Unsung heroes of Clark, Subic

There is a remarkable story that needs to be told. It is a story of 21 leaders from different political parties and from various business backgrounds who came together in the past two decades to set an example that is unrivaled in world governments.

The story is about the transformation of the two former US military installations in Subic and Clark into highly successful and vibrant commercial and business centers of excellence.

This is nothing short of phenomenal, and illustrates the art of the possible and what can be accomplished with a clear and focused strategic vision and agenda that is articulated by a government and executed by a cadre of dedicated civil servants working to achieve the stated objective.

What makes this story so remarkable is that it unfolded under the radar screen of the Manila political and business elite. That is to say it happened without the traditional Philippine national political machine and business dynasties being involved or leading the way—as Subic and Clark have been, by and large, out of sight and out of mind on the national scene.

West Berlin

In order to put this in perspective and to fully appreciate what has happened at Subic and Clark over the past two decades, one has to appreciate the context of what occurred and contrast it with other comparable benchmarks.

Let me take you back to the 1980s and a speech in West Berlin given on June 12, 1987, by Ronald Reagan when he called on Mikhail Gorbachev to “tear down this wall” signaling the beginning of the end of the Cold War.

Once the Berlin Wall came down in 1989, America began calling for a “Peace Dividend.” After decades of huge defense spending to win the Cold War, Americans demanded the dismantling of a US military infrastructure that had grown so large during the decades of fighting that same war.

In 1988, the US government created a bipartisan task force called the Bases Realignment and Closure (BRAC) Commission to evaluate and nominate various military bases that should be declared “obsolete” and closed.

Targeted

Once a base was identified by the BRAC Commission and its name placed on the BRAC list, it became targeted for closure—350 bases were so identified to be closed, consolidated or realigned with other installations.

Once the installations were vacated by the military, local communities assumed responsibility of transforming them into successful commercial endeavors. This was a very painful and difficult process, exacerbated by the loss of thousands of jobs and the corresponding spending that had existed in the local economies when the military was present.

Most local municipalities in the United States, even with hundreds of million dollars in government grants and aid, struggled and even failed in trying to transform these massive old military installations into vibrant and successful commercial business ventures.

Contrast this with what happened at Clark and Subic. In 1991 and 1992 respectively, the US military vacated the bases and turned them over to the Philippine government, which had its own dream to transform these two massive military establishments into successful commercial enterprises—just as their American counterparts were trying to do.

However, there were two major differences: The two Philippine bases were severely damaged by the eruption of Mt. Pinatubo, and the country had no grants or budget to renovate the facilities.

Unique

But the collective leadership teams at Subic and Clark succeeded.

Consider that at the height of the American military era in the Philippines, the US government employed around 44,000 full-time Filipino employees.

Today, the workforce population at Subic and Clark exceeds 160,000, which is a fourfold increase. Add to this some 2,000 locators, most of whom are foreign, who now call Subic and Clark home, and the $9 billion they have invested with over $3 billion in annual exports—you quickly see an enviable record of accomplishment that any community would be proud of.

What makes this story unique is that it is not the result of any one single person, but rather, the culmination of many leaders, from different political parties who worked collectively to transform two badly damaged former US military installations into vibrant and commercially successful freeports.

I for one think it is time for Filipinos to applaud the leaders who contributed to this remarkable success story—a list that includes Richard Gordon, Felicito Payumo, Francisco Licuanan, Alfredo Antonio, Feliciano Salonga, Armand Arreza and Roberto Garcia of the Subic Bay Metropolitan Authority (SBMA) in Subic; their counterparts Antonio Henson, Romeo David, Rufo Colayco, Sergio Naguiat, Rogelio Singson, Emmanuel Angeles, Antonio Ng, Liberato Laus, Benigno Ricafort and Felipe Remollo of the Clark Development Corp. (CDC) in Clark; and Franco Puzon, Adelberto Yap, Augusto Francia and Victor Luciano of the Clark International Airport Corp.

Without fanfare

Clearly there are many in the government who also deserve credit for setting a clear vision and strategy for the transformation of the bases, among them the people behind the Bases Conversion Development Authority.

Subic and Clark represent the best of the Philippines—Filipinos working silently, persistently and without fanfare for the welfare and benefit of their country and its people.

I believe these individuals should be singled out, applauded and publicly recognized for what they have collectively achieved.

(The author is the president and chief executive of Peregrine Development International, a US management company specializing in project development.)