Hail, hail, the gang’s all here!

The Group of 7 is arriving today, Friday, in Essen, Germany, to look at the new uncertainties gripping the world economy and that of the Third World that sadly includes the Philippines.

Looking at it is not really the appropriate term because what the seven giants—the United States, the United Kingdom, France, Canada, Germany, Italy and Japan—are more concerned of is their collective hold on the world economy and politics.

Together, the seven account for two-thirds of the world economy, and naturally, client states, such as the Philippines, will be just as concerned about the outcome of the meeting.

The truth is that the Group of 7 (others call it the Group of 8, Russia included) not just controls two-thirds of the world economy and politics, it also controls the International Monetary Fund, the World Bank and its affiliate the International Finance Corp., the World Trade Organization and the United Nations itself.

It is in this light that the Philippines will be viewed. Was the Philippines naughty or nice?

Of utmost concern to the group is the currency adjustments that are being required of nonmembers, again, such as the Philippines, because these exporting countries are to be rated according to their competitive value in dollar terms.

That means that a review of the world economy and world currencies will significantly affect the official policies of client states most of which are in Asia.

Of special mention in the G7 meeting is the economic might of China and the products it sells. China is known for its cheap exports, so cheap that even American consumers are beginning to like them to the detriment of Western manufacturers.

Here in the Philippines, the concern is whether the Philippines, with its strong peso, can survive IMF intervention. Already, Filipino exporters are loudly complaining that the peso is getting to be more overvalued. They feel that a strong peso will only make life more miserable to more Filipinos. And that feeling is also shared by the Bangko Sentral and the National Economic and Development Authority in a shy way.

Japan, a member of the Group of 7 by invitation, is also uneasy because it is the only Asian country in the group. Its exports are all over the place, precisely because of their “reasonable” prices.

Western economies simply cannot just allow their consumers to pay dearly for consumptions they buy from abroad.

That is the Group of 7’s reason for being, a brainchild that came from the womb of US President Richard Nixon before his Watergate scandal and threats of impeachment in 1973 when he asked his allies to an informal meeting designed to stop speculative investors from speculating on the dollar.

The original intention was only to monitor world currencies, already a function of the IMF, but now, the Group of 7 also delves in nonfinancial matters, such as governance.

Sometime ago, John F. Kennedy remarked: “We pledge our word that one form of colonial control shall not have passed away merely to be replaced by a far more iron tyranny.” 

E-mail: raulbvalino@yahoo.com.

THE Management Association of the Philippines (MAP) recently honored two pillars of industry as the top Management Men of the Year for 2006. Certainly, it’s hard to find two men as deserving of that recognition as Dr. George S.K. Ty of the Metrobank Group of Companies and Jaime Augusto Zobel de Ayala of the conglomerate that bears the iconic family name.

About a year ago the Wowowee stampede at the Ultra killed 74 people. It is easy to second-guess, but what if there had been a wider, flatter, entryway, not the narrow-down-slope ramp where people were crushed?

THE Senate has passed its version of an antiterrorism bill, which has been an Arroyo regime priority since 2002. Like every bill of its kind passed in other countries, many of its provisions are outstanding for their retrogressive character, among them restrictions on the media, and the legalization of wiretapping and government examination of bank accounts.

Perhaps it really is as helpful as the radio broadcaster Paul Harvey suggests, that in times like these we should just remember that there have always been times like these.

The Group of 7 is arriving today, Friday, in Essen, Germany, to look at the new uncertainties gripping the world economy and that of the Third World that sadly includes the Philippines.

Simon Peter, also known as the Rock, was one of the original members of the Church of Christ. He was the first Pope of our Church, specifically our Catholic Church.