The political noise was just too resonating for any one to miss. Amidst the political melee, several groups called for reforms in our political structure and the advocated changes ranged from amendments to our fundamental law to a restructuring of our social and political order. A Consultative Commission studied various proposals for Charter Change and submitted them to the President who endorsed them to Congress.

In the face of political instability, the economy has performed creditably, even in the face of adverse external conditions, not the least of which were the increases in the price of crude oil. As always, credit goes to the remittance of our overseas Filipinos, the volume of which has been able to shore up the value of the local currency vis-à-vis the dollar and provided the necessary input to maintain a positive foreign resource base. The passage of the Expanded ValueAdded Tax Law and the subsequent affirmation from the Supreme Court has reignited investor’s confidence and has had a positive impact on the economy in the last quarter of the year.

Filipinos, despite continued dissatisfaction about the current state of things and pessimism about what lies ahead, have shown their much-vaunted resilience. Like the proverbial bamboo tree, our individual and collective spirit have not been broken by the gustiness of our politics. The triumph of the Filipino spirit was most evident in the 23rd Southeast Asian games when our athletes, cheered on by record crowds, recorded the highest number of medals won by the country in any regional competition.

The thought that we have survived yet another year of trials is a source of optimism. As a new year unfolds, we are prepared to face new challenges and seize every opportunity that 2006 may bring.