President Gloria Macapagal Arroyo's Speech during the Inauguration of Asian Development Bank (ADB) Philippines Country Office (PHCO)
1 March 2001, ADBHQ, Mandaluyong City

Thank you very much.

Mr. Chino, Mr. Hecker, our members of the cabinet, officials of the bank and staff, members of media, other guests, ladies and gentlemen:

I'm happy to be here in our inaugural rites today. This marks a special moment in the history of the partnership between the Asian Development Bank (ADB) and the Philippine government.

The ADB has had a long special role and interest in Philippine development, as evidenced by its being the country's second largest source of developmental funds. Our country has been one of ADB's more active clients, as mentioned by Mr. Chino borrowing about US$ 250 million annually and ranking as the 8th largest shareholder in ADB among it's regional members.

Overall, the Philippines is ADB's 11th largest shareholder with 84,304 shares or 2.43 percent of the total shares.

And I'm very happy on a personal basis, that the ADB Founding Meeting took place when my father the late President Diosdado Macapagal was president of the Philippines. And at that time in 1965 the Philippines lobbied very hard to have the ADB located here in the Philippines. And that is why the Philippine government provided that land in Roxas Boulevard so that ADB would be located here.

So not only is there a long history of friendship between ADB and the Philippines on a personal basis. I also have that long memorable history with the ADB.

And since joining the ADB, the Philippines as mentioned by Mr. Tadao and I'm very grateful that we have received nearly US$ 8 billion in loans, and more than 50 percent of these loans have been utilized for projects in agriculture, energy, and the development of natural resources.

This is not surprising. Because the primary role of the ADB is poverty alleviation in the Asian region. This is also one of the major goals of all past administrations of our country but especially in this administration, because we want to be ambitious and we want to be able to win the battle against poverty within a decade at last. This vow we will try to fulfill through our four point national agenda characterized by:

1. an economic philosophy of free enterprise adapted to the knowledge-based economy of the 21st century

2. a strong social and sectoral bias to balance our economic development plan

3. a modernized agricultural sector founded on social equity

4. the improvement of moral standards in government and in society

These guidelines we have set for our national agenda are not mutually exclusive. They are linked and interdependent as each one helps the other to be achievable.

Our ultimate vision of winning the war against poverty will be achieved by creating an environment conducive to investments and global competition and allow growth and economic expansion to take place, while yet making sure that the disadvantaged sectors will be transformed into active players and contributors, and not just objects or passive beneficiaries of growth.

Given the large amount of financial and technical support that the ADB has afforded to the Philippines, and may I thank ADB for its support when I was still the Secretary of Social Welfare and Development for my department our efforts have been consistently met with encouraging results.

The quality of the loans that have been channeled through the ADB to pump-prime our nation's economy has brought out great benefits to our people in terms of expanded opportunities.

Infrastructure projects like farm to market roads, rural electrification, and environmental projects have enriched our people's lives by standards beyond monetary considerations. Those standards have provided not only convenience, they have enhanced the potentials of many Philippine communities.

A good example is the 5-year ADB funded loan for the Pasig River Environmental Management and Rehabilitation Sector Development Program. Since the start of the river's rehabilitation, the state of the river has improved. We can now tolerate the breeze wafting from the Pasig River, and hopefully, in a few years the river can again be host to various life forms and more livelihood and recreational activities.

Indeed, The ADB has played a vital role in our country's continued quest to achieve national progress and economic prosperity.

The presence of the ADB headquarters here and again I'm very grateful that, that was occasioned by my father's great advocacy has given the Philippines the seal of approval so to speak, not only before the regional economic community but the whole world as well.

The ADB's continued stay has provided us extra confidence, because you have guaranteed before the international community that, our economy even if there are times when we have financial troubles, our economy remains resilient, stable and growing. This confidence is further re-enforced by the opening of this office -- the ADB'S Philippines Country Office (PhCO).

The establishment of the Philippines Country Office will improve the ADBs responsiveness in its Philippine operations. It will facilitate the process of strengthening it's client orientation by establishing a streamlined and coordinated operational communication channel, thus enabling the ADB to be more responsive to developmental issues and therefore be closer to its goal.

And for our Philippine officials they don't have the maze of that other wing in the building. I never could find my way around everytime I always need a guide. But this time it will be simpler to come to this office.

The PHCO will provide ADB's Philippine operations with a sharper focus, better coordination and more effective representation through a heightened level of policy dialogue with the government and the key actors in civil society.

I thank you also Mr. Chino and Mr. Hecker for pointing out that one of your priorities is -- addressing the high poverty rate in Mindanao. This goal is promoted through your continued implementation of infrastructure projects, rural electrification, microfinance, as well as improved forest and coastal resources management to assist the development of poor upland and coastal communities.

I thank you for your special attention to this large island which is now being given special attention by our administration. Because you want to have peace in Mindanao we want that in Mindanao peace will finally reign there and the people of Mindanao can start their journey to growth and normal life.

I have appointed several Mindanaons in my cabinet headed by Vice-President Teofisto Guingona in the Foreign Afairs, Simeon Datumanong in Public Works and Highways and Panteleon Alvarez in Transportation and Communications.

I have also set up the government peace panel which is demilitarized and totally Mindanao based with presidential assistant Jesus Dureza as the head of the panel. And recently, we suspended offensive military operations against the MILF as a confidence-building measure.

So far, the MILF'S response is positive to our initiative and we are hopeful that before long we can resume the stalled talks. We are grateful for the efforts provided by concerned multilateral institutions to help us build a lasting peace in Mindanao and return it to the growth path.

Through the Philippine Country Office acting as the contact point of the ADB's linkage with the government, NGOs and other sectors of our society, our capacity for effective program implementation will definitely be enhanced. The bank's loans and technical assistance grants will achieve their operational objectives.

And so as we celebrate this inauguration, we give our commitment that our administration will support the ADB's Poverty Reduction Program, because we share the same resolve in uplifting the quality of life of every Filipino.

We no longer have an Economic Coordinating Committee which was established by the previous administration because that is a duplication of the function and mandate of the National Economic and Development Authority. And we believe that the NEDA is the primary department for planning our economic development.

To address the problem of low absorptive capacity for foreign-assisted projects, we are in fact giving even more tiff to the investment coordinating committee to ensure the smooth operations of ongoing and pipeline projects with ADB and other multilateral and bilateral agencies.

Indeed our administration will waste no effort for the efficient and effective implementation of all ADB and all foreign assisted projects for that matter as well all contracts with the Philippine government.

To address the speedy implementation will be our way of recognizing your valuable assistance to our country, ADB's valuable assistance to our country as well as hastening our economic recovery and development process.

I thank the ADB for establishing this various country offices and I thank you that even if you are already located here you still have a separate Philippine Country Office. And I'm optimistic that this office will further strengthen our mutual efforts to bring progress and economic prosperity to the doorstep of every Filipino.

May God bless us all and may we continue to have a fruitful relation between ADB and the Philippines.

Congratulations and thank you.