We are restating our belief that the country cannot have another Corrupt TRAPO!
We need two CONSECUTIVE GOOD PRESIDENTS! We need a president of impeccable integrity.
"When former US VP Mondale asked of Phillipine’s Ferdinand Marcos: “You know Marcos. Was he a hero or a crook …”? he writes: “…
I answered that he might have started as a hero
but ended up as a crook.”
From Singapore Prime Minister Lee Kuan Yew’s book “From Third World to First”
- The Philippines still remains the fastest-growing nation
- after China.
- Cesar Purisima, the best Finance Minister in the world!
- 12 milion Filipinos JOBLESS!
Two Big Winners From China's Big Slowdown
By William Pesek
How panicked were investors last week about China's stock market plunge? Enough to treat the Korean peninsula, a place that was teetering on the brink of war, as a safe haven. Even as policy makers braced for renewed military confrontation between North and South Korea, the won staged a rally.
That's made South Korean assets one of the few bright spots in a dark time for emerging markets. On Aug. 24 alone, investors yanked $2.7 trillion out of developing nations, with Indonesia, Malaysia and Thailand especially hard hit. It matched the violent September 2008 selloff after Lehman Brothers collapsed.
Back then, Korea was battered so hard that pundits were calling it the "next Iceland" and the "Bear Stearns economy." Now, together with the Philippines, it's one of Asia's only refuges from chaos.
It's not hard to explain why many Asian economies are suffering from China's slowdown. Exporters of commodities, who depended on a humming Chinese market, have especially suffered. But why are there such big outliers among battered emerging markets?
The answer is that investors are finally basing their decisions less on herd mentality than nuanced, case-by-case analyses. "Emerging market investors have become a lot savvier," says economist Frederic Neumann of HSBC in Hong Kong. "Gone are the days where emerging markets were all lumped into one bucket. Today, countries with stronger fundamentals are able to resist the spread of contagion washing over global financial markets." Along with South Korea and the Philippines, Neumann notes that even some frontier economies, like Vietnam, "have weathered global financial turmoil with apparent ease."
The common link among the success stories is they've gotten the basics right since Asia's 1997 financial meltdown: They have healthier financial systems, greater transparency, stronger banks, sober national balance sheets, and reasonable current-account deficits.
Korea, by contrast, is on the "more credible side of the spectrum," says economist Marc Chandler of Brown Brothers Harriman. Even though China’s downshift and U.S. interest rate hikes will eventually make a dent, the won was Asia's top performer last week. Its 2.7 percent gain almost matched the drop in the Chinese yuan since Aug. 11. Meanwhile, Korean bond yields are falling. It turns out that the world's central banks had it right last year when they boosted their Korean debt holdings. In 2014, they made up 45.4 percent of the foreign-held portion of Korea Treasury bonds, up from 41.8 percent a year earlier.
It may be time to start counting Korea as a developed nation, rather than an emerging market. Korea still faces many challenges, not least of which are its rogue family-run conglomerates. But its macroeconomic performance deserves the recognition it's receiving from investors.
The same goes for the Philippines. Since 2010, President Benigno Aquino has steadily improved his nation's debt position (winning investment-grade ratings in the process), attacked graft and drawn in waves of foreign-direct investment. Last month, reporters asked Philippine central bank governor Amando Tetangco if he's worried about the specter of economic crisis haunting Asia at the moment. "There’s a herd mentality," he said, "but there’ll be differentiation." So far, he's been proven right. The country formerly derided as the "sick man of Asia" has been standing its ground amid market chaos.
Manila, for its part, faces an uncertain 2016 election, in which Ferdinand Marcos Jr., son of the dictator who ravaged the nation in the 1970s and 1980s, may make a bid for the presidency. History has shown that emerging markets are often just one bad leader away from relapsing into chaos.
For now, the relative stability washing over Korea and the Philippines underscores that steady leadership and long-term thinking matter. It also shows that global investors are getting better at identifying those factors in Asia.
In 2014, the Philippines hosted the World Economic Forum on East Asia. In 2015, it will host the Asia-Pacific Economic Cooperation Summit. The country seems to be basking under the global spotlight as its economy continues to be one of Asia’s fastest-growing. Despite a slowdown in the last quarter, it’s had 11 straight quarters of unprecedented growth above five percent.
President Benigno Aquino’s anti-corruption platform is widely credited for being able to bring back investor confidence. The stock market has been performing well and the service sector, particularly the call center industry, keeps expanding. But it’s the billions of dollars of remittances from Filipino workers overseas that remains the country’s economic backbone. All this is creating a new middle class with purchasing power foreign investors seem to be recognizing.
The American Eagle Outfitters store is just one of several U.S. retailers who recently opened in Manila. And Swedish fashion giant H&M, Japanese budget clothing brand Uniqlo and even luxury cars like Lamborghini and Porsche are all now present in the Philippines. The surge in consumer spending, which accounts for about 70 percent of the country’s economy, is what economists believed will sustain economic growth even if investments slow down.
The Philippine capital of Manila is undergoing the biggest upgrade to its road network in decades. However, there is a general feeling that the country’s infrastructure is still very much lagging behind. And that it’s unable to meet the needs of both a booming economy and a rapidly-growing population. There is a lack of an efficient public transport system.
Experts said the economy losses billions of dollars each year because of traffic jams, outdated airports and overstretched ports. The Philippines also pays one of the most expensive electricity rates in Asia. All of this, as it’s still recovering from last year’s Super Typhoon Haiyan and continues to face the threat of natural disasters.
From Bloomberg News
Presiding over a country with one of the youngest populations in the world, Aquino needs to finds jobs not just for the current unemployed, but also for the growing ranks of teenagers entering the workforce. The Philippine labor pool will expand by almost 18 million, or 31 percent, to 75 million by 2020 compared with 2010, Bank of America Corp. projected in April last year.
Almost half of all jobless Filipinos are between the ages of 15 and 24, according to the government statistics office. The biggest area of employment remains agriculture and fishing, which provides work for 30.4 million people, or almost a third of the population. About 8 percent work in manufacturing.