High-stakes trial
In the midst of economic volatility in the Euro zone, a struggling US economy, serious tensions in much of the Middle East, a pending leadership shift in China, and a bitter American presidential election, and in spite of our unspectacular 4 percent GDP growth in 2011, the Philippine business community views 2012 and the Year of the Water Dragon with considerable optimism.
Our stock market recently hit historic highs and continues to hover at very high levels. Corporate earnings are strong. Philippine banks are healthy and, unlike global banks, are not particularly vulnerable to the adverse impact of Europe’s economic travails. Domestic interest rates are at historically low levels, while liquidity is extremely high. OFW remittances continue to grow at a steady pace. The BPO sector is sustaining its strong growth in spite of election-related noises from US politicians. There is great enthusiasm for prospects in tourism, infrastructure development and mining. There is even serious renewed interest in oil and gas prospects. The current propensity in the business community is not to hold back and be cautious, but to aggressively seek out opportunities. Government spending, particularly for infrastructure, seems to be off to a more vigorous start. And our economic managers are rightfully expecting a credit rating upgrade to investment grade!
What is going on, you may ask? The answer: vastly improved governance.
Whether opposition politicians admit it or not, President Aquino’s crusade against corruption has gained traction and credibility, and we in the business community have come to respect and admire the President not only for the tone of selflessness he personally sets but, equally important, for his consistency, his persistence, his courage and his outstanding leadership in the pursuit of his crusade for integrity and good governance.
Think about how far we have gone in just 17 months: a former president is in detention on charges of plunder and electoral fraud, the Chief Justice of our Supreme Court faces removal from office in an ongoing impeachment trial, the former head of the Commission on Elections and two former AFP chiefs of staff are facing criminal charges. And we now have a justice secretary and an ombudsman who enjoy our trust and confidence. Of course, much more remains to be done, but who would have thought that we would be this far along in such a short period!
Clearly the credibility of the President’s crusade for integrity is also based on the integrity and professional competence of the men and women he has appointed to key positions in the Cabinet, in independent constitutional bodies, in key government agencies and GOCCs, and in the Armed Forces. Compare the current officials with recent occupants, and the contrast is stark.
The integrity crusade’s credibility had enabled and inspired the private sector to launch its own Integrity Initiative, designed to instill and reinforce a culture of integrity in the private sector. Launched only in late 2010, the Integrity Initiative as of today has enlisted 1,035 companies whose CEOs have signed the Integrity Pledge. Beyond the pledge, participants commit to install and adhere to performance standards, monitoring systems and eventually a certification process. No such initiative would have been worth launching in an environment where government corruption is tolerated, condoned or even sponsored from the top.
Because the business community’s current confidence and optimism are based on the credibility of the administration’s crusade for integrity, it is imperative that this crusade produces meaningful progress and results or confidence and optimism will fade and evaporate. Corrupt officials should be fired without hesitation. Government contracts must be done with transparency and fairness. There must be a perceptible reduction in corruption in key agencies like the PNP, AFP, DPWH, BIR and Customs. Investigations and charges must lead to justice being served and guilty persons going to jail.
It is in this context that the ongoing impeachment trial of the Chief Justice is a defining moment for the Aquino administration. The President believes that his electoral mandate is to instill integrity and good governance and cleanse government of corruption, as this will lead to reduced poverty and better lives for Filipinos. Kung walang corrupt, walang mahirap. Because of certain rulings and decisions that in the administration’s view have frustrated some of its key efforts to bring corrupt officials to justice, the President has apparently come to view the Supreme Court and particularly the Chief Justice as a major impediment to the fulfillment of his mandate. The fulfillment of his core mandate would be gravely imperiled should the Chief Justice remain in office.
The stakes for the President are extremely high. While the presented facts and evidence and the effectiveness of the contending parties will determine the public’s acceptance of the verdict, the verdict itself will determine the fate of the rest of the Aquino presidency. Success in convincing the Senate to remove the Chief Justice from office paves the way for the President to appoint a Chief Justice of his confidence, who presumably will not be a hindrance to his pursuit of his mandate. Failure will make the President an early lame duck and will drastically alter the business community’s view of our country’s immediate future.
For our country’s sake, let us all hope and pray for, and do all we can to ensure a credible and just outcome.
Ramon R. del Rosario Jr. is the chairman of the Makati Business Club. Email comments to [email protected].
