GMA in Japan: "The Philippines is back in business!"

text and photos by b. talorete

PRESIDENT Gloria Macapagal-Arroyo's working visit to Japan on September 12 to 15 reaffirmed Japan's role as a major lifeblood of the Philippine economy. Her visit, which was meant to show that the Philippines is back in business, was the first to a developed country outside of the traditional tour of new leaders to fellow Southeast Asian nations.

Arroyo practically begged Japanese businessmen to keep their investments in the Philippines, while promising both protection and a level playing field. Concerns on the country's high labor costs and peace and order conditions have kept investors looking elsewhere, especially to China, Vietnam and Thailand.

However, she assured them of her government's "stable rules of investment," adding that "whenever the solicitor general can get involved in a commercial litigation, he consistently takes the position of providing consistency of rules in favor of the investor." She boasted of the Filipino work force, which speaks English and is information technology-literate, as one of the country's best selling points.

She noted that Filipinos, considered No. 1 among knowledge workers, could provide a "rich minefield" for collaboration in information and communication technology with Japanese businessmen. Filipinos can provide the software, Japanese investors the hardware, she said. The President called on Japanese investors to consider the Philippines as the site of their expansion program, especially on the information and communications technology (ICT) sector.

Addressing concerns on law and order, Arroyo said that the Philippine government was doing all it could to stop kidnap-for-ransom gangs and neutralize extremist groups. The crime rate has gone down by 10 percent this year, compared to the same period last year, and the crime rate index decreased by 4.4 percent. She said more Filipinos now report crimes to the police, a sign that they trust the police force.

She also told them about the National Anti-Crime Commission and the investor hotline set up by the Board of Investments and the Department of the Interior and Local Government that could respond immediately to threat situations.

Official Development Assistance

Among the President's major gains in Japan was her ability to stave off reductions in Japan's official development assistance (ODA) to the Philippines (see box). During her initial meeting with Prime Minister Junichiro Koizumi, the latter said that Japan will cut its overall foreign aid by 10 percent starting April 2002 to rein in its deficit and restructure the economy, and that the Philippines would be affected as a result.

Ms. Macapagal however stressed that under her administration, the Philippines had utilized 94 percent of the ODA. During the Estrada administration, Japan and other donor countries had expressed concern about delays in the implementation of ODA-funded projects, mostly because of bureaucratic red tape and a lack of counterpart funding from the Philippines.

In an apparent recognition of the Philippines' prudent use of ODA, Koizumi pledged to continue economic aid to the country, starting with a $352 million loan agreement for the Subic-Clark-Tarlac Expressway project, financed mainly by Japan through the Obuchi fund. During a gathering with representatives of Filipino organizations here, Arroyo proudly said that the Philippines will not be affected by the reduction in Japan's ODA. Koizumi assured her that even though Tokyo was cutting the level of its foreign assistance worldwide, aid to the Philippines would not be affected.

The Philippines is the third largest recipient of Japan's ODA, next only to China and Indonesia. In 1999 alone, Japan's ODA to the country amounted to $412.98 million.

Comfort Women

Because Manila relies heavily on Japanese funding for development, the government has not been heavily pressuring Tokyo on the comfort women issue. However, during the meeting between Arroyo and Koizumi at the latter's official residence, it was Koizumi who initiated discussion.

While she failed to obtain any tangible monetary commitment for the former sex slaves, Koizumi assured her of his continued interest in the issue, while expressing his regrets and the regrets of the Japanese people.

In a letter to be sent to all comfort women, Koizumi said, "As prime minister of Japan, I would like to extend anew my most sincere apologies and remorse to all the women who underwent immeasurable and terrible experiences and suffered incurable physical and psychological wounds as comfort women."

"We must not evade the weight of the past lest we evade our responsibilities for the future," the letter said.

"Our country, totally aware of its moral responsibility, with feelings of apology and remorse, must face up clearly to its past history as it is conveyed to future generations," the letter added.

Koizumi also told Arroyo of the Japanese government's contribution of "atonement money" to a fund for comfort women.

Before her departure from the Philipines, feminist groups challenged Arroyo to press for compensation and a written apology from Tokyo for the comfort women.

Japanese Imperial Family

On the lighter side, Arroyo also met with Emperor Akihito and Empress Michiko at the Imperial Palace. The 30-minute private audience was her third official meeting with the Imperial Majesties.

The first was when the then crown prince and princess were guests of her father, then president Diosdado Macapagal in 1962. The second meeting was in 1999 when Ms Macapagal, then vice president, visited Japan with her mother, Eva, who spent her last birthday at the Imperial Palace.

Arroyo recalled that during the official visit of Emperor Hirohito to Manila in her father's time, she even performed a Filipino dance for the Japanese Imperial Family during a state dinner in Malacanang.

At a gathering with compatriots on her last day here, the President said that the Emperor expressed his "love and concern" for the hundreds of thousands of Filipinos living in Japan, to the audience's applause and delight.

A Success

Arroyo described her trip as "resoundingly successful," as Manila and Tokyo reaffirmed their commitment to strengthen their partnership in resolving bilateral as well as regional and global concerns. She expressed confidence in reassuring Japanese business leaders and officials that the Philippines is safe and attractive for their investments.

Leaving with several agreements signed and more investments in the pipeline, as well as economic aid commitments from Koizumi, Arroyo was able to address investors' concerns about the Philippines, particularly with regard to law and order, labor unrest, infrastructure facilities, telecommunications facilities, the transport system, corruption and bureaucratic red tape.

For those who met the diminutive lady from Manila, one thing is undoubtedly clear: the Philippines is back in business. *

At a glance
President Arroyo's accomplishments during her 4-day visit