It's the Economy, Student Part 1 of 4

This is the full text of a paper written by former president and current Pampanga representative Gloria Macapagal Arroyo which was released to the media yesterday during a press briefing at the Manila Hotel.

[I wrote this article on and off in my spare time during my house recuperation, re-hospitalization and hospital detention from October to December 2011.]

Part 1 of 4

The economy I turned over.


Countless studies have shown that rapid increases in average incomes reduce poverty. Policy research, notes economist Stephan Klasen, has shown that “poverty reduction will be fastest in countries where average income growth is highest.”


When I stepped down from the Presidency in June 2010, I was able to turn over to the next Administration a new Philippines with a 7.9 percent growth rate. That growth rate capped 38 quarters of uninterrupted economic growth despite escalating global oil and food prices, two world recessions, Central and West Asian wars, mega-storms and virulent global epidemics. Our country had just weathered with flying colors the worst planet-wide economic downturn since the Great Depression of 1930. As two-thirds of the world’s economies contracted, we were one of the few that managed positive growth.


If you look around you in our cities as you drive by the office towers that have changed the skyline, if you look around you in our provinces as you drive over the roads, bridges and RORO ports where we made massive investments, that is the face of change that occurred during my administration.


By the time I left the Presidency, nearly nine out of 10 Filipinos had access to health insurance, more than 100,000 new classrooms had been built, 9 million jobs had been created.


We built roads and bridges, ports and airports, irrigation and education facilities where they were sorely needed. To millions of the poor, we provided free or subsidized rice, discounted fuel and electricity, or conditional cash transfers and we advanced land reform for farmers and indigenous communities.


No amount of black propaganda can erase the tangible improvements enjoyed by hundreds of thousands of families liberated from want during my decade at the helm of the nation. But these accomplishments have simply been part of the continuum of history. The gains I achieved were built on the efforts of previous leaders. Each successive government must build on the successes and progress of the previous ones: advance the programs that work, leave behind those that don’t.


I am confident that I left this nation much stronger than when I came into office. When I stepped down, I called on everyone to unite behind our new leaders. I was optimistic and I was hopeful about our future.

However, the evidence is mounting that my optimism was misplaced. Our growth in the 3rd quarter of 2011 was only 3.2 percent, well below all the forecasts that had already been successively downgraded. The momentum inherited by President Aquino from my administration is slowing down, and despite his initial brief honeymoon period, he has simply not replaced my legacy with new ideas and actions of his own.


The politics of division.


In the last year and a half, I have noted with sadness the increasing vacuum of leadership, vision, energy and execution in managing our economic affairs. The gains achieved by previous administrations – mine included – are being squandered in an obsessive pursuit of political warfare meant to blacken the past and conceal the dark corners of the present dispensation. Rather than building on our nation’s achievements, this regime has extolled itself as the sole harbinger of all that is good. And the Filipino people are paying for this obsession--in slumping growth, under-achieving government, escalating crime and conflict, and the excesses of a presidential clique that enjoys fancy cars and gun culture.


Vilification covering up the vacuum of vision is the latest manifestation of the weak state that our generation of Filipinos has inherited. The symptoms of this weak state are a large gap between rich and poor — a gap that has been exploited for political ends — and a political system based on patronage and, ultimately, corruption to support that patronage. Recently, politics has seen the use of black propaganda and character assassination as tools of the trade.The operative word in all of this is “politics” – too much politics.


I know that the President has to be a politician, like everybody else in our elected leadership, whether Administration or Opposition, and we must all co-exist within this system. But what really matters is what kind of politics we espouse, not how much. The enemy to beat is ourselves: when we spread division rather than unity; when we put ego above country and sensationalism above rationality; when we make everyday politics replace long-term vision in our country’s hour of need.


Everyday we draw nearer to what may be our country’s hour of greatest need, because an increasingly ominous global environment is aggravating our self-inflicted weakness. The leadership’s palpable deficiencies in vision and execution are hurting our economy at a time when the rest of the world faces the ever more real threat of a double-dip recession, one that we may have escaped the first time during my term, but might not be able to avoid again.


Our dream of growth


In order to avoid such a grim outcome, we must pursue the economic growth of our country as the permanent solution to our age-old problems of poverty and even corruption. Every postwar Administration to my recollection has sought to advance the economic growth of our country as a matter of highest priority. Only by enlarging the economic pie can there be more and bigger slices for everyone to enjoy.

It is in poverty that we find the material roots of the problem of corruption – because the political system based on patronage--and ultimately, corruption to support patronage--is made possible only by the large gap between the rich and the poor. This will persist until and unless we enlarge the economic pie. Unfortunately, the present Administration has chosen to turn the problem upside down, anchoring their entire development strategy on one simplistic slogan: “Kung walang corrupt, walang mahirap.” If there is no corruption, there is no poverty—this is a proposition that also tells us that the undeniable persistence of poverty to this day therefore means the continuation of corruption under this Administration.


The Economist commented earlier that: “…The President’s approach to fighting corruption…is to punish the sins of the past rather than try to prevent crime in the future. Mr. Aquino has proposed few reforms to the system.”


Meanwhile, most analysts are downgrading their growth forecasts for this year and the next. The Dutch bank ING cited the government’s “under-spending in the name of good governance” as the reason for lowering its growth forecasts. Now more than ever, as the rest of the world faces renewed threats of financial and even sovereign defaults as well as economic recession, it is high time for us to return to the commitment to growth that has been the primary objective of every administration in the past.


See part 2 of 4.

It's the Economy, Student, part 4 of 4

This is the full text of a paper written by former president and current Pampanga representative Gloria Macapagal Arroyo which was released to the media yesterday during a press briefing at the Manila Hotel.

[I wrote this article on and off in my spare time during my house recuperation, re-hospitalization and hospital detention from October to December 2011.] 

Part 4 of 4

Our children


For Filipinos, family is everything and the future of our children is sacred. That is why I invested so much time and effort in rejuvenating our education system. I met with teachers and other educators to get a first-hand look at the improvements that we need to make. I listened to what these fine public servants had to say, and in response to their advice, I increased the country’s total budget for education by nearly four times: from Ps 6.6 Billion in 2000 to Ps 24.3 Billion in 2010 when I stepped down. Those funds went into the following critical areas of educational spending:

We built 100,000 new classrooms, more than the three previous administrations combined. We supported one in every two private high school students—a total of 1.2 million students-with the GASTPE financial voucher program. In 2009 alone, we doubled TESDA’s budget.


For the long term, key recommendations were also submitted by the educational task force I created in 2007--comprising representatives from the major educational and private sector bodies under the leadership of former Ateneo president Fr. Bienvenido Nebres--in order to fashion a new educational roadmap with special attention to the needs of the youth and our growing knowledge-driven industries.


The task force report is the only document I personally handed to President Aquino, when we were together in the car being driven to his inauguration last year. Unfortunately that report seems to have landed in his circular file, making our schoolchildren yet another casualty of the ongoing vilification being waged against me.


I’m now saddened by news reports that the administration has been under-funding state colleges and universities without offering alternatives to the more than ten percent of our student population who attend these institutions.


Moreover, to my knowledge, any major educational reforms implemented by this administration have been limited only to adding another two years to basic education. I do not know how sound this is, or how widely supported among education professionals.

The poor


I often said during my Administration that we need to continue translating our economic and fiscal achievements into real benefits for the people. We must continue to invest in what I like to call the three “E’s” of the Economy, Environment and Education. These include such pro-poor programs as enhancing access to healthcare, food, housing and education, as well as job creation. They are central to lifting our nation up.


Over the past decade—fuelled by the windfall from our mid-term fiscal reforms—I initiated or expanded a raft of social programs for the poor. We increased PhilHealth insurance coverage, set up nearly 16,000 Botika ng Barangay outlets to deliver affordable medicines to the poor, ordered the drug companies by law to reduce their prices, energized 98.9 percent of our barangays, provided water service to 70 percent of previously waterless municipalities.And of course, we also introduced “Four P’s”, the highly successful conditional cash transfer program aimed at encouraging positive behavior among the poor in exchange for cash assistance.


But perhaps more than our social services, what the poor benefited the most from was the low inflation and the low unemployment we made possible through effective management of the economy. Despite the global food and oil price spikes of 2008, domestic inflation slowly declined on my watch, bottoming out at 3.9 percent by the time I stepped down in June 2010. And unemployment, which had peaked at nearly 14 percent under President Estrada, was averaging only around 7.5 percent toward the end of my term in office.


The problems of the poor are serious indeed, and they deserve serious thinking and serious solutions—not empty slogans, not the bloating of the cash transfer program for patently political ends, and certainly not the inability of this administration to keep the price of rice affordable or create more jobs by continuing the growth agenda. The moment that agenda is compromised, it is the poor who will feel first and the hardest the dire consequences.


The environment


No nation can aspire to become modern without protecting its environment.


On my watch as President, the country’s forest cover increased from 5.39 million hectares in 2001 to 7.17 million hectares by 2009. And we registered 40 projects abroad to reduce greenhouse gases—the sixth largest number of such projects among all countries.


I also signed a large number of laws to codify environmental protection—including new legislation to promote Ecological Solid Waste Management, Wildlife Resource Conservation and Protection, Clean Water, and Biofuels. And I tried to set the example for our countrymen by dedicating every Friday to environmental concerns.


I created the Presidential Task Force on Climate Change in 2007, which was later enhanced into the Climate Change Commission under the Climate Change Act of 2009. Under the law, the Chief Executive chairs this Commission, just one of only a few bodies headed by the highest official of the land. And yet President Aquino to date has not convened the Commission even once. The country can ill afford his lack of interest in this matter, now that climate change is causing calamities at the most unexpected times and places, such as the December typhoon floods in Cagayan de Oro and my home town of Iligan City.


Presidential drudgery


As my father, the late President Diosdado Macapagal, used to say: “The Presidency of the Philippines is a tough and killing job that demands a sense of sacrifice.” At the end of the day, it comes down to plain hard work. A president must work harder than everyone else. And no matter what he thinks he was elected to do — even if that includes running after alleged offenders in the past — he must not neglect the bread and butter issues that preoccupy most of our people most of the time: keeping prices down, creating more jobs, providing basic services, securing the peace, pursuing the high economic growth that is the only way to vault our country into the ranks of developed economies.


Good management begins with planning ahead, not pointing fingers and blaming others after the fact. It means spelling out your vision quickly and clearly so your team grasps their mission at once and immediately starts to execute it.


Unfortunately, planning and preparation seem to be absent from this administration, whether it’s for taking OFWs out of harm’s way on short notice, or evacuating flood victims—or rescuing foreign tourists held hostage by a crazed gunman. By comparison to that incident, not a single life was ever lost in all the coup attempts against me that I had to put down by force. There is no secret behind this: it against any crisis, implemented with hands-on leadership from the very top.


Once the plan is in place, the leader must proceed to hands-on execution. There is no room for absenteeism, nor for coming to work late and leaving early. There is simply not enough that can be done if the Cabinet meets only four times in an entire year.


The last major task for good management is to exercise control without fear or favor.This was the principle I was following when I brought AFP controller General Garcia up on charges in 2005, and cancelled the NBN/ZTE deal in 2007.


These days—alas—there is absolutely no fear in the administration when they’re running after me or my allies. But there is definitely a lot of favor involved when they excuse— and even defends—their friends even from misdeeds committed in full view of the public.


This is not the kind of ethics that should be practiced by one who claims to have a genuine reform agenda.


Neither will it attract capital from investors who desire regularity and a level playing field. Nor do our people deserve to be consigned to economic stagnation, government lethargy, and nobody-home leadership. Neither the President nor anyone else can truly expect to govern the next five years with nothing but a sorry mix of vilification, periodically recycled promises of action followed by lethargy, backed up by few if any results, and presumptuously encouraging gossip about one’s love life in which no one can possibly be interested. Given the electoral mandate that he enjoyed in 2010— the same size as mine in 2004, as predicted by every survey organization at that time—our people deserve more, and better, from him.

It's the Economy, Student, part 3 of 4

This is the full text of a paper written by former president and current Pampanga representative Gloria Macapagal Arroyo which was released to the media yesterday during a press briefing at the Manila Hotel.

[I wrote this article on and off in my spare time during my house recuperation, re-hospitalization and hospital detention from October to December 2011.] 

Part 3 of 4

Infrastructure


Infrastructure strengthens our competitiveness and enables us to attract new levels of jobcreating foreign direct investment. Infrastructure investment not only drives economic growth, but also creates a more efficient, competitive economy, by improving productivity and lowering the costs of doing business.


I am alarmed that the pace of infrastructure build-out has slowed dramatically under this Administration, with some projects even being cancelled outright for no good reason—such as the earlier-noted flood control projects in Central Luzon—and our country being sued by investors. At a time when we should be wooing their money, we are inviting litigation from them instead. This kind of flip-flopping may help explain the tepid investor response to the Administration’s flagship public-private partnership (PPP) program, where only one project has been awarded after all of eighteen months.


I was heartened to hear the President announce recently his willingness to resume government infrastructure spending next year. However, one cannot help but notice the timing, so close to the upcoming 2013 election campaign.


Land productivity


In my first State of the Nation Address in 2001, I said that the first component of our national agenda should be an economic philosophy of free enterprise appropriate to the twenty-first century, while the second should be a modernized agricultural sector founded on social equity.


Within a couple of months after taking office in January 2001, I personally conducted Cabinet meetings to implement the Agriculture and Fisheries Modernization Act of 1995, which had never been implemented for lack of funds. After several discussions with selected department secretaries as well as heads of government banks, we uncovered budget items and available credit to channel more than P20 billion a year to provide fertilizers, irrigation and infrastructure, extension services, more loans, dryers and other post-harvest facilities, and seeds and other genetic materials to our farmers and fisherfolk. This was perhaps the biggest reason for the decline in poverty that was posted during my first few years in office.


The current Administration originally fixated on the single goal of achieving self-sufficiency in rice by 2013. I too wanted to achieve rice self-sufficiency, but I knew the odds were tough. Since the Spanish period we’ve been importing rice. While we may know how to grow rice well, topography doesn’t always cooperate. Nature did not gift us with a mighty Mekong River like Thailand and Vietnam, with their vast and naturally fertile river delta plains. Nature instead put our islands ahead of our neighbors in the path of typhoons from the Pacific. So historically we’ve had to import 10% of our rice, and so I took care to keep our goals for agriculture wideranging and diversified.


Recently the Administration seems to have retreated from the original objective of rice selfsufficiency by 2013. In its place, do they have an alternative vision in mind for our all-important agricultural sector?


The real challenge in this century is broader. The real task at hand is to make the finite land that we have planted to agriculture ever more productive, through agricultural modernization founded on social equity.


Higher productivity from farm lands is critical for our development. By making more food available at lower prices especially to our poor, we are effectively bringing down the required level of real wages in our country—already among the highest in the world, according to UP Professor Manny Esguerra—and helping to make our manufacturing industries globally competitive again.


As for social equity, being the daughter of the late President Diosdado Macapagal, the father of land reform in our country, I am gratified by the evaluation of one of my favorite Economics teachers, UP Professor Gonzalo Jurado: “The Comprehensive Agrarian Reform Program, to the extent that it is a land distribution program, can now be described as having almost completely succeeded in attaining its goal. [CARP] should now be a developmental program aiming explicitly to raise farm productivity…so that the country as a whole will benefit from the tenurial rearrangement.” And of course it is the landowners who must set the example of compliance with the law in order to allow the rest of us to move forward—such as the Arroyos in my husband’s family, who voluntarily submitted long ago to land reform even without an order from the Supreme Court to do the right thing.


See Part 4 of 4

It's the Economy, Student, part 2 of 4

 This is the full text of a paper written by former president and current Pampanga representative Gloria Macapagal Arroyo which was released to the media yesterday during a press briefing at the Manila Hotel.

[I wrote this article on and off in my spare time during my house recuperation, re-hospitalization and hospital detention from October to December 2011.] 

Part 2 of 4

Sunshine industries


Returning to this mainstream commitment to growth enables the country to tap the opportunities of the 21st century.In line with this, during my time we promoted fast-growing industries where high-value jobs are most plentiful.


One of them is information and communication technology or ICT, particularly the outsourcing of knowledge and business processes. My Administration developed the call center industry almost from scratch: in June 2010 there were half a million call center and BPO workers, from less than 5,000 when I took office. It was mainly for them that we built our fifth, virtual superregion: the so-called “cyber corridor”, the nationwide backbone for our call centers and BPO industry which rely on constant advances in IT and the essentially zero cost of additional bandwidth.


These youthful digital pioneers deserve government’s continuing support – by upgrading instead of downgrading and politicizing CICT, the government agency that oversees our digital infrastructure; by continuing to fund related voc-tech training programs; by wooing instead of alienating foreign companies seeking to set up shop here. As countries like China and Korea rapidly make their own way up the value-added ladder of outsourcing, we must work harder to stay ahead of them.

I had coffee with some call center agents one Labor Day when I was President. Lyn, a new college graduate, told me, "Now I don't have to leave the country in order for me to help my family." I was touched. With the structural reforms we implemented to promote ICT and BPOs, we not only found jobs but kept families intact.


We created appealing employment opportunities by focusing on the development of priority sectors, such as BPO. We need to create more wealth and keep people working here at home. That is why I remained so stubbornly focused on the economy. Many times during my tenure I expressed how much I longed for the day when going abroad for a job is a career option, not the only choice, for a Filipino worker. My economic plans were designed to allow the Philippines to break out of the boom and bust cycle of an economy dependent on global markets for agricultural commodities, and pursue consistent and sustainable growth anchored on a large domestic market and the resiliency of Filipino workers at home and abroad.


My successor flattered me by parroting what I said, but tried to frustrate me by distorting what I did. Instead of acknowledging his debt to his predecessor, he accused me of doing the opposite of what I had achieved, by describing my government as “…[one] that treats its people as an export commodity and a means to earn foreign exchange”. Then he promised to install what I had already established and which he appears bent on dismantling: “… a government that creates jobs at home, so that working abroad will be a choice rather than a necessity; and when its citizens do choose to become OFWs, their welfare and protection will still be the government’s priority.”


Indeed, it’s so easy to claim achievements that have already been accomplished by others, and take credit for what is there when the one who did the work has gone. Just make sure she is forgotten, or, if remembered, vilified.


The President’s words were brave indeed—and yet his government has consistently failed to back them up: by failing to rescue our countrymen from China’s death row, or promptly evacuate them from national disaster in Japan, or comprehensively secure them from political unrest in Libya and elsewhere in the Middle East. Now we are facing a new challenge of “Saudiization”, as the government of our largest OFW market, Saudi Arabia, sets out to implement a massive program of replacing OFW’s with its own nationals, starting next year.


Will this government have the will and the skill to properly navigate such uncertain waters? Protecting our overseas workers will urgently require contingency planning and continuous backdoor diplomacy with their host governments, while creating alternative jobs at home for them will require—again—the kind of commitment to economic expansion that I cannot overemphasize.


See part 3 of 4

EXAMPLE OF A REACTION PAPER ON SONA 2008 OF PRESIDENT GLORIA MACAPAGAL-ARROYO

This is an example of the REACTION PAPER ON SONA 2008 OF PRESIDENT GLORIA MACAPAGAL ARROYO using the suggested outline in this page.

INTRODUCTION

The first sentence should include the TITLE, THE AUTHOR OR THE SPEAKER AND WHERE AND WHEN IT WAS DELIVERED:

REACTION PAPER ON THE SONA-STATE OF THE NATION ADDRESS 2008 BY PRESIDENT GLORIA MACAPAGAL- ARROYO


Once again, this month of the year, the STATE OF THE NATION ADDRESS OF President Gloria Macapagal-Arroyo for 2008 was delivered at the joint session of the Congress of the Philippines on July 28, 2008.

The SONA can be summarized into two basic ideas. The Philippines is facing economic crisis and what the government is doing to solve the problems on a short and a long time basis. She admitted that she can not point what brought the new crisis as compared in the past since there are many contributing factors which she thought brought as this new wave of challenges. The governments’ solutions as well as the accomplishments on some areas were also discussed. In closing, she called on each and everyone, the citizens, the businessmen, the government’s leaders and the church and to help promote peace and prosperity of the country.

I agree that every citizen should contribute in their own little way to make this country a progressive and prosperous nation despite the fact that I feel that the government failed in its own role in solving the problems that prevents the nation from going towards the right direction. In Tagalog, tinimbang ko siya pero kulang.


THE BODY OF THE REACTION PAPER

Yes, I weighed everything what have been written in the SONA and I found it wanting.
I am not an economist and therefore I will not be discussing the GDP or any economics
Terminologies which would just confuse the reader. What I wrote is my own view as a student and I am presenting it as simple as possible with the use of a scale in order to demonstrate that it is really “kulang”.

PGMA’s scale: First, we must have a targeted strategy with set of precise prescriptions to ease the price challenges we are facing.

My scale: I can not find one which matches with this statement. Instead I found her justification of the Value Added Tax which to me as a student is additional burden whenever I pay for my books, my school supplies and my “baon”.

We all know that Value added tax is an additional burden to the consumers as it increased the prices so I feel that it runs in conflict with reducing the burden of the poor.

So I added more items on her scales.

PGMA’s scale:Lalong lumakas ang tiwala ng mga investor dahil sa VAT. Mula P56.50 kada dolyar, lumakas ang piso hanggang P40.20 bago bumalik sa P44 dahil sa mga pabigat ng pangdaigdigang ekonomiya. Kung alisin ang VAT, hihina ang kumpiyansa ng negosyo, lalong tataas ang interes, lalong bababa ang piso, lalong mamahal ang bilihin.

My scale: I am not at all surprise to know that investors are happy with the VAT. It is not them who are paying these indirect taxes. They are merely collectors. The exchange rate of the peso does not depend solely on the VAT. There are so many things to consider; namely the dollar which the peso is pegged on, the OFW remittances which contribute to the supply of dollars in the financial system and there is the real estate meltdown in the US which brought the dollar weaker. The weaker the dollar, the stronger the peso. In my simple understanding, that is how it is.

PGMA’s scale:Second, food self-sufficiency; less energy dependence; greater self-reliance in our attitude as a people and in our posture as a nation.

My Scale: I can not reconcile our importation of rice to the food self-sufficiency that she talked about.

I take note however of the subsidy of the NFA rice. But who has to grab every opportunity to buy this rice. The commercial rice as she has said remains at 32.00.
I reduce my rice consumption by one half.

PGMA’s scale: She claimed that one farmer improved his cavan per harvest because of VAT funded irrigation project.

My Scale: This is only one farmer, what about other farmers. This was in 2001 and he had quadrupled his harvest. If this were true for many farmers, by this time, we can already have rice sufficiency. Thank you to the VAT?

PGMA’s scale:Para sa mga namamasada at namamasahe sa dyip, sinusugpo natin ang kotong at colorum upang mapataas ang kita ng mga tsuper. Si Federico Alvarez kumikita ng P200 a day sa kaniyang rutang Cubao-Rosario. Tinaas ito ng anti-kotong, anti-colorum ngayon P500 na ang kita niya.

My Scale: Honestly, I appreciate the effort and I wish it would continue but mentioning just one driver and one route is not enough to assure me that this program is a success.

PGMA’s scale: Third, short-term relief cannot be at the expense of long term reforms. These reforms will benefit not just the next generation of Filipinos, but the next President as well.

My Scale: The release of two billion pesos to subsidize the poor’s energy bills may be laudable but it is a short term relief. The energy conservation program where loans is made available to jeepney owners to convert to LPG or CNG or biofuel is a great project but I still have to wait when the savings from gas is translated to lower jeepney fare.
The billion funds provided for the poor students scholarships and loans are fully appreciated. This is a short term relief but need a long time to wait for the investment’s payback. Without the employment creation program, the poor students will just leave for greener pastures.


FROM HERE, YO CAN ADD SOME MORE, WRITING WHAT GMA HAS SAID AND WHAT OU THINK ABOUT IT?

CONCLUSION:

In conclusion, I stand on my opinion that the government has still too much things to do in order to attain the goal that it has set. We have given it more than six years and the economic progress that it claimed to have accomplished is still short to reduce the nation’s poverty, to assure the citizens of a brighter future.

My role as a student is to study hard, make myself a productive citizen in the future and find ways by which I can help alleviate my family’s condition which means one household less that would depend on this government’s dole-outs and short term solutions for big problems.

So what do you think is your role?

HOW TO WRITE A REACTION PAPER ON SONA 2008 OF PRESIDENT GLORIA MACAPAGAL-ARROYO

This blog is in response to the request of students who are writing REACTION PAPER ON SONA 2008 of PRESIDENT GLORIA MACAPAGAL-ARROYO.

FOR AN EXAMPLE APPLYING THIS OUTLINE, SEE EXAMPLE OF REACTION PAPER OF SONA 2008 of PRESIDENT GLORIA MACAPAGAL-ARROYO

The questions that you need to answer in reading the SONA 2008 or whatever article that you are asked to give reaction to are the following:


* What do you think of what you are reading?
It is a SONA 2008 so you expect that the speech is all achievements of the administration.

* What do you agree or disagree with?

Based on your observations (not the comments or remarks of the opposition or critics of the administration ) write if you agree or disagree with what have been said.

So you will be needing a lot of these phrases.

I think that

I see that

I feel that

It seems that

In my opinion,

Because

A good quote is

In addition,

For example,

Moreover,

However,

Consequently,

Finally,

In conclusion,


Organizing your REACTION PAPER

The reaction paper has three main parts:

1. The INTRODUCTION

2. The BODY

3. The CONCLUSION

THE INTRODUCTION

The introduction should have at least two paragraphs.

The first sentence should include the TITLE, THE AUTHOR OR THE SPEAKER AND WHERE AND WHEN IT WAS DELIVERED:


So the first sentence in your Reaction on the SONA 2008 would be the title which is the STATE OF THE NATION ADDRESS, 2008 (the date is very important because there have been past SONAs. The Speaker of course was President Gloria Macapagal-Arroyo although she may not be necessarily the writer of the speech. Indicate where and when it was delivered.

The following paragraph should give a short summary of the SONA.

The last paragraph should contain the thesis statement which is the purpose of the REACTION PAPER. Are in you agreement? Do you disagree with most of what have been said or you are just evaluating the validity of statements.

What is the thesis statement?

1. The thesis statement is not a fact or observation. It is an assertion.

Example:

Fact or observation: May politicians criticize the SONA
Assertion: The SONA failed to fully explain the government's plan on combatting the crisis faced by the nation.

2.
A thesis statement represents the position of the reactor to the content of the SONA and not just a announcement.

Announcement: The President enumerated the accomplishments and the plans of her administration.

Position: The accomplishments and plans enumerated are not adequate enough to save the country from the economic crisis.

3. A thesis is not a title. It is a complete sentence.

A title- Philippines and the economic crisis.
Thesis statement: The accomplishments and plans enumerated are not adequate enough to save the country from the economic crisis.

THE BODY

The body should contain Ssentences/paragraphs that provide support for your thesis. Make one paragraph for one idea or topic.

YOu can structure your thesis into:

What the speaker said and what do you think about it.

THE CONCLUSION:

A conclusion should

* stress the importance of YOUR THESIS statement on SONA.
* give the paper a sense of completeness, and
* creates a final impression on your reader.


You do not repeat what have been written in the body but you can mention the introduction to relate to your conclusion.

Or you can challenge the reader by asking what do they think?

Or you can look into the future and ask the reader if your idea still applies.

STATE OF THE NATION ADDRESS OF PRESIDENT GLORIA MACAPAGAL ARROYO 2008

STATE OF THE NATION ADDRESS OF PRESIDENT GLORIA MACAPAGAL-ARROYO DURING THE 2ND REGULAR SESSION OF THE 14TH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES, 28 July 2008

Thank you, Speaker Nograles. Senate President Villar. Senators and Representatives. Vice President de Castro, President Ramos, Chief Justice Puno, members of the diplomatic corps, ladies and gentlemen:

I address you today at a crucial moment in world history.

Just a few months ago, we ended 2007 with the strongest economic growth in a generation. Inflation was low, the peso strong and a million new jobs were created. We were all looking to a better, brighter future.

Because tough choices were made, kumikilos na ang bayan sa wakas. Malapit na sana tayo sa pagbalanse ng budget. We were retiring debts in great amounts, reducing the drag on our country's development, habang namumuhunan sa taong bayan.

Biglang-bigla, nabaligtad ang ekonomiya ng mundo. Ang pagtalon ng presyo ng langis at pagkain ay nagbunsod ng pandaigdigan krisis, the worst since the Great Depression and the end of World War II. Some blame speculators moving billions of dollars from subprime mortgages to commodities like fuel and food. Others point of the very real surge in demand as millions of Chinese and Indians move up to the middle class.

Whatever the reasons, we are on a roller coaster ride of oil price hikes, high food prices and looming economic recession in the US and other markets. Uncertainty has moved like a terrible tsunami around the globe, wiping away gains, erasing progress.

This is a complex time that defies simple and easy solutions. For starters, it is hard to identify villains, unlike in the 1997 financial crisis. Everyone seems to be a victim, rich countries and poor, though certainly some can take more punishment than others.

To address these global challenges, we must go on building and buttressing bridges to allies around the world: to bring in the rice to feed our people, investments to create jobs; and to keep the peace and maintain stability in our country and the rest of the world. Yet even as we reach out to those who need, and who may need us, we strive for greater self-reliance.

Because tough choices were made, the global crisis did not catch us helpless and unprepared. Through foresight, grit and political will, we built a shield around our country that has slowed down and somewhat softened the worst effects of the global crisis. We have the money to care for our people and pay for food when there are shortages; for fuel despite price spikes.

Neither we nor anyone else in the world expected this day to come so soon but we prepared for it. For the guts not to flinch in the face of tough choices, I thank God. For the wisdom to recognize how needed you are, I thank, you Congress. For footing the bill, I thank the taxpayers.

The result has been, on the one hand, ito ang nakasalba sa bayan; and, on the other, more unpopularity for myself in the opinion polls. Yet, even unfriendly polls show self-rated poverty down to its 20-year low in 2007.

My responsibility as President is to take care to solve the problems we are facing now and to provide a vision and direction for how our nation should advance in the future.

Many in this great hall live privileged lives and exert great influence in public affairs. I am accessible to you, but I spend time every day with the underprivileged and under represented who cannot get a grip on their lives in the daily, all-consuming struggle to make ends meet.

Nag-aalala ako para sa naka-aawang maybahay na pasan ang pananagutan para sa buong pamilya. Nag-aalala ako para sa magsasakang nasa unang hanay ng pambansang produksyon ng pagkain ngunit nagsisikap pakanin ang pamilya. I care for hardworking students soon to graduate and wanting to see hope of good job and a career prospect here at home.

Nag-aalala ako para sa 41-year old na padre de pamilya na di araw-araw ang trabaho, at nag-aabala sa asawa at tatlong anak, at dapat bigyan ng higit pang pagkakakitaan at dangal. I care for our teachers who gave the greatest gift we ever received - a good education - still trying to pass on the same gift to succeeding generations. I care for our OFWs, famed for their skill, integrity and untiring labor, who send home their pay as the only way to touch loved ones so far away. Nagpupugay ako ngayon sa kanilang mga karaniwang Pilipino.

My critics say this is fiction, along with other facts and figures I cite today. I call it heroism though they don't need our praise. Each is already a hero to those who matter most, their families.

I said this is a global crisis where everyone is a victim. But only few can afford to avoid, or pay to delay, the worst effects.

Many more have nothing to protect them from the immediate blunt force trauma of the global crisis. Tulad ninyo, nag-aalala ako para sa kanila. Ito ang mga taong bayan na dapat samahan natin. Not only because of their sacrifices for our country but because they are our countrymen.

How do we solve these many complex challenges?

Sa kanilang kalagayan, the answer must be special care and attention in this great hour of need.

First, we must have a targeted strategy with set of precise prescriptions to ease the price challenges we are facing.

Second, food self-sufficiency; less energy dependence; greater self-reliance in our attitude as a people and in our posture as a nation.

Third, short-term relief cannot be at the expense of long term reforms. These reforms will benefit not just the next generation of Filipinos, but the next President as well.

Napakahalaga ang Value Added Tax sa pagharap sa mga hamong ito.

Itong programa ang sagot sa mga problemang namana natin.

Una, mabawasan ang ating mga utang and shore up our fiscal independence.

Pangalawa, higit na pamumuhunan para mamamayan at imprastraktura.

Pangatlo, sapat na pondo para sa mga programang pangmasa.

Thus, the infrastructure links programmed for the our poorest provinces like Northern Samar: Lao-ang-Lapinig-Arteche, right now ay maputik, San Isidro-Lope de Vega; the rehabilitation of Maharlika in Samar.

Take VAT away and you and I abdicate our responsibility as leaders and pull the rug from under our present and future progress, which may be compromised by the global crisis.

Lalong lumakas ang tiwala ng mga investor dahil sa VAT. Mula P56.50 kada dolyar, lumakas ang piso hanggang P40.20 bago bumalik sa P44 dahil sa mga pabigat ng pangdaigdigang ekonomiya. Kung alisin ang VAT, hihina ang kumpiyansa ng negosyo, lalong tataas ang interes, lalong bababa ang piso, lalong mamahal ang bilihin.

Kapag ibinasura ang VAT sa langis at kuryente, ang mas makikinabang ay ang mga may kaya na kumukonsumo ng 84% ng langis at 90% ng kuryente habang mas masasaktan ang mahihirap na mawawalan ng P80 billion para sa mga programang pinopondohan ngayon ng VAT. Take away VAT and we strip our people of the means to ride out the world food and energy crisis.

We have come too far and made too many sacrifices to turn back now on fiscal reforms. Leadership is not about doing the first easy thing that comes to mind; it is about doing what is necessary, however hard.

The government has persevered, without flip-flops, in its much-criticized but irreplaceable policies, including oil and power VAT and oil deregulation.

Patuloy na gagamitin ng pamahalaan ang lumalago nating yaman upang tulungan ang mga pamilyang naghihirap sa taas ng bilihin at hampas ng bagyo, habang nagpupundar upang sanggahan ang bayan sa mga krisis sa hinaharap.

Para sa mga namamasada at namamasahe sa dyip, sinusugpo natin ang kotong at colorum upang mapataas ang kita ng mga tsuper. Si Federico Alvarez kumikita ng P200 a day sa kaniyang rutang Cubao-Rosario. Tinaas ito ng anti-kotong, anti-colorum ngayon P500 na ang kita niya. Iyan ang paraan kung paano napananatili ang dagdag-pasahe sa piso lamang. Halaga lang ng isang text.

Texting is a way of life. I asked the telecoms to cut the cost of messages between networks. They responded. It is now down to 50 centavos.

Noong Hunyo, nagpalabas tayo ng apat na bilyong piso mula sa VAT sa langis-dalawang bilyong pambayad ng koryente ng apat na milyong mahihirap, isang bilyon para college scholarship o pautang sa 70,000 na estudyanteng maralita; kalahating bilyong pautang upang palitan ng mas matipid na LPG, CNG o biofuel ang motor ng libu-libong jeepney; at kalahating bilyong pampalit sa fluorescent sa mga pampublikong lugar.

Kung mapapalitan ng fluorescent ang lahat ng bumbilya, makatitipid tayo ng lampas P2 billion.

Sa sunod na katas ng VAT, may P1 billion na pambayad ng kuryente ng mahihirap; kalahating bilyon para sa matatandang di sakop ng SSS o GSIS; kalahating bilyong kapital para sa pamilya ng mga namamasada; kalahating bilyon upang mapataas ang kakayahan at equipment ng mga munting ospital sa mga lalawigan. At para sa mga kalamidad, angkop na halaga.

We released P1 billion for the victims of typhoon Frank. We support a supplemental Western Visayas calamity budget from VAT proceeds, as a tribute to the likes of Rodney Berdin, age 13, of Barangay Rombang, Belison, Antique, who saved his mother, brother and sister from the raging waters of Sibalom River.

Mula sa buwang ito, wala nang income tax ang sumusweldo ng P200,000 o mas mababa sa isang taon - P12 billion na bawas-buwis para sa maralita at middle class. Maraming salamat, Congress.

Ngayong may P32 na commercial rice, natugunan na natin ang problema sa pagkain sa kasalukuyan. Nagtagumpay tayo dahil sa pagtutulungan ng buong bayan sa pagsasaka, bantay-presyo at paghihigpit sa price manipulation, sa masipag na pamumuno ni Artie Yap.

Sa mga LGU at religious groups na tumutulong dalhin ang NFA rice sa mahihirap, maraming salamat sa inyo.

Dahil sa subsidy, NFA rice is among the region's cheapest. While we can take some comfort that our situation is better than many other nations, there is no substitute for solving the problem of rice and fuel here at home. In doing so, let us be honest and clear eyed - there has been a fundamental shift in global economics. The price of food and fuel will likely remain high. Nothing will be easy; the government cannot solve these problems over night. But, we can work to ease the near-term pain while investing in long-term solutions.

Since 2001, new irrigation systems for 146,000 hectares, including Malmar in Maguindanao and North Cotabato, Lower Agusan, Casecnan and Aulo in Nueva Ecija, Abulog-Apayao in Cagayan and Apayao, Addalam in Quirino and Isabela, among others, and the restoration of old systems on another 980,000 hectares have increased our nation's irrigated land to a historic 1.5 million hectares.

Edwin Bandila, 48 years old, of Ugalingan, Carmen, North Cotabato, cultivated one hectare and harvested 35 cavans. Thirteen years na ginawa iyong Malmar. In my first State of the Nation Address, sabi ko kung hindi matapos iyon sa Setyembre ay kakanselahin ko ang kontrata, papapasukin ko ang engineering brigade, natapos nila. With Malamar, now he cultivates five hectares and produces 97 cavans per hectare. Mabuhay, Edwin! VAT will complete the San Roque-Agno River project.

The Land Bank has quadrupled loans for farmers and fisherfolk. That is fact not fiction. Check it. For more effective credit utilization, I instructed DA to revitalize farmers cooperatives.

We are providing seeds at subsidized prices to help our farmers.

Incremental Malampaya national revenues of P4 billion will go to our rice self-sufficiency program.

Rice production since 2000 increased an average of 4.07% a year, twice the population growth rate. By promoting natural planning and female education, we have curbed population growth to 2.04% during our administration, down from the 2.36 in the 1990's, when artificial birth control was pushed. Our campaign spreads awareness of responsible parenthood regarding birth spacing. Long years of pushing contraceptives made it synonymous to family planning. Therefore informed choice should mean letting more couples, who are mostly Catholics, know about natural family planning.

From 1978 to 1981, nag-export tayo ng bigas. Hindi tumagal. But let's not be too hard on ourselves. Panahon pa ng Kastila bumibili na tayo ng bigas sa labas. While we may know how to grow rice well, topography doesn't always cooperate.

Nature did not gift us with a mighty Mekong like Thailand and Vietnam, with their vast and naturally fertile plains. Nature instead put our islands ahead of our neighbours in the path of typhoons from the Pacific. So, we import 10% of the rice we consume.

To meet the challenge of today, we will feed our people now, not later, and help them get through these hard times. To meet the challenges of tomorrow, we must become more self-reliant, self-sufficient and independent, relying on ourselves more than on the world.

Now we come to the future of agrarian reform.

There are those who say it is a failure, that our rice importations prove it. There are those who say it is a success-if only because anything is better than nothing. Indeed, people are happier owning the land they work, no matter what the difficulties.

Sa SONA noong 2001, sinabi ko, bawat taon, mamamahagi tayo ng dalawang daang libong ektarya sa reporma sa lupa: 100,000 hectares of private farmland and 100,000 of public farmland, including ancestral domains. Di hamak mahigit sa target ang naipamahagi natin sa nakaraang pitong taon: 854,000 hectares of private farmland, 797,000 of public farmland, and Certificates of Ancestral Domain for 525,000 hectares. Including, over a 100,000 hectares for Bugkalots in Quirino, Aurora, and Nueva Vizcaya. After the release of their CADT, Rosario Camma, Bugkalot chieftain, and now mayor of Nagtipunan, helped his 15,000-member tribe develop irrigation, plant vegetables and corn and achieve food sufficiency. Mabuhay, Chief!

Agrarian reform should not merely subdivide misery, it must raise living standards. Ownership raises the farmer from his but productivity will keep him on his feet.

Sinimula ng aking ama ang land reform noong 1963. Upang mabuo ito, the extension of CARP with reforms is top priority. I will continue to do all I can for the rural as well as urban poor. Ayaw natin na paglaya ng tenant sa landlord, mapapasa-ilalim naman sa usurero. Former tenants must be empowered to become agribusinessmen by allowing their land to be used as collateral.

Dapat mapalaya ng reporma sa lupa ang magsasaka sa pagiging alipin sa iba. Dapat bigyan ang magsasaka ng dangal bilang taong malaya at di hawak ninuman. We must curb the recklessness that gives land without the means to make it productive and bites off more than beneficiaries can chew.

At the same time, I want the rackets out of agrarian reform: the threats to take and therefore undervalue land, the conspiracies to overvalue it.

Be with me on this. There must be a path where justice and progress converge. Let us find it before Christmas. Dapat nating linisin ang landas para sa mga ibig magpursige sa pagsasaka, taglay ang pananalig na ang lupa ay sasagip sa atin sa huli kung gamitin natin ito nang maayos.

Along with massive rice production, we are cutting costs through more efficient transport. For our farm-to-market roads, we released P6 billion in 2007.

On our nautical highways. RORO boats carried 33 million metric tons of cargo and 31 million passengers in 2007. We have built 39 RORO ports during our administration, 12 more are slated to start within the next two years. In 2003, we inaugurated the Western Nautical Highway from Batangas through Mindoro, Panay and Negros to Mindanao. This year we launched the Central Nautical Highway from Bicol mainland, through Masbate, Cebu, Bohol and Camiguin to Mindanao mainland. These developments strengthen our competitiveness.

Leading multinational company Nestle cut transport costs and offset higher milk prices abroad. Salamat, RORO. Transport costs have become so reasonable for bakeries like Gardenia, a loaf of its bread in Iloilo is priced the same as in Laguna and Manila. Salamat muli sa RORO.

To the many LGUs who have stopped collecting fees from cargo vehicles, maraming, maraming salamat.

We are repaving airports that are useful for agriculture, like Zamboanga City Airport.

Producing rice and moving it cheaper addresses the supply side of our rice needs. On the demand side, we are boosting the people's buying power.

Ginagawa nating labor-intensive ang paggawa at pag-ayos ng kalsada at patubig. Noong SONA ng 2001, naglunsad tayo sa NCR ng patrabaho para sa 20,000 na out of school youth, na tinawag OYSTER. Ngayon, mahigit 20,000 ang ineempleyo ng OYSTER sa buong bansa. In disaster-stricken areas, we have a cash-for-work program.

In training, 7.74 million took technical and vocational courses over the last seven years, double the number in the previous 14 years. In 2007 alone, 1.7 million graduated. Among them are Jessica Barlomento now in Hanjin as supply officer, Shenve Catana, Marie Grace Comendador, and Marlyn Tusi, lady welders, congratulations.

In microfinance, loans have reached P102 billion or 30 times more than the P3 billion we started with in 2001, with a 98% repayment record, congratulations! Major lenders include the Land Bank with P69 billion, the Peoples' Credit and Finance Corporation P8 billion, the National Livelihood Support Fund P3 billion, DBP P1 billion and the DSWD's SEA-K P800 million. For partnering with us to unleash the entrepreneurial spirit, thank you, Go Negosyo and Joey Concepcion.

Upland development benefits farmers through agro-forestry initiatives. Rubber is especially strong in Zamboanga Sibugay and North Cotabato. Victoria Mindoro, 56 years old, used to earn P5,000 a month as farmer and factory worker. Now she owns 10 hectares in the Goodyear Agrarian Reform Community in Kabasalan, Zamboanga Sibugay, she earns P10,000 a week. With one hectare, Pedro and Concordia Faviolas of Makilala, North Cotabato, they sent their six children to college, bought two more hectares, and earn P15,000 a month. Congratulations!

Jatropha estates are starting in 900 hectares in and around Tamlang Valley in Negros Oriental; 200 in CamSur; 300 in GenSan, 500 in Fort Magsaysay near the Cordero Dam and 700 in Samar, among others.

In our 2006 SONA, our food baskets were identified as North Luzon and Mindanao.

The sad irony of Mindanao as food basket is that it has some of the highest hunger in our nation. It has large fields of high productivity, yet also six of our ten poorest provinces.

The prime reason is the endless Mindanao conflict. A comprehensive peace has eluded us for half a century. But last night, differences on the tough issue of ancestral domain were resolved. Yes, there are political dynamics among the people of Mindanao. Let us sort them out with the utmost sobriety, patience and restraint. I ask Congress to act on the legislative and political reforms that will lead to a just and lasting peace during our term of office.

The demands of decency and compassion urge dialogue. Better talk than fight, if nothing of sovereign value is anyway lost. Dialogue has achieved more than confrontation in many parts of the world. This was the message of the recent World Conference in Madrid organized by the King of Saudi Arabia, and the universal message of the Pope in Sydney.

Pope Benedict's encyclical Deus Caritas Est reminds us: "There will always be situations of material need where help in the form of concrete love for neighbour is indispensable."

Pinagsasama-sama natin ang mga programa ng DSWD, DOH, GSIS, SSS at iba pang lumalaban sa kahirapan sa isang National Social Welfare Program para proteksyonan ang pinaka-mahihirap mula sa pandaigdigang krisis, and to help those whose earnings are limited by illness, disability, loss of job, age and so on-through livelihood projects, microfinance, skills and technology transfer, emergency and temporary employment, pension funds, food aid and cash subsidies, child nutrition and adult health care, medical missions, salary loans, insurance, housing programs, educational and other savings schemes, and now cheaper medicine-Thanks to Congress.

The World Bank says that in Brazil, the income of the poorest 10% has grown 9% per year versus the 3% for the higher income levels due in large part to their family stipend program linking welfare checks to school attendance. We have introduced a similar program, Pantawid Pamilya.

Employers have funded the two increases in SSS benefits since 2005. Thank you, employers for paying the premiums.

GSIS pensions have been indexed to inflation and have increased every year since 2001. Its salary loan availments have increased from two months equivalent to 10 months, the highest of any system public or private-while repayments have been stretched out.

Pag-Ibig housing loans increased from P3.82 billion in 2001 to P22.6 billion in 2007. This year it experienced an 84% increase in the first four months alone. Super heating na. Dapat dagdagan ng GSIS at buksan muli ng SSS ang pautang sa pabahay. I ask Congress to pass a bill allowing SSS to do housing loans beyond the present 10% limitation.

Bago ako naging Pangulo, isa't kalahating milyong maralita lamang ang may health insurance. Noong 2001, sabi natin, dadagdagan pa ng kalahating milyon. Sa taong iyon, mahigit isang milyon ang nabigyan natin. Ngayon, 65 milyong Pilipino na ang may health insurance, mahigit doble ng 2000, kasama ang labinlimang milyong maralita. Philhealth has paid P100 billion for hospitalization. The indigent beneficiaries largely come from West and Central Visayas, Central Luzon, and Ilocos. Patuloy nating palalawakin itong napaka-importanted programa, lalo na sa Tawi-Tawi, Zambo Norte, Maguindanao, Apayao, Dinagat, Lanao Sur, Northern Samar, Masbate, Abra and Misamis Occidental. Lalo na sa kanilang mga magsasaka at mangingisda.

In these provinces and in Agusan Sur, Kalinga, Surigao Sur and calamity-stricken areas, we will launch a massive school feeding program at P10 per child every school day.

Bukod sa libreng edukasyon sa elementarya at high school, nadoble ang pondo para sa mga college scholarships, while private high school scholarship funds from the government have quadrupled.

I have started reforming and clustering the programs of the DepEd, CHED and TESDA.

As with fiscal and food challenges, the global energy crunch demands better and more focused resource mobilization, conservation and management.

Government agencies are reducing their energy and fuel bills by 10%, emulating Texas Instruments and Philippine Stock Exchange who did it last year. Congratulations, Justice Vitug and Francis Lim.

To reduce power system losses, we count on government regulators and also on EPIRA amendments.

We are successful in increasing energy self-sufficiency-56%, the highest in our history. We promote natural gas and biofuel; geothermal fields, among the world's largest; windmills like those in Ilocos and Batanes; and the solar cells lighting many communities in Mindanao. The new Galoc oil field can produce 17,000-22,000 barrels per day, 1/12 of our crude consumption.

The Renewable Energy Bill has passed the House. Thank you, Congressmen.

Our costly commodity imports like oil and rice should be offset by hard commodities exports like primary products, and soft ones like tourism and cyberservices, at which only India beats us.

Our P 350 million training partnership with the private sector should qualify 60,000 for call centers, medical transcription, animation and software development, which have a projected demand of one million workers generating $13 billion by 2010.

International finance agrees with our progress. Credit rating agencies have kept their positive or stable outlook on the country. Our world competitiveness ranking rose five notches. Congratulations to us.

We are sticking to, and widening, the fiscal reforms that have earned us their respect.

To our investors, thank you for your valuable role in our development. I invite you to invest not only in factories and services, but in profitable infrastructure, following the formula for the Tarlac-Pangasinan-La Union Expressway.

I ask business and civil society to continue to work for a socially equitable, economically viable balance of interests. Mining companies should ensure that host communities benefit substantively from their investments, and with no environmental damage from operations.

Our administration enacted the Solid Waste Management Act, Wildlife Act, Protection of Plant Varieties, Clean Water Act, Biofuels Act and various laws declaring protected areas.

For reforestation, for next year we have budgeted P2 billion. Not only do forests enhance the beauty of the land, they mitigate climate change, a key factor in increasing the frequency and intensity of typhoons and costing the country 0.5% of the GDP.

We have set up over 100 marine and fish sanctuaries since 2001. In the whaleshark sanctuary of Donsol, Sorsogon, Alan Amanse, 40-year-old college undergraduate and father of two, was earning P100 a day from fishing and driving a tricycle. Now as whaleshark-watching officer, he is earns P1,000 a day, ten times his former income.

For clean water, so important to health, there is P500 million this year and P1.5 billion for next year.

From just one sanitary landfill in 2001, we now have 21, with another 18 in the works.

We launched the Zero Basura Olympics to clear our communities of trash. Rather than more money, all that is needed is for each citizen to keep home and workplace clean, and for garbage officials to stop squabbling.

Our investments also include essential ways to strengthen our institutions of governance in order to fight the decades-old scourge of corruption. I will continue to fight this battle every single day. While others are happy with headlines through accusation without evidence and privilege speeches without accountability, we have allocated more than P3 billion - the largest anti-graft fund in our history - for real evidence gathering and vigorous prosecution.

From its dismal past record, the Ombudsman's conviction rate has increased 500%. Lifestyle checks, never seriously implemented before our time, have led to the dismissal and/or criminal prosecution of dozens of corrupt officials.

I recently met with the Millennium Challenge Corporation, a US agency that provides grants to countries based on governance. They have commended our gains, contributed P1 billion to our fight against graft, and declared us eligible for more grants. Thank you!

Last September, we created the Procurement Transparency Group in the DBM and linked it with business, academe, and the Church, to deter or catch anomalies in government contracts.

On my instruction, the BIR and Customs established similar government-civil society tie-ups for information gathering and tax evasion and smuggling monitoring.

More advanced corruption practices require a commensurate advances in legislative responses. Colleagues in Congress, we need a more stringent Anti-Graft Act.

Sa pagmahal ng bilihin, hirap na ang mamimili - tapos, dadayain pa. Dapat itong mahinto. Hinihiling ko sa Kongreso na magpasa ng Consumer Bill of Rights laban sa price gouging, false advertising at iba pang gawain kontra sa mamimili.

I call on all our government workers at the national and local levels to be more responsive and accountable to the people. Panahon ito ng pagsubok. Kung saan kayang tumulong at dapat tumulong ang pamahalaan, we must be there with a helping hand. Where government can contribute nothing useful, stay away. Let's be more helpful, more courteous, more quick.

Kaakibat ng ating mga adhikain ang tuloy na pagkalinga sa kapakanan ng bawat Pilipino. Iisa ang ating pangarap - maunlad at mapayapang lipunan, kung saan ang magandang kinabukasan ay hindi pangarap lamang, bagkus natutupad.

Sama-sama tayo sa tungkuling ito. May papel na gagampanan ang bawat mamamayan, negosyante, pinunong bayan at simbahan, sampu ng mga nasa lalawigan.

We are three branches but one government. We have our disagreements; we each have hopes, and ambitions that drive and divide us, be they personal, ethnic, religious and cultural. But we are one nation with one fate.

As your President, I care too much about this nation to let anyone stand in the way of our people's wellbeing. Hindi ko papayagang humadlang ang sinuman sa pag-unlad at pagsagana ng taong bayan. I will let no one - and no one's political plans - threaten our nation's survival.

Our country and our people have never failed to be there for us. We must be there for them now.

Maraming salamat. Magandang hapon sa inyong lahat.

STATE OF THE NATION ADDRESS OF PRESIDENT GLORIA MACAPAGAL ARROYO 2007

President of the Republic of the Philippines Her Excellency PRESIDENT GLORIA MACAPAGAL-ARROYO JULY 23, 2007 Thank you. Thank you very much Speaker De Venecia, Senate President Villar, other newly elected leaders of both Houses, congratulations to you, Senators and Congressmen and Congresswomen. Vice President De Castro, former President Ramos, Chief Justice Puno, our host Mayor, Mayor Sonny Belmonte, other government officials, members of the Diplomatic Corps, ladies and gentlemen. We meet here today to inaugurate a new Congress after a fresh election. I congratulate every elected official, from municipal to provincial to Congress on hard fought and successful campaigns. Tapos na ang halalan at pamumulitika; panahon na para maglingkod nang walang damot, mamuno nang walang pangamba maliban sa kagalingan ng bayan, and to govern with wisdom, compassion, vision and patriotism. Hangarin kong mapabilang ang Pilipinas sa mayayamang bansa sa loob ng dalawampung taon. By then poverty shall have been marginalized; and the marginalized raised to a robust middle class. We will have achieved the hallmarks of a modern society, where institutions are strong. By 2010, the Philippines should be well on its way to achieving that vision. With the tax reforms of the last Congress, and I thanked the last Congress, we have turned around our macroeconomic condition through fiscal discipline, toward a balanced budget. Binabayaran ang utang, pababa ang interes, at paakyat ang pondo para sa progreso ng sambayanang Pilipino!!! Maraming salamat ulit sa nakaraang Congress. We have been investing hundreds of billions in human and physical infrastructure. The next three years will see record levels of well thought out and generous funding for the following priorities: First, investments in physical, intellectual, legal and security infrastructure to increase business confidence. Imprastraktura para sa negosyo at trabaho. Isang milyong trabaho taon-taon. Second, investments in a stronger and wider social safety net - murang gamot, abot-kayang pabahay, eskwelang primera klase, mga gurong mas magaling at mas malaki ang kita, mga librong de-kalidad, more scholarships for gifted students, and language instruction to maintain our lead in English proficiency. Dunong at kalusugan ang susi sa kasaganaan. Third, investments in bringing peace to Mindanao; in crushing terrorism wherever it threatens regardless of ideology; and in putting a stop to human rights abuses whatever the excuse. We pay tribute to the fearless fourteen who were savagely massacred at Tipo-Tipo trying to pursue a peaceful and progressive Philippines. We will not disappoint their hopes. We will not waste their sacrifice. We will not be swayed from the course we have set in this conflict for peace with justice throughout our land. We have created a Philippine model for reconciliation built on inter-faith dialogue, expanded public works and more responsive social services. These investments show both sides in the Mindanao conflict that they have more at stake in common; and a greater reason to be together than hang apart, including being together isolating the terrorists. Imprastraktura ang haliging nagtitindig hindi lamang ng kapayapaan kundi ng ating buong makabagong ekonomiya: mga kalsada, tulay, paliparan, public parks and power plants. Last year I unveiled the Super Regions - Mindanao, Central Philippines, North Luzon Agribusiness Quadrangle, Luzon Urban Beltway and the Cyber Corridor - to spread development away from an inequitable concentration in Metro Manila. Hindi lamang Maynila ang Pilipinas. The Super Regions was not a gimmick for the occasion but the blueprint for building a future. In Mindanao, our food basket, I said we would prioritize agribusiness investments. And I am happy to see that the latest survey in June shows the hunger rate has sharply gone down nationwide. We have done that. The Departments of Agriculture, Agrarian Reform, and Environment and Natural Resources will devote 30 percent of their program budgets to Mindanao. DAR will move to Davao. Dapat maging daan sa tagumpay sa agribusiness ang reporma sa lupa. Done right, reform will democratize success, as Ramon Magsaysay and Diosdado Macapagal envisioned. We must reform agrarian reform so it can transform beneficiaries into agribusinessmen and other agribusiness women. Sa gayon, dadami pa ang mga tampok na magsasaka gaya ng mga nagwagi ng Gawad Saka, sina Ananias Cuado ng Comval at Demetrio Tabelon ng Butuan; at Nelson Taladhay ng Sultan Kudarat, pangunahing agrarian reform beneficiary ng 2007. We also have outstanding farmers from the other superregions, like Joseph Fernando and Heherson Pagulayan, Nestor Bautista, Joseph Lomibao, Arturo Marcaida, Peter Uy, Arturo Pasacas and Glenn Saludar. Sa anim na taon nagtayo tayo at nag-ayos ng patubig para sa isang milyong ektarya sa buong bansa - pinakamalaki sa matagal na panahon. Magtatayo tayo ng mariculture o palaisdaan sa dagat. Isa rito ay ilalagay natin sa Sibutu. Hiling ito ni Nur Jaafar. Para sa buong bansa naglaan tayo ng P3 billion para sa tatlong libong kilometro ng farm to market roads. Sanlibong kilometro sa Mindanao. Gawa na ang tatlong daan. The road and RORO network has cut the cost of bringing agribusiness products from Mindanao to Luzon. A 10-wheeler used to pay P32 thousand from Dapitan to Batangas. Now it pays P11 thousand. Fresh fish that cost P20 thousand a ton to move, now travels at P14 thousand. Construction is criss-crossing Mindanao: Dapitan-Dakak to bring Cely Carreon's paradise closer to civilization; Sibuco-Siraway-Siocon-Baliguian; Dinagat Island Network, a baptismal gift for Glenda Ecleo's new province; the 66-kilometer Manay-Mati section of Davao-Surigao; and Maguindanao-Lebak, Sim Datumanong's brainchild when he headed DPWH. We want better airports, new bridges and ample energy for Mindanao's rising economy. The Dipolog and Pagadian airports will be improved by year's end. Also the Cotabato airport. No doubt eagerly awaited by Au Cerilles, Rolando Yebes, Digs Dilangalen, Ros Labadlabad and Victor Yu, and Mayors Evelyn Uy and Sammy Co. Last July 10 we inaugurated the P1.7 billion, 900 meter bridge in Butuan, built on the initiative of Mayor Boy Daku Plaza, near the P4 billion second-generation flood control project that we also built. The first was built by my father after the great Butuan flood of the 1960's. Kailangan ipagtanggol ang kapaligiran at mamamayan sa sakuna. In Agusan del Norte, I hope Edel Amante will be happy with our plans to pilot micro agribusiness in Jabonga. On July 8, Ozamis Airport opened, bankrolled partly by Leo Ocampos, Aldo Parojinog and Hermie Ramiro's congressional fund. Now, that's the kind of pork that has good cholesterol. At that occasion the MOU was signed for the Pangil Bay Bridge that will connect Ozamis to Lanao del Norte and Iligan. As urged by Bobby Dimaporo, I declared Mt. Inayawan Range a protected nature park. On Mayor Lawrence Cruz's recommendation, I instruct DPWH to build the Iligan Circumferential Road. In 2001, we opened a solar plant in Cagayan de Oro. Still, Mindanao faced a 100-megawatt gap by 2009 out now a 210-megawatt clean coal plant in Phividec will fill that gap. We count on Oca Moreno and Tinex Jaraula to continue providing a good investment climate. We thank Miriam Defensor-Santiago and Migz Zubiri for sponsoring the Biofuels Law in the last Congress. We now have 160 thousand hectares of jatropha nurseries in Bukidnon and 30,000 in General Santos. Jatropha is a 100% substitute for diesel, with only 5% of its emission. Mindanao's energy challenge lies not in generating power but in power lines. Terrorists target transmission towers. We must resolutely apply the Human Security Act. This act was first filed by Johnny Enrile in 1996, 3 years after the first World Trade Center bombing, 4 years before the Rizal Day bombing and 5 years before 9/11. He ably crafted the final Senate version with Senate President Manny Villar and Nene Pimentel. Let's now go to Central Philippines, our tourism super region: We protect its natural wonders and provide the means to travel to those wonders. For Boracay, the leading overall destination, the Kalibo Airport is now international with an instrument landing system as we said last year. Next is an P80 million terminal on request of Joben Miraflores. The Aklan-Libertad-Pandan Road, waiting for Japan to approve the contractors, will connect Boracay to the nature park we declared in Northwest Panay Peninsula. We are improving other Panay roads and building the road from the Iloilo Airport which we inaugurated in Santa Barbara to Iloilo and the Metro Radial Road that Mayor Jerry Trenas asked for when we inaugurated the airport, Art Defensor conceived the airport when he was governor, Governor Neil Tupaz midwifed its delivery when we inaugurated the airport, I said . Iloilo connects to Guimaras via Jordan Wharf. We thank Congress for the P900 million oil spill calamity fund to save the environment of Guimaras. I thank once again the previous Congress. It is back on its feet. The other side of the island will connect to Bacolod soon because we started building the Sibunag RORO Port last May on recommendation of Governor, now Congressman, Rahman Nava. Bacolod-Silay Airport, near the nature park we declared in Northern Negros, is completed and just awaiting the access road requested by Monico Puentavella. We awarded the contract for upgrading the Dumaguete airport as I reported to George Arnaiz last week. Boracay investors are expanding in Palawan, whose Tubbataha Reefs we declared a nature park. After the Puerto Princesa-Roxas Road last year, we opened Taytay-El Nido in March. The P1 billion Taytay-Roxas section is ongoing. San Vicente airstrip and Busuanga Airport are under construction. And Mayor Hagedorn is reminding us to work on the Puerto Princesa terminal. Under construction are airport aprons of the surfing edens: Governor Ben Evardone's pet project in Guiuan and Lalo Matugas's home town in Siargao. A 100-megawatt energy gap looms in the Visayas in 2009. The Korea Electric plant in Cebu will plug in 200 megawatts only in 2010 so there's a one year gap. Meantime three power barges will supply 100 megawatts and the Panay diesel power plant will increase its run from 70 megawatts to 100. In Central Cebu, we proclaimed a nature park. From Cebu, the top destination for foreign tourists, they can easily radiate to other destinations. Optimism is infectious, and opportunity irresistible. Progress follows progress. Someone, even government, just has to get it started. Going south, Cebu connects to Tubigon and on to Ubay, Jagna and Panglao through the Bohol Circumferential Road that we inaugurated last May 9. The local government has acquired 85 percent of the land for the international airport on Panglao Island, now a tourism destination of its own. Ubay links to Maasin RORO Port which was completed last October. Now I hope there will be more divers for Mian Mercado. Jagna RORO Port opened last May 9. It will connect to Loloy Romualdo's Mambajao in November, and on to Guinsiliban, the gateway to Mindanao. Going north from Cebu City, we take the North Coastal Road to Daanbantayan which was recommended to us by Gwen Garcia. Heavy traffic will ease when the P1.2 billion Mandaue-Consolacion Bridge opens. This will be good not only for Malapascua tourism but also for Nitoy Durano's industrial city of Danao. Daanbantayan, Benhur Salimbangon's home port, connects to Naval, Maripipi, or Esperanza, which started construction last May. We aim to finish all three RORO Ports next year. Esperanza will link by road to Aroroy in 2009. I'll be there with Lina Seachon and Tony Kho for the inauguration. Please invite me. Last May, I switched on the lights of Masbate in a Palace ceremony. But the long-term solution will come next year when a new power plant will serve half a million customers on the beautiful but isolated island of Masbate. From Aroroy we can go to Claveria, whose RORO ramp is under construction. On to Pasacao where RORO operations started in 2002. That's Bong Bravo of Claveria. This brings us to Bicol, including Mt Isarog Park. Mt. Isarog feeds the Bicol River. For the next three years we are funding the Bicol River Basin and Watershed with the World Bank at $15 million for irrigation, flood control and water conservation. For Bicol, we have given P7 billion for the Bicol Calamity and Rehabilitation Effort, that is the biggest one-time calamity fund release in our history. At last, Bicol is getting its rightful share. And, so is the North Luzon Agribusiness Quadrangle: We are building 1,000 kilometers of farm-to-market roads; 200 are done. Ngayong tapos na ang election ban, pinapaspasan ang trabaho para sa nalalabing target. Halsema Highway from Mount Data to Bontoc and the Tabuk-Tinglayan Road are being built. If you look the chart, there is something incomplete in between. So that the Cordillera LGUs can build more of their much-needed roads, I ask Congress to require companies to pay directly to the LGUs their share of the natural wealth. I hope, Governor Dalog hears that. Nagtatayo tayo ng mga paliparan para sa mga produkto ng agribusiness. Noong 2005 nagka-airport sa Baler. Sunod ang airport sa Casiguran. At kalsada sa pagitan. There were no takers in the bidding for to upgrade the Batanes runways so ATO will get it done before the end of the year with the support of DPWH and Governor Telesforo Castillejos. Joe de Venecia and Mayor Nani Braganza are asking for an airport in Alaminos. Will do. The Cagayan Economic Zone Authority and the private sector expanded the San Vicente naval airstrip, so we don't have need to build Lallo. Sa Lallo naman mayroon tayong inaprobahan na agribusiness ecozone. Ang mga agribusiness ecozone ay payo ni Pangulong Ramos. Chief Justice Puno, I am happy to see you here. It is the first time that a Chief Justice attended. The Tarlac-La Union Toll Road will be advertised for private sector BOT bidding this August. Poro Point's international terminal started construction early this year. The Bagabag airport is being lengthened. We are spreading the cheer across the political spectrum from Vic Ortega to Caloy Padilla. Inuuna ang bansa, at itinatabi ang politika. Some towns in Nueva Vizcaya, Quirino, and Isabela are included in the geo-hazard mapping we have done for 700 cities and towns all over the country to protect the environment. The Bangui Bay Wind Power Project which was put up when Bongbong Marcos was governor, is now expanding. Sa paggamit ng hangin, nababawasan ang kailangang langis sa enerhiya. And now the Luzon Urban Beltway, our top magnet for industry and investment: This quarter we start the P5 billion Mt. Pinatubo Hazard Urgent Mitigation Project that will protect San Fernando City, Sasmuan, Guagua and my home town Lubao from flooding. The Subic-Clark-Tarlac Express Road is in its final stages. This first-world road will cut travel time between Clark and Subic from two hours to 30 minutes. Gagawa tayo ng interchange sa Porac, bayan ni Lito Lapid. Last Thursday with Dick Gordon we inaugurated the container port that will make Subic together with Clark one of the best international service and logistics centers in the region. Clark airport got its approach control radar in April. It now has 50 international flights and 50 cargo flights a week, the second busiest after NAIA. We want more airline service centers there. Now, speaking of NAIA, I'm sure everyone wants to know about NAIA Terminal 3. The ceiling that fell wasn't the only thing in danger of falling. There are more serious dangers from construction and structural defects. We cannot risk the grim consequences of a major earthquake. But NAIA is accelerating the remediation, completion and opening of the terminal. Public safety comes first. Since public safety comes first, I ask Congress to create the Civil Aviation Authority of the Philippines. Last year, I said we would connect North and South Expressways through C-5. Ginagawa na ang C-5 bandang Katipunan. Kausap na ang UP para sa bagong daan patungong Commonwealth, na kasulukuyang pinapalapad at North Avenue. Sa kabilang dulo ng Mindanao Avenue, binibili na ang lupa para sa bagong daan mula Barangay Talipapa hanggang Malinta at tuloy sa NLEX. Sana bumawas ang trapik pa-North Manila. We just broke ground to continue the Skyway up to Alabang. In a year the fast train from Caloocan to Alabang will be serving thousands daily. From Alabang to Santo Tomas the South Luzon Expressway is currently being widened. And by March, Ricky Reyes SLEX will reach Batangas Port. The Coastal Road to Bong Revilla's province is finally under construction. Our investment in vital infrastructure is already bearing fruit, such as the $1-billion Hanjin shipbuilding facility, said to be the largest in the world, and the $1-billion Texas Instruments microchip plant in Clark. Maging ex-OFW at ex-tambay kapwang nakahanap ng trabaho sa mga malalaking puhunan na ito. As we build industry, we must ensure people have clean air to breathe. We have closed 88 firms for polluting the environment. Gaya ng sabi ko, una ang kaligatasan ng publiko. We proclaimed a critical habitat within the coastal lagoon of Las Pinas and Paranaque. Maynilad's new owners have invested P7 billion to bring clean and, at last, running water to Paranaque, Parola and elsewhere. Manila Water did a similar P2 billion project for Antipolo. Gumagawa tayo ng septage tank sa Antipolo sa halagang P600 million na maglilinis ng sewage bago ito dumaloy sa mga estero, gaya ng tinayo ng Manila Water sa Taguig at sa San Mateo. Matapos ang maraming taong usapan, ang ating administrasyon ang nakapagsimula ng Flood Control Project sa Kalookan, Malabon, Navotas at Valenzuela (CAMANAVA). On energy, Luzon needs 150 megawatts more by 2010. This is covered by the 350-megawatt, $350 million expansion of the Pagbilao plant by Marubeni and Tokyo Electric, part of their $4 billion that constitutes the biggest Japanese investment in Philippine history. We count on the Governor Raffy Nantes and the people of Quezon to somehow to reduce the cost of electricity. I ask Congress to amend the Electric Power Industry Reform Act for open access and more competition. The Cyber Corridor encompasses centers of technology and learning running the length of all the super regions, from Baguio to Clark to Metro Manila to Cebu to Davao and neighboring areas. The Philippines ranks among top off-shoring hubs in the world because of cost competitiveness and more importantly our highly trainable, English proficient, IT-enabled management and manpower. IT ability won for Warren Ambat of Baguio City High the most innovative teacher and leadership award in Cambodia last February, topping contestants from 70 countries, congratulations to our contestants, women. Information technology will help the BIR bring in more taxes in the coming months. Its Revenue Watch Dashboard will monitor revenue collections in real time from the national level down to the examiners. The LGU Revenue Assurance shares information between the BIR and the LGUs to uncover fraud and non-payment, before heads would roll per Danny Suarez's Attrition Law. While our strength in contact centers is well-established, we are now focused on growing the higher value-added services, including accounting, legal, human resources and administrative services. And, so that no Taiwan tremor can cut off our cyber services from their global clients, PLDT and Globe are investing P47 billion in new international broadband links through other regional hubs for redundancy in our cyber space. The business services sector has become the fastest growing in the economy providing 400,000 jobs compared to 8,000 in 2000. By 2010 the forecast is one million jobs earning $12 billion, the same amount remitted by our overseas Filipinos today. On Safety Net and Education Last year I said that in today's global economy, knowledge is the greatest creator of wealth. Mahusay na edukasyon ang pinakamabuting pamana natin sa ating mga anak. Yun din ang tanging pamana na ayon sa batas kailangang ibigay sa bawat mamamayan. This year, we are investing more for education: P150 billion, P29 billion more than last year. And, last year government and private sector built 15,000 classrooms instead of the usual 6,000. Noon, isang libro bawat limang mag-aaral. Ngayon, tig-isang aklat na bawat grade schooler. One third of our public high schools now have Internet access, with private sector support. We have a scarcity of public high schools but a surplus of private high schools. So instead of building more high schools, we give more high school scholarships - 600,000 scholars this year. For College, we launched a P4 billion fund for college loans, to increase beneficiaries from 40,000 to 200,000. And for teachers, we have created more than 50,000 teaching positions. But we have to improve their training. Benefits, too. Salamat, dating Senador Tessie Oreta at dating Congressman Dodong Gullas, na di na kailangan ng mga guro maghabol sa Maynila ng sweldo at pension. Pinoproseso na sa rehiyon sa regionalization ng payroll. Teachers and all other national government employees get a raise effective end of this month. Sa TESDA, bukod sa mga sariling kurso nagbibigay ito ng mga scholarship sa vocational schools: P600 million noong isang taon, P1 billion ngayon. May P1 bilyon pa ang DOLE. We are investing P3 billion in science and engineering research and development technology, including scholarships for masters and doctoral degrees programs in engineering in seven universities. Upgrade know-how and learning, and Filipino talent is unbeatable. Proof is biochemist Baldomero Olivera of the University of Utah who was named Scientist of the Year by the Harvard Foundation. In the International Math and Science Olympiad 2006 in Jakarta, Robert Buendia of Cavite Central School and Wilson Alba of San Beda Alabang won the gold. Congratulations, guys. Six Filipinos bagged the awards at the Intel Young Scientists Competition in New Mexico last May: Ivy Ventura, Mara Villaverde, Hester Mana Umayam and Janine Santiago of Philippine Science High; Melvin Barroa of Capiz National High, congratulations, Melvin; and Luigi John Suarez of Benedicto National High. Congratulations naman. Last week Filipino students topbilled by Amiel Sy of the Philippine Science High dominated the Mathematics World Contest in Hong Kong. Congratulations, Amiel. Congratulations Philippine Science High School. Earlier this month Diona Aquino of the Presidential Management Staff won with her team from UP the Youth Innovation Competition on Global Governance in Shanghai. Ito ay malaking kunsuwelo sa atin. We have spent more on human capital formation than ever in the past. Why? Because if government of the people and by the people is not for them as well, it is a mockery of democracy. May malaking pag-angat ang kalagayan ng maralita, gaya ng trabaho, pag-aaral at pagamot. Look at the chart on new poor fare. Sa unang pagkakataon, gumastos ang Philhealth ng higit P3 bilyon sa paospital ng maralita. Noong 2001 sinabi kong hahatiin natin ang presyo ng gamot na madalas bilhin ng madla. Ngayon sampung libong Botika ng Barangay ang nagtitinda ng murang gamot. Ang paracetamol na tatlong piso sa labas ay piso lamang sa Botika ng Barangay. Ang antibiotic na binibenta ng mga pangunahing parmasya sa P20 ay P2 lamang. Kaya sa isang survey, halos kalahati ang nagsabing abot-kaya ang gamot, kumpara sa 11% noong 1999. So we can spread this even more, I ask Congress to pass the Cheaper Medicines Bill that was almost enacted in June. Almost is not good enough. Let's help Mar Roxas, Ferge Biron and Teddy Boy Locsin give our people meaningful, affordable choices, from abroad and here in the Philippines. I also ask Congress to pass legislation that brings improved long term care for our senior citizens. Asahan natin si Ed Angara. Si Noli de Castro na isa pang kampeon ng senior citizens ay namumuno ng ating programa sa pabahay. Congratulations, Noli. The low interest rates for housing are unprecedented. Naglaan ang Pag-IBIG ng P25 billion na pautang, six times the amount when we started it in 2001. P50 billion pa ang ilalaan hanggang 2010. On Terrorism and Human Rights We fight terrorism. It threatens our sovereign, democratic, compassionate and decent way of life. Therefore, in the fight against lawless violence, we must uphold these values. It is never right and always wrong to fight terror with terror. I ask Congress...I urge you to enact laws to transform state response to political violence: First, laws to protect witnesses from lawbreakers and law enforcers. Second, laws to guarantee swift justice from more empowered special courts. Third, laws to impose harsher penalties for political killings. Fourth, laws reserving the harshest penalties for the rogue elements in the uniformed services who betray public trust and bring shame to the greater number of their colleagues who are patriotic. We must wipe this stain from our democratic record. Ngunit pangunahin pakikibaka pa rin para sa karapatan ang pagpapalaya ng masa sa gutom at kahirapan. Together with economic prosperity is the need to strengthen our institutions of government. Let's start with election reform. We have long provided funds for computerization. We look forward to the modernization of voting, counting and canvassing. We can disagree on political goals but never on the conduct of democratic elections. I ask Congress to fund poll watchdogs. And to enact a stronger law against election-related violence. We must weed out corruption and build a strong system of justice that the people can trust. We have provided unprecedented billions for anti-graft efforts. Thus the Ombudsman's conviction rate hit 77% this year, from 6% in 2002. We implemented lifestyle checks, dormant for half a century. Taun-taon dose-dosenang opisyal ang nasususpinde, napapatalsik o kinakasuhan dahil labis-labis sa suweldo ang gastos at ari-arian nila. Firms who were asked for bribes in taxes, permits and licenses dropped from one-third to one-half. Contract bribes are also down. Graft won't be eliminated overnight but we are making progress. In Conclusion What I have outlined today is just a sampler of our P1.7 trillion Medium Term Public Investment Program. How will we fund all these? P1 trillion from state revenues, with tax reforms and firm orders to BIR and Customs to hit their targets. P300 billion from state corporations. The balance from government financial institutions, private sector investments, local government equity and our bilateral and multilateral partners. Our new confidence and momentum for progress have imbued our foreign relations, with the ASEAN Summit last year and the coming ASEAN Regional Forum, with increased assistance from our allies and with continued support for our peace and security efforts in Mindanao. We were able to strengthen our economy because of the fiscal reforms that we adopted at such great cost to me in public disapproval. But I would rather be right than popular. Our fundamentals are paying off in huge leaps in investment. Anim na milyong trabaho ang nalikha sa anim na taon, most in sustainable enterprises. Sa lakas ng piso, bumagal ang pagtaas ng bilihin. It is my ardent wish that most of the vision I have outlined will be fully achieved when I step down. It is my unshakeable resolve that the fundamentals of this vision will by then be permanently rooted, its progress well advanced and its direction firmly fixed with our reforms already bearing fruit. All that will remain for my successor is to gather the harvest. He or she will have an easier time of it than I did. They say the campaign for the next election started on May 15, the day after the last. Fine. I stand in the way of no one's ambition. I only ask that no one stand in the way of the people's well being and the nation's progress. The time for facing off is over. The time is here for facing forward to a better future our people so desperately want and richly deserve. Uulitin ko: Hindi ako sagabal sa ambisyon ninuman. But make no mistake. I will not stand idly when anyone gets in the way of the national interest and tries to block the national vision. From where I sit, I can tell you, a President is always as strong as she wants to be. Pagpalain tayo ng Diyos at ang dakilang gawaing hinaharap natin. The state of the nation is strong. Inyong lingkod, Gloria Macapagal Arroyo, Pangulo ng Republika ng Pilipinas.