EDWIN TUYAY FOR TIME

SELLING A VISION: Arroyo has lofty ambitions, but she hasn't convinced people that much will actually change

A Matter Of Trust
	Faced with plunging popularity, economic woes and a brewing corruption scandal, President Arroyo wants to prove that she can lead the Philippines to salvation
	By Anthony Spaeth | Manila

Posted Monday, June 6, 2005; 20:00 HKT
Gloria Macapagal Arroyo is a big believer. The 58-year-old President of the Philippines believes in the Lord Almighty God: she attends Mass most afternoons in a chapel in Malacañang Palace, then retires to her bedroom to pray alone before taking a short nap. Arroyo also believes in legislation, the transforming ability of government, and the power of leadership—her leadership. "I am the agent of change," she told Time in an interview last week. "I wish to be remembered as the one who made the tough decisions to turn the economy around, to get its act together ... Maybe that's why the Lord put me here at this time."

After four rocky years as President, Arroyo needs her faith as never before. She gained the office after a People Power-style revolution ousted predecessor Joseph Estrada; three months later, angry crowds of enraged, impoverished Estrada supporters descended on the palace to dislodge her, only to be fought off by soldiers firing at the protesters, killing several. A minor coup attempt in 2003 suggested that she wasn't fully in control of her own military. After Arroyo won the presidential election in May last year, the Philippines came close to a financial meltdown—its revenues were too low, its $54.8 billion in foreign debt too high. When the nation's credit rating was downgraded, Arroyo, a former professor of economics, took the threat seriously. She started raising taxes—which has led to a renewed drumbeat of popular protest, persistent rumors of a potential coup, public calls for her to step down, and an unusually acute sense of gloom, even for a country that perennially views the glass as being perilously empty. "Things couldn't get worse," says Alberto Lina, the Philippines' Customs Commissioner. Norberto Gonzales, Arroyo's National Security Adviser, agrees: "We are at our lowest point. Our people will not move unless some changes are introduced."

Arroyo believes she is bringing those changes to the Philippines. Last month, after prolonged horse trading in Congress, her central fiscal initiative was made law: a 10% value-added tax (VAT) that will raise badly needed cash for the government. Without it, Arroyo says, the country would be doomed to "coasting along and hoping that we will not become another Argentina." With it, the government can spend on social services and development and, according to the President, make a lasting dent in the Philippines' crushing poverty. But these changes require Filipinos to endure pocketbook pains. Arroyo admits the gains will take time to be felt by the masses, and acknowledges they are anxious for quick relief. "They are impatient and I am impatient," she says.

Legislators and technocrats have applauded Arroyo for attempting to dig the Philippines out of its fiscal hole. Whether that will pull her out of her own political crater is uncertain. Arroyo's approval ratings have hit rock bottom. A survey released last week by independent polling organization Social Weather Stations showed that 59% of the populace was dissatisfied with her performance, the lowest score for a President since dictator Ferdinand Marcos was overthrown in 1986.

Continued...

	Whispers of Change [May. 09, 2005] Philippines President Gloria Macapagal Arroyo must face protests and rumors of a coup plot Under the Gun [May. 02, 2005] No country in Asia has as many internal security problems. But its armed forces lack the funds and equipment to meet the threats, which fuels restiveness—and coup attempts Going For Broke? [Aug. 18, 2004] Chronic unemployment, a yawning deficit and uncollected taxes are sinking the Philippines Is She The One? [May. 07, 2004] Will Filipinos vote for their brainy but aloof President—or anoint a popular movie star who offers nothing less than salvation? Power and Gloria [Jun. 18, 2001] The Abu Sayyaf have started killing hostages, but Philippine President Arroyo is standing firm More Related Items | Search all issues of TIME Magazine