Doing Business with the Philippines Makes Sense

Remarks of His Excellency U.S. Ambassador Francis J. Ricciardone
at the signing of the Memorandum of Agreement between OPIC and PhilEXIM
Tuesday, December 17, 2002
Makati City

Secretary Camacho, President Valdez, friends, colleagues:  I would like to take a minute or two to not only give you the good news of what we've accomplished today, but also to comment on the good news - and underline it - that we see here in the Philippines.  What we  have done, as the Secretary and President Valdez have pointed out, is really an act of confidence and faith in the Philippines; in the Philippines economy, and even -- and I hope this doesn't surprise you -- in the leadership of this country, in the executive branch and in the Congress, because we see great things happening here.

We see positive momentum.  Beneath the headlines, the worries, the bad news out there and the things that sell newspapers, there are a lot of positive things happening that American business people, American diplomats and government officials see.  They're right there under our noses.  Just some examples this week --  it's not only in the administration, but it is also in the legislature -- we saw the Special Asset Management Company being established as both houses of the legislature are concluding their work on that.  We saw a new government procurement legislation finally getting done, which will improve good government and advance the good government campaign of President Arroyo.  We saw the Philippines' striking leadership, not just in this country, but also in this region, in evaluating commercial use of genetically modified organisms.  This will do great things not only for the farmer, but also for the Philippines consumer and for the environment.  In reducing the use of insecticides, the abundance of Philippines agriculture will increase.  This year also saw the Philippines having established an Energy Regulatory Commission that is making great strides, and is building investor confidence in this country.  We have seen pretty good economic numbers, in many cases.

All in all, we have also seen leadership at a time when it is most needed:  when the challenges are hard, when people can be cynical and, sometimes, negative.  We have seen leadership in this country that is sorely needed and that is accomplishing great things.  This is not to suggest that the picture is rosy.  There are hard things yet to be done, but there are more good news stories in the offing, if the Senate and the House will join hands with the President to seize these opportunities.

For example, right ahead of us, we see Senator Magsaysay's anti-money laundering legislation that will strengthen the Philippines' currency against international and domestic criminals, as well as terrorists.  We are confident that if this legislation gets passed next month, as Senate President Drilon has assured me it will, and as the House has already done, that the United States will be able to back the Philippines when it goes before the Financial Action Task Force in February.  We have faith that this is going to get done.

We see the Transco legislation that is pending, and we have to believe that the Senate will step up to the plate and also get this job done.  The Congress has begun this task with the EPIRA -- the Electric Power Industry Reform Act -- that then-Secretary of Energy Camacho pioneered.  We believe that that is vital.  We believe that if this gets done as it must get done, investor confidence in this country will take another leap forward.  The reverse is also true if it doesn't get done.  But we have to believe that it will get done, simply because it must get done, and urgently.

The bottom line is the United States government has confidence in this country.  That's why we're here, that's why the United States Overseas Private Investment Corporation has signed this MOU with PhilEXIM:  because we believe doing business with the Philippines makes sense.  It is a good thing that our private sector wants to do more business with yours.  We think this MOU will help unleash the entrepreneurial spirit on both sides. 

I would like to tell you a bit about OPIC and the good work that it does around the world as well as in the Philippines.  OPIC helps to foster economic development in new and emerging markets.  It helps American business invest overseas by complementing the private sector in managing the risks that are associated with foreign direct investment.  That is why OPIC exists.  OPIC-supported projects make a difference.

Expanding economic development -- which helps encourage political stability and free market reforms which are the name of the game for the Arroyo administration -- and opening the economy, will free up the entrepreneurial spirit of the Filipinos that flourishes when Filipinos go abroad.  Now it's time to make that happen here.  OPIC has supported $142 billion of investments overseas in developing countries.  These investments have helped developing countries generate, on their own, over $11 billion in host country revenues.  They have created more than 673,000 jobs outside the United States.  Also, before OPIC will support any investments overseas, they take a hard look the environmental impact to ensure that all OPIC-supported investments are environmentally friendly and protective of the environment.  0PIC is heavily involved in funding the energy sector in the Philippines.  We're moving ahead, with OPIC involved with a $250 million bond offering for the NPC.  This, however, is subject to some action on the Philippines side.  The monetary board has to act, but I understand that will be happening soon. 

So ladies and gentlemen, we are supporting what President Arroyo is trying to accomplish in this country.  Last Friday she told the Philippines Business Conference that one of the institutions of a strong republic is a vigorous, free enterprise economy.  This agreement that we've signed this evening, which will support more vigorous private sector trade and investment ties, is one more step in that direction.  I am pleased to have been able to play just a symbolic and ceremonial role here and the hard work that our staffs have done together.  Congratulations to PhilEXIM.  Congratulations to the government of the Philippines.  It's been a pretty good year.  I think it is going to a great year in 2003. 

Mabuhay!

###