(The following article assesses the relations between the Philippines and the United States and is published today to mark Filipino-American Friendship Day)

DESPITE the broadening of Philippine ties with the outside world, one bilateral relationship that has remained the most important overall is our partnership with the United States. It is a partnership with implications even to the way Filipino leaders govern.

If we take all issues together—security, politics, economic development, commerce, cultural links and people-to-people relations—the sum of our ties with the United States outweighs those we might have with any other foreign country.

In one aspect of his foreign policy statements, President Barack Obama has strongly taken the position that people everywhere must have the following entitlement: We must be able to freely express ourselves; we must have a say on how we are governed; we must have confidence in the rule of law, and we must have a government that is transparent and does not steal.

Furthermore, leaders must maintain their power through consent, not coercion, and must place the interest of their people above their party.

The strength of any foreign policy depends on the vision, ability, integrity and reputation of its proponents. Herein lies the challenge for our government as it is indeed a rare stream that can rise higher than its source.

In short, an effective foreign policy starts with the quality of governance at home. For us to be credible, what our government must do is to shed its unprecedented hubris and begin to work in earnest at being good to our people.

Policy toward Asia

It would also be useful to appreciate the overall concerns of the Obama administration’s foreign policy, particularly toward Asia. Then we have to consider how the Philippines can respond to those concerns in order to manage the various dimensions of our ties with Washington so that we can advance our national interest on a broad front.

It appears the Obama administration’s concerns in Asia revolve around several broad themes. First, the Americans want to be involved in building a new architecture for Asia-Pacific stability, but they appear uncertain as to how to proceed.

Second, and connected to the first, the Americans remain in a quandary about how to manage the rise of China, and to a lesser extent India, as strong regional and eventual global powers.

Third, the Americans seem to want to find ways on how to tap Asian strengths for more global concerns. And fourth, condemning leaders that are tyrannical, the Obama administration has unequivocally expressed its support for governments that reflect the will of the people.

Regional initiatives

On regional architecture, the Philippines can develop a commonality of interests with the United States through the Association of Southeast Asian Nations (Asean), the Asia-Pacific Economic Cooperation (Apec) forum and other regional initiatives.

Although Asean is hobbled by the problem of Myanmar (Burma), the Philippines must help convince the United States that Asean is an effective agency for promoting regional stability.

Certainly, there are regional cooperation ventures the United States is keenly interested in that are of fundamental interest to the Philippines. These include disaster preparedness, humanitarian assistance, environmental cooperation and cooperation in fighting transnational crimes, such as terrorism, piracy and human smuggling.

Though perhaps not as applicable to all of Asia, democratization, human rights, counter-corruption, fighting transnational crime, and improvements in governance are other areas where Philippine-American cooperation could yield mutual benefits.

Chinese role

China poses a delicate issue for us. Notions of containment seem no longer appropriate. China is simply too important for the Philippines, for Asia and for the United States to opt for any strategy other than inclusion and cooperation.

Asian-American cooperation should involve China in the building of a regional architecture. At the same time, we should bolster our own national self-defense capabilities and regional arrangements for security cooperation on an upgraded footing, while addressing pressing security threats, such as insurgency and terrorism at home.

Another American concern—getting Asia to pull its true weight in international affairs (from a Washingtonian perspective)—may perhaps be the most problematic.

The Obama administration is serious about leaving the unilateralism of its predecessor behind. However, it is not clear whether the “smart power” espoused by Secretary of State Hillary Rodham Clinton can deliver on America’s promises to strengthen multilateral cooperation.

A smooth withdrawal from Iraq and greater success in Afghanistan may facilitate this process which might make it easier for Washington and the United Nations to have a higher level of trust for one another. There may, nevertheless, be new problems that would require American activism yet again from Washington’s point of view.

The bottom line is that the more the United States is engaged in the region, the better it is for our bilateral partnership.

Peace in Mindanao

To make the most of the situation, we must focus our efforts on three areas: security, development and reforms, and people-to-people contacts.

The first area, security, obviously must address the common terrorism problem we face. Our cooperation in this area has thus far been successful and many observers view it as a possible model for counterterrorism cooperation elsewhere.

However, we should focus our cooperation on local conditions and not view all terrorism purely through the lens of the struggle against al-Qaida.

In particular, continued US support for our Mindanao peace process aids our effort to find a durable and equitable peace settlement in the South.

It’s not all about money

RP-US cooperation can also be a major pillar for our defense modernization and reform. Capacity-building is not just about funds, weapons and equipment, but also about efficient systems, training and preparedness. A Philippines better able to manage its defense and border security would be a stronger pillar of regional security.

Economic modernization should be seen as including business and commercial progress. We need reforms to generate more jobs, increase economic activity, upgrade technology, improve governance and spread the benefits of growth.

Indeed, for long-term modernization, it may be even more strategically critical than the urgent search for markets and investors.

There are other initiatives that both the Philippines and the United States consider important.

The most significant cooperation on the horizon is the Millennium Challenge Account (MCA), a major American initiative which requires our government to address corruption and the culture of impunity. Since this would send a very positive view about the country to international audiences, it behooves the Philippines to become an MCA partner.

In addition, we should cultivate broader people-to-people connections with the Filipino community in the United States. Filipino-Americans are now more politically active in the United States and could become more effective advocates for a stronger RP-US partnership.

(The author served as Ambassador in Washington D.C. from October 2001 to August 2006. He is currently chair of Gotuaco, Del Rosario and Associates, Asia Insurance (Philippines) Corp., BusinessWorld Publishing Corp., Makati Foundation for Education, and president of Philippine Telecommunications Investment Corp. (PTIC). In 2004, he was conferred the Order of Sikatuna, Rank of Datu, by President Macapagal-Arroyo).