The Philippine Online Chronicles

Two things are happening--- first there is the question whether or not the Philippines can surpass the Millennium Development Goals, and second, that the Philippines signed a five year, US$434 Million dollar compact with Millennium Challenge Corporation. These two things are relevant to the Aquino administration's goal of going all out in the war against corruption and poverty. From Aquino's United Nation's speech to the other speeches President Aquino has been delivering in New York, the message is clear and it is continuously being hammered that it is in Public-Private partnerships, Aquino believes is the key to solving the challenge of corruption and poverty.

Where to begin?

The obvious of course ought to be set aside. Millennium Challenge Corporation is an American aid program aimed at fighting global poverty. In 2007, the Philippines received US$20 million dollars from MCC.

The five year, US$434 million dollar compact between MCC and the Philippines is a clear indication that the Americans are interested in, and are interested in backing Aquino in his anti-corruption and anti-poverty initiative. That they believe in the Aquino government's sincerity.

Three things have been highlighted where the compact will go to. First is the Revenue Administration Reform Project, which targets the Bureau of Internal Revenue. A clean up of the revenue service is a key pillar in any anti-corruption assault. The next is the Linking Arms Against Poverty program that aims to ensure that resources are provided to communities directly. The third one is the Secondary National Roads Development (SNRD) project, which is a road segment between Samar/Eastern Samar. The test there is on checking construction standards as well as road contractors.

We go back to Aquino's United Nation's speech, where he highlighted that his administration believes in the success of private enterprise and from that success, channel that into social services. In his words, Aquino said:

"Rising to the challenges of our era requires, within each of our countries, a strengthened regulatory system. This does not mean a cumbersome, intrusive government, but rather a government that allows private enterprise to thrive, while ensuring that they remain cognizant of their social responsibilities, and empowers them, in turn, toward fulfilling these responsibilities. Many governments are tackling this challenge, including the government of the Philippines. Our administration’s pledge: To channel the gains we might reap from Public Private Partnerships into social services, like those in health, education, and poverty alleviation."

It is a continuation of his Campaign promise. We saw this indication first in his speech before the Makati Business Club. We see it again in his speech before the United Nations. This public-private partnership has already made its way to the 2011 General Appropriations Act:

Public-Private Partnerships (PPP)

Setting up of a PPP Center attached to the NEDA. The Center will provide technical assistance and help facilitate the development of PPP proposals for high impact projects.

Provision of P500 million to DPWH and P100 million for DOTC for the conduct of their own feasibility studies on PPP.

Provision of P15 billion under DPWH, DOTC, and DA to comprise NG counterpart requirements for PPP projects (e.g., for right of way)

In his speech President Aquino said:

"The P1.645 trillion national budget that we proposed for 2011 puts in place the zero-budgeting scheme, which required a review of existing programs, termination of programs that no longer fulfill their intended outcomes, and a reduction in the funding for programs that needed to be redesigned. We have tightened restrictions on congressional pork barrel and reduced, if not removed, many opportunities for wasteful, and possibly corrupt spending practices. This has not necessarily endeared me with my former colleagues, but it has allowed us to increase spending on education, healthcare, and much needed emergency cash subsidies for the poorest of the poor, at the same time reducing our budget deficit as a proportion of GDP.

 

This kind of action is not dramatic enough to make it to the evening news, but I think you can appreciate how significant an investment of political capital it can be."

If there is any doubt that the President is an advocate of the free market, these speeches first before the United Nations and the one before Citibank Economic Conference lays all that aside. What's also clear between these two things is that clear sense of social justice. There is always the insistence that these economic gains must be translated into clear, real world benefits.

What's also clear is that this message of what the government intends to do, and the clear policies leading the way via groundwork in the general appropriations act are signals that this administration is at least sincere in carrying out its vision for the future.

Let us segue a bit. Recently there have been a spur of points raised that the Philippines will not achieve the Millennium Development Goals by 2015. In fact, it should be the least of our worries. The first must to play catch up, and second, less nitpicking on hotdog-gate.

Several things are also happening on the ground in the Philippines.

DOST initiatives on improving PAGASA in the wake of Ondoy is an indication that things are moving along.   How that stands against the real world is an entirely different matter.   So too is the different matter whether relief and rescue are as advanced as DOST. One thing for certain, at least there is some measure of progress.

Another matter that needs to see the light of day is the initiative of the DOST in providing each Filipino school children with a robust Tablet PC. Whether or not such project will roll out and how successful it is would depend on how the DEPED and DOST would engage society.

Things are moving along, albeit may be not as fast as we hoped, but moving forward nonetheless.

What does this all mean?

An "analysis" of Aquino's first international trip, and UN speech is simple.

First, the trip is a qualified success in that this is an acceptance by the world stage of Aquino. This is a way for the Philippines to introduce him to the world, and an opportunity for them to take the measure of him.

That Aquino's UN speech was a reiteration for the rest of the world what he promised Filipinos he would do: fight corruption and poverty and he would do so through public-private partnerships. It isn't news for Filipinos, but this is an opportunity for the everyone else to hear him say it. It is also the opening of the story.

Second, his speech before Citibank was more focused on his target audience: the money guys. Much like his Makati Business Club speech, this was a serious conversation and laying down the cards of where the Philippines' economic ministers want to steer the country.

It was a conversation with Finance Secretary Purisma and Gregory Domingo that's more important, but having the President there is simply "star" power, as well as a way for the money guys to meet the man whose success would mean success for their money. Without a doubt the money guys can see through the cards. Numbers are numbers wherever you go and money is money.

Third, the Americans are most willing to support Aquino and his administration in his fight against corruption and poverty. The high-level meeting between Aquino and Obama in New York was an opportunity for both men to take the measure of the other. The MCC compact to the tune of US$434 million is proof that the Americans are willing to be a continued partner of the Philippines. A MCC compact is a multi-year agreement and this is most interesting to see and an excellent benchmark if the Philippines can achieve its goal.

There are clear indicators that Aquino is serious in pursuing his fight against corruption and poverty. He has not deviated from the message. His general appropriations proposal is laying down the ground work. Initiatives from the DOST is a first, albeit tentative step that some things are being achieved and that things are moving forward. The money from MCC is likewise a clear indicator of the level of partnership the Americans believe Aquino can accomplish and are willing to ensure democracy in the Philippines endures.

Photo by: Jay Morales/ Malacañang Photo Bureau, Image is in the public domain.