Yet investors wonder about the government's ability to restore peace and order. Hence Arroyo's controversial decision to welcome US soldiers onto Philippine soil. She's taken considerable flack over the arrival of soldiers from its former colonial master, which packed up military bases in 1991.
Arroyo's calculated risk could pay off over time in the form of foreign investment and vibrant asset markets. That's why economic officials here aren't just concerned with unemployment, privatization and banking-sector reform. They, too, are actively involved in the make-the-Philippines-safe process. "Security is a fundamental problem that has to be addressed," Camacho says.
The stakes are high. Manila wants to attract more multinational companies and hopes a growing number will anchor their headquarters here. The nation hopes its massive and skilled English-speaking population will be enough. Yet bigwigs sitting in London, New York and Tokyo won't be keen on putting their executives in harm's way.
Even if Arroyo can't get Giuliani on board, she's employing some of the former mayor's tactics. Manila is borrowing a page from Giuliani's "zero tolerance" policy on crimes, big and small, and creating an anti-crime commission. It's meant to coordinate efforts between police, the military and the government. Manila also is upgrading its security forces, hiring more college graduates.
Arroyo last week released an additional 200 million pesos (US$3.9 million) for the government's fight against kidnap-for-ransom gangs. The funds will enable the Philippine National Police to step up high-tech surveillance efforts and acquire state-of-the-art weaponry.
RSS