MANILA, Philippines?President Gloria Macapagal-Arroyo has urged US President Barack Obama to ?do something? to address the worsening global economic crisis that started with the subprime mortgage crisis in the United States.

?What we want is for America to do something because the last thing we want is for America to do nothing. You may be vague on what should be done, but the worst thing is for it not to do anything,? Ms Arroyo said at the World Economic Forum in Davos, Switzerland, late Saturday night.

Obama is pushing for an $825-billion stimulus package on top of the $700 billion for the Troubled Asset Relief Program initiated by the Bush administration late last year to bail out banks and other financial institutions.

Approved by the US House of Representatives last week, Obama?s stimulus package has yet to hurdle the US Senate.

But alarm bells are ringing in Davos over a US Congress measure proposing that only US steel be bought with the stimulus package money.

At the plenary session moderated by Matthew Winkler, Bloomberg editor in chief, Ms Arroyo also called for a bigger voice for developing economies such as the Philippines in the crafting of a global approach to the crisis. She initially proposed expanding the Groups of 7 and 20 into a ?G-30.?

Reboot global economy

The proceedings, attended by new Thai Prime Minister Abhisit Vejjajiva and titled ?Rebooting the Global Economy,? were broadcast live via the Davos forum?s website.

?Filipinos love America and what we can say is that it?s so easy to have 20/20 vision on hindsight when all this easy money policy was going. [It was] very good for the world, everybody?s GDP and our GNP because we had a lot of remittances coming from America,? Ms Arroyo said.

?It was all fine. Then the bubble burst, but did we all know that the bubble was getting to be so big?? she said.

Saying it was time to look for a solution, Ms Arroyo made a pitch for a bigger role for poorer nations in addressing the global financial crisis.

She floated three strategies: Fundamental reform in global financial regulation, completion of the Doha Round of the World Trade Organization and expansion of alliances such as the G-7 into say, a G-30.

One such alliance is the G-20 (Group of 20 Finance Ministers and Central Bank Governors), which is set to meet in London in April.

?It is ironic that the developing countries now are doing better than the developed countries, and yet, if they will not have a say in how to structure the world economy, that?s really wrong,? Ms Arroyo pointed out.

New ideas

She said the developing countries must be represented in a bigger way. ?They have something to share, how they are able to keep their countries resilient.?

Asked about her optimism about a G-20 regime ?when there?s so much obsession in G-7 with its own problems,? Ms Arroyo said the April gathering of the Group of 20 was ?one indication? that the idea could work.

?If we don?t have these diverse economies represented on the table, then perspectives would be lost and new ideas will not be gained,? she said.

Ms Arroyo also did not seem bothered by the idea of the United States, a major Philippine benefactor, showing ?signs of protectionism? and as such, might ?crowd out? funds for its poor allies.

?As far as the Philippine government is concerned, we have already financed our needs for the rest of the year, so we?re not worried about that,? she said. ?And as much as the private sector is concerned, we have a lot of liquidity in our Philippine banking system.?

Internal strength

Ms Arroyo added: ?What I?m saying is that internal strength is very important to protect ourselves from external shocks, and part of that external shock would be the disappearance of all these funds available to us if a giant like the United States would take it. Fortunately, we?ve done our homework.?

She said the Philippines swallowed its ?bitter pill,? which enabled the country to remain in relatively good shape amid the crisis.

Ms Arroyo cited ?very painful fiscal and financial reforms,? allowing the government to ?invest in people as well as infrastructure for the fiscal stimulus (plan).?

The Arroyo administration is banking on a P300-billion stimulus package to pump-prime the economy. However, the Philippine Congress has approved just P50 billion in the 2009 budget.

Pump-priming the economy, primarily through massive infrastructure building, during the first six months of the year is the Arroyo administration?s main strategy in combating the crisis.

The crisis is battering the country?s export-oriented industries like electronics and garments, causing them to lay off workers or cut down the workweek to just a few days.

The Department of Labor and Employment says that as many as 300,000 workers may lose their jobs in the Philippines in the first six months of the year.