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FEATURES The Challenges the Filipinos Face Walker College of Business Appalachian State University North Carolina, USA May 13, 2001 I am pleased and honored in being asked to speak before you today. I am also flattered that you have given me the privilege to address you in the first graduation ceremony to be held in this Convocation Center, a most impressive facility indeed. I thank Dean Peacock and other officials of your college for giving me the opportunity to talk about my country and my people on this occasion. As you may know, our peoples share many common traditions although we are geographically thousands of miles apart. The United States of America came about as a result of a revolution waged by 13 colonies against England in 1776. The Philippine nation was born in the wake of a revolution against Spain that began in 1896. The first Philippine Republic that emerged in 1898 was then the youngest in Asia. Its political ideals developed from a fusion of traditional values, centuries-old grievances against colonialism, and the liberating ideas of the European Enlightenment in the late 19th century. The U.S.A. and the Philippines -- two nations sharing anti-colonial sentiments, embracing a common desire for freedom and justice, fighting a common enemy in World War II in defense of democracy. That, in a nutshell, is the common story of our two countries. The ramifications of Philippine-American relations, however, call for a little more delineation of that story. History records that on May 1, 1898 -- just as the Filipino revolutionary army under Gen. Emilio Aguinaldo was poised to rout the besieged Spanish land forces in Manila -- an American naval force commanded by Admiral George Dewey entered Manila Bay and destroyed the Spanish squadron stationed there. The battle was short (latter-day historians claim it had been "pre-arranged"), the victory complete -- but the legacy of that naval adventure persists to this day. Shortly after that battle, Spain ceded the Philippines to the United States in the Treaty of Paris, ending 300 years of colonial rule and transferring sovereignty over the islands to the United States of America. The anti-colonial North American therefore became a colonizer herself. And thus started what a former US ambassador described as "50 years of a love-hate relationship." Both countries were fortunate that the United States did not need the Philippines economically and could govern with some measure of disinterest. The Philippines, on the other hand -- feeling quite strongly that it had been robbed of independence -- made it clear that unlike Hawaii and Puerto Rico, it preferred to rule itself. At the same time, the conquest of the Philippines bothered American conscience, for anti-imperialist sentiment in the US was quite deep. The famous humorist, Mark Twain, for example, was so troubled by the turn of events that he devoted the last eight years of his life satirizing his country’s imperialist designs. Lowering the Stars and Stripes and raising the Filipino flag would eventually satisfy the sense of national honor of both countries. This happened on July 4, 1946. To summarize the events of that period: 1896 to 1902 marked the Philippine wars of revolutions against Spain and the United States; 1902 to 1913 marked the "Americanization" of government and education under Republican administrations; 1913 to 1921 marked the "Filipinization" of the civil service and the encouragement of nationalism under a Democratic administration; 1922 to 1935 marked gradual preparation for self-rule, resulting in the establishment of the Philippine Commonwealth on November 15, 1935 that envisioned complete independence in 10 years. 1946 to the present marked the post-colonial years of the Philippines’ struggle for economic reconstruction, ravaged as it was by the effects of the Pacific War and three years of Japanese occupation. Where our two countries find themselves in today is a changed world environment that requires the highest sense of statesmanship on the part of fully developed nations to find ways to contribute to the well-being and viability of communities that are economically less advantaged. While it is understandable that less developed countries should desire to control their own economic destinies, they also realize that their development and viability depend to a great extent on foreign capital and on fuller participation in the international economic community. It is against this backdrop that I now present to you my country in the light of recent events. We have just installed a new government under President Gloria Macapagal-Arroyo, who assumed office last January through our people’s exercise of direct democracy, the second in 15 years. We are currently in the process of restoring political stability and steering the economy towards the path of recovery after the Asian financial crisis of 1997 to 1999. Let me assure you at this point that our people are confident we shall be able to meet the challenges facing us as we transit a new century and a new millennium. II THE CHALLENGES IN THE ECONOMY AND IN POLITICS What are these challenges with which we as a people must cope? In the field of economics, we Filipinos realize that we must learn to live with the "new economy" based on widespread access to information and the intensive application of knowledge to business. And coping with the new economy means we must achieve qualitative improvements in productivity and in education. To be in step with globalization, we must create workpeople who are able to keep abreast of world-class technology -- and compete with the best in the region, if not the world. In a recent report, the Asian Development Bank projected a likely fall in the Philippines’ GDP growth for the Year 2001 as compared to last year’s 3.9 percent growth. The slowdown in the U.S. and global economies will surely have a dampening effect on our efforts at recovery. Despite this, however, I am happy to say that our people -- perennial optimists that they are -- have a higher confidence that things will turn out better over the long haul. They feel that economic goals and objectives previously not within reach are now achievable. For one thing, they are aware that the Philippines lies in a strategic location at the center of the Asia Pacific region. As trade flows more rapidly because of free-trade agreements under AFTA, APEC and the World Trade Organization, the Philippines’ central position in the region makes it a major transshipment center. Already, new special economic zones that have been established all over the country are becoming key venues for logistics companies operating in the Asia-Pacific region. The Philippines hopes to attract some traffic away from the overcrowded ports of Hong Kong and Singapore. Our country’s active participation in these organizations, as well as its key role in the formation of the Association of South East Asian Nations (ASEAN), has resulted in revitalizing the bonds of friendship with our Asian neighbors. On a personal note, I have had a ringside view of this welcome development, first as my country’s ambassador extraordinary-plenipotentiary to the People’s Republic of China and to Japan, and more recently as special envoy to China, Japan and Korea. III THE CHALLENGES OF MASS DEMOCRATIZATION In politics we know that our representative system must adjust to the pressures of mass democratization. And in public administration, it is imperative that we strengthen the capacity of the Philippine State. This means that our government and all its institutions must become much more efficient than they are now if they are to lead our people toward modernization. Last, but not least, we must make our imperfect democracy work for everyday people. We are aware that the world will not wait for us to get our act together. If we don’t shape up fast, our country will become a backwater in the developing world’s fastest growing region. Much of the responsibility for awakening civil society to its public duty is a task for educators like you who are here today. I mentioned earlier that in the area of public administration, we must strengthen the capacity of the Philippine State. How do we propose to do this? First, we shall professionalize the civil service and insulate it from the political system. We are now building up the Career Executive Service where reforms have already begun. The bottom line here is that a tenured bureaucracy should not be disturbed by any change in the political leadership. This is true of Japan, Singapore, the United Kingdom, and your own country. Decentralization of authority to local governments is also a good thing. We have learned, for example, that restoring control over their own affairs to local community administrators has weaned them away from dependence on a central, paternal national government. IV GETTING THE GOVERNMENT OUT OF BUSINESS As for getting Government out of business, successive reforms since 1986 have greatly helped. And reforms continue. Tariff walls have been brought down, public corporations have been privatized, cartels and monopolies have been dismantled, and strategic business sectors have been opened to competition. Among the examples I can cite are the banking sector and the telecommunications industry. However, the structural reforms aimed to shift the economy’s center of gravity from protectionism to an open orientation is being done with great care and caution. This is because we know that reform and renewal are the business, not just of government, but of every citizen. Civil society, aware of its right to be consulted, is slowly learning to assert itself in public affairs. As the events of the past few months have shown, the Filipino people have learned to band together in order to assert the public interest against all those who would subvert it. They are being re-awakened to the simple truth that citizenship is not a part-time job -- certainly not a hobby -- but an everyday obligation. In a similar graduation ceremony in Manila some months ago, I asked my audience not to give up their convictions and ideals just because they realize the extreme difficulty of making these convictions and ideals come true. Here’s what I told them: "Let us do what we can -- no matter how little it is that we can do immediately." "Let us never lose heart, and let us not falter. Let us learn to be patient with our imperfect democracy, because democratization always involves long-maturing internal processes within nations -- in their economics, their politics and the collective state of mind." V CROWDED NATIONAL AGENDA I said this to remind them that we Filipinos have a crowded national agenda, and so little time to get the basic economic and political reforms done. There are so many problems that cry out for solutions -- so many reforms that need doing. But instead of brooding about our situation, we as a people are learning to work together, to set aside narrow factional interests to make sure that the larger national interest is served. After all, we know that each and every one of us has a stake in the outcome of our experiment in mass democratization. As I speak before you at this very hour, our people are going through a nationwide congressional election to determine the composition of half of our 24-member Senate and the full 200-plus complement of our House of Representatives. They are also voting for some 72 provincial governors and thousands more of local officials from town mayors to councilors. While I am realistic enough to admit that this latest exercise in popular democracy will not even solve half of the problems we seek to address, I am hopeful that our people will move decisively to complete our democratic transition. They know that we can no longer afford to waste time in the effort to modernize our politics and our economy, so that we can get on with the job of lifting up the common life and assuming our rightful place in the community of nations. And now, let me close with a special message to the real honorees in this ceremony -- the graduates. Graduation closes a phase in your lives, but Commencement Day is also a beginning. Richard Nixon -- who clawed his way back to success from failure after failure -- liked to say, "When you’re through learning, you’re through." The world of work you will enter is an even more demanding school than this one you are leaving. Nurture in your hearts the passion for learning that will make the difference between success and so-so failure in your lives. Put your intelligence and your knowledge at the service of your family, your community and your country. Do what you can to increase the sum of hope in your country. Do what you can to teach someone else the learning you have gathered for yourself. And never forget this. However fortune treats you in adult life, the education your parents, your teachers, and your school have combined to give you is your most secure possession -- your most valuable capital. Adversity can strip you of everything you have, except the learning you hold in your head. So use it wisely -- use it well -- to benefit not just yourself, but your people and your country. Thank you and congratulations to everyone of you.

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