Cebu traders brace for impasse in local decisions

CEBU CITY — The Cebu Economic Advisory Group, a coalition of 11 business organizations, will draft measures to help local traders ride out the expected lack of local government action starting in the second half.

This, as politicians nationwide start their informal campaigns well before the official period that starts in March next year for such sorties in the run up to the May 10, 2010 national and local polls. As with previous preelection years, the second semester — which coincides with the last regular session of the current 14^th Congress — is expected to be marked by inaction on priority legislative measures that were otherwise designed to prod economic activity, especially amid the current, deepening global economic slump. The national situation is usually mirrored at the local level, especially in districts with hotly contested seats.

"We expect the political period to start in the second half of this year. We have to be prepared. We have to find out how we can help our businesses ride it [inaction by political leaders even on pressing economic issues] out. That will be our next project," said advisory group chairman Geronimo D. Sta. Ana.

The advisory group just recently completed a business sentiment survey that found out that almost half, or 46%, of the 150 respondents expected the Philippine economy to worsen this year.

The survey, which is the group’s first project, also showed that 40% of the respondents expected a decrease in business activities, while 56% expected the volume of exports to go down and about 48% expected a decrease in the volume of imports.

Mr. Sta. Ana, however, was confident that Cebu-based businesses would remain resilient.

Except for the export sector, which is taking a beating, "we are still not affected much" by the global crisis, he added.

The group has asked Cayetano W. Paderanga, Jr., a former socio-economic planning secretary who now heads the Institute for Dev’t and Econometric Analysis, Inc. (IDEA), to serve as special adviser. Mr. Paderanga, who has accepted the offer, recently gave an economic briefing to members of the 11 business organizations comprising the advisory group.

The advisory group was formed to provide all business groups in Cebu a sounding board on their common concerns. The new group is also envisioned to help make Cebu more investment-friendly. Spearheaded by the Cebu Chamber of Commerce and Industry, the group includes the European Chamber of Commerce in the Philippines-Cebu, American Chamber of Commerce in the Philippines-Cebu, Japanese Chamber of Commerce & Industry in Cebu, Mactan Export Processing Zone, Chamber of Exporters & Manufacturers, Financial Executives Institute of the Philippines-Cebu, and Cebu Bankers Club. — Marites S. Villamor