Babe's Eye View article

People are already tired of the elections with charges and counter-charges of vote buying and cheating. In this country, no candidate ever admits to being a loser—all of them were cheated. With the count almost over and winning senatorial candidates about to be proclaimed, it's time to move on and focus on the economy.

Ten years ago with the Asian financial crisis, we went down the tube—compounded by EDSA II, the Oakwood mutiny, Hyatt 10, the impeachment and other plots against the government. Of course, the Abu Sayyaf kidnappings and the problem in Mindanao added up to the very negative perception of this country as an unhealthy and unsafe place to invest.

Certainly our politicians—especially the winners—should make sure the current economic upsurge will be sustained. (I'm being cautious here by calling it an upsurge instead of a boom.) Even with the opposition dominating the Senate, and even if they don't particularly like GMA and refuse to give her credit for the upsurge in the economy, at the very least we should be happy with the current economic trend and give ourselves credit for it. The fact is, we all live in the same space, so we have to work together in making sure we don't bust this up. We have had so many boom and bust cycles. We must take advantage of the situation now when there is renewed interest in the country as an investment destination.

Today, there are a lot of indicators showing that the economy is on the verge of the much-vaunted takeoff. As I said in my business column, the property market is actually booming, with a lot of interest in this sector especially in prime development areas, compared to almost zero levels a year ago. Major developers like Ayala Land, the SM group, Megaworld, Robinsons Land and Eton Properties are gearing up for major expansion projects and are taking a keen interest in housing for the OFW market. Experts attribute this upswing in the property sector on improved fiscal and economic conditions and the dollar remittances from overseas.

But there's also a lot of interest in mining and other sectors. In fact, I have it on good authority that there is a large fund being pooled together for expanding Japanese investments in the Philippines. A Japanese mining firm is looking at increasing its investments by $308 million for another project in Mindanao.

The amiable British Ambassador Peter Beckingham is also very enthusiastic about British firms coming in especially in the areas of mining and energy. As a matter of fact, a big British company is looking to operate in Surigao for copper and gold with a planned initial investment approaching $100 million. A power company is also keen for acquisitions and the possibility of purchasing some power stations.

The peso has breached the P45 to the dollar mark and is at its strongest since 2000, while the stock market continues to be bullish finishing at record highs earlier this week. However, we must heed the warning of highly respected columnist and UP economics professor Solita Monsod that we should not be lulled by the fact that the stock market is booming. She's absolutely right. This is hot money, and it can get out as fast as it got in.

What we're really looking for are long-term investments, and we can only get that if investors become certain that the country's political situation has become really stable. Of course, there will be a few wrinkles every now and then, like the expected La Niña which could destroy crops and dampen the economy. Obviously, because of climate change we're expected to have a lot of typhoons this season. We should learn from the US experience with Hurricane Katrina. Let's do our best, and prepare for the worst.

Charter Change is also something that people are wondering about, but this is inevitable since there is really a need to revise the Constitution especially the economic provisions that limit foreign ownership to just 40 percent. The usual complaint from investors is the fact that they are not allowed to own property, neither can they own a company 100 percent. Can you imagine if these protectionist provisions were revised a long time ago? No doubt, these economic provisions need to be changed drastically. Of course, that goes without saying that the political system also needs to be improved—if not altogether replaced by a better one that is more suitable for Filipinos.

At any rate, it's a good thing that business groups—the Makati Business Club, the PCCI, Philippines Inc., and others are all working together and moving in the right direction as far as the economy is concerned. Hopefully, we can have both political stability and sustained economic growth in the last three years of GMA's term.

We certainly don't need economic saboteurs and people who make a mockery of the law in this country. These are the kind of traitors we should get rid of. Maybe we should make a law that would allow us to throw them into the sea and let the sharks eat them alive. Any true Filipino—whether rich or poor—would like to see this country take off.

This is a great opportunity to finally get the country going. There's no question that if the economy goes up, everybody will benefit including politicians and—believe it or not—even the poor.

In the '80s just before the unprecedented economic growth in the United States, Ronald Reagan said, "You ain't seen nothing yet; the best is yet to come." In this country, the best is indeed yet to come—unless, of course, we foul it up—again.