Speech
of
Her Excellency Gloria Macapagal-Arroyo
President of the Philippines
During the Dinner hosted by the U.S.-ASEAN Business Council

[Delivered at the Park Hyatt Hotel, Washington, D.C., U.S.A., May 20, 2003]

Thank you very much.

Thank you very much, Secretary Armitage that was really very kind introduction. And let me take this opportunity also to acknowledge the close cooperation that Secretary Armitage has with our officials in the Philippines and that really contribute to the friendship within our two countries. So, you are one of the instruments that make our friendship stronger. Thank you for that.

I’d like to greet all the members of the U.S.-ASEAN Business Council, all the officials and both on the American side and the Philippine side. I’d like to greet the Philippine officials and also the ASEAN ambassadors. I’d like to greet everybody who’s in this room tonight and to let you all know how pleased and honored I am to be back in the United States.

The last time I was in Washington, we were also together. And that was just one month after the horrific events of September 11.

Now, we’re here together again. And just this afternoon, America was announced to be on heightened alert. Our terrorists threat is still there. Much work has been done, much progress has been done, but the heightened alert today tells us that much work still continues to be done. But even as we acknowledge this heightened alert, let me pay tribute to the great resiliency that I have seen of the American people. Your example in the way you faced up to the events of September 11 and afterwards are an example for the rest of us to follow.

The state of heightened alert demonstrates that the new global environment really requires a new perspective on political and economic security. That perspective must be based on a recognition that while each nation or region must take greater responsibility for its own political and economic security, it must also recognize that strong international relations will contribute greatly to regional prosperity and stability as well as greater success in addressing terrorism, the most significant threat to world peace and stability today.

We must find a way — this is the U.S.-ASEAN Business Council — and I think that aside from promoting trade and investment and economic cooperation between the U.S. and ASEAN, in the U.S.-ASEAN Business Council, we must also find a way at this point in time to support continued engagement between ASEAN and the U.S. at a time when there are forces working against this relationship, at a time when there are those with an evil agenda who wish to disrupt this relationship.

And as I end my state visit with profound thanks to President Bush and his administration and the American people, I would like to say that we, in the Philippines, shall continue to work side by side with the united states as strongly as ever to overcome the terrorism that knows no boundaries, so that we can together transform fear into peace, progress and prosperity in the world.

As I end the official part of my state visit, I’m also gratified to say that the relationship between the United States and the Philippines has never been stronger. Our common fight against terrorism has brought our two countries closer together — that’s one serendipity of that great tragedy. My meetings with President bush at the white house yesterday underscore a new era of cooperation to advance the peace, security and economic prosperity, not only of the Philippines but of the entire Asia pacific region of which the United States and the ASEAN countries are a part.

The bond between our two countries is rooted in mutual respect and shared values. And in this modern day and age of real politic I must say, this bond is also based on pragmatism and enlightened self-interest. It is in our interest to be allies of each other.

A world in constant threat of terrorism is a world of instability and unpredictability. Yes, we may know that there’s a terrorist threat, that it is specific, it is imminent but we never really know with specific certainty when and where the next terrorist strike will take place. And yet, we cannot surrender our world to fear.

I was listening to the announcement of heightened alert this afternoon. And the announcement said, for ordinary people, ordinary citizens: go on with your work, go on with your plans for leisure. This alert is really for the law enforcers to be more visible and also to be more alert. Indeed, that’s what it’s called. And I think that was a good piece of advice because we cannot run away from the world when there is a terrorist threat because the whole world is indeed under threat, and what would we do? Hide in our homes. Even our homes can be a target. We have to go on. We have to defy the threat. We have to defy the fear by confronting it, fighting it and destroying it.

We cannot surrender to the instability and unpredictability that terrorism brings with it. Because predictability and stability are essential for business as they are for a nation. You know what you need to do in order to have stability and predictability in your own businesses. As the leader of a nation I had to do what I have to do as well and that’s why I have labored to rebuild key strategic alliances for the Philippines in Asia, Europe and of course, North America with the United States.

All countries who want peace and progress need these alliances to further economic exchange, to encourage investment and to secure assistance to fight destabilizing elements. This is true in the Philippines as it is in the United States. That is why I have been calling our partnership with the United States that we are celebrating in this visit — one that is revitalized and one that is maturing. It is not just that we need the United States so that we can be safe and so that we can progress. We know the united states needs us because the United States needs to form coalitions to fight terrorism, to fight tyranny, and it can’t do it alone and that’s why the Philippines is always there by the side of the United States.

National security is important. It’s important to Manila, it’s important to Washington. And we know it’s important to investment. We also know that national security requires, we also know the courage that it takes.

Strength in security and foreign policy is one facet – I hope now you would realize — is one facet to the jewel that is the Philippines. And I think the state visit that President Bush invited me to is recognition of that strength in foreign policy that we have demonstrated and that he hopes by honoring our country can also encourage other countries to be just as strong.

Another strength of our economy that we would like to promote is international business. And my focus in this trip is clear: our economy.

Last night — or was it this morning? — when I was interviewed on television from back home and they asked me to give my closing remarks, I said this trip in the end for the Filipino people and for me is really all about jobs. Everything that I try to do is what I think I must do so that more people in our country will have more jobs.

Not only am I the head of state responsible for a nation of 80 million people. I’m also the CEO of a global Philippine enterprise of 8 million Filipinos who live and work abroad and generate billions of dollars a year in revenue for our country.

You know as businessmen, international businessmen, you know that the great comparative advantage of the Philippines is our rich human resources: highly skilled, well-educated, English-speaking. This includes the millions of Filipinos working in over a 140 countries of the world, and for the millions more employed in the Philippines in business process outsourcing, manufacturing and other service industries not to mention agriculture.

The foundation for the success of our workers all over the world is simple: education. It is a value embedded in our people. Farmers work hard, squatters work hard just so that their children can be educated. Education is the pride of every family, where an open book today can mean open doors tomorrow. It’s also in part of the legacy of America’s involvement in the Philippines.

America gave the Philippines a great public education system. And just today when we were having our smaller meeting with U.S.-ASEAN Business Council and we talked about what the council can do. And someone of the Filipino businessmen, supposedly of said send us more Thomasites. Who are these Thomasites? For those who don’t know Philippine history so well. These were the American teachers who went to the Philippines at the turn of the century and educated our people in English and many other things western, and that’s why we seem so similar today.

We have worked hard to support our overseas workers as well as our workers at home who are increasingly sought out in the global market place for their productivity and efficiency. And this week, tomorrow, I am pushing hard to make sure that the workers of the Philippines play a role in helping rebuild the land for the people of Iraq.

And you officers and members of the U.S.-ASEAN Business Council, I thank you once again, as I’ve thanked you five times in the past during my presidency and more, if you count when I was vice president and senator. I thank you once again for your hard work in behalf of the Philippines that I myself have seen. I thank you for sticking with the Philippines through thick and thin. And if I am being praised for sticking with America through thick and thin, why I have been reciprocated in advance by the U.S.-ASEAN Business Council.

And having all these years seen how the U.S.-ASEAN Business Council so loyally pushes to promote investments to the Philippines. To work with the Philippines, to encourage us to do the reforms that you hear investors are looking for, I am endeavoring to return your loyalty and dedication by working to build a strong Philippines. A strong Philippines meaning having strong institutions so that we can all prosper. And to strengthen these institutions I know that there are structural reforms that we must make and we are doing them.

Tomorrow, we will take another step forward, as I mention or alluded to earlier, when I will open a new BPO initiative in New York City. And some of you in the U.S.-ASEAN council will be with me there as well as you have been with me in initiating many many other directions in the past.

Like every year, this past year, has seen its shares of ups and downs. But overall, the march of progress is clear. We’re continuing to root corruption out of government, as which Armitage has acknowledged. We’re prosecuting tax cheats. In fact, Lito Camacho, didn’t you tell me that we’re just about to file cases against some of the erring Bureau of Internal Revenue personnel who have done falsification and we are pushing through with the lifestyle check because we want to clean up that agency and make it a showcase in the fight against graft and corruption in the Philippines. We are working harder to make sure that the people finally get the fair deal they deserve.

In modernizing, we must also address the legacies of the past. And it’s a challenge to preserve our heritage and grow our opportunities while maintaining fiscal discipline. Because if we have had reductions in the tax to GNP ratio since 1997, and large part of it is because we have been very aggressive in trade liberalization, more aggressive than many neighbors, more aggressive than our commitments to AFTA, more aggressive in our commitments to WTO, and that meant aggressive tariff reductions, that meant also large reductions in revenue. We have to accept that legacy but at the same time… In other words, recognize that legacy, recognize that we inherited that. And having recognized that then do what we must have to do in compliance still with all our treaty obligations, but we do what we have to do in order to maintain our fiscal discipline and keep within out budget deficit targets. Because that’s what we keep from hearing from everybody, the budget deficit.

The challenge is amplified due to the global economic slowdown. But we’ve moved forward as I said earlier on BIR reforms. And the proof of the pudding is that revenues are up. That’s why despite last year’s fiscal deficit, this year our deficit is smaller than expected, because our revenues are much higher than targetted.

We’re continuing privatization and liberalization of the power sector. And I hope that when Secretary Abraham goes to the Philippines on his official visit, he will be accompanied by an investment mission organized for the U.S.-ASEAN Business Council, a power privatization investment mission. We invite you there during that visit of Secretary Abraham.

We’ve written strong anti-money laundering legislation. There’s Teddy Boy Locsin who helped draft the final version. There’s Senate President Franklin Drilon who also worked very hard, dug into his wellspring of his previous expertise as corporate and labor lawyer before he became Senate President or before he even became senator or Cabinet member for that matter. There’s Joe de Venecia , speaker of the house, who very quickly passed that bill when I said that I needed it, so that we would not be sanctioned by the FATF, but also so that we could do basic financial reforms.

We passed this Anti-Money Laundering Law not just to stay within the look of international transactions. We passed it to stop terrorists and government fraud while also modernizing the Philippine financial system.

We’ve also written a law empowering special purpose asset vehicles to direct greater liquidity into the banking system and provide relief for debt-burdened banks. And I mentioned privatization earlier, even earlier than the money laundering law, even earlier than the special private … Than the asset management vehicle law was the Electric Power Industry Reform Act.

But it is not just legislation, but real money that must be invested if we’re to get a good return for the nation in the years ahead.

So, we are making investments in infrastructure to help move people and goods, and enhance the quality of life. We are building expressways and fast railroads from Manila northward to Clark-Subic and southward to Calabarzon and Batangas port. So, if you are visiting manila and you want to go to Clark and you encounter traffic, bear with us, that’s because we’re building a multi-lane highway that will make it easier for you and your goods to travel in the years to come. Oh, there’s Monico Puentevella a very very important ally, also in the passage of the Money Laundering Law.

We’re building the Batangas port to be the international port for Calabarzon firms and decongest the Manila port. That’s why I brought with me the governor of the province of Batangas, Dodo Mandanas, so that he could sign an agreement not only on the Batangas port but also on having a satellite commercial airport in Lipa in Batangas.

We’re building logistic chains of roll-on/roll-off ferries, combined with highways, grains silos and cold storage facilities to reduce the cost of transporting products from Mindanao to Luzon. And we will open the new international airport, world-class in security, world-class in services this year.

We continue investing in English language study, which, again, is so crucial to our success.

We’re making new investments in small and medium size enterprises. Because we know that if we are to build a big middle class, which will be your market, we must empower the people who populate it. My small and medium enterprise program is an immediate investment but for the future of our people. And I must acknowledge Mar Roxas, who is the architect of that small and medium enterprise program that we have, making available 20 billion pesos over the next year by making available… By working on the delivery machinery for the money to flow from the government financial institutions through the savings banks, rural banks, small development banks to the people. The talent is there; this program is the financial encouragement that the people need and deserve.

Yes, challenges remain. Many of these challenges are economic. Many of these challenges are social. Many of these challenges are political. But everyday I wake up determined to make progress. And I believe I have.

Leading the Philippines means making tough choices. Some loud voices denounce a closer alliance with the United States. But let my state visit here be a message to those who peddle in the false currency of terror: the U.S. can help us wipe out terrorism at home as it wipes out terrorism within its own borders. International alliances keep our region safer and provide economic stability and growth.

In turn, we can also have something to offer. We can provide an island of friendship, stability and security in an uncertain world.

To Bob Driscoll and all of the other members of the U.S.-ASEAN Business Council who told me about some fears, let me tell you, let me tell all of you, I am not going to back off the course I have charted on economic and political reform. In turn, therefore, I ask you to continue to support me as you have been supporting the Philippines for so many years, continue to support me as we make the Philippines into the great nation it deserves to be, and at the same time we sustain the United States as the great nation it has been for a long time.

We must continue to be side by side with each other in meeting the challenges of today. That is the way that we can secure for our children of both sides of the pacific the world for tomorrow.

Thank you.

Source: www.op.gov.ph

Macapagal-Arroyo, G. (2003). PGMA’s Speech during the Dinner Hosted by the U.S.-ASEAN Business Council. Retrieved from https://web.archive.org/web/20100412201111/http://www.op.gov.ph/index.php?option=com_content&task=view&id=6285&Itemid=38