SE Asia's sister presidents

SE Asia's sister presidents

Philippine President Gloria Macapagal Arroyo and Indonesian President Megawati Soekarnoputri have much in common. Both are daughters of 1960s-era presidents of their countries, both became vice president with more votes than the winning president, both came into the executive chair last year after presidents were tossed out in mid-term. And both inherited economies in shambles.

First the good news. President Megawati introduced her proposals for the 2003 budget on Friday, and the package has considerable merit.

Overall, the blue print crafted by policymakers in Indonesia shows that the government is taking serious steps to confront their budgetary ills.

Unfortunately, cautious optimism is not a term that applies to the state of the Philippine economy these days. Total investment in the Philippines fell 49 percent in the first half of this year from the like period last year.Sixty percent of what was left was foreign investment, which had already dropped by 47 percent in 2001 from the year before.

If restructuring plans in Jakarta have some analysts waxing optimistic, the absence of political will to reform in Manila bodes poorly for Ms. Arroyo.

Since becoming president of their respective countries, Ms. Megawati and Ms. Arroyo frequently have been measured against one another. Until recently, the comparisons always favored the technocratic Filipina over the seemingly out-of-touch Indonesian. So it comes as a surprise that the future looks brighter in Jakarta than Manila. The question now is whether this striking reversal will pressure Gloria Macapagal Arroyo to refocus her energies on reforming the Philippine government.

-- The Asian Wall Street Journal, Hong Kong