BULL MARKET, BULL SHEET By Wilson Lee Flores
The Philippine STAR 11/07/2005
You shall know the truth, and the truth shall make you
free. John 8:32
Leaders and members of various chambers are predicting
that President Gloria Macapagal Arroyo, who is
scheduled to hold a luncheon meeting at Hotel
Intercontinental today, will use the occasion to
discuss her governments economic accomplishments. The
government has recently been trumpeting its
"successes" such as the increase in foreign exchange
remittances of overseas Filipino workers, the rise of
foreign investments, the strengthening of the
Philippine peso, low inflation rate, stable financial
system, gains in the war against unemployment and mass
poverty, and other indicators.
First of all, I wish to clarify that I do not
sympathize with or am connected to anyone in the
political opposition, despite my often being critical
of the present administrations shortcomings. Second,
as an entrepreneur, I am now expanding my businesses
because I am confident of the long-term growth
prospects of the local economy despite present and
other short-term economic problems. Third, I wish to
reiterate that whatever her political problems, as
long as GMA remains in power as the duly elected
President, I want her to succeed in reforming and
strengthening the economy.
How can small or medium-sized entrepreneurs plan the
future of our businesses if theyre bombarded by
inaccurate economic data and scenarios being dished
out by GMAs propagandists? Our economy is now in bad
shape, but in no way hopeless. Awaken the whole nation
to a state of national emergency and urgency, so that
all of us will buckle down to work and make the
Philippines globally competitive.
Here are some inaccurate economic garbage claimed by
government propagandists, and whats real:
On claims that the Philippine economy is in good
shape and we are winning the war on mass poverty.
This is inaccurate, for why then are the international
lenders charging the highest interest premiums of
three to four percent higher than market rates on
Philippine bonds? Ask the ordinary man and woman on
the street: are they better off economically in recent
years? Have homelessness, hunger and urban poverty
eased or actually worsened?
"The Philippine financial system is healthy."
The Philippine financial system is OK, but it is
unhealthy because of violations of ethics, and lack of
transparency and good governance, which go shockingly
unpunished. How many big-time economic saboteurs have
ever been prosecuted, tried, jailed and punished like
those big financial fraud cases in the US, Hong Kong,
Taiwan, South Korea, and even China which punished top
officials of Bank of China a few years ago? Which
banks have inaccurate liquidity datas that need to be
corrected immediately? Even the hard-earned lifetime
savings of middle-class and poor families in pre-need
firms are mismanaged or mishandled by financial
bigwigs. But has government punished anyone or
enforced stiff sanctions to correct these anomalies
that threaten the health of the Philippine financial
system?
Higher foreign exchange remittances by OFWs as part
of government achievements by certain propagandists.
The higher OFW remittances have nothing to do with
better government performance. In fact, the
heartbreaking exodus of a million Filipinos every year
is not only a serious brain drain because it
involves the poor as well as the elite, intellectuals
and middle-class families this massive exodus is a
shameful vote of no confidence on decades of bad
government.
Low inflation as a government feat
Low inflation levels are not proof of a better
Philippine economy, or of more efficient production of
goods and services, but are actually caused by the
insidious scourge of rampant and unabated smuggling
nationwide. The government has failed to crush the
powerful smuggling syndicates which have already
destroyed the poultry, garments, piggery, textile and
other local industries with the flood of cheaper
smuggled goods. How many local factories have closed
shop in recent years? Are we going to remain importers
and consumers, instead of being producers and
exporters? Who are the political and military
godfathers and untouchable smugglers destroying
legitimate entrepreneurs and manufacturers?
The increase of many new jobs and ease in
unemployment
Business chambers officials have admitted that
government has adjusted the basis of its statistical
computations several times. What then is the truth
about the countrys unemployment numbers? How many
people nationwide are unemployed and under-employed?
We need to know the extent of the problem so we can
make the appropriate corrective measures.
Record increase in foreign investments
Why have several foreign businessmen told that the
Philippines received only two percent of the total
foreign direct investments in the Asean region? If
there are increases this year, its because we have
come from an extremely low base last year. The
Philippines, however, is attracting a small amount of
foreign investments. We should not pat our own backs
or fool ourselves. We need to work harder to win back
foreign investors to revitalize our economy.
Taxes and bank interest rates are OK.
Several multinational executives complained that the
Philippines has among highest tax rates in almost
every category in the Asean region. Our bank interest
rates are so high or almost double than that of other
Asian countries to support real business expansions.
They also complain of high electric power costs.
The Philippine economy is in bad shape, but it is not
hopeless. There are still a few courageous
entrepreneurs who have unshakable faith in the
long-term future and the country has so much untapped
natural economic advantages.
Tell us the truth and reform the Philippine economy.
Without the truth, the people and our rotten
politicians will be deluded into complacency. Without
the truth, which hurts and shames us, we cannot make
the difficult and painful but necessary social,
economic, political and other sweeping reforms to save
the Philippines from decay and ennui. Without the
truth, the Philippines shall forever be trapped in
systemic corruption, mediocrity, the "puwede na yan"
attitude and other inefficiencies.
I urge GMA to bite the bullet. Tell the whole nation
the woeful, unvarnished and bitter truth about our
economy, and lead us towards real not cosmetic
reforms.
The Anvil Business Club (Association of Young Filipino-Chinese Entrepreneurs) is an organization of dynamic entrepreneurs and professionals committed to propagate positive Confucian and Filipino values, and to pursue excellence in their own fields for the economic and social progress of the country.
Tuesday, November 8, 2005
Sunday, November 6, 2005
Anvil Medical Mission with Manila Chinatown Charity Clinic helps 1,000 Marikina urban poor
Thanks to all Anvil members/officers who joined in
Anvil medical/dental mission in the urban poor
community of Parang, Marikina on Sunday, November 6,
2005. The massive and efficient civic project was
undertaken in cooperation with Manila Chinatown
Charity Foundation. Over 1,000 urban poor patients
benefitted with free medical & dental care, free
eyeglasses, free ECG exams to free accupuncture
treatments starting 8am up to 1:00pm.
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