I WAS not here to listen to your discussions this morning and yesterday. But let me tell you this: Even if I have not heard you speak, I have been listening closely to your messages.

One of the recurring themes relayed to me, by no less than your Chairman Secretary Teves, is that there is progress in the area of economic reform.

Sustainable revenue measures are now in place. The ratio of national government deficit to gross domestic product has declined. The sale of non-performing assets of the banking system has started to move. A debt consolidation program is in effect through the recent bond exchange initiated by the Bureau of Treasury.

The market has accepted these developments positively. Interest rates are going down. The peso has been strengthening compared to the dollar for some time now. Inflation has been placed under control. The stock market has turned bullish. Even the rating agencies have recognized our efforts, and both Fitch and Standard and Poor’s have upgraded our outlooks from "negative" to "stable."

Well, we must be doing something right. Thanks to our strong economic team, the market is finally recognizing what we already know in our hearts: That there is hope in our country.

Yet passing the market hurdle is just the first step in our agenda. The next challenge is how to make these numbers meaningful to our people. Let me be frank with you. We announce our successes but we are also conscious of our shortcomings.

We know that our economic gains have not been fully translated into real benefits that our people can feel today. We know that the poor are impatient. We have done much, but not enough. We have adopted a development framework (the medium-term Philippine development plan and the ten-point agenda) based on the Millen nium Development Goals. Both the localization and mainstreaming efforts are in place. Slowly but surely, the MDG is seeping into the policy process at both the national and local levels. Now we need to start looking for results.

We have to invest more in education, housing, and health. We need more schoolbuildings, better teachers, more books, decent housing units, more hospitals, more medicines. We have to provide a steady supply of water and electricity to more families at cheaper rates. We have to make basic commodities more affordable. And above all, we have to provide jobs, jobs, and jobs to our ever-increasing labor force.

Yes, "development on the ground" remains as the biggest challenge that this government, and any government in the future, will have to confront.

It is true that development is never an affair of the state alone. On the contrary, development involves all stakeholders of society—especially the people themselves. But in our stage of political evolution, it is also important to realize that a strong state is a necessary ingredient in any national development effort.

Why did I say that? Because any reform within a democratic framework will be pulled in various directions by the different interest groups that are deeply entrenched in our economic and political system. When that happens, the state should be able to decide in favor of the common good, and not give in to one or a number of vested interests.

Thus we need strong institutions — institutions that are guided by accountability and transparency. Institutions that are able to manage interest groups while ensuring that the national interest prevails at all times.

We need to organize ourselves in a manner that will facilitate the policy process. if what we need is a change in the form of government, so be it. let that change proceed in a manner that is consistent with the will of our people. What is important is that we do not allow ourselves to be distracted from the true focus of governance, which is development.

This, I think, is at the heart of good governance.

Our partners from the donor community, you have heard many of these statements in the past.

You have seen us move up, and down, and up again — and you were there as we tried to find a way to get out of the cycle of boom and bust. But you stayed with us. Perhaps this can be seen as a signal to others that our ship is not sinking. Your enthusiasm in continuing to work with us is truly inspiring.

Let me therefore take this opportunity to thank all of you for your support not just to the Philippine government but to the Filipino people. aligning your support to what we truly need and what we have defined in our development framework has resulted in positive and meaningful progress. Thank you for working with us in the harmonization of rules and procedures. our renewed partnership has led to more efficient systems, effective and focused delivery of services, and optimum use of development resources.

I also want to thank our government workers who have been silently pushing our programs forward. In my short experience as a government executive, I have seen so much talent and good intentions among our public servants.

Now, I have reason to believe that our public servants can deliver the kind of effort that a genuine development endeavor requires.

My friends, we have much work to do. The Philippine Development Forum plays a critical role in the tasks ahead. I hope that the PDF will continue to serve as a mechanism to focus our efforts on the development needs of the country.

I can see that the PDF has expanded to include more stakeholders in the development process. Like any revolution, the Philippine development revolution needs to enlist more allies, more like-minded individuals and organizations, and more representatives of the ordinary man on the street. Let us widen ownership of our policies and programs. and Let the ordinary Filipinos take charge of their development. Together, let us build a progressive future for the Philippines.

Mabuhay ang Pilipinas! Mabuhay ang Donor Community!

Mabuhay ang Philippine Development Forum!

Thank you and good day to all of you.