Aquino claims growth credit, snipes at Arroyo

PRESIDENT Aquino could not resist sniping at his predecessor as he claimed Thursday that the Philippines was set for faster economic growth.

“We have fixed in just 100 days what the former administration was unable to do in 3,448 days,” Mr. Aquino said, referring to Gloria Arroyo’s, during his nationally televised report on his first 100 days in office.

The President said his close scrutiny of state spending had saved hundreds of millions of dollars for the country, but critics said he hadn’t addressed long-running problems, including human rights violations.

Mr. Aquino said the savings would be used to combat poverty by increasing allocations for social welfare, education and health services.

The nation’s international reserves climbed to a record $53.5 billion at the end of September, the Bangko Sentral said.

The government’s economic team might raise this year’s growth target from the current range of 5 percent to 6 percent, presidential spokesman Ramon Carandang said.

“This shows confidence in our economy,” Mr. Aquino said, addressing a town-hall audience in La Consolacion College in Manila.

“While the peso strengthens and the economy grows, consumer prices are steady.”

The government was keeping a tight rein on spending to narrow the budget deficit from an estimated record level this year and would invite private investors to help build roads, railways and airports, the President said.

“The policy signals are encouraging,” said Emanuele del Monte, an emerging-market investor in Dublin at Fideuram Asset Management.

“An important development that the market would like to see, in addition to a general fiscal consolidation effort, would be a comprehensive set of pro-growth reforms.”

Fideuram is the asset management unit of Intesa Sanpaolo SpA, Italy’s second-largest lender based in Milan, and manages 35 billion euros ($49 billion), including investments in Philippine dollar bonds.

Mr. Aquino reiterated his June 30 inauguration pledge to pursue tax cheats, fight corruption and poverty.

“We will not stop,” he said.

“As more people join us on the straight path, our responsibility to set things right becomes easier.”

By 2011, about 2.3 million poor families would receive cash handouts, up from about 1 million this year, he said.

Renato Reyes, secretary general of the left-wing alliance Bayan, accused Mr. Aquino of failing to address human rights violations, land reform, and the welfare of millions of overseas workers who help keep the economy afloat with their billions of dollars in remittances.

He said Mr. Aquino also had failed to make Arroyo account for the alleged corruption and rights violations during her presidency.

Elaine Pearson, deputy Asia director of the New York-based Human Rights Watch, said the group was “still waiting” for the Philippine President to fulfill election promises to address human rights violations. She said 16 activists and three journalists had been victims of summary killings since June.

Mr. Aquino said his government saved $990 million after winning a dispute over a contract to build a new airport terminal.

He also said he suspended bonuses and allowances of directors of 122 government corporations and agencies. He said in the Manila Waterworks and Sewerage System alone, nine directors each used to receive P2.5 million yearly.

A rebidding of public works projects had saved about 30 percent or P934.1 million, he said.

He said more than 43,000 jobs would be created by over $2 billion in foreign investments that were committed during his trip to the United States last month.

The country’s booming call center industry also would create more than 200,000 new jobs, he said.

Manila Standard Today