No pain, no gain.  So goes the saying, but in this country, it seems we have to go through a lot of pain before we can have any kind of gain.  There were yelps of pain when government implemented the EVAT in November 2005, and even louder howls when the RVAT was pushed through in February this year.  But if we look closely, it would seem the real pain could be traced back to politics, which is becoming such a pain in the neck with the endless gridlock in the two legislative branches.

In the end, all politics does is derail reforms needed for the economy to move forward.  Just take a look at the anti-smuggling bill that could give government an additional P90 billion in revenues.  This was passed by Congress in June last year, but it's still languishing in the Senate.

Of course, the same thing happened with the EVAT, with delay after delay doing nothing, but make businessmen and credit rating agencies frown in disapproval.  People are right when they say that most of the time, it's a pain just to have a little gain.  Even the Japanese Chamber of Commerce already said that too much politics is making this country lag behind its neighbors.

But in fairness to this administration, economic gains are happening despite the pain of politics.  The peso experienced an upsurge last year and it has maintained its strong performance, breaching the P51 mark early this week.  In fact, analysts have predicted that the peso could surge to as high as P45 to the dollar in the next two years.

This is a positive sign because a strong peso reduces the cost of servicing the country's external debt, as interest payments decrease by more than P4 billion for every P1 appreciation against the dollar.  Even the perennially losing Napocor posted its first gain after seven years, earning P16 million in 2005.  Even the US seems convinced that we're on the road to progress, because it pledged an increased development aid of $131 million.

Physically, things seem to be moving as well with the eviction of the squatters lining the PNR tracks to make way for the North-South Rail Linkage Project (NSLP) that would make the transport of goods faster and more efficient.  Of course, it was painful for the evicted families, many of whom have been relocated to Laguna and Bulacan.  But in the end, it's just as well since they will have their own homes and it could mean the end of horror stories about children being run over by trains.

The opening of the NAIA 3 Terminal has been delayed for so long, but recent developments are making people optimistic that things are moving faster to solve this Piatco fiasco and get the mothballed facility operational soon.  After the painful tax reforms, government should now focus on the next phase of its economic reform program like infrastructure development.  As Finance Secretary Gary Teves said, there's more money now for government to spend on vital infrastructure projects to create a more investor-friendly atmosphere.

So far, we have been lucky that the economy has been insulated from all the political turmoil that we have been experiencing for two years now, and credit should be given to the economic managers who have opted to focus on their job and have stayed away from politics, unlike the Hyatt 10.

Socio-Economic Planning Secretary Romulo Neri (who along with DTI Secretary Peter Favila and Secretary Teves were the guest speakers during the Manila Overseas Press Club's [MOPC] "Investments Night" at Hotel InterCon), pointed out that under the present system, the relationship between economics and politics is so adversarial.  There should be more synergy, Neri said, suggesting that a firewall between the two be put up.  Businessmen should stay away from politics, and politicians should not mess with business, Neri reiterated.

This is well and good, but now it seems the country has to go through another process that would involve pain, and that is, Charter change.  Accusations are being traded, but both sides have to make their positions clear and properly ventilated to the public.  A clear majority must really want Charter change.  What the people want is a better future, and they want to be convinced that Charter change will give them that better future.

GMA says the train has left and politicians will be left behind.  In reality, she has to make sure that this Charter change will not be railroaded, and see to it that it is a credible majority that want it.  Otherwise, she may just find herself being thrown out of the train.  At the end of the day, it is really the economy that will make this country survive.  Unfortunately, many of our politicians seem to have only their own interest in mind, not realizing that if the economy gets better, it will be good for everybody including the enemies of GMA.  As they say, "It's the economy, stupid."

Many Filipinos are prepared to go through pain before the gain.  As they say, Filipinos are one of the most patient people in the world, but for how long?  That patience is getting shorter.  People are now looking for the economic gain which they have been waiting for for so long.  I don't think they can take any more pain because of politics.

With the resignation of Thai Prime Minister Thaksin Shinawatra, I am convinced even more of the wisdom in changing our present system into one that takes into consideration the peculiar Filipino psyche and temperament.  Perhaps a semi-parliamentary form of government would be worth considering, with a popular president directly elected by the people.  A hypothetical scenario would be a Prime Minister running the government and a popularly elected president like FPJ who, despite his limited knowledge or experience of governance, would be vested with the power to dissolve Parliament and also be the commander-in-chief of the Armed Forces.  He should also have the power to call in the military in case of an imminent threat to the State.  Since we do not have a monarchy like Thailand, perhaps the closest we could get to that is to have a popularly elected president with a six-year term of office, eligible for reelection for another six years for continuity.  This is really nothing new, but we should seriously consider it.

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