sacrificing our liberties and openness.

Bringing the world to our doorstep

Let me close by saying that I believe we have much, much more to offer investors than we had five years ago. I appeal to the faith of many among you that the Ramos Administration could finally succeed in turning our country around. Today we can match your faith with our legitimate achievements as a nation.

The Philippines is proving that democracy and development can complement each other, and give birth to an economy as vibrant as those created by other means.

I would like to think that your presence here already indicates that you share our faith in our future. Whatever we can do to reinforce that interest, tell us and we will go out of our way to prove our sincerity in wanting to bring the world to our doorstep and ourselves into the world.