A t his posh, members-only nightclub in downtown Manila, businessman Dante Tan was gushing over President Joseph Estrada. He even returned my call at three in the morning, when I had given up and thought that he'd forgotten me after the elections. Today, he's the talk of the stockmarket and is poised to become the Philippines' newest billion-peso gaming and property tycoon. Already there is concern in the local business community about the impact of cronyism on government policy, particularly concerning the sale of state assets.
Foreign investors are worried, too.
A survey of top executives by the elite Makati Business Club last month showed that despite the success of the Estrada administration in bringing down inflation and interest rates, the business community's growing worries of cronyism and influence-peddling is eroding the government's credibility. In another sign of the perceived growth of cronyism, companies linked to friends of Estrada have been rising well above the rest of the market this year. The fear for many is that cronyism could affect plans for economic reform, including the privatization of state firms. Foreign funds are also concerned. Analysts say many of them are pulling money out of the market, helping to contribute to a recent downturn.