The Center of a Dynamic Economic Region

An Interview with The Honorable Cesar V. Purisima, Secretary of Finance, Republic of the

EDITORS’ NOTE Cesar Purisima Are you seeing the progress From the start, President Aquino identifi ed earned his bachelor’s degree in ac- you had hoped from your efforts to the fi scal constraints on the growth of the coun- countancy at alleviate poverty? try and so far, we have reduced the defi cit. We and pursued an M.B.A. with a special- The President believes that edu- also created fi scal space for increased budget ization in international economics cation is the great equalizer, which is allocations to the areas I mentioned earlier. and fi nance at the Kellogg School why he has committed more resources The President has also given instructions to of Management of Northwestern to it. When he took over, education open the country for investments. He has opened University. He spent most of his career was already the largest item in the up the sky so more airlines can fl y to the country. in the fi nancial sector before join- budget and he has increased it by 50 We’re also supporting investments in the tourism ing government. Purisima was pre- percent. He has also increased our industry. As a result, we have seen many new viously Chairman and Managing health care budget by 77 percent and hotels being built. Our number of tourists has in- Partner of renowned accounting our budget for social safety nets by creased about 50 percent since he took over. He fi rm SyCip Gorres Velayo & Co. He Hon. Cesar V. Purisima 267 percent. estimates that each tourist will create one new job. was also a member of the Global The conditional cash transfer pro- Which specific industries offer the Executive Board and Global Practice Council of gram, which is the safety net I’m referring to, is greatest opportunities? Ernst & Young. In 2004, President Arroyo named one that provides stipends to the poorest of the A business that takes advantage of our him Secretary of the Department of Finance. poor to keep their children in school and bring people’s strength will surely do well. The busi- Purisima held the post until his resignation. In them to health centers. The belief is that when ness process outsourcing industry now employs June 2010, he returned to the fi nance portfo- each Filipino is able to actualize his potential over 700,000 people and generates about $15 lio in the cabinet of President Benigno Aquino and become an active participant in the econ- billion. We expect that to provide 1.3 million III. As Finance Secretary, he is the Governor of omy, it follows that we will have an economy jobs generating $25 billion by 2016. the Philippines in the that will continue to improve. We’re now number four in the world in ship- and Chairman of the Power Sector Assets and Are you content with the awareness building, principally because of our deep pool of Liabilities Management Corporation. Purisima of foreign investors about the opportuni- welding expertise. also serves in the Land Bank of the Philippines, ties that exist in the Philippines? The President is reviewing the policy on the National Power Corporation, the Monetary The fact that we have achieved investment mining. He wants it to be handled responsibly so Board of the Bangko Sentral ng Pilipinas, the grade for the fi rst time in our history is a recog- it will not destroy the environment. This year, Energy Development Corporation, the World nition that the international community is seeing we hope to come up with new laws that will Bank Group, and the International Monetary the changes in the country. allow us to restart the mining industry in the Fund. Purisima was named Finance Minister of Two of the three major ratings agencies country. One project alone would bring a total the Year by Euromoney in 2012. have given us that status, but the fi nancial mar- investment of close to $7 billion, which is ex- kets rate us even higher – two notches above pected to increase our GDP by 1 percent per How has the Philippines economy remained investment grade. year during its 25-years of production. so strong despite a worldwide recession? The Philippines, as a part of an integrated Businesses that cater to tourism will also Since President Aquino took over, we have ASEAN, would be the third largest country in do well. We’re centrally located in the heart of had better governance. His motto is, “Good the world by population and seventh largest in the Coral Triangle and naturally positioned to governance is good economics.” This has un- the economy. The future of the Philippines is cater to Northern Asia tourists. China alone is leashed the potential of the country that has aligned with other ASEAN countries. expected to have over 100 million tourists com- always been there in terms of its people, its What commitment has the President ing out of its borders by 2015. natural resources, and its location – in the cen- made to investing in the country’s infra- In addition, businesses that are targeted at ter of a dynamic economic region. structure? ASEAN or at Asia will do well, as the Philippines can Instilling better governance has given the On day one, he said he wanted to invest be the gateway to ASEAN and Asia for those from fi nancial markets confi dence in the Philippines, in our infrastructure, so we launched an aggres- the U.S. or Latin America. Our unusual history of be- which has allowed us to create more fiscal sive public/private partnership program. Thus ing oriental but having been colonized by Western space so we can invest in our infrastructure and far, we have successfully bid out three projects. countries for a long time puts us in a unique position our people. Our businessmen are now making There are seven in the process of building out of understanding these divergent cultures. major commitments of capital to longer term and there is a long list in the pipeline. How has President Aquino managed to projects. Our people are also more confi dent We have established an institutional frame- make such a difference for the country? so they comply more with our laws and pay work that has proven itself over the past few years President Aquino walks his talk. In the more taxes. so we can continue it beyond the President’s cur- three years he has been in power, he has made This has allowed us to get deeper into a rent term. believe again that with better govern- virtuous cycle. Our challenge is to make sure As a part of the budget, he has increased ment, we can have a better future. In the next that we sustain this so that we will ultimately the allocation for infrastructure development three years, our challenge is to make sure his alleviate poverty. substantially during his tenure. legacy is sustained beyond his term.• 210 LEADERS POSTED WITH PERMISSION. COPYRIGHT © 2013 LEADERS MAGAZINE, INC. VOLUME 36, NUMBER 4