Speech of President Aquino at the IBM Think Forum

  [Delivered at Makati Shangri-la, Makati City, on September 12, 2012]   Good afternoon. Please sit down.   First of all, let me apologize for being late. I had, I guess, the good fortune to talk to my Communications group, and being the Communications group, they tended to talk too long.   So, it reminds me of – my two companions in Vladivostok are here: Doris Magsaysay-Ho and Jaime Augusto Zobel de Ayala. It seems like they have not recovered like I. But it reminds me that I had an opportunity to listen to the Managing Director of the IMF, Ms. Christine Lagarde, and as her wont, second time I’ve listened to her, she’s still giving very dire predictions or prognosis about the world’s economy. When we had the chance to talk to her, it was over a working lunch, the schedule there was so delayed in Vladivostok, the lunch started at two o’clock and we had to leave the Russky Island at about 2:40 p.m. or so, because all of us are allocated specific time frames to leave Vladivostok. So, it was a question – the first question, attending that lunch was “What will she say, and if it is bad will we be able to digest our lunch?” So I was not confronted with that question because I was not given the opportunity to have lunch since we had to fly. We listened to her, then we left.   Today, I find myself at the same situation. And again, it was either finish the meetings or have lunch, because there was no working lunch scheduled. And normally when there’s a working lunch, that means I work and they have lunch. So, I’m a bit lightheaded right now. I hope to make some sense out of all of these things, and it brings me to the current theme of my speech today – we’ll be looking at the glass half empty or half full. So another way of saying it is, when confronted with a problem, are you borne down by the problem and worn down by the problem, or do you see an opportunity? And my lack of opportunity to have lunch today gives me the opportunity to digest the facts that I have accumulated, so I think it was a positive development.   Anyway, when I spoke – and I have to say, Mr. Palmisano, your words were extremely kind, and I think it will be very difficult to follow after you. My inability to be technologically savvy in this day and age will be at the forefront.   The last time I was with IBM was in September of 2011 – about a year ago – at the IBM Forum in New York. Then, I spoke about the different challenges that the world was facing, and how governments must adapt. This came before the APEC summit in Hawaii, where we received a confirmation of sorts: bad news about the state of flux in which the global community found itself.   Today, I am here with IBM once more, on the heels of our visit to Vladivostok for another APEC meeting, where we received unfortunately worse news. So many things happening from then to today – from the Arab Spring last year to the continuing problems of developed economies now –make us realize, in all its stark reality, that the world is constantly changing, and that there is an even greater need to adapt to these changes. As leaders, every year, we face new trials, and every year, we are asked to think about how to best surpass these trials and stay on track for our long-term goals.   In these times, it is understandable, even reasonable, to have some fear of the unknown. This is especially true for leaders in business and in government, because we know that our decisions largely affect the lives of quite a great number of people. But for any leader who faces this fear of the unknown, the ultimate question is always this: Will you allow this fear to spiral and overwhelm? Or will you seize the opportunity that could be there for the taking?   Allow me to give you an example: because of the instability of the Greek economy, capital allegedly has flowed out of Greece and been deposited in other parts of the Eurozone. This has caused capital to be scarcer, making it more difficult for Greece to raise more money to refinance its debt or even to maintain or grow its economy. This fear of the unknown is feeding on itself, and spiraling into what may become a greater crisis, which benefits neither the people of Greece, nor other citizens of the Eurozone or, as Madam Christine Lagarde’s position is, nobody is immune from the crisis in the Eurozone.   This, ladies and gentlemen, is the challenge that faces modern leadership. When confronted with a glass that is half-empty, how do you convince people to see it as half-full? How do you overcome fear and reopen the avenues of hope?   The truth is that some of mankind’s greatest successes have been made by overcoming this fear of the unknown. After all, it is not unrealistic to imagine that, somewhere in the world, there is a savvy investor quietly accumulating Greek assets, knowing that, at some point in the future, the value of those assets will undoubtedly recover. And we do not even have to go as far as Greece – we have the perfect example here, in IBM.   Your company started in the Philippines in 1937 and Secretary Montejo was not around at that time – a time when science and technology considered, and I’m told, the canned adobo the pinnacle of our advances. For a company already involved with maintaining the employment records of 26 million Americans through tabulating machines, this move might have been seen as a great risk. Similarly, in the 1980s, IBM had to contend with the growth of new players in the industry, for example, both Microsoft and Intel. Then people wondered what would become of IBM – if your company still had a future. But look at where we are today: celebrating the 75th anniversary of IBM Philippines, only one of the many IBM locations all over the world. You changed your business model and adapted to the shifting needs and challenges of the market, and now, you are stronger than ever. Instead of fearing the unknown, your leaders saw an opportunity to bet on the Philippines and to bet on the strengths of your company. Today, we can all agree: those bets have indeed paid off.   Two years ago, who would have wanted to invest in the Philippines? Capricious regulation, opaque processes, and widespread corruption made the playing field anything but level. These were among the greatest of our concerns: how to balance the need for basic housekeeping and repairing the eroded base of our institutions, while competing in the global arena. There were times in those early days when the glass truly appeared to be half-empty, when the amount of problems we unearth every day threatened to overwhelm us.   But we stood firm. We held on to our belief that, if we worked hard and if we held fast to our principles, we would succeed: good housekeeping would result in a revitalized and progressive society. We knew that if we kept treading along the straight path, in the direction that the Filipino people set for us, we would achieve our shared aspirations: institutions free from corruption and the politics of self-interest, a society that values equal opportunity and inclusive growth, and most importantly, an empowered citizenry.   There are so many who joined us, and who continue to join us, in this endeavor. Our countrymen turned their back on the naysayers who sought to instill fear and uncertainty: believing in the potential of our country and of their talents, they help us foster positive change in our society. Many of you in business have also played a great role: you saw what our country had to offer and seized the opportunity to invest in the Philippines, despite a history of politics of convenience.   All of you believed in our vision, and one of the best indications of our collective success is the World Economic Forum’s Global Competitiveness Report for 2012-2013. According to this report, the Philippines has jumped another ten spots to rank 65th out of 144 economies, when, in 2010, we had only ranked 85th. That is, in total – for those less challenged in math – a 20-place jump in rankings since we took office; and allow me to emphasize that this is the first time we have broken into the top 50 percent of countries, I’m told, since 1994, the year the Philippines was first included in the report.   And I am sure you have all heard that, in the second quarter of 2012, the Philippine economy grew by 5.9 percent. If all goes as planned, we’ll be on target in achieving between 5.0 to 6.0 percent GDP growth for 2012. These achievements, together with the 44 record highs of the Philippine Stock Exchange Index, and the fact that the Philippines is now only one level below investment grade, according to two of the three major ratings agencies, show that we are well on our way to filling up the half-full glass.   Earlier, I spoke of the APEC meetings in Hawaii and Vladivostok where we received grim news. In both meetings, Madam Christine Lagarde, managing director of the IMF, made references to external pressures and factors that can impede, and have already impeded, the progress of some global economies – but at the same time, these factors can also open up new prospects for others. For example, with instances of capital outflow from more developed, but troubled economies, emerging markets like the Philippines are given the opportunity to make the most of their competitive advantages and become prime locations for investment. We all need to take advantage of opportunities like this.   The Philippines is truly on the right path. Everyone – from our countrymen and tourists, to leaders of industry both in the country and beyond its shores, to organizations and other governments – shares our optimism. And this has allowed us to succeed: to regain our confidence and make the most of even more opportunities to achieve inclusive growth for all Filipinos.   At the end of the day, I believe each leader must ask himself: how can I spark a virtuous cycle? How can I inspire others to contribute to tangible change that can be felt in my community, and in all of society?   In our case, it was not our government that acted as a catalyst for the sea change that has swept the Philippines, but our bosses, the Filipino people. It was their call I answered when I ran for the presidency, and it is their mandate that I strive to follow: to do what is right, and to do everything in my power for the good of the country. Then, as now, they continue to be my compass: with every decision I am asked to make, I keep in mind the millions of people whose lives may be affected. And at any time I feel uncertain, I remind myself that I am responsible for the Filipino people and to the Filipino people, and that any opportunity I take is an opportunity that must benefit the lives of more than myself.   Whether we are leaders in business, politics, or in other groups, we are entrusted with the responsibility of leaving our respective organizations in a better state than when we first found them. You all know that this is no easy task. There is always the temptation to measure success merely by statistics and numbers, but all of us must continue pursuing success that is meaningful to all – from those sitting in their own offices, to those in the cubicles, to those cleaning the halls. I believe that if we continue to support each other, we can do this in our respective fields, and, together, we can give rise to a country that not only rises to meet its potential, but exceeds it regularly.   Thank you. Good afternoon.