• Thank God for giving us Gov. Amando Tetangco

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    THE success of the Philippine economy, which is viewed by the movers and shakers of the world as among the shining stars of the global economy, must not be attributed to President BS Aquino who loves to crow about it and in the process claim credit.

    The growth trajectory of our economy, which is now enjoying more than 20 years of steady increase, was fixed during the tenure of previous presidents, but mainly by the efforts of former president Gloria Macapagal Arroyo. BS Aquino unjustly thumps his chest about the Moody’s, Fitch and Standard and Poors raising of our country to higher than minimum investment grade, but the work to achieve this happened under other Presidents — especially Mrs. Arroyo.

    The reasons for our bright economic star are, first of all, the Overseas Filipino Workers’ remittances. These fuel our consumer-driven domestic economy, fund the real estate boom and other indications of growth and health, and make our country’s foreign exchange reserves among the world’s heftiest. Another reason is the resilience of the private sector businessmen and industrialists. The strongest pillar of our economic success is Bangko Sentral Governor Amando Tetangco’s steady watch over our interest rates and the money supply and his sagacious moves to forestall inflation surges.

    Gov. Tetangco is not only admired by bankers, finance people and those who know banking and central banking in the Philippines. He has seven times been ranked among the world’s best central bankers by the prestigious New York-based Global Finance magazine.

    Tetangco has been earning an “A” grade on Global Finance’s Central Banker Report Cards. To show the importance of this triumph, the US, for example, got only the next highest grade “A-minus.”

    Gov. Tetangco is, however, not just a superb central banker. He is also concerned with social issues — such as uplifting the very large part of our population who are not benefiting from our “global shining star” economic status. The public got a reminder of this once more during last week’s 3rd Manila Times Business Forum of which he was the keynote speaker.

    In his deep, extremely informative and challenging speech, “Sustaining Resilience Amid Headwinds,” he drove home three points to the audience. Working on the fact that the organizer of the event is a newspaper, he used the conceit of “headlines” in labeling the three vital points.

    A stable macroeconomy must be inclusive
    His third point is “Headline number 3: A stable macroeconomy should be inclusive.” Here it is in full:

    “Some of you in the audience may be wondering why the Central Bank Governor would speak about inclusiveness. With the many macroeconomic and banking concerns it already has, should the central bank still be involved in inclusion. Our response in the BSP is YES, we should. We cannot ignore the financial consumer. When all is said and done, the purpose of a stable macroeconomic environment is ultimately to improve the consumer’s well-being.

    “In the BSP, we have institutionalized financial inclusion in our strategic agenda. We put in place banking regulations that leverage on technology to increase access to financial products for the underserved and unbanked, strengthen financial consumer protection, and raise financial education and awareness to these new financial products and modes of delivery.

    “We will also pursue the development of our National Retail Payments System or NRPS. The NRPS should move the country from being cash-heavy to being ‘cash-lite.’ The NRPS is expected to improve transparency, security, and efficiency and reduce costs in financial transactions.

    “Ladies and gentlemen, I presented three headlines. First, the Philippines bucked the trend in 2015. Next, we will continue to be resilient in 2016. And, finally we will endeavor to share the fruits of a strong macroeconomy to a broader cross-section of the economy. These three should be sufficient to make a full page of news.

    “Indeed, our country has continued to expand despite the difficult external and domestic operating environment. It has been said that difficulty or adversity BUILDS character. In a way, we can say that the challenges our country has faced so far, and continue to face, have helped BUILD our character. We have also built buffers in the interim. And have become stronger as a nation.

    “But, I also believe difficulties or adversities REVEAL character. The challenges and difficulties we have faced have revealed that we, as a nation, have what it takes to be resilient.

    “However, ladies and gentlemen, these sources of resilience and buffers, the gains that we have attained so far, all these can only be fully harnessed if YOU in the private sector will continue to do your part as well. YOU turn the wheels of industry and business. YOUR actions will help solidify these gains. I hope to see YOU make headlines of your own. Headlines that will help ensure the Philippines sustain resilience in 2016 and beyond.”

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    12 Comments

    1. The RP economy is anchored on a precarious component of the GDP, OFW remittances made the biggest contribution. This component is not sustainable because this is not within the RP ambit of control. This is an external factor control and when the paradigm of collapse affect these external factors, RP economy will suffer the contagion and its economy will also collapse. Let us do the math, in KSA count at least after Ramadan and when the price of crude oil remains at the ebb the pinch in dollar remittances from this part of the world will register negative factor to RP GDP. Let us not count as economic achievement the OFWs, count them us product of government ineptitude to bring jobs to fore. Count them as blood sacrifice for our economy to prosper…I hate these people parading OFWs as part of the economic achievement, may you all rot in HELL.

      • I am not against giving recognition to Gov. Amando Tetangco, Jr. for the present status of our economy which I think is still very far from what it should be. We should also be thankful to the sole heir/sole signatory of the Filipino Royal Clan coded TVM-LSM-666 who lent the Central Bank of the Philippines the necessary gold reserve that is backing up our currency from 1950 up to the present which other countries do not possessed. It has already matured in 2005 and could have been used in eliminating problem of poverty among our people and could have been used to start the nation’s entry into modern economic development if not for the non-cooperativeness and non-patriotism of our past Presidents starting from Pres. Cory Aquino to Pres, PNoy and their appointed Central Bank Governors and members of the Monetary Board. All of them up to the present did not inform and reveal to the Filipino people about the Royal Clan’s huge gold deposit that was put in special trust fund in gold bullion banks around the world for 50 years in August 11, 1950 having TVM as the only one who has the discretion to touch, move, remove, withdraw, open or activate the global account for the benefit of the Filipinos and the humanity as a whole. This is one of the best reasons why Gov. Tetangco is being cited/recognized by world’s financial authorities and other nations envy the Philippines for possessing this power of gold. But why does our government, specifically Gov. Tetangco and Pres. Aquino don’t divulge the real truth about this wealth? Is there something to hide, only asking?

      • There is no Filipino real clan. Whoever claims they are are delusional. This is REPUBLIC of the Philippines. All these royal nonsense have no place here.

      • You are quite correct that our economic growth relies much on OFW remittances. Correct, also, that growth based on OFW remittances is unsustainable. But my impression was that the last thing this administration gives credit to as regards economic growth are the OFWs. They totally ignore their contribution and credit everything to Aquino’s economic “acumen”. Moreover, the President added insult to injury by stating that Filipinos became OFWs out of personal preference, because to say otherwise would be to admit that employment opportunities locally were poor, as you pointed out.

    2. Advances in artificial intelligence, conventional computer chips, memristors, and neuromorphic computer chips will make it possible for self driving cars within 20 years. This technology will also make it possible to replace humans in call centers. More challenges for Mr Tetangco. Resilience will mean planning for this eventuality.

      • There was, in fact, a report on The Economist that ‘software robots’ are just starting to be used by contact centers in the US to handle simple customer inquiries. But advanced models like the ones from Celeton of Britain actually LEARN from the responses of human agents with the aim of taking over at least some of their tasks in the future. (Arthur C. Clarke’s HAL was not so far-fetcehd after all…) In any event, many US companies are looking to repatriate their customer support.

    3. For our economy to be so resilient as to weather the battering that other Asian economies suffered, it would have to be the result of long term development, not the accomplishment of an incumbent President, even if he or she were more economically adept than Aquino. GMA put the right man for the right job, and now her successor is riding on her protege’s efforts. Come to thinlk of it, I cannot recall a single Aquino directive for the Bangko Sentral. Even the ground-breaking New Central Bank Act (RA 7653) was a product of the FVR administration.

    4. This is a welcome news, but what about the welfare of our majority poor? If our economy is doing good, it’s because of our OFW’s remittances. They go abroad because they have no choice. Our government’s policy is very unkind towards our farmers and local workers but very submissive to their 1% businessmen cronies and usually our politician’s actions are very self serving. Compare this to our successful neighbors like Japan, Taiwan, or South Korea or Singapore gives oneself a very heart breaking feeling. Our country really needs a strong and at the same time kind leader.n

    5. If Pnoy’s underling is doing well,this author says must not be attributed to him.others naman say that if his sbordinates fail it is Pnoy’s fault. Ha ha ha

    6. Kudo for our central bank governor. I just hope that he release banko Filipino asset so I can recover my money