July 25, 2004

The Philippine STAR, Opinion Page

Biting the Bullet

By Babe Romualdez

As expected the Iraqi militants didn't skip a beat.  A day after Angelo de la Cruz was released, The New York Times reported that a group called the Holders of the Black Banners kidnapped six more foreign truck drivers--three Indians, two Kenyans and an Egyptian--in the article entitled, "Militants Intensify Abductions in Iraq with 6 New Hostages."  

The group threatened to behead one every three days unless their Kuwaiti employer shuts down its Iraq operations.  Emboldened, other militant groups are forcing American allies to weigh the cost of their presence in Iraq by issuing new threats to US allies--Japan, Poland and Bulgaria--to pull out or face attacks.  

With the recent Angelo hostage crisis, the country has been criticized, blamed and ridiculed in a media feeding-frenzy.  Even the Right-wing Fox News, the TV station with the most clout on Capitol Hill, didn't stop bashing the Philippines by calling us cowards almost everyday in its news and commentary shows.  

Vice-President Cheney, Defense Secretary Rumsfeld and Secretary of State Powell underscored Washington's displeasure at the Philippine pullout.  As Powell praised South Korea and Bulgaria for "not blinking and not faltering," he reproached the Philippines, "In these difficult times, we have to remain steadfast." 

Polish Prime Minister Marek Bella said, "The decision by the Philippine government only increases the danger for others.  It is a very clear example of how when you bow to the pressure of terrorists you increase the danger to others." 

Australian Prime Minister John Howard said, "Terrorists hold weakness in contempt and people who make concessions will still be pursued by terrorists who see them as a softer and more vulnerable target."  There's no question that our image abroad has been greatly damaged. 

Even if I disagreed with the way the Angelo crisis was handled, I'm beginning to be disgusted with the way we're being vilified abroad.  More than ever, the only way this country can surmount its problems is to be unified and to be financially and militarily independent.  Only then can we make decisions without being accountable to any country or to any power. 

Angelo has become the symbol of what this country is all about.  Nobody doubts the role of the OFWs as the real heroes who keep the economy afloat.  Angelo has probably become the symbol and the silver lining that should unite this country and move it forward.  GMA cannot do this alone.  

In a business forum at the Makati Shangri-La Hotel the other day, GMA unveiled a tax plan that will raise P80-B in additional revenues and save P100-B through administrative reforms.  She plans to raise taxes through a gross income tax system; repeal the value added tax (VAT) in favor of a more simple system; tax windfall profits of telecommunication firms; increase tax revenues from alcohol, tobacco and petroleum products; rationalize fiscal incentives; institute a targeted tax amnesty; and offer a performance-driven system for revenue agencies. 

Not all the businessmen agree with her proposal.  What everyone agrees with is that we have a major deficit problem to solve and that we must all be prepared to bite the bullet.  For those who disagree, they should get together with major business groups to come out with their own solutions and propose these directly to DTI Sec. Cesar V. Purisima for submission to Congress.  

Anyone who wants to continue to live in this country must be prepared to sacrifice.  As the President said, "We have to make a lot of painful choices."  The chronic budget deficit, which is estimated at P199-B this year, is the government's "most formidable challenge." 

It really boils down to a choice between more taxes or more borrowings.  If the government plans to borrow P596.6-B from foreign and domestic sources in 2005, or the equivalent of PI.7-B per day to retire part of its debts and finance the budget deficit, P385-B of the projected borrowing will be used to pay maturing debts.  The balance of P211-B will finance the estimated budget deficit of at least P200-B in 2005.

The President's move to cut government expenses by P100-B through administrative reforms is a good example for the private sector in doing their part  The President made it clear that her 5-point reform program will require a lot of sacrifices so that we can invest more in infrastructure.

The other problem that we have to address immediately is damage control on our international credibility, particularly with the United States.  The ripple effect of the strained relations with the US can likely result in substantial decreases in economic and military assistance, especially with Bush advisers who are not particularly fond of the Philippines, like Vice-President Cheney and Defense Secretary Rumsfeld. 

The ramifications of the pullout are still over the horizon and the signs of things to come have made themselves clear.  Perhaps, GMA should convene the National Security Council and tackle all these potential ramifications.  We should come out with a strong diplomatic offensive to neutralize the battered image we have abroad bringing out only the best and the most experienced diplomats to do this.

GMA said that she will continue to reach out to the Opposition, especially to those who are still hurting from the last elections.  She is determined to do so and there is no doubt that her strong determination in whatever she does is one of her biggest assets. That was the feeling I had when we had dinner with her the other night.  We can only wish her well and ultimately, ourselves, in surmounting all of these challenges that never seem to stop.  We all have to bite the bullet before all these problems bite our heads off.

#########

Email: babeseyeview@hotmail.com

BACK TO TOP