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On August 3 KAS Partner Ateneo Center for Social Policy and Public Affairs ( ACSPPA) held an economic and political briefing for Manila businessmen on options out of the crisis, an analysis of the perception that the country is on the verge of economic take-off, and the stability of the Peso.

Dr. Benjamin T. Tolosa Jr. of the Ateneo Department of Political Science listed the options available for resolving the political crisis – resignation by the President, impeachment of the President by Congress, the establishment of a Truth Commission, the adoption of the Ramos solution, and maintenance of the status quo – as well as their implications. In closing, Tolosa noted that the crisis provided an opportunity for pushing for bases for deep and long-term change, like charter change, electoral, political, and bureaucratic reform.

Dr. Cielito F. Habito, Director of the Ateneo Center for Economic Research and Development, argued against the belief that the country is on the verge of economic take-off, highlighting the budget deficit, downgrades in the Philippines’ credit rating, low foreign direct investment and rising unemployment rates. Habito also noted the continuing rich-poor divide and deterioration in forest cover, children’s health and nutrition, and quality education for the masses.

Habito noted a few bright spots in the country’s economic outlook and administration, including a rise in first semester corporate earnings, gains in the services and real property sectors of the economy, an astronomical rise in copper exports, and improvements in tax administration. Habito’s imperatives for economic health included safety nets against high inflation, debt-relief, the continuing support for and promotion of small-medium enterprises and civil-society partnerships, expanded vat coverage, and the replication of LGU good practices.

Hon. Diwa C. Guinigundo, Deputy Governor at the BSP, stated, in his analysis of the health of the Peso, that while currencies region-wide had responded positively to the unpegging of the Yuan, the country’s currency showed sensitivity largely to the political environment.

In his opening remarks, Fr. Jose M. Cruz SJ, Dean of the Ateneo School of Social Sciences, emphasized the importance of taking objective stock of the country’s gains in the midst of the current political turbulence, so as to preserve and promote these advances.

An open forum followed the presentations.