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SCMP Reporter

AS the delegates at the 1994 Asia-Pacific Economic Co-operation (Apec) meeting in Jakarta strode out of the Hard Rock Cafe after an evening's relaxation, they saw something they were not supposed to see.

  Despite the Indonesian Government's best efforts to cleanse the streets of prostitutes, beggars and other economic embarrassments, two children were sleeping on the bottom step, forcing the delegates to step over them.

  During the conference, Jakarta's main streets were virtually deserted, having been purged, at significant expense, of anything that might paint the government in a bad light.

  Jakarta residents told reporters they barely recognised their home town during the week-long Apec extravaganza.

  Even massively wealthy Japan felt the need to cover up its economic acne during last year's meeting. Homeless people living in tents were uprooted for the duration of the conference and the streets were rendered spotless.

  So as the Apec roadshow prepares to enter the Philippines in November, it is no surprise to learn that the government is indulging in a hefty bout of metropolitan spring-cleaning.

  According to a spokesman for the Budget Department in Manila, the Philippines is spending about 2.3 billion pesos (about HK$684 million) on hosting the 1996 meeting.

  The exact sum allocated to the clean-up campaign is unknown, but the government is extremely keen to present a cleaner, wealthier, more successful Philippines to the world.

  For example, Manila's famed Smoky Mountain, a home for thousands of people built on a rubbish tip, is being 'recycled', as are the people who live there.

  President Fidel Ramos has also convened a special task force to refurbish the ancient Spanish walled city, Intramuros, in time for the Apec meeting and has put his chief aide, Ruben Torres, in charge of the project.

  This will involve the relocation of hundreds of families living in shanties in the area, according to aid agencies in Manila.

  The city's residents have repeatedly demonstrated against the money being spent on the clean-up campaign, demanding it be reallocated to areas which will have a longer-term benefit, but the government declined to address the issue.

  The protesters accused the government of drawing a thin but definite veil over one of the Philippines' most glaring economic failures - rampant poverty.

  The message is clear: when Apec comes to town, Asia's cities get dolled up for the party. Having sold themselves as 'economic miracles', they suddenly find that there is little economically miraculous about child poverty, prostitution, begging, slums and disease - so they try to cover it up.

  Luckily, they have a solution to the problem: throw money at it. But the word solution is too generous - cosmetics would be more appropriate.

  After seven days of talks, delegates will board planes to return to their home countries. At that point, the beggars will crawl out from under the carpet, the shacks will re-emerge on the slopes and the whores will step once again out of the alley-ways. In other words, things will return to normal.

  Having witnessed Apec-based spring-cleaning in Jakarta, Osaka and now Manila, the detractors have decided that enough is enough.

  They are now asking whether it is justifiable to spend tens of millions of dollars to spruce up a city for just one week, when the money could be better spent on more worthy long-term projects.

  So, at a grass-roots level, does hosting an Apec meeting do a country more harm than good?   Jim Catamdongam, national field manager for the Red Cross in Manila, said: 'Manila is in a sorry state. Many people are stricken by poverty and every year the problem is getting worse.

  'The government has tried to do something about it, but they still rely upon the help of non-governmental organisations to make any progress.'   He urged the government to seriously question whether it was allocating its resources in a way that would sufficiently benefit its citizens.

  'All this money should be used for longer-term projects to improve people's livelihoods,' he said. 'They should be relocated to an area where they can be offered a lifestyle that will provide them with the basic necessities they now lack. Instead, the money is being wasted.'   The issue was raised a notch when Philippine legislators accused the government of spending an 'extravagant' amount of money on its preparations for the meeting.

  Mr Torres replied: 'I think the advantages of hosting the Apec meeting, for us here in the country, outweigh the disadvantages if its only money.'   He said the government needed to showcase the Philippines in order to attract foreign investment which would, eventually, filter down through the economy.

  So the two sides are defined. Residents, aid workers and certain legislators say the government is wasting money. The government says the money it is spending is an investment in the nation's future. So who is right?   Naim Farooqi, executive vice-president of Manila-based Asian Finance Investment, a company sponsored by the Asian Development Bank (ADB), stuck to the view that the increased exposure stemming from the leaders' meeting would increase global exposure of the Philippines.

  'Hosting the meeting will simply make the Philippines more visible to the rest of the region,' he said.

  'It could showcase the fact that the Philippines has lower labour costs than rival economies, which may induce companies to relocate their manufacturing bases here. This, in the longer term, will help solve the kind of poverty problems being faced.'   There are no figures to back up this theory. The ADB said it had not researched the subject. Nor had the specially designated Apec office in Manila, which is charged with overseeing the build-up to the November meeting.

  In fact, the office declined point blank to discuss the subject of the funds allocated to the build-up.

  Economists agreed with the logic of the theory.

  Angus Armstrong, economics director at Morgan Grenfell, said: 'Obviously there is spending involved in putting on the event, which will provide a Keynesian boost to the economy, plus there is the aspect of being seen to be more of a major player in the region. That's about it.'   But the Red Cross in Manila said this argument did not wash.

  A spokesman said long-term benefits would flow into the Philippines as a result of the natural economic growth being experienced by the nation, while the Apec meeting was simply an opportunity for the country's leaders to pat themselves on the back.

  The economy is estimated by Mr Ramos to have grown 6 per cent last year, despite a range of difficulties including higher inflation, natural calamities and a marked increase in crime.

   'This past year, we faced several crises that threatened the economic, social and political gains we had steadily built up since mid-1992,' he said.

  He said his administration would this year continue to demolish monopolies in key industries, modernise the country's infrastructure, introduce a comprehensive tax reform programme and aggressively fight crime and terrorism.

   He said continued reforms in the economy should result in 7 per cent growth in gross national product (GNP) this year.

   'After that, growth should accelerate to a cruising speed of 8 per cent GNP, with single-digit inflation rates that will keep us competitive with our more prosperous neighbours,' he said.

   When Mr Ramos became president in 1992, the Philippines was suffering from debilitating power outages, lingering rebellions and years of economic stagnation rooted in the 20-year rule of former dictator Ferdinand Marcos.

   But over the last three years, the economy has expanded as Mr Ramos attracted foreign investors by opening up long-protected industries such as aviation, banking and telecommunications, and partly diffusing insurgency through peace talks and amnesty programmes to rebels.

   The Red Cross spokesman said: 'We have done well to achieve what we have achieved economically and we will benefit from these achievements. But it is still wrong to waste money that could be spent more wisely on a meeting that will last for just one week.

  'I guess what we are seeing is the difference between long-term macroeconomics and short-term microeconomics. The net result is that people suffer.' 



Clean streets hide shame