including an unstable economy and violent counter-protests launched by Estrada's supporters.
She was also accused of providing special treatment to the jailed former President. On 27 May
2001,Islamic militants abducted 20 hostages at a resort in the province of Palawan, and
Macapagal-Arroyo was thrust into the ongoing battle between the government and the rebels.
Several other kidnappings by various criminal gangs followed, and Macapagal-Arroyo officially
adopted a hardline "no ransom" response to the rebels and launched military operations
against them. Her administration was embarrassed, however, when it was revealed that several
of the hostages families paid ransom to the kidnappers directly, with some claiming that
officers of the Philippine Military received a portion of the funds. Macapagal-Arroyo's
administration got another black mark when her consort First GentlemanJosé Miguel "Mike"
Arroyo was accused of receiving bribes from telecommunications company ZTE that was
seeking government-approved contracts.
An economist, Macapagal-Arroyo developed a blueprint to lift the national economy out of
its financial crisis. Looking back on her first year as President in 2002, she cited the country's
economic survival as her greatest achievement, although she remained well aware that much
work lay ahead, according to The Power and the Glory. "We have been able to survive, to have
a higher growth rate than our neighbors," she said. "I dwell on what must be done. I am a very
focused person. I don't focus on laurels, on feeling secure, feeling comfortable. Even on the day
I was sworn in as president, I didn't say, 'Wow, I am now president,' I said, 'What should I do
now?' "
Despite the obstacles and various charges of impropriety directed at those close to her,
Macapagal-Arroyo was elected to a full, six-year presidential term in May 2004. She edged out
her closest competitor, Filipino actor Fernando Poe Jr., by one million votes. In her inaugural
address, Macapagal-Arroyo vowed to create up to 10 million jobs in the next six years, balance
the budget, improve tax collection, provide inexpensive medicine for the poor, and unite the
country. "Our nation must embrace a vision of economic opportunity, social cohesion and
always an ever-democratic faith.".
[1]
Macapagal-Arroyo again made international headlines in July 2004 when Filipino truck driver
Angelo dela Cruz was kidnapped by the Islamic Army in Iraq. In defiance of requests by the
United States' government, Macapagal-Arroyo honoured the rebels' demands to withdraw
Filipino troops from the country. Later that month, she called for an end to political in-fighting
in order to better focus on economic recovery. After former President Estrada declared the
Philippines to be a "nation in distress,"
[2]
Macapagal-Arroyo said in her State of the Nation
Address: "Let us set aside political bickering and politicking for at least one year." She also used
the annual speech to re-iterate her pledge to relieve poverty and promote economic growth.