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. Whether it was just a convenient excuse for them, foreign funds say they're getting worried about cronyism. If Tan and Lim's plans work out, the national on-line bingo game looks set to rival the government's lucrative national lottery. It will be unfair to him if I let another group steal his idea. A presidential spokesman denies Tan received any special treatment and says the meeting was with the full commission and was routine.