WHEN the President presents her State of the Nation Address (Sona) before the joint session of Congress and the people a few weeks from now, I sense a dilemma confronting the Chief Executive in the light of our current situation.

Politicians in the past like to downplay the setbacks and the gloomy part of the country’s state of affairs, especially the economy. But today, the advances in communications have made the people fully aware of what’s really happening in the country and in the world. So, to give a picture that contradicts the reality would be nothing but an exercise in futility.

Thus, projecting a country that is not affected by the US recession or the global slowdown will make it difficult for the government to rally all sectors of society to make some sacrifices, such as facing higher prices, to keep the nation moving.

On the other hand, sounding an alarm may likely cause our people to panic and, consequently, worsen what’s already a serious situation. We had seen how reports on rice shortage led to panic buying.

I think the Sona should paint a more realistic picture, including the problems that the country is facing. But it’s equally important, if not more important, to mention our advantages and our strengths to deliver the message that, yes, we have problems, but we can handle them.

I very often say the Philippines is a lot stronger now than when it faced one crisis after another in the past, including the oil shocks in the early ’70s and ’80s, the debt crisis in the early ’80s and the Asian financial crisis in the late ’90s.

Today, we are still standing despite our weaknesses in those dark days in the past.

There’s no reason we would not survive the current energy and commodity crises. Our economic fundamentals are much stronger now than 10 years ago.

Foremost among our strengths, as far as coping with external developments is concerned, is the remittances from overseas Filipino workers (OFWs) and immigrants.

Contrary to expectations, remittances continue to increase, reaching $5.4 billion in January-April 2008, up by 14.5 percent from the same period in 2007. In April alone, our remittances coursed through banks posted a double-digit growth (18.4 percent) to $1.4 billion.

Economic analysts were predicting a slowdown in deployment of OFWs because of the economic slowdown in other countries. Instead, preliminary figures from the Philippine Overseas Employment Administration showed that for the first four months of 2008, the number of deployed Filipino workers grew by 14 percent from 350,520 to 399,638, reflecting the preference by host countries for Filipino manpower. Prospects for employment opportunities are bright in labor-importing countries like Canada.

In a recent survey conducted by the Human Resources Development Service of Korea, the Philippines was voted as the Best Practice Country for Korea’s Employment Permit System because of the country’s shortest period in processing requirements for deployment of workers to Korea.

Based on the amount of remittances for the first four months, we’re on track to hit the $16-billion mark this year, compared with $14 billion last year.

Remittances are driving the services sector, which is why we continue to see malls being built in many parts of the country and telecom companies continue to expand their markets, in the process sustaining a multiplier effect on other businesses.

And remittances, coupled with the housing backlog, also continue to fuel the property boom that started in 2004. Major property developers enjoy brisk demand not only from overseas Filipinos and their families, but also from the business-process outsourcing industry.

The high cost of commodities brought us problems with respect to oil, rice and wheat, but it also benefited the mining sector. Foreign capital continues to come in as investors try to cash in on the high prices for nickel, gold, copper and other minerals, which remain largely untapped in the Philippines.

In the oil sector, high prices are causing the revival of capital-intensive exploration activities. Galoc is now flowing oil, and Nido earlier announced exploration results that indicate large oil reserves beneath Philippine waters.

In fairness to the government, it has so far been prudent, except for some problems with respect to subsidies, which I discussed in an earlier column. Generally, creditors are still confident with us, and that’s another plus factor.

True, we are facing an inflation problem, but the Bangko Sentral ng Pilipinas and its policymaking body, the Monetary Board, have been vigilant about it, and I am confident we will not have runaway inflation.

So far, we’re still growing. We may not be able to duplicate the 7.3-percent growth in gross domestic product in 2007, which was a surprise, but even the most pessimistic analyst is not predicting a contraction in 2008. The United States is going through a recession and other developed countries are barely growing; compared with them, our economy remains strong.

That, I believe, should be the theme of this year’s Sona—realistic, accurate, inspiring and positive!

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