Tipping point

“WE are proud of the progress we have made, but we are not satisfied with just this. We Filipinos know just how much potential this country has and we are working even longer nights to fulfill this potential,” President Benigno Aquino III said, during the Philippine Investment Forum on March 27.
And those overtime hours seem to be finally paying off.
In the same event, the President reiterated how his administration has made headway against corruption and that the country is no longer the “sick man of Asia.”
Echoing Aquino’s improved business sentiment in the country was Bank of the Philippine Islands (BPI) President and (CEO) Aurelio Montinola III. The Harvard-educated banker recently served as guest speaker of the Economic Club of Memphis on May 9, at the ongoing Memphisin May Festival.
Proclaiming that the Philippines is no longer the “sick man of Asia,” Montinola cited strides made in the Philippine economy. He also noted that good governance agenda has propelled the country’s political situation and fiscal position.
Montinola highlighted infrastructure, agriculture and tourism as the three sectors the country is investing to reach its true potential.
Because of our reputation as the “sick man of Asia” since the 1980s, some leaders are skeptical to such economic advancements due to the country’s high poverty rate.
In its most recent data, Social Weather Survey (SWS) said fifty-five percent or an equivalent of 11.1 million Filipino families consider themselves poor. The figure is the highest so far for the Aquino administration, which has pledged to reduce poverty.
This is typical, however, of only seeing the glass as half empty when we should also consider that the glass is half full.
Issues such as weak institutions, poverty and corruption continue to dissuade investors and make exporting in the country challenging.
But as countries continue to employ in a more international context, we should understand that the Philippines’ level of transparency and efforts, in curbing corruption, has resulted to such claimed improvements.
As an emerging market and considering how the country has been dragged by such term, some would even argue that the term itself is no longer appropriate.
As the US and Europe continue to slow down, emerging markets continue to roar — most having rebounded strongly from the 2008-2009 crisis. The past two years brought dramatic changes, a monumental shift especially in the economic setting of the Philippines.
Several key emerging economies have experienced exceptional economic strength. The economies of these nations are mostly highly export-driven with strong inflows of capital and investment and well-capitalized banking institutions.
Many markets have already “emerged.” It is high time for the Philippines to become an integral player in the world economy as well, and such term should be soon due an adjustment in status.
But this journey will likely be a long one, and people would be best advised to understand the hurdles we have yet to face.
(www.asianjournal.com)
(LA Midweek May 16-18, 2012 Sec A pg. 6)