So what..? Even if Pres. Arroyo finishes her term or not!

Given all the scandals erupting around it, it would be wishful thinking to expect major improvements in governance during the remainder of the term of President Arroyo. It seems that the poor will not only remain with us while she continues to govern but they will continue to grow in numbers too.

The administration of President Gloria Macapagal-Arroyo proudly touts the relatively high economic growth during its watch as if it were its crowning achievement. It never misses any opportunity to remind everyone that the rate of economic growth has been accelerating since 2001, allowing it to outperform previous administrations, while glossing over the fact that, except for last year when the Philippines posted a remarkable 7.3 growth in gross domestic product, it still was not keeping pace with its dynamic neighbors like Malaysia, Thailand and Brunei to name a few. And always the key question is: Who is benefiting from such growth? Why are the main streets in major cities teeming with hungry children and why are there sidewalks filled with homeless people?

By the government’s own statistics, the number of Filipinos who were poor grew by some 3.8 million over a period of three years, from 23.8 million in 2003 to 27.6 million in 2006. That means that almost one out of every three Filipinos (32.9 percent) is considered poor.

And that is not the last of the grim statistics. According to the same survey, the number of families that did not earn enough to buy the minimum amount of food they needed rose to 1.9 million in 2006 from 1.7 million in 2003. That means that 12.2 million Filipinos, or 14.6 percent of the population, were not eating enough or “food-poor.”

How did so many millions swell the ranks of the poor at a time when the economy was growing? Augusto Santos, acting director-general of the National Economic and Development Authority, said this was due to the higher prices of essential commodities and an “insufficient increase in personal income.” The first, he said, was partly caused by the expanded coverage and the increased rate of the value-added tax, while the second could be partly attributed to agricultural losses from two devastating supertyphoons that struck the country in 2006.

What Santos failed to mention was that despite sustained economic growth, real family incomes actually fell during the period not only because of higher prices but because economic growth was not high enough to improve family incomes as the population continued to grow at a fast pace. And the worse news is that there is little reason to hope that the war against poverty can be won anytime soon.

The Asian Development Bank, for one, says the country would be hard put to sustain last year’s record (for the past three decades, at least) 7.3-percent growth, which it said was largely driven by huge election spending. In its report, titled “Philippines: Critical Development Constraints,” the ADB identified three major factors that are bound to hamper economic growth. These are: (1) the government’s “tight” fiscal situation; (2) declining investments in infrastructure; and (3) lack of investor confidence because of corruption and political instability.

And what would it take to correct these constraints? Good governance. Checking graft and corruption and other government reforms will improve tax collection, ensure the proper use of government resources and enhance investor confidence.

It seems, these are not for this administration of Pres. Arroyo to achieve in the short term, given her remaining term of office, even if we assume that she tries very hard. A President who loses so much credibility in the face of scandals, mostly charges of graft and corruption, will find it hard to steer government back on track as different sectors of the society try to pull her down.

Good governance is not only the making of the highest official of the land but also of the different segments of society cooperating towards its attainment. Even if we assume that it is only Metro Manila's population that is loudly against her continued stay in power, people from the rest of the country would tend to believe what they hear and read most of the time as mouthed by media.

From what we have right now, where do we expect to go from here? Or more appropriately, given all these, what must a President do? Pres. Arroyo holds the moral answer to these questions.

Are there better things to expect yet in less than two years of the President's remaining term? Maybe none, maybe no more, but it would certainly be a little bit different if she gives up the presidency for good. The sooner, the better!