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Arroyo spells out recession antidote

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By Joel Guinto
First Posted 16:01:00 01/30/2009

Filed Under: World Financial Crisis, Banking, International Economic Institutions, Economy and Business and Finance, Government

MANILA, Philippines — President Gloria Macapagal-Arroyo has proposed three “radical” changes to reverse the global economic downturn.

At the same time, Arroyo warned against a total overhaul of the present economic system, saying it could result in more suffering for the poor.

In a speech before farmers in Palayan City, Arroyo said there should be “fundamental changes” in financial regulations to avoid a repeat of the sub-prime lending crisis in the United States.

“Kailangan ng saligan pagbabago ang global financial regulation. Di ba bumagsak ang ekonomiya dahil bumagsak yung sub prime? [There should be fundamental changes in global financial regulations. Didn’t the economy crash because of the sub-prime crisis?],” she said.

Second, Arroyo said rich nations should not “dictate” the course of the global economy, adding, “Sila nga ang bumabagsak, tayo ay nakatindig pa [They are the ones who crashed, but we are still standing].”

“Ang leksyon dun ay umasa tayo sa ating sariling pondo. Umasa tayo sa ating sariling patakaran. [The lesson there is that we should rely on our own funds. Let us rely on our own regulations],” she said.

Lastly, the President said countries must not close themselves to international trade.

“Huwag nating isarado ang ating pintuan sa isa’t isa sa mundo. Kung di tayo mangangalakal, liliit nang liliit ang bawat ekonomiya, yan ang nangyari nung Great Depression, mas lalong babagsak, pati tayo babagsak. [Let’s not close our doors. If we close trade, the economy will shrink, like what happened in the great depression. We will all go down],” she said.

Arroyo laid out her proposals hours before she left for Davos, Switzerland on Friday evening to attend the World Economic Forum, where she is expected to share the Philippines’ experience in cushioning the blow of the global recession.

Addressing calls to “abolish” the current world economic system, Arroyo said: “Lives are at stake. It’s arrogant to think that we can wipe the slate clean for the common good if large segments of our population are to suffer in the meantime.”

“Before we implement radical change, we must be sure that we don’t inflict more damage, or neglect the hardships of those most hurt by the global downturn,” she said.

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Written by joelguinto

FriUTC2009-01-30T05:36:07+00:00UTC01bUTCFri, 30 Jan 2009 05:36:07 +0000 22, 2006 at 12:45 am01

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