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