By all accounts, the state visits of President Duterte to the two Asian economic power houses, China and Japan, were a resounding success. In money terms alone, it can really be said that the President did bring home the bacon. From China, about $24 billion was promised, divided into P15 billion in investments and P9 billion in credit facilities. Most of the money will go to agriculture, renewable energy, tourism, food, manufacturing, telecommunications and infrastructure.
The fact that Filipino fishermen can now fish at the Scarborough Shoal is an added bonus. The stock of the President will therefore undoubtedly soar to new heights and the bragging rights will be rightfully his. The public may now also be inclined to say that the President is right after all in pivoting towards China and that to achieve these beneficial results, we have to continue to engage China on a bilateral basis, something that China has always wanted as opposed to the multilateral approach taken by the previous administration.
From the President’s visit to Japan, he also brought home $17 billion that will go to transport, roads, highways and power. $1.85 billion of this is committed investments. Summing up the visits, the President brought home a total of about $43B in short- and long-term investments. If we divide the amount into six that would cover the term of the President, that would amount to more than $7 billion a year. This is enough to keep the country very busy for the next six years.
If the administration can buckle down to work, this will go a long way in creating hundreds of thousands of jobs and keeping the economy churning in the years to come. This will certainly improve the lives of many Filipinos. This amount does not include investments that can come in from other countries.
It was not only in the economic sphere that the state visits were successful. Japan which is also a close ally of the United States, was initially apprehensive with the state visit coming in the wake of the President’s tirades against the United States during his trip to China. The Japanese political leaders led by Prime Minister Shinzo Abe were not altogether sure how to interact with their visitor without souring the state visit. Would it be safe to ask him what exactly happened in China or is the Philippines now really separating with the United States? Simply asking for asking for clarification from the President concerning his recent controversial remarks might trigger another round of tirades.
As it turned out, there was no need. The Japanese were completely reassured with statements coming from the President with regards to Filipino – Japanese relations. The President even mentioned about the possibility of a joint sea patrol with the Japanese which was music to the ears of his hosts. This was something he is unwilling to do with the Americans. The Japanese visit also showed the difference on how the Japanese provide aid in contrast to the Americans. The Japanese reaffirmed their earlier intention to provide ten coast guard patrol boats and two larger patrol vessels ostensibly with blue water capability. The Americans, on the other hand, always provide us with 40-year-old ships. The latest which was a Hamilton class coast guard cutter which was turned over to us recently with the remark from the US Coast Guard Commandant that “there are no more companies that manufacture spare parts for the ship.” In which case, we will have to scrounge around for spare parts or fabricate them ourselves. That ship might end up being used more for display purposes rather than combat or patrolling our territorial waters.
By accepting that ship, we in fact saved the American government money that it would have spent to scrap the ship. Instead, we will pay them to recondition the ship. This is one big reason why we really should stop receiving museum piece equipment. If for no other reason but to maintain our self-respect. Although our country is still poor, our economy can afford to buy some brand new equipment. If we have to receive second-hand equipment, these must not be 40 years old so that we could still benefit in using them.
The Japanese on the other hand will be providing us with brand-new equipment like fast patrol boats for anti-terrorism operations in the south. But there will also be a problem with the new equipment if our government does not provide the corresponding budget for the maintenance of these new boats. The Americans, having dealt with us the longest, have learned that we are not up to par as far as logistics are concerned.
So, to them, it probably is better to provide second-hand equipment which is cheaper to repair and maintain and since we are good in improvising, can maintain and use these equipment in good order. There is good logic in this. It is a lot more expensive if a brand new ship or plane cannot be used because of very poor maintenance.
In the end, it will be absolutely necessary that we establish an efficient logistics system so we can acquire new defense equipment and maintain them. To achieve this, it is imperative for the government to provide maintenance budget and the funds be used as intended and not end up in the pockets of a corrupt military or coast guard officials. Think of how much better it would be if by adding China as a returning friend and trading partner, we do not have to drive away longstanding friends. There must be room in this country for maintaining friendly relations to the three biggest economies in the world.