TOWARD
NEW BEGINNINGSState
of the Nation AddressHis
Excellency, President Joseph Ejercito EstradaJuly
24, 2000
This
is the first opening session of Congress and my first
state-of-the-nation
address to be held in the 3rd millennium and in the 21st century. It is
obviously an auspicious occasion for new beginnings.
Specifically,
it should be a new beginning for Mindanao, a new beginning for the
economy,
a new beginning for integrity in government, and a new beginning for
the
country. It will also be a new beginning for the presidency.
To
begin with, we will write a new history for Mindanao. We will rectify
centuries
of historical wrongs committed by successive colonial powers, and
decades
of inequities committed by successive Philippine governments.
Mindanao
has traditionally been called the ''Land of Promise.'' This romantic
name
has always been a one-way affair. The rest of the country has always
expected
Mindanao to fulfill its promises to them. It is now time for the rest
of
the country to fulfill its promises to Mindanao. We should now convert
Mindanao into the ''Land of Fulfillment.''
Let
us not forget that Mindanao is an integral, inseparable, and organic
part
of the Philippines. It has been so for the past four and a half
centuries.
It is so today, it will be so forever.
This
is why the government had to neutralize the attempt of the Moro Islamic
Liberation Front to amputate the southern parts of the country away
from
the organic whole and to convert them into an independent Muslim state.
They were winning their war of territorial encroachment simply because
the previous government refused to fight, pretending that it wasn't
happening.
In fact, the MILF had already occupied and hoisted their flag over
large
territories in Mindanao--in at least 46 camps--under the nose of the
preceding
administration, which was either naive enough to tolerate them or too
timid
to stop them.
In
contrast, my government was decisive enough to expel them. As
President,
I could not just stand by while the rebels ate up more and more of the
country's territory they were not elected to govern. When I took
office,
I swore to preserve and defend the Constitution. It was my solemn duty
under that Constitution to repel the armed rebellion and to defend the
sovereignty and integrity of the republic.
The
MILF could not be talked out of their position, whether territorial or
ideological. They said that their goal of secession was non-negotiable.
Well, neither is the sovereignty and integrity of the republic. No one
can challenge that proposition by force of arms and get away with it.
It
would have been quieter if the conflict could be resolved by an
exchange
of words rather than by an exchange of fire. But whenever words were
tried
in the past, in the name of so-called peace but which in reality was
appeasement,
the rebels simply used the peace talks as an opportunity for arms
buildup,
for troop recruitment and training, for deployment, for territorial
consolidation,
and for enlarging their threat to the republic.
There
would have been a larger space for tolerance if they had pushed their
cause
in the open marketplace for ideas. But instead, they built up an army
and
used their firepower to force their separatist aims on an unwilling
people.
True
to form, the MILF took advantage of the 1997 ceasefire to commit at
least
227 violations. These include the kidnapping of Father Luciano
Benedetti
in September 1998; the occupying and setting on fire of the municipal
hall
of Talayan, Maguindanao; the takeover of the Kauswagan Municipal Hall;
the bombing of the Lady of Mediatrix boat at Ozamiz City; and the
takeover
of the Narciso Ramos Highway. By doing so, they inflicted severe damage
on the country's image abroad, and scared much-needed investments away.
The
numerous camps they maintained were not Boy Scout camps. They were
staging
areas and launching pads for expanding the MILF rebellion further.
These
military camps were not under the command and control of the government
of the Philippines. They owed their allegiance elsewhere.
Given
all these, plus the unabated murders, terrorism, ambushes, extortion,
bombings,
illegal control of buildings and public highways, and other atrocities
committed by the rebels in the pursuit of their secessionist aims, the
government was faced with two choices. One was to play the sucker, keep
tailing and let the problems grow until the republic was in real mortal
danger. The other was to meet force with force. An armed rebellion
demanded
an armed response. The sitting-duck strategy has never been known to
work
well...for the duck.
In
order to ensure permanent peace in the future, we had to demolish the
rebels'
apparatus for making war. Moreover, abstention from military action
would
have been tantamount to political abdication.
In
effect, we did not choose the military option. It was forced upon us.
But
we used it. And we succeeded.
The
retaking of these territories was not just a symbolic victory but a
substantive
one. We upheld the constitutional principle that the Philippines is one
state, one republic, with one government, one military answerable to
one
civilian Commander in Chief, under one Constitution and one flag, in
one
undivided territory. That is what it is now. That is what it will be
forever.
Ang
buong bansa ay nagpupugay sa kagitingan ng mga opisyal at mga kawal ng
ating sandatahang lakas ng Pilipinas sa pamumuno ng ating kalihim ng
Department
of National Defense at ng ating chief of staff. Kasama ng ating mga
field
commanders, tinupad nila ng buong katapatan at katapangan ang kanilang
tungkulin sa ating pagsakop ng mga kampo ng MILF. Let the whole country
salute the Filipino soldiers who valiantly and bravely fought the
rebels
in defense of the sovereignty, integrity and honor of the Republic of
the
Philippines. Let the whole country pay tribute, in particular, to those
who gave up their lives or were injured fighting to preserve the unity
of their motherland. Sila ay nakadagdag sa hanay ng ating mga bagong
bayani.
Ngunit
ang buong lipunan ay nakikiramay din sa mga mahal sa buhay ng mga
nasawi,
sa hanay ng dalawang puwersa, sibilyan man o mga sundalo.
Nakikidalamhati
tayo doon sa mga nasaktan at napinsala ng kaguluhang ito.
Now
that we have won the war, it is time to win the peace. Toward this end,
the government has adopted a four-point strategy in approaching the
Mindanao
question from here on.
- The
first is to restore and maintain peace in Mindanao--because without
peace,
there can be no development.
- The
second is to develop Mindanao--because without development, there can
be
no peace.
- The
third is to continue seeking peace talks with the MILF within the
framework
of the Constitution--because a peace agreed upon in good faith is
preferable
to a peace enforced by force of arms.
- And
the fourth is to continue with the implementation of the peace
agreement
between the government and the Moro National Liberation Front, or
MNLF--because
that is our commitment to our countrymen and to the international
community.
I
now invite the MILF into a brotherly embrace of peace. Let us walk away
from the battlefield and into the conference room. But we must do so in
good faith. You must talk peace with us, not talk while preparing for
war.
And
you must accept our conditions. You must drop secession, drop your
criminal
activities, and drop your arms.
These
are not requests but demands. They are not proposals but premises. We
can
talk about when, where and how, but not about whether or not. We can be
flexible on time-tables and methods, but not about principles.
The
reasons for each demand should be obvious. I will briefly discuss them
in reverse order.
You
must drop your weapons because outside of the Armed Forces of the
Philippines
and the authorized police forces, no group whatsoever has any right to
maintain an armed force or military camps within the sovereign
territory
of this republic.
Secession
by itself is a mere ideology, but if backed by armed force, it becomes
a rebellion. A secessionist can only argue, but a rebel can kill. The
government
has no choice but to disarm the rebel--except for duly licensed
personal
firearms.
You
must drop all your criminal activities because terrorism, bombings,
ambushes,
and violence have no place in a civilized society. Criminals have no
place
in a negotiating table. Their place is in jail.
Most
of all, you must drop your secessionist goals. We do not ask that you
respect
and recognize the sovereignty of the republic. We demand that you do.
May
I give the MILF some unsolicited advice. Secession in the Philippines
is
an impossible dream. There simply is no space in our geography, in our
demographics, and in our national psyche for forcibly carving another
state
out of the present Philippine territory. For that reason, the foreign
models
you invoke, like East Timor, will not work for you.
Please
bear in mind that you are neither the sole occupants nor even the
majority
in the lands you wish to carve out to convert into your own state.
There
are whole Filipino populations in Mindanao--Muslims, Christians, and
Lumad--who
do not want their territories and their residencies disturbed. Not even
the majority of the Muslim population shares your separatist views nor
the violent means you employ to attain them. The overriding passion of
the people of Mindanao is for peace.
Our
people will simply not stand for the dismemberment of the country. All
of the Philippines belongs to all Filipinos. No part of it belongs to
any
particular group.
And
the international community as a whole will neither support nor
sympathize
with secession. In fact, we deeply appreciate the statement of his
excellency,
Dr. Azeddine Laraki, secretary general of the Organization of Islamic
Conference
(OIC), encouraging Muslim minorities in non-member states [and I quote]
''To contribute effectively to the progress of the countries they live
in and to respect their sovereignty and laws.'' [Unquote.]
Secession
as a dream is also out of tune with history. If there is one lesson
that
historical evolution has taught us, it is this: That diversity is a
cause
for celebration, not segregation; that cultural cross-breeding leads to
strength while in-breeding leads to weakness; and that cultural
identities
are enriched by interaction and impoverished by isolation. Some of the
most glorious creations and achievements of civilization are the
products
of the historical confluences between Islam and Christianity.
What
we should strive for is not just peaceful coexistence but interactive
harmony
and constructive interdependence.
We
cannot negotiate over secession. The sovereignty and the integrity of
the
republic are not available for compromise or trade--not even for the
sake
of peace. Any peace won by bartering any portion of our sovereignty is
an immoral peace.
Moreover,
the sovereignty and integrity of the republic are unconquerable. No
guns
will ever terrorize the Filipinos to surrender any piece of their
sovereignty
to anybody: not--as our history shows--to any colonial power, not to
any
foreign invader, and certainly not to any internal rebel.
We
cannot talk about secession. But we can talk about a new beginning for
Mindanao.
In
fact, if you are bold enough for it, we can talk about a different war,
a bigger war that needs to be fought. I do not mean the guerrilla
warfare
that you appear to have shifted to. I hope you stop--for the sake of
the
people, especially the poor, who will suffer the most from continued
hostilities.
But if you decide to engage us further, we are ready for you. If you
can
shift strategies and tactics, so can we.
When
I talk of another war, I mean the war to correct historical wrongs,
which
left a sad legacy of poverty and social injustice to Mindanao. This is
the war that all of us, including ex-rebels, should fight together.
Fighting
the rebellion is one thing. It takes the military to do it. But
fighting
the root causes of rebellion is another. It will take the whole society
to do it.
We
can talk about the possibility of amnesty. I ask the MILF leaders to
lead
your followers in walking with us along the path of peace. On the other
hand, I invite the MILF followers to walk with us in peace even if your
leaders won't. Instead of the lives of hunted fugitives, you can now
live
the lives of peaceful farmers, fishermen, factory workers, merchants,
entrepreneurs,
or civil servants, soldiers, or policemen. In short, we can talk about
you re-integration into our society.
We
can also talk about autonomy. On this subject, we are willing to be
creative
and to explore a wide range of possibilities, including radical changes
in our political structure. I urge that we jointly envision and create
a new order for Mindanao, which will restructure the governance, the
economy,
and the social environment of that island, with all its beauty and
diversity.
We
will convert Mindanao into the main food basket of the Philippines,
into
an agricultural paradise, and into a booming manufacturing base. Camp
Abubakar
itself will be developed into a special economic zone.
One
thing I must emphasize, however. Autonomy does not confer immunity or
exemption
from good governance, transparency, and accountability, particularly in
the use of public funds.
The
government has been providing full development support for Mindanao.
From
1996, where the peace agreement was signed, up to 1999, the government
poured in more than P32 billion for socio-economic development programs
into the special zone of peace and development (or SZOPAD) comprising
14
provinces, as well as for the support and strengthening of the
political
institutions in the Autonomous Region in Muslim Mindanao (or ARMM).
But
to move both the peace process and the development of Mindanao forward
faster, I urge Congress to pass the bill amending the ARMM Organic Act
and the bill granting special powers to enable the fast-track of
development
of Mindanao.
On
the matter of the Abu Sayyaf, we are all happy that some hostages have
been released. I wish to give the assurance that the government will do
everything reasonable to obtain the release of the remaining hostages
as
soon as possible and not to put them in harm's way.
Contrary
to rebel propaganda, our fight is not against Muslims at all. They are
all our brothers. Our fight is against rebels and other outlaws,
regardless
of their religion.
Thus,
I wish to send a message to all Muslim Filipinos, the majority of whom
share a passion for peace and renounce the separatist rebellion.
My
Muslim brothers: We worship the same God--the God of Abraham and Moses.
You call him by his Arabic name, ''Allah,'' which in Filipino simply
means
''Ang Diyos'' and in English, ''God.'' Is he on your side or ours?
Neither.
He is on the side of peace, and therefore on both our sides. The
government
invoked the Constitution when it rolled back the rebellion. Let us now
invoke our common God as we build the structures of peace.
As
we embark on a new beginning in Mindanao, we shall also launch a new
beginning
for integrity in government.
In
my address to you last year, I said: ''Hindi binebeybi and rebelyon.
Pinipisa.'' Iyan ay aking tinupad. More recently, I also said; ''I
offer peace to those who want peace. But I promise defeat to those who
want war.'' Iyan ay tinupad ko rin.
I
remind you of these statements because from the rebellion, I am
shifting
the war toward another enemy: Graft and corruption. Ito ang pangako
ko sa inyo: Ito ay tutuparin ko rin.
Ang
aking susunod na digmaan ay laban sa mga tiwali sa pamahalaan at sa mga
tao ng pribadong sektor na nakikipagsabwatan sa kanila.
Graft
and corruption is the worst form of rottenness in our society. It
erodes
the moral fabric of our people, robs the poor, increases the costs of
doing
business, erodes tax collection efforts, and drives away investments.
The
World Bank estimates that at least 20 percent of government project
funds
ends up as kickbacks.
As
a people, we must purge graft and corruption out of our systems.
The
World Bank, at my personal request, has conducted extensive studies
which
they assembled into a report titled ''Combating corruption in the
Philippines.''
It presents an exhaustive analysis of corruption in this country, and
puts
forward a set of recommendations for implementing a broad-based
comprehensive
anti-corruption program.
We
can no longer fight corruption piecemeal. We need a comprehensive
approach
that would reduce opportunities for corruption; remove needless
regulations
and simplify procedures; eradicate the end to recover electoral
expenses
by corrupt means; increase public vigilance both to deter and to detect
commissions of graft; reform budget processes; improve meritocracy in
the
civil service; target selected departments and agencies for cleansing;
increase the efficiency and speed in catching offenders and their
prosecution;
stiffen sanctions against corruption partnerships with the private
sector;
and support judicial reform to make the courts part of the solution
rather
than part of the problem. The courts should not allow themselves to be
used as a refuge for scoundrels.
I
warn all departments and agencies of government to brace themselves,
especially
those consistently listed in surveys and studies on government
corruption.
I
will be submitting to Congress an urgent bill creating an anti-graft
and
corruption commission. This bill will provide the government with the
necessary
powers and resources to combat this long-festering cancer in our
society.
I also urge Congress to pass the anti-racketeering bill (with
anti-money
laundering provisions).
Pigilin,
supilin, sugpuin ang graft and corruption!
As
the war on graft intensifies, the war on povery continues. Our premise
is that the most effective way of eradicating poverty is through sound,
non-inflationary growth and development. This, however, must be
complemented
by focused interventions that aim directly at poverty reduction. Hence,
the high priority accorded by my government to agriculture and the
rural
areas, education, health, housing, and agrarian reform.
Agriculture,
after a momentary dip in the first quarter from the 6-percent growth in
1999, resumed its robust performance with a 4.8-percent growth in the
second
quarter of this year.
In
education, last year we constructed thousands of new classrooms,
provided
hundreds of thousands of new desks, addressed the teacher shortage
problem,
and proposed improvements to the curricula to meet both global
standards
and local needs. In partnership with the private sector, we have
extended
assistance to students by providing them access to the Internet.
In
health, we launched a parallel importation program to bring down the
market
prices of medicines drastically and make them affordable to the poor.
For
the 10-month period from July 1999 to May 2000, more than 190,000
households
were provided with housing units. This represents 52 percent of the
target
households to be sheltered in Metro Manila and surrounding provinces.
In
agrarian reform, our government has distributed a total of 523,000
hectares
of land to 305,000 farmers.
We
continued to lay the groundwork for future growth with continuing
advances
in the construction and completion of major roads and water supply
basins,
in the energizing of our barangays, 77.4 percent of which now have
power,
and in the exploitation of natural gas fields to reduce our dependence
on imported oil.
We
have been implementing the Clean Air Act, among others, by phasing out
leaded gasoline in Metro Manila ahead of schedule. We have been
removing
massive debris from the Pasig River, including sunken vessels, and we
continued
rehabilitation works on Laguna Lake and its tributaries.
We
terminated the customs valuation and surveillance contract with the
SGS.
We not only saved P4.2 billion a year in fees; we also exceeded our
customs
collection target by P3.7 billion without their help.
We
pushed the passage of the E-commerce Act, for which I thank Congress.
This
makes the Philippines only the fourth Asian country to have such a law.
We are among the very few countries whose legal systems now recognize
that
trade and financial transactions are shifting away from the physical
and
the paper-based world to the rapid electronic highways of the Internet.
In
our external relations, we agreed with the other Asean leaders to
advance
the full establishment of the Asean Free Trade Area. We continued to
play
an active role in the Asia-Pacific Economic Cooperation group (or
Apec),
the Asia-Europe Meetings (or Asem) and the United Nations and its
various
agencies. To strengthen our bilateral partnerships, I visited China,
Japan,
Brunei Darussalam, Chile and Argentina this past year. Tonight, I will
be leaving for my official visit to the United States.
Since
I last addressed you, our economy as a whole has experienced moderate
growth,
low inflation, low interest rates, strong exports, a healthy balance of
payments, and record-high international reserves.
In
1999, our GDP grew by 3.4 percent while GNP rose by 3.7 percent. In the
first quarter of the current year 2000, GDP rose by 3.4 percent and GNP
by 3.45 percent. Not spectacular, but respectable. The industry sector
reversed its 3.6-percent decline in the first quarter of last year with
a 4.8-percent rise in the first quarter this year.
Our
inflation rate was 6.6 percent in 1999, and a highly commendable 3.5
percent
for the first semester of this year.
Interest
rates remained low. The 91-day Treasury bill rates stayed below 9
percent
since the last week of June 1999. Correspondingly, commercial bank
lending
rates also remained soft.
Because
of the rise in private consumption expenditures, the government pulled
back from the pump priming activities it had engaged in to counteract
the
recessionary effects of the Asian crisis. The deficit for the first
five
months of the current year was P34.1 billion, or P11.2 billion less
than
last year.
Exports,
led by electronics and semiconductors, reached an impressive $11.3
billion
in the first four months this year, 10.6 percent higher than for the
same
period last year.
We
posted a balance of trade surplus of $732 million in the first quarter
and $4.31 billion for the whole of 1999, reversing by multiples the
$163
million deficit in 1998.
As
a result of this, plus the remittances of our overseas Filipino
workers,
our gross international reserves reached an all-time high of $15.44
billion
in May 2000, and are expected to rise to $17.1 billion by the end of
the
year.
The
recent weaknesses in the foreign exchange rate of the peso cannot
therefore
be attributed to our macroeconomic fundamentals, but more to what we
might
call the ''politicals'' and the ''psychologicals.'' Our fundamentals
are
by any standards respectable--except to those who refuse to see. Wala
nang mas bulag pa kaysa sa ayaw makakita. In fact, barely two weeks
ago, we re-entered the Japanese Samurai Bond Market with a successful
5-year
bond float of around $330 million.
The
depreciation of the peso is the result largely of a new Asian currency
contagion: Other currencies in the region have been weakening due to
political
factors and the strength of the US economy and the US dollar. If the
peso
had not adjusted accordingly, our exports would have become less
competitive.
Obviously, the nervousness about the potential implications of the
Mindanao
conflict on the economy also contributed to the depreciation of the
peso.
We
were thus witness to a paradox: strong exports, large external trade
and
payment surpluses, and record levels of international reserves side by
side with a depreciating peso.
That
paradox, in fact, might be a harbinger of some dark clouds coming back.
After a brief period of recovery from the financial crisis, the Asian
region
is suffering from a mild relapse. As mentioned, currency exchange rates
are depreciating. Oil prices have gone up substantially. Unemployment
is
rising. And investments are nervously staying away from the East Asian
region as a whole.
As
we take a long, hard look at the future, what we see is the need for
long,
hard work ahead.
Under
threat of a national and regional slowdown, we must keep working at the
basics which, because they had been forgotten, led to the Asian crisis
in the first place. We must keep up the pace of reforms, particularly
by
improving governance all around, by adhering to sound macroeconomic
policies,
and by taking measures to keep the banking and financial system sound,
strong, and prudent.
I
must confess, however, that I find the faddish word ''reform'' as too
weak
and wimpish. What I believe the Philippine economy needs is not just
reforms
but radical restructuring, from the ground up.
Many
are asking why is it that other Asian countries, which went through a
worse
crisis than we did, actually grew faster on the rebound. One reason is
that we recovered from a higher base, they from a lower one. A more
fundamental
reason is that the very structure of the Philippine economy today was
inherited
from past decades of import-substitution and protective policies,
aggravated
by economic mismanagement and corruption. Our industrial base is thin.
Due to decades of neglect, our agricultural productivity is low. Our
population
growth rate is high. And our technology is on a catch-up mode.
Rectifying
these decades of historical errors and lapses will take much more than
two years of any presidency.
Radical
restructuring entails the modernization of the economy, both physically
and electronically, to make it more productive, efficient, and globally
competitive. And modernization must touch not just agriculture and
industry
but the brains and hands of our people, to put the country squarely on
the path of the information superhighway, which in turn links the
world's
knowledge-based economies into one vast global network.
Physically,
the sunset industries we inherited from the past must yield to the
sunrise
industries of the Internet age. Agriculture must go through a total
technological
conversion and our education must catch up with the twenty-first
century.
In
the meantime, we must lay the basic foundations, the infrastructure,
for
enabling these ''modernizations'' to happen.
In
fact, infrastructure is our response both to our long-term and our
short-term
needs. The expected slowdown in private consumption and investments
must
be counteracted by a new wave of pump-priming.
There
are about $10.3 billion of official development assistance (or ODAs)
available.
One billion dollars of this can be readily used for the rehabilitation
and development of Mindanao. We will attack the institutional defects
and
bureaucratic bottlenecks that have prevented the government in the past
from utilizing ODAs. It's a shame that because of these bottlenecks,
the
disbursements on ODA-funded projects fell to $800 million last year.
There
are also development funds abroad that can be made available provided
they
are used for major road projects in Luzon. These we will seek to
utilize.
I
ask Congress to pass two vital bills: the ''Government Projects
Expeditious
Implementation Act,'' which limits to the Supreme Court alone the power
to issue temporary restraining orders (or TROs) against government
projects,
and ''the Act Providing for Measures to Facilitate the Acquisition of
Right-of-Way
for Government Infrastructure Projects.'' In addition, I ask you to
approve
my proposal in the 2001 budget to double the appropriations for
foreign-assisted
projects.
All
these institutional reforms and radical restructurings, plus additional
measures I will mention later, should restore and increase the
country's
ability to compete for investments in the future.
As
we build our infrastructure, so shall we build our information
superhighway.
In fact, instead of just retracting the history of other faster-growing
countries, we have decided to leapfrog from the so-called old economy
to
the new economy: using information technology, including e-commerce, to
fast-track our output, our productivity and our competitiveness.
In
the 1,408 remaining days of my presidency, there is more to come. Let
me
share with you a few highlights of my vision for the future, which
consists
both of continuities from the past and of quantum leaps into new
beginnings.
The
economy will grow by an average of 5 percent during my term. My
ever-carping
critics say that this target is unambitious and lower than that of our
Asian neighbors. I should remind them that this growth rate is much
higher
than what we achieved in the past. And if I can, for the first time,
defeat
the boom-bust cycle, my successor will have a good shot at achieving
tiger-economy
growth rates. (Is that a smile I see on the vice president's face?)
We
will concentrate on providing both socialized and affordable housing
for
the poor and the wage earners. Housing as a program provides shelter, a
basic human need. It is labor-intensive and generates employment. It is
a recession antidote.
We
must by all means prevent another Payatas by encouraging the reduction,
segregation, recycling and composting of garbage; and by using
alternative
state-of-the-art technologies.
We
will continue with our program of deregulation and liberalization. We
will
push through with the privatization of a number of our government
corporations
that have been identified and prioritized.
We
will convert the power sector into a competitive, market-driven
industry.
The aim is to ensure a higher and more reliable supply of power at
lower
cost to commercial and residential users. May I urge Congress to pass
the
Power Bill as a matter of high priority.
We
will push through further with reforms that strengthen our
institutions.
In line with this, I ask Congress to pass the new Central Bank Act,
which
will empower the government to add to the durability and responsiveness
of what already is one of the soundest banking systems in all of Asia.
The
Philippines will rapidly evolve into a center for software programming
and a base for hosting and providing Internet services. As we now excel
in the export of electronic products and semi-conductors, we are also
fast
becoming a major link in the limitless world of the Internet. The big
players
have begun to converge here, in addition to Texas Instruments in Baguio
and Acer in Subic. Clark now hosts the America Online (or AOL) Call
Center.
Scheduled for signing during my trip to the US are memoranda of
agreement
with Oracle, Inc. and with Pacific Technology International.
It
is encouraging to see that the members of our young up-and-coming
generation
are excitedly doing entrepreneurial work in creating new Dot.com
concepts,
products and services.
The
Philippines, in other words, is fast moving from the world of "brick
and
mortar" to the world of "clicks and portals."
With
the cooperation of the private sector, and by linking up our schools to
the world of the Internet and wiring them to the cyber world, the
Philippines
educational system will take a giant stride in both its coverage and
quality.
Our future "e-schools" will be able to reach more students and provide
higher-quality, up-to-date instruction.
The
Philippine National Police will continue to pursue its policy of
absolute
zero tolerance against illegal drugs. It will also continue to
professionalize
itself in its no-nonsense fight against crime, even as it intensifies
its
no-nonsense campaign against excessive waistlines.
We
will modernize the fighting capabilities of the entire Armed Forces of
the Philippines, both in terms of personnel and equipment. Their
outstanding
performance in Mindanao further highlighted their importance in
preserving
the territorial integrity of the republic from external and internal
threats.
In
fact, we will streamline the entire government, enhance the quality of
government service and increase the efficiency by which basic services
are delivered. In this connection, I call on Congress to pass the Bill
re-engineering the bureaucracy.
By
way of electoral reform, 45 percent of all the 190,000 precincts all
over
the country will be computerized by the year 2001, and 100 percent by
the
elections of 2004. This program will speed up the counting of votes and
eliminate opportunities for fraud. I will never tolerate election fraud
since I was once cheated when I first ran for mayor of San Juan. I know
how it feels. Fortunately, the Supreme Court declared me the winner.
Admittedly,
over the past two years, the presidency itself has struggled through
the
challenges of coping with the learning curve. Made all the more
difficult
by the long-lasting effects on the corporate sector of the Asian
financial
crisis and by the vicious attempts of my detractors to discredit me and
my family. These attacks started way back during my campaign and never
let up. Now, it has intensified in a more vicious way after the SWS
reported
a recovery in my approval rating. Unfortunately, by discrediting me,
the
head of state and of government, they also undermine the confidence of
the international community in the country, and thereby damage the
prospects
for our economy.
Sa
halip na tayo ay magsiraan, kailangang magkaisa at magtulungan tayo sa
darating na apat na taon upang mapabilis ang ating pag-unlad. Habang
tayo
ay nag-aaway-away, nagpapalakpakan naman ang ating karatig-bansa dahil
sa kanila pumupunta ang mga dayuhang kapital at turista.
Nonetheless,
the presidency has learned its lessons well at this point, the
presidency
itself is poised for its own new beginnings.
To
assure crystal-clear transparency in all government transactions and to
remove all opportunities for abuse by all government officials, I wish
to make the following announcements.
As
long as I am President, there will be no negotiated contracts in all
government
procurements, public works and other construction projects. We will
never
allow another Amari or Centennial Expo to happen ever again. All supply
and construction contracts will be awarded through public bidding.
And
to make doubly sure that future bids will be completely transparent,
the
government will resort to electronic public bidding, or the so-called
''reverse
auction'' method, where bids from all suppliers and contractors will be
posted on a website, watched by the whole world, and where each bid can
be improved upon by other bidders, this brings transparency to a new
dimension.
As
long as I am president, there will be no government guarantees issued
on
the loans of private firms. No creditors should be shielded by the
government's
sovereign guarantees from the market risks that they themselves should
bear. The risks of their debtors' default should be borne by them, not
by the taxpayers.
The
only guarantee to be given will be under the most restrictive
conditions,
such as those provided by the BOT law.
I
shall not do to the next administration what the last one did to mine,
namely, hand over multibillion-peso guarantees on failed negotiated
projects
that my administration now has to honor.
No
government financial institution shall extend any new loans, nor shall
any government agency enter into any new contracts, with any private
party
with any past-due loans from a GFI, a record of foreclosure or special
bad debt settlement by any GFI, or any pending and unresolved dispute
with
the government.
We
will further curb smuggling by rationalizing the operation of duty-free
shops. We will confine them to traditional merchandise, like alcoholic
beverages and cigarettes carried in plastic bags, not frozen chickens
and
cheese curls loaded on grocery shopping carts; where consumers can
purchase
chocolate bars, but not the refrigerators to store them in. Duty
free-shops
should not operate as supermarkets, and vice versa.
I
have ordered all the agencies concerned to carry out with unrestrained
determination the investigation and, if warranted, the prosecution of
those
suspected of illegal involvement in the trading of the shares of BW
Resources.
Incidentally, I wish to thank Congress for passing the new Securities
Regulation
Act, which provides for stronger protection of investors from fraud and
deception and which strengthens the capabilities of the SEC both for
regulating
and developing our capital markets.
I
hereby order the concerned agencies to resolve the air dispute with
Taiwan
at the shortest possible time. Taking into account the interests of our
OFWs, Balikbayan, and tourists, as well as cargo shippers. We will
re-shape
our aviation policies to promote primarily the interests of the economy.
Before
I conclude, I wish to extend my administration's gratitude and
appreciation
to Congress for its diligence and dedication in acting on a significant
number of measures. You have enacted a large number of important laws
affecting
the economy, including the Electronic
Commerce Law, the Safeguard Measures Act, the Securities Regulation
Code, the Retail
Trade Liberalization Law, among others. Our Congress worked long
and
hard to deliver these measures. Alam kong inuumaga kayo sa inyong
mga
sesyon at ako ay taos-pusong nagpapasalamat.
Ngunit
hindi pa tayo tapos. May utang pa tayo sa bayan. Umaasa ako na inyong
pagtitibayin
ang mga panukalang batas tulad ng amendments to the ARMM Organic Act,
the
Anti-Racketeering Act, amendments to the Omnibus
Investment Code, and the bill granting special powers for the
fast-track
development of Mindanao.
To
conclude, with all due candor:chanroblesvirtuallawlibrary
We
have done quite well, but we could have done better. We have gone quite
far, but we are far from where we want to go. And before we can tell a
story of success, we will have to go through a story of struggle. The
weather
ahead will be a bit rough before we get to see some real sunshine.
In
the face of the difficulties we face, I call on the whole country--the
government, the legislature, even the judiciary,
the private sector and civil society--to work together in unison rather
than to fall apart in dissension. We can ride the storm if we unite. It
will blow us apart if we fight.
I
also call on the affluent to pay their taxes correctly. There is only
one
thing worse than not spending enough on pro-poor programs, and that is
running excessive deficits and allowing inflation and macroeconomic
instability
to rob the poor.
The
present uncertainties call for courage, hope and faith in our ability
to
cope and to prevail. If we face these challenges with the proper
spirit,
we will survive the storm and thrive when the sunshine returns.
Now
that I have brought my presidency through a process of renewal, I ask
you
once again, as I did at the elections of 1998, to give me your trust
and
your support. Let us leave the past with all its disappointments
behind,
and let us shape our future together. Let us all embark on a new
beginning.
Maraming
salamat po.
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