From doctor’s facility capture to PM? Arroyo stages rebound

From doctor’s facility capture to PM? Arroyo stages rebound

From doctor's facility capture to PM? Arroyo stages rebound

From doctor’s facility capture to PM? Arroyo stages rebound

Previous Philippine pioneer Gloria Macapagal-Arroyo has arranged a political rebound, and adversaries say she’s gunning for much more power.

Not long after the 2016 triumph of President Duterte, an old companion of Arroyo, she was liberated after right around five years in clinic confinement on charges of race misrepresentation and defilement. In July legislators faithful to Duterte casted a ballot her in as speaker of the House of Representatives—the most noticeable position she’s held since her run from 2001 to 2010.

From doctor's facility capture to PM? Arroyo stages rebound

Arroyo’s present administrative term terminates in June 2019, and she has denied that she’s situating herself for a proposed PM position that would be made through a move to federalism supported by Duterte. However, that is insufficient to persuade resistance officials, for example, House Rep. Teddy B. Baguilat Jr.

“The takeover of the house leadership already shows how Arroyo can easily become prime minister,” Baguilat said.

Meanwhile, Arroyo who has a doctorate in economics, has been a key figure in President Duterte’s efforts to fight the fastest inflation in almost a decade. Since she was elected speaker, Arroyo’s been attending committee hearings and expediting debates on key economic bills to ensure that they are passed.

From doctor's facility capture to PM? Arroyo stages rebound

‘Duterte beware’

 

So far, she’s had some notable successes. Several bills that had stuck for a year or more—including removing

caps on rice imports and a proposal to boost Central Bank capital and allow it to issue its own debt—passed under Arroyo.

Last month Duterte’s plan to cut corporate income taxes also won approval in the House.

All these proposals must be approved by the Senate and by the President before they can be enacted. Her toughest challenge

breaking an impasse with the Senate on how to proceed with President Duterte’s dream of shifting the country to a federal system of government.

From doctor's facility capture to PM? Arroyo stages rebound

Arroyo’s top aide, Elena Bautista-Horn, didn’t reply to a mobile-phone message seeking comment on speculation that the speaker wants more power.

“My goal is straightforward—I want to help achieve the legislative agenda of President Duterte,” Arroyo told a business summit on October 18.

Recent surveys show the 71-year-old Arroyo remains unpopular with voters. Still, she’s tight with Duterte, 73, who

calls her “ma’am” and claims to have been Arroyo’s confidante when she was running the country. He owes her a lot, Duterte has said.

“As long as Duterte exudes strength, Arroyo will a good ally in Congress,” Baguilat said. “However, once Duterte’s popularity and hold on power wanes, he better beware.”

From doctor's facility capture to PM? Arroyo stages rebound

‘Perfect partner’

Arroyo came to power in January 2001 after a popular revolt ousted Joseph Estrada from the presidency, and she won

a disputed election in May 2004 for a fresh six-year term. She dealt with a fair amount of economic woes, with the peso sinking

to a record low in 2004 and inflation climbing to a nine-year high of 10.5 percent in 2008.

Duterte’s allies in the House have great things to say about her.

From doctor's facility capture to PM? Arroyo stages rebound

“I think she saves the day—she’s a perfect partner of the administration,” House Minority Leader Danilo E. Suarez, a supporter of Arroyo, said in an interview earlier this month. “She knows the problems and she knows the solutions.”

(See also “Speedy Arroyo,” published in the Businessmirror weekender on August 25, 2018)

From doctor's facility capture to PM? Arroyo stages rebound

Soaring prices

Yet for all Arroyo’s moves, Duterte’s two-year-old administration is facing a backlash as the highest inflation since 2009 threatens to hinder one of Asia’s fastest-growing economies. Duterte has said that running the economy is not his area of expertise, and he’s under greater pressure to step up.

Hence, Arroyo is presenting herself as someone “very knowledgeable” on economic issues, said Malcolm Cook, senior fellow at Singapore’s ISEAS Yushof Ishak Institute. “Publicly

From doctor's facility capture to PM? Arroyo stages rebound

expressing support and showing closeness to Duterte is good politics as he is the most popular and powerful politician in the country,” Cook said.

Her key legacy as president was the introduction of a law that increased the value-added tax, despite entrenched opposition. Her administration constantly rocked by coup attempts and scandals.

From doctor's facility capture to PM? Arroyo stages rebound

Political rifts

She arrested in 2011 by the administration of Benigno S. “Noynoy” Aquino III on charges that she had a hand in rigging

the 2004 elections. She denies the allegations. A local court is still hearing this case while Arroyo is out on bail.

In 2004 as the peso plunged and overseas investors fled, Arroyo acknowledged the Philippines was already in a fiscal crisis.

Her presidency marked the Philippines’ most aggressive borrowing and highest interest rates after the regime of the late strongman former President Ferdinand E. Marcos Sr.

From doctor's facility capture to PM? Arroyo stages rebound

Arroyo’s comeback was more due to political rifts in the House and less about her own political ambitions, according

to University of the Philippines Professor Gene Pilapil. He called her a “safe choice” given her term is expiring.

Meanwhile, Edwin Gutierrez, the London-based head of emerging-market sovereign debt at Aberdeen Standard Investments, said there’s little chance of an Arroyo comeback.

“Her administration was generally a disappointment despite her background precisely because of the corruption,” he said. “So I don’t think it’s going to cause much excitement.”

From doctor's facility capture to PM? Arroyo stages rebound

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