The Philippines' recovery from the Asian financial crisis and its high potential for growth has

prodded a business website to name it one of the "New Tigers" in Southeast Asia. The Philippines, as well as Indonesia, have "come of age" and are "poised to drive future growth and grab more economic power,"Market Watch said. "In an economically vibrant Southeast Asia, Indonesia and the Philippines stand out as the region's 'New Tigers' with the potential to leave a bigger imprint on global growth for years to come while the developed world struggles with excess debt and traditional regional heavyweights China and India lose momentum," it added. This review of the Philippines is the latest in a string of recent positive assessments and forecasts, most of them noting deep-seated governance reforms and its impact on ease of doing business. The Philippines and Indonesia's edge over other countries in the region, Market Watch said, include "large and young labor force, an expanding middle class and... elected governments with policies inspiring investor confidence." Sturdy banks and enough foreign exchange reserves also put the countries at an advantage, it added. National debt also remains low in the Philippines and Indonesia compared to countries in the West, "leaving both enough room to boost their economies in case of need," the report said. Market Watch also noted that the two countries' stock markets "are among the world's best performing since the end of 2008." Marking the two countries' takeoff, Market Watch said, is their leap from borrower to lender status in the International Monetary Fund, with each pledging $1 billion to replenish the multilateral bank's funds. This, as Market Watch noted that the IMF bailed out the two countries during the Asian Financial Crisis of the late 1990s. These developments have not escaped the view of global investors which are now turning their heads toward the Philippines and Indonesia, Market Watch said. "Both markets have been a popular choice for investors since 2009 and have extended a solid upward run with sharp gains so far this year," it noted. Market Watch highlighted the Philippines' status as second to Thailand's best-performing stock exchange in Asia so far this year, rising 18 percent. Indonesia's Stock Exchange meanwhile gained 4 percent. "Signaling the strength of foreign investor interest in both the Philippines and Indonesia, new products have been developed to provide overseas investors with more options to access those markets," it noted. The two countries are not free from risks, however, with Market Watch noting that challenges include "sustaining political stability, tackling widespread corruption and improving their poor infrastructure." The Philippines' heavy dependence on remittances from overseas workers may also prove to its disadvantage amid a weak global environment, the report added. This, even as it echoed forecasts that the services sector and high remittances will drive economic growht in the Philippines this year. "To sustain its trajectory, the Philippines needs to not only get more value out of existing industries, but also forge new ones," Market Watch said. An expansion in the tourism sector may be the perfect fit, with the report noting that it may "help absorb labor in its

swelling population." For tourism to takeoff, however, Market Watch said the government must address the issue of poor infrastructure. Aging roads and inadequate airports choke economic development while also discouraging tourism, the report said. "The problems are curtailing the growth of what many see as the critical next-wave industry," it added. Aside from tourism, mining could also drive growth for the Philippines, Market Watch said. "The country is rich in minerals including copper, gold and nickel, but development of the mining industry has been stalled by political resistance and layers of red tape," the report noted. "Regardless of which industries the Philippines seeks to develop, international backing will be crucial," Market Watch said. The world-recognized four Asian Tigers are Hong Kong, Singapore, South Korea, and Taiwan. The Philippines' economy grew by 7.1% in the July to September quarter, compared with the same quarter last year. This was a nice jump up from the previous quarter's growth rate of 6%. The economy was boosted by increased consumer and government spending, and a recovery in exports. This strong growth surprised even the optimist forecasters who bet on growth of 5.4%, despite the downward sliding world economy. The Philippine September quarter growth rate was the highest in Southeast Asia and second highest in Asia. The Philippines' GDP has now expanded by 6.5% in the first nine months of the year, and its benchmark stock index is up 30%. The country is clearly benefiting from sustained confidence in the Aquino government that equates good governance with good economics. The National Economic and Development Authority remarked that our efforts at good governance are beginning to bear fruit". The country has this year won credit-rating upgrades from both Standard & Poor's and Moody's to one rung below investment grade which is likely to help it attract more investment. This very good performance is all the more striking because it was only in January this year that the Manila-based Asian Development Bank (ADB) gave a relatively downbeat assessment of the Philippine economy. Prospects were said to be challenging in the current global environment -- and looking ahead, the economy required very much better management. ADB Vice-President Stephen P. Groff argued that while managing the short term is a challenge, the Philippines suffers from some very large and persistent developmental challenges. First, unemployment remains high, and poverty remains a serious problem -- despite some success stories like growth in employment in the business process outsourcing industry (BPO). The BPO industry is moving up the value chain from voice-based services such as call centres to knowledge-based businesses like software development, financial services, accounting and medical services. But the service outsourcing industry employs only about 1% of the total labor force and is biased toward relatively skilled workers. Fundamentally, the country needs a stronger industrial base. Second, the Philippines is also in desperate need of improving its inadequate infrastructure, from hard infrastructure like roads and airports, to health and education services for people living in poverty. During 2002-2009, the Philippines invested less than half in education as compared to Malaysia, Thailand and Viet Nam. Third, the Philippines' environmental disaster must be tackled -- coastal and marine environments, farm lands and forests, and air quality in the cities. It is estimated that nearly 5,000 premature deaths each year in Manila are due to

respiratory and cardiovascular diseases from exposure to poor air quality. The fourth key issue to tackle is governance and political economy which is in fact the heart of the matter. For years now, people have been talking about improving governance in the Philippines, but the situation just keeps on deteriorating. With outward migration being a massive social safety valve, there is not sufficient pressure on the government and the country's elite to change. And too often, anti-corruption campaigns descend into infighting and score-settling among different groups in the elite, without regard to the plight of the country's poor. There is still, of course, a lot of truth in Groff's comments. As he remarked, the Philippines' exports are too highly concentrated in electronics, particularly semi-conductors. It is too reliant on migrants' remittances. And as we are seeing right now, the country is highly exposed to deadly natural disasters, especially typhoons. But it also seems clear that the Philippines is changing and is moving in the right direction. The country may have reached an historical turning point. It may be time to recognize that the Pearl of the Orient is finally becoming an Asian tiger economy. But history shows that economic development is like running a marathon. We can only hope that the Philippines has the stamina to stay the course. LEGAZPI CITYAlbay Gov. Joey Salceda, a noted economist, said the 7.1-percent growth of the domestic economy in the third quarter of this year, so far the highest in the Asean, has made the Philippines an emerging new tiger economy in Asia. Jose Ramon G. Albert, secretary-general of the National Statistics Coordination Board (NSCB), in a news release said the domestic economy accelerated in the third quarter to 7.1 percent this year from the 3.2 percent [in the same period] last year. The NSCB release said the growth was beyond expectation and was driven by the services sector with the robust performances of transport, communications and storage, financial intermediation and real estate, among others. Salceda, often referred to as the Green Economist had been a financial analyst before joining politics. He said the third quarter is a defining moment in our economic history and we can truly assert that the Philippines has become a tiger economy of Asia. Overall, our 7.1-percent Q3 gross domestic product [GDP] growth was the best in the region as compared to Indonesia with 6.2 percent, followed by Malaysia at 5.2 percent, Vietnam at 4.7 percent, Thailand at 3.0 percent and Singapore at 0.3 percent, Salceda said in a statement , adding that it is even comparable to Chinas 7.7-percent growth in the same period. Interestingly, the countrys robust GDP was achieved despite the 2.2-percent decline in mining, he said. Salceda also sits as president of all regional development councils in the country. He added that having closely followed the behavior of the Philippine economy since 1989, the quality and the complexion of the current trends offer more scope, more scale and more speed in the second half of President Aquinos administration. Analyzing the NSCB release, Salceda said the performance was driven by services which accounted for 58 percent of total growth, followed by industry with 39 percent. He noted, however, that despite the doubling of agriculture sector growth to 4.1 percent, its contribution to total growth was only 3 percent. Based on specific sectors, the strong GDP growth was driven by construction at +24.3 percent and the broad-based growth in the service sectorstransportation and communications at +9 percent, financial intermediation at +8.3 percent, real estate at 7.8 percent and trade at 7 percent, he said.

On the demand side, Salceda said, it is the same old story: low interest rate regime on private demand, combined with OFW remittances which allowed the country to exhibit a mighty drag coefficient against the headwinds of choppy US recovery, slowing China and spreading euro-zone weakness. He added that to sustain GDP growth would largely entail maintaining the macroeconomic balance, rapid rollout of infrastructure and reducing the price of electricity to shift into an investment-driven growth. THE newly proposed creation of a Bangsamoro nation-state within the Mindanao territory was met with enthusiasm by the Muslim inhabitants of the ARMM and the international community. However it has been met with mixed reception by the common tao and has been outright scorned by the MNLF. Most people are happy that the seeds of peace have finally been planted in Mindanao by the signing of this historic framework deal. Others feel it is merely a ruse by the MILF to acquire money from the government-sponsored transitional government so that they may rebuild their forces and continue the fight against the occupiers from the north. Further still, others point out that the framework agreement does not take everyones interests into account, case in point, the MNLF. While the MILF was invited to play a key role in the preparation of the Bangsamoro state, presently the MNLF has absolutely no role in the process whatsoever, and unless an MNLF member is selected to be part of the transitional council, then they have no say in these talks. Nur Misuari is calling the Bangsamoro Framework Agreement an act of betrayal by the Philippine government and says that the signing of the agreement is a death sentence since it does not grant the Bangsamoro nation-state what they desired in the first place full autonomy. Basically, the Bangsamoro Framework Agreement can be seen as an amendment to Republic Act 6734, the act which created the ARMM. The present draft gives vague statements about the nature of the governance of the new proposed nation-state, its laws, and how its coexistence with the Central Government of the Philippines. There were 10 decision points made during the agreement, but the major, tangible differences between the ARMM and the proposed Bangsamoro State can be summarized as follows: 1. The Bangsamoro nation state will have a ministerial form of government instead of the present form, which consists of executive powers from the governor and legislative powers from the regional assembly. 2. The jurisdiction of Islamic Shariah law will be expanded over much of the new political entity. This may pose a problem as certain aspects of the medieval Shariah law may be in conflict with the Philippine Constitution. The Shariah provision for murder, for example, states that a victim may either choose to forgive the killer, or have him or her punished with the same death as the original murder victim, if it was intentionally committed. The Philippines abolished the death penalty in 2006. 3. Regions in Mindanao that wish to join the new Bangsamoro state may cast their votes to do so. If at least 10% of the qualified voters in that area voted for inclusion, then their home region will be assimilated into Bangsamoro territory. 4. Law enforcement shall be handled exclusively by a Bangsamoro police force. AFP troops will no longer have law enforcement powers in that area but will be there solely to defend the territory against external threats. Keep in mind that, as of this writing, the Bangsamoro Framework Agreement is still in draft form, and must be approved by congress before any action can be made. OZAMIZ CITYAs government and Moro Islamic Liberation Front (MILF) negotiators apply the finishing touches to a peace road map in Mindanao, a new struggle to achieve Bangsamoro unity to ensure lasting peace has emerged among Moro revolutionary groups on the island. We have a need to address difficult and sensitive issues affecting Bangsamoro unity, said President Aquinos adviser on on the peace process, Teresita Quintos-Deles, when she spoke at the MILF-MNLF Special Session during the 4th World Peace Forum in Bogor, Indonesia, on Nov. 24, 2012.

The government has formally asked both the MILF and the Moro National Liberation Front (MNLF) to settle their differences. Both rebel fronts have separately entered into peace processes with the government, basically raising the same issues, including territory. What is more difficult is getting everybody on the same boat. On this, only you can make this happen, not the government, Deles told leaders of the two groups in her Statement of Hope. The government can only support the process and we pledge to do so in every way necessary and possible, she said. The Aquino administration has long wanted a convergence of the MILF and MNLF peace tracks because it is not possible to talk about separate futures for both, she said. A faction of the MNLF has welcomed the Framework Agreement on the Bangsamoro signed by government and MILF negotiators on Oct. 15 to lay the basis for a peace settlement but the main wing, led by Nur Misuari, has criticized the document for supposedly negating the 1996 Final Peace Agreement (FPA) between the MNLF and the government. Observer status Misuaris following has considerably dwindled through the years but he continues to be recognized as the leader of the MNLF. The group holds an observer status in the influential Organization of Islamic Cooperation (OIC). Since mid-2010, the OIC has been working with both parties to unify their peace efforts. Misuari has not responded positively while the MILF has acceded to the formation of the OICbrokered Bangsamoro Coordination Forum, which should bring all Moro revolutionary formations together. During its recent meeting in Djibouti, the OIC called on the need to harmonize the FPA and the framework agreement. However, it did not offer any parameters within which this process should be undertaken. For the government, one manifestation of convergence is the MNLFs participation in crafting a Bangsamoro Basic Lawthe first step in a peace transition envisioned under the framework pact. Saying MNLF involvement will further enrich the peace process with the MILF, Deles has offered its members seats in the Transition Commission, which will draft the Basic Law. Basic Law The Basic Law will serve as the charter of the Bangsamoro that will replace the current Autonomous Region in Muslim Mindanao (ARMM) once the necessary legal processes to entrench it is done. It also offers an opportunity to fulfill the remaining commitments contained in the FPA, including expanding the powers and geographic scope of the autonomous region. MILF chief negotiator Mohagher Iqbal has said Misuaris impression that the framework accord will negate the MNLFs 1996 peace deal with the government is wrong. The MILF, Iqbal said, has remained firm that any meaningful political settlement for the Moro conflict should embody the full implementation of the FPA. Viewed from the larger interest of Moro empowerment, the framework pactalong with an eventual comprehensive agreementis better than the FPA as it elicits more concessions from the government, he said. There is no more platform today for achieving this other than the peace process between the government and the MILF, Iqbal explained. In March last year, Deles categorically told participants of a tripartite review of the FPA that the government would not open any new negotiations with the MNLF. Getting personal The MILF is not giving up in wooing Misuari. It has launched an aggressive drive to win the support of former MNLF comrades on a personal basis. Since early last year, it has been holding meetings, reunions and dialogues with MNLF ground commanders. In July last year, the MILF held the Bangsamoro Leaders Assembly, which gathered Moro leaders from grass root communities and consolidated them along an eventual peace agreement with the government. MILF sources noted that Iqbal and another MILF panel member, Maulana Alonto, have been involved in many of the high-level unity meetings with MNLF leaders. This is to send the message that the front is opening up the peace negotiations to accommodate MNLF political demands, the sources said. Deles noted that the issues facing both rebel groups in relation to empowering the Bangsamoro were similar and not intractable. As stipulated in the framework pact, Bangsamoro self-governance mainly features bigger share in revenue, especially those generated through exploiting strategic natural resources; inclusion of as much Moro-dominated areas into the geographic scope for the autonomous government; an enhanced Shariah justice system; and provision of block grants and subsidies to jump-start economic development essential to sustaining peace. As peace dawns in Mindanao, it is ironic that an unresolved 35-year internal squabble among Moro revolutionaries is creating unwelcome creases.

On Dec. 26, 1977, Salamat Hashim led the ouster of Misuari as MNLF chair for, among others, straying the Moro struggle toward a Marxist-Maoist orientation and making its central committee his own exclusive preserve, wrote Salah Jubair in the book, Bangsamoro: A Nation Under Endless Tyranny. Although they tried to tackle the matter seriously, the OIC and the Muslim World League has not resolved the issue. By March 1984, Salamats faction split from the MNLF and formed the MILF. Dear Brothers, I have convoked you to this Consistory, not only for the three canonisations, but also to communicate to you a decision of great importance for the life of the Church. After having repeatedly examined my conscience before God, I have come to the certainty that my strengths, due to an advanced age, are no longer suited to an adequate exercise of the Petrine ministry. I am well aware that this ministry, due to its essential spiritual nature, must be carried out not only with words and deeds, but no less with prayer and suffering. However, in todays world, subject to so many rapid changes and shaken by questions of deep relevance for the life of faith, in order to govern the bark of Saint Peter and proclaim the Gospel, both strength of mind and body are necessary, strength which in the last few months, has deteriorated in me to the extent that I have had to recognise my incapacity to adequately fulfil the ministry entrusted to me. For this reason, and well aware of the seriousness of this act, with full freedom I declare that I renounce the ministry of Bishop of Rome, Successor of Saint Peter, entrusted to me by the Cardinals on 19 April 2005, in such a way, that as from 28 February 2013, at 20:00 hours, the See of Rome, the See of Saint Peter, will be vacant and a Conclave to elect the new Supreme Pontiff will have to be convoked by those whose competence it is. Dear Brothers, I thank you most sincerely for all the love and work with which you have supported me in my ministry and I ask pardon for all my defects. And now, let us entrust the Holy Church to the care of Our Supreme Pastor, Our Lord Jesus Christ, and implore his holy Mother Mary, so that she may assist the Cardinal Fathers with her maternal solicitude, in electing a new Supreme Pontiff. With regard to myself, I wish to also devotedly serve the Holy Church of God in the future through a life dedicated to prayer. From the Vatican, 10 February 2013 BENEDICTUS PP XVI These are the main reasons the pope gives for his resignation in his statement this morning: His "advanced age" (he is 85) means he is no longer able to carry out all his tasks adequately. Both strength in mind and body are necessary for the job of pope, he says, and in the last few months such strength has deteriorated in him. He also announced in the statement that he would renounce the office of Bishop of Rome at 8pm on 28 February. He says a conclave will have to be convened to elect the new pope. And he says he wishes to continue to serve the church "through a life dedicated to prayer". This isn't the first time a pope has resigned, notes Alex Fenton-Thomas. The best known example involved Pope Celestine V in 1294. After only five months as the Bishop of Rome, he issued a solemn decree declaring it possible that a pope can resign and then promptly did so. He then lived the rest of his days as a hermit and was later canonised. His papal decree ended any debate over whether a pope can justify standing down during his lifetime. Before Celestine, the only other two pontiffs to resign were the current Pope's namesake Benedict IX in 1045 and his successor Gregory VI the year after. Gregory had schemed to get rid of Benedict, who had been beset by a succession of financial scandals. After persuading the disgraced incumbent to resign in 1045, and then becoming his successor as Gregory VI, he also resigned the following year after he was accused of benefiting financially from Benedict's demise.

The last time a pope resigned was Pope Gregory XII in 1415. He stood down to end the "Western Schism", which threatened to shatter Roman Catholicism. Two rival claimants had declared themselves pope in Avignon and Pisa and, with the help of the wily Italian politician Malatesta, Gregory's resignation helped unite the church at the Council of Constance in 1415. What is the election process? By law, the conclave begins in the Sistine Chapel. On that morning, the cardinals will celebrate the Votive Mass, "Pro Eligendo Papa." That afternoon, the cardinals begin the election process. The cardinals draw lots to select three members to collect ballots from the infirm, three "tellers" to count the votes and three others to review the results. Blank ballots are then prepared and distributed. The ballots are rectangular in shape and must bear in the upper half, in print if possible, the words "Eligo in Summum Pontificem," meaning "I elect as supreme pontiff." The electors write the name of the candidate on the lower half and fold it in two. After writing the name of one man on his ballot, each of the active cardinals -- those under 80 years of age -- walks to an altar in order of seniority and pledges to perform his duty with integrity. Each cardinal then places a folded ballot containing his choice onto a small disc made of precious metal and drop it inside a chalice. After all votes are cast, the tellers tally the ballots and the result is read to the cardinals. If a cardinal receives twothirds plus one of the votes, he is the new pontiff. If there is no winner, another vote is taken. If there is still no winner, two more votes are scheduled for the afternoon. How is the result of the vote broadcast? After the votes are counted each time, the ballots are burned. If there has been no winner, a chemical is mixed with the ballots to produce black smoke when they are burned. Sight of the black smoke emerging from the roof of the Vatican Palace tells those waiting in St. Peter's Square that a pope has not yet been selected. When a winner has been selected, the ballots are burned alone, and the white smoke indicates there is a new pope. What do you think of the Pope's decision? What will the pope do until he officially steps down? Lombardi said the pope's appointments up until the end of February -- including audiences with the presidents of Romania and Guatemala -- had been confirmed. On February 27, the pope's last general audience will take place. Lombardi said the Vatican was trying to arrange for it to be held in St Peter's square so that more people could attend and "to make it a sort of tribute to the holy pontiff." What will Pope Benedict do after his resignation? Lombardi said it was expected that Pope Benedict would devote his time to reflection and prayer. In his statement, Benedict said he wished "to also devotedly serve the Holy Church of God in the future through a life dedicated to prayer." Lombardi said he didn't expect the pope to be given any other duty, given his age, and he said Benedict would no longer be involved in decision making or administrative duties. Pope Benedict was "very discreet" and was "not someone who will interfere" or create issues in terms of his successor, he said. Where will the former pope live? After he steps down, Benedict will move to the pope's summer residence, Castel Gandolfo. At a later date he will move into in a monastery at the Vatican. The monastery has recently been renovated and extended to include a small chapel. What will Pope Benedict be known as once he has stepped down as pope? According to the Catholic Bishops' Conference of England and Wales, Pope Benedict will return to being known as Cardinal Joseph Ratzinger. It said he would be addressed as his eminence or Cardinal Ratzinger. However, Lombardi later told reporters it was hard to imagine that the pope would be called a cardinal.