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New Voices
By Michael Alan Hamlin
February 11, 2002

An interesting thing happened last week: Business decided to take a stand. Now, that may not seem like much in view of the business community's vocal dismay with the previous administration, and its role in lobbying - some might say forcing - a traumatic yet probably necessary change in government a little over a year ago. But it is a significant development in my view. It is significant because while business can be very noisy when conditions are really bad, silence usually accompanies good times, and even not-so-bad times. And despite some notable moaning, times aren't so bad. In fact for some traditional and non-traditional sectors alike, they are pretty good. Recent confidence surveys bear this out.

Sure, it's common for business to complain privately that newspapers are too negative in their reporting, but the community seldom gets worked up enough to try to do something about it. For example, one high-profile business association claiming to represent Philippine business was in the newspapers every day during former president Joseph Estrada's impeachment and eventual dethroning. Now that the government it helped install is under sustained, fierce critical attack, where are they? One reason - perhaps the main reason - for the reduced visibility is that negative news sells more papers than good news. Or least that's the rumor.

Which makes the business community's new voice that much more remarkable: it has to actually make the effort to get attention in order to air its views. And, it's willing to make that effort.

Take for example a statement issued by the Management Association of the Philippines (MAP) in support of the presence of U.S. troops in the country. Business is forced to constantly reassure investors interested in investing in their companies and clients who worry whether supplies will be disrupted that the Abu Sayyaf are an isolated bunch of kidnapping bandits confined to Basilan. This is not a reality issue, but a perception issue. As long as the Abu Sayyaf remains free, broad negative perceptions will hold sway.

Most of the business people I know who head up MAP are patriots, too. They could be just about anyplace they want to be, and make significantly more money. But they stay here. Now, I'm not referring to the mystic 350 or so family dynasties that are said to control the Philippine economy, but to professional managers that have worked themselves up their organizations to earn the right to lead them. They have a commitment to, and a stake in, the success of the Philippines as well as the businesses they head.

And to them, dealing with the Abu Sayyaf with finality is in the best interest of both their country and their businesses. When MAP surveyed its 709 members on the issue of the joint RP-US military "exercise," about 30 percent, or 207 members responded. Of those respondents, a whopping but not surprising, 95.7 percent "expressed strong support" for the exercise. The association didn't stop there, noting that "some respondents indicated that international terrorism is a phenomenon that transcends national boundaries and narrow-minded nationalism," a direct criticism of groups that continue to protest against the exercise.

That's not the only issued MAP has decided to take up. During its inaugural 2002 meeting last week, embattled finance secretary Jose Isidro N. Camacho, who happens to be a MAP member, was the keynote speaker. Incoming MAP president Ramon Y. Dimacali's somewhat emotional expression of support for Camacho was met with a resounding, sustained round of applause not often offered by this street-smart, tough-nosed crowd. MAP also joined 16 other associations to issue a public statement of support for the confirmation of the secretary, who has been repeatedly bypassed.

But what made me decide to write about the New Voices in the community was a request to do so. Tech entrepreneur and Philippine Stock Exchange (PSE) stalwart Ramon Garcia told me late last week that the military exercises had clearly enhanced the perception of the Philippines as a country willing to make the hard decisions necessary to deal effectively with its problems. And he's willing to step up and say so.

I have to admit, this is an interesting notion. While I wouldn't consider myself a dedicated critic of the administration, I haven't been a cheer leader either (and don't intend to become one). And one of the issues I've publicly wondered about with respect to this administration's capacity to lead is whether it has the political will - and the mandate - to make tough decisions and to stick to them. Some critics will, perversely it seems to me, argue that the administration's decision to stick to its guns in this case isn't that hard, given the broad public support the joint exercises enjoy. However, despite broad support for a more permanent US presence a decade ago, anti-bases supporters managed to garner the Senate votes necessary to ask that the Americans leave. The members of civil society that oppose a prolonged but temporary US presence now may not be big in absolute numbers, but they are loud, and they have often exerted influence far out of proportion to their base of support.

For that reason, I don't have a problem acknowledging that in this case at least, President Gloria Macapagal-Arroyo made a gutsy decision, and if her comments Friday are any indication, it seems she's going to remain firm. That appears to be the case with Camacho as well, whose victimization is a clear strategic blunder by the opposition. That resolve is likely to pay dividends, as long as it lasts. Not the least of which is the new-found urge of business and other groups as well as individuals to publicly come to the aid of the administration.

(Michael Alan Hamlin is the managing director of consultancy TeamAsia and the author of three books on Asian economies and companies. His latest book is Marketing Asian Places, of which he is co-author. His e-mail address is mahamlin@teamasia.com.ph.)

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