A SUPPLEMENT TO EUROMONEY/SEPTEMBER 1997PHILIPPINES: NO END TO PROGRESSAccording to the constitution, Fidel Ramos's term as Philippine president must end next year. Amid denials that he is seeking a second term, his government is pressing ahead with its programme of tax reform and deregulation. The country's economic prospects continue to look good - even the recent devaluation of the peso may turn out a blessing in disguise. Maggie Ford reportsWhen the Philippines was in trouble after speculators attacked the peso and drained the foreign exchange reserves, the IMF was quick to respond, first with $710 million cash for the central bank and then with a public pat on the back. Michel Camdessus, fund managing director, commended the Philippines for its "timely and decisive action to safeguard macroeconomic stability", in stark contrast to the weeks of dithering in Bangkok that were disturbing regional markets. Manila's ability to face reality may, in part, reflect the country's rather puny official reserves - down to $9.5 billion after the defence of the peso - but it is also a legacy of its long association with the IMF. However, the decision to go quickly to the fund in July was not as easy as it might have been five or 10 years ago; for that month the Philippines was due to graduate from a period of IMF surveillance. |