Diosdado Macapagal

“ We must accelerate the coming of that day when this country shall be not merely the exploited domain of the privileged few but a land where the common man shall stand erect, the equal of his fellow men, able to protect his rights and possessions, and sharing in dignity and freedom in the task of building an ever greater Nation. ”

“ The specific role of government will be to provide direct assistance where needed, to establish required social overhead facilities, and to ensure that bottle-necks to pro­duction are neither created nor allowed to persist.
I must point out, however, that the restoration to a large degree of the freedom of enterprise does not remove from government the obligation to exercise economic leadership. On the contrary, government leadership not only becomes all the more important, but its exercise must be all the more firm as it is all the more just, imaginative and skillful. ”

“ It is ironical to talk of magnificent plans for progress and prosperity if we cannot even provide the rice and corn that our common people cannot go without in their daily lives. Before attempting anything else, let us work together to insure that our people have and be able to afford the rice and corn that they need in their daily living. ”

“ In the accomplishment of our mission, we have chosen the freedom of democracy as the context for the solution of our problems. Democracy is truly on trial along with us in our social and economic travails. ”

“ While we uphold that the principal responsibility for development should belong to Filipino citizens, who must be the principal determinants as well as chief beneficiaries of Philippine economic progress, we at the same time caution against the type of radical nationalism and nationalization measures that deter the coming of foreign assistance in our economic development. We must be sincere in at­tracting foreign capital to invest in productive enterprises in our country in joint ventures with Filipino businessmen and must show this sincerity not in words but in deeds. ”

“ You and I must provide for their enjoyment of those basic requisites for decent living and of those adequate opportunities for the attainment of material prosperity and spiritual fulfillment. Only thus will they be able to stand in dignity and freedom in the community of nations.
We assume our joint responsibilities at a time when the Nation is faced with many serious problems. The eyes of the world are focused on us, anxious to see how this new Government will face the difficulties confronting it. ”

“ We must face the problem of economic growth with preferential emphasis. Proper economic development will raise the income of our people and the revenues of the government. It will thus produce the additional funds and facilities necessary for effectively discharging the other functions of government and for meeting the needs of our population. We must ever bear in mind the funda­mental fact that it is through the adequate advance of the national economy that a higher standard of living can be attained by our people. ”

“ The government’s role is to create a favorable environment that will provide the inducements necessary, in terms of suitable policies and measures needed, to foster economic growth and stability. It must be in a position to devise new and effective methods, democratic in character and spirit, to induce the private sector—properly called the dynamic sector—to risk idle capital for development purposes.
The exchange rate adjustment and the stabilization pro­gram are expected of themselves to create a fundamental climate favorable to investments in the required lines of activity. ”

“ I must emphasize that the launching of genuine decontrol is only the short-term commencement of our long-term economic program. We are laying the basis for stable and orderly growth with a stable and orderly currency. I am arranging for large long-run production and development credits to bolster our investment effort, as distinguished from short-term commercial credits which have been used at times for speculative purposes. ”

“ Let me, however, add that it is wasted effort to steep the young in virtue and morality only to let them realize as they grow up that their elders are neither moral nor virtuous. We -must, therefore, see to it that the prac­tices allowed by law in government and business, in the professions and labor unions, in field and factory—in every area of national endeavor—conform as much as possible with the moral and the ethical. ”

“ Our final goal is to establish a framework of policies that will give a stable basis and a more realistic and sober impetus to a new growth trend which will extend much farther into the future. The new dynamic for economic progress that we seek and should attain must be of a more genuine quality and must provide a richer and longer lasting energy for national progress.
In assuming our proper responsibilities, we shall be guided by the economic philosophy of Faith in the Filipino. We believe that economic development is principally a task of private enterprise and not of government. ”

“ The second and far-reaching need of the Nation is the solution of the problems pertinent to our economic growth and development. It encompasses all our aspirations to attain self-sufficiency in food and a higher standard of living. ”

“ It may now be expected that with genuine decontrol instituted in our foreign exchange transactions, a completely new atmosphere will prevail in our economy. The alloca­tion of foreign exchange and the determination of the ex­change rate will be left to market forces rather than to the arbitrary decisions of administrators. We should clear the obstacles which have grown up in the past during the re­gime of controls, and liberate the energies and imagination of our people and our entrepreneurs for economic projects of lasting value to the country. ”

“ In any event, such speculative movements cannot be of long duration, as our economic development program goes into gear and the country’s production begins to fill the pipelines of commerce and to elevate the living standards of our people. ”

“ One of the principal fears of business in the decontrol of foreign exchange is the loss of the protection which exchange controls provided to domestic industry against un­due external domination. There is no valid ground for this fear. As the exchange control machinery is dismantled, the alternative means of achieving the legitimate ends of controls shall be instituted. ”

“ Such practices can be sustained and upheld only if we can at the same time create a strong public opinion that will actively approve them and vigilantly condemn the contrary.
In our actions, we should not be guided only by what is legal. We must go beyond legality into the demands of morality. Our acts must not only be legal but must be moral as well. ”

“ The prospects of better times are not likely to be realized without the imposition of self-discipline and the assumption of certain social responsibilities. Progress and prosperity will come. It will come, if all the people rally to maintain economic freedom and security and a higher standard of living for themselves. ”

“ The enforcement of the law is solely the responsibility of the Executive Department, but I invite all to join the Executive in wielding the potent power of moral example, and I particularly urge the Congress to assist in conceiving those reforms that will contribute to a moral renaissance of our people. ”

“ The responsibilities of the Executive and Legislative branches of the Government are just as demanding. All the agencies of the Executive, including financial institutions and corporations, will be mobilized towards a coor­dinated implementation of the program. We shall take particular pains to see that there is a minimum of conflict between our announced goals, our economic philosophy, and the day-to-day operations of all those government agencies with which the private sector is continuously in contact. ”

“ Therefore, I first invite your attention to the decadent state of our public morality. Our efforts to achieve the goal of economic and social fulfillment will be more effective and the results we obtain more permanent only if we can suffuse them with a pervasive moral regeneration. ”

“ At my inauguration, I stated that I would seek to strengthen the nation’s moral fiber through formal modes of reform, enforcement of the laws and the exercise of the tremendous persuasive power of the Presidency in setting the personal example of honesty, uprightness and simple living. ”

“ We shall also concentrate our efforts to raise agricultural productivity throughout all the regions in the country in order to achieve self-sufficiency in food production. It is incumbent upon government to provide improved irrigation and water control facilities, the continuation of subsidies for fertilizers and seeds, expansion of research programs for developing high-yielding and disease-resistant varieties of agricultural crops, the establishment of liberal credit facili­ties, and the improvement of marketing and transportation networks. ”

“ The second goal of our integrated economic program is the immediate alleviation of the plight of the common man. In comparison with the living standards of the relatively wealthier countries, ours in the Philippines is far from adequate. The per capita consumption of superior foods like meat, eggs and milk, beans and vegetables is far below healthy nutritional standards and much lower than what obtains in wealthier countries. ”

“ The combination of growing domestic production and substantial imports increased the availability of goods and services in the economy. These were largely absorbed by consumption which increased at the rate of 3.3% per annum per capita. Investments were only increased on a per capita basis at the rate of 1.3% per year. During that period the country was only investing at the rate of P8.62 for every P100.00 worth of gross product available. The rapid growth in domestic production was achieved with relatively small investment of capital. ”

“ But it was not until April 25, 1960 that the Government took official cognizance of the fact that the rate of P2.00 per US $1.00 was unrealistic.
Many firms are now losing gradually the benefits of the tax exemption law. In its stead, the Basic Industries Act provided a more limited tax exemption for the machinery and equipment importation of “basic industries.” Only import duties, special import taxes and other levies on importation are waived.
What does all these mean? Over all, profits on foreign exchange will cease to be a source of inducement for invest­ments. ”

“ I there­fore appeal to each member of the Fifth Congress to set aside partisanship and contribute his experience and wis­dom to the common task entrusted to us by our people. We face a challenge to our free political system, to our dedication as public servants and to our patriotism as Filipinos. ”

“ Larger investments will be required in the country to set up new communities with all the facilities involved in building water systems, electric power generating and distribution plants, sewerage systems, housing, roads and communications facilities.
Further growth in the Philippine economy will thus involve larger average investments than in the past. The country will need to rely to a larger extent on external resources from foreign aid, institutional loans, and foreign investment. ”

“ More basic developmental effort will be neces­sary. Further development of mining, agriculture and forestry will involve more substantial investments in basic facilities—roads, irrigation and water control system, warehouses, heavy equipment for clearing and cultivating, pest control equipment, housing, etc. This is the result of bringing less developed lands under cultivation. The development of forestry will involve exploiting more remote timber lands. The expansion of mineral production will mean more extensive exploitation and development of deposits in more remote places. ”

“ Moreover, within the Nation itself, the distribution of welfare is far from satisfactory. This is indeed a nation of contrasts where very few regions and communities enjoy affluence in contrast to widespread poverty in others. ”

“ This is both in fulfillment of our electoral pledge to the Filipino people and in compliance with the provision of the law requiring decontrol by 1963. In an atmosphere of freedom, our entrepreneurs and citizens may now achieve prosperity for themselves and the country not through arti­ficial advantage but through their talent, integrity and in­dustry.
Exchange control had become a cesspool of corruption that brought disgrace to the Nation. ”

“ In ad­dition to the normal growth of domestic savings flowing through such financial intermediaries as the commercial banks, the Government Service Insurance System, the Social Security System, the Postal Savings Bank and the private insurance companies, the program contemplates the estab­lishment of rural savings institutions and cooperative banks to encourage systematic savings out of current income in the farm areas. ”

“ The second requirement for government is the establish­ment of a complement of policies designed to induce and mobilize the maximum of internal domestic savings and the maximum external financing in order to sustain the overall investment requirements of the economic development program. ”