A TAKE ON GMA'S SONA

The Philippine Star
08/01/08

The eighth State of the Nation Address by the most unpopular Philippine president in two decades lasted 58 minutes and was interrupted 104 times by applause which exhibited an enthusiasm that was noticeably several notches lower than in previous gatherings.

In the end, the President’s report seemed to focus on two main messages. The first, on VAT, should help sustain the administration’s gains during its last two years especially now that the country and the world are facing a global economic crisis.

The President’s decision to stand pat on the expanded value added tax amid mounting calls to scrap the 12 percent impost on oil and electricity – or at least reduce the rate while inflation is at its14-year high – could grudgingly be regarded as an admirable decision.

Apparently, by not capitulating and giving in to the clamor to cut the oil and electricity imposts, GMA has projected herself as a president who is not after “pogi points,” something that she could have taken advantage of to shore up her flailing image.

With its decision on the VAT on oil and power, the administration stands to gain additional revenues of P73 billion, quite a tidy sum of money that could come in very handy in the next few months, especially if put to sensible use.

The President’s economic managers have deftly pointed out that removing the levy on oil and power would just benefit the rich who consume more of these commodities and would only marginalize the poor who would have less in terms of subsidies.

So far though, the government has been using the bonanza VAT collection to subsidize food and energy costs for low-income Filipinos. The benefit of dole-outs is highly debatable on a long-term basis, though admittedly has silenced and helped manage unrest among those who are considered the biggest threat to the nation’s security.

I still believe, though, that the money would have been better spent if appropriated to building more farm-to-market roads and irrigation systems, and strengthening research and development to improve the nation's food security and eventually lead to rice self-sufficiency.

Brownie points from credit rating agencies

Aside from keeping the masses from taking to the streets, the decision to keep collecting the VAT on oil and power is winning brownie points for Mrs. Arroyo among foreign investors and credit rating agencies.

The expanded VAT is considered by credit rating firms and foreign investors as a critical fiscal reform that would help sustain the government’s efforts to nurse its finances back to health.

In fact, the expanded VAT was instrumental in boosting investor confidence last year, helping the country post its strongest GDP growth in 31 years, narrowing the government’s budget deficit, and strengthening the peso to its best in more than a decade.

While some of the past year’s gains were reversed this year as a result of surging oil and commodity prices, the VAT has undeniably served as a cushion to buttress an abrupt and extremely painful fall. If only for that, we must indeed thank the president for her political will.

Bowing to Church pressures

The second message of the President that could potentially do the country more damage is her weak position on population management issues. Unfortunately, the political will she demonstrated when tackling the VAT issue was totally absent when she affirmed her support for natural family planning.

Using such a lame argument that population growth slowed to 2.04 percent during her term from 2.36 percent in the 1990s when President Fidel Ramos endorsed artificial family planning, Mrs. Arroyo practically echoed a statement made by the church days before the SONA.

The President’s position looks like a kiss of death on the chances of the reproductive health bill from ever being passed during her administration. Pending approval on second reading at the Lower House and calendared for debates after the SONA, the bill seeks to give couples more choices, including artificial birth control methods, in planning their families.

A study showed that more than 35 percent of predominantly Catholic Filipinos support even artificial methods like pills and condoms, while less than 15 percent remain loyal to natural family planning.

Imperative population management

Controlling population growth has become more relevant in the face of the food crisis and would have justified a policy shift on the part of a president that has nothing much more to lose in terms of popularity. But it was not to be; Mrs. Arroyo, instead, threw her weight on bills like consumer protection, changes to the charter of the social security system, and amendments to the power reform law.

This isn't to say that these other initiatives aren't important – because they are. It's just unfortunate that the president had a golden opportunity to leave a truly remarkable legacy in a career marred by allegations of corruption.

That legacy would have provided Filipinos broader views on how to plan and manage their families. The government would have been able to promote and to map out integrated health reproductive programs that would educate couples and expand their choices giving them greater say on how to grow, sustain and maintain their respective family life.

Meanwhile, three babies are born every minute in this country and while it's romantic to think that Heaven will take care of all these infants, the reality is that neither the church nor the government can feed them all. Not even the VAT bonanza can save them.

Collegiate Champions League update

About 108 collegiate teams have taken the road to the Philippine Collegiate Championship games, and within the next few weeks, several collegiate basketball leagues found throughout the country will start competitions to determine which teams would advance to the regional championships. Winners in the regional competitions will advance to the zonals and then to the final “Sweet 16” of the Philippine Collegiate Championship games.

Provincial “mother leagues” to start competitions are the following: Zamboanga-Sibugay Basketball League (July 27) with eight teams; Cagayan de Oro Students Athletic Assoc. (July 29) with eight teams; Cagayan de Oro-PRISAA (July 29), four teams; Davao City Athletic Association (August 2), seven teams; Cebu Schools Athletic Foundation (August 2), nine teams; Zamboanga del Norte League (August 8), seven teams; Leyte Universities, Schools & Colleges Athletic Association (August 8), 10 teams; Zamboanga City-wide Interschool League (August 9), 12 teams; Iloilo Schools Athletic League (August 15), seven teams, Bohol Collegiate League (August 16), four teams; Ormoc City Inter-schools League (August 16), nine teams; and Baguio Benguet Educational Athletic League (August 23), nine teams. 

In Metro Manila, National Athletic Association of Schools Colleges & Universities with 13 teams will start on August 8, to be followed by the Colleges Universities Sports Association with 13 teams, and NCAA South with nine teams.

For more details about the biggest collegiate basketball event for the year, visit www.CollegiateChampionsLeague.net.

Should you wish to share any insights, write me at Link Edge, 25th Floor, 139 Corporate Center, Valero Street, SalcedoVillage, 1227 MakatiCity. Or e-mail me at reydgamboa@yahoo.com. For a compilation of previous articles, visit www.BizlinksPhilippines.net.