As our current political crisis continues, this topic on the interrelationship of politics and economics becomes more and more important.

Everyone is of the view that prolonging the current crisis, where no less than President Gloria Macapagal-Arroyo is being asked to resign, will harm our economy.

The repercussions of the current crisis are enormous. Among them are slower investment inflows, higher interest rates, run-away inflation, and insufficiency of funds to push major government projects.

The economic situation is also adding to the political tension to the point of even muddling the issues. For instance, the present administration cannot be faulted for the increase in oil prices because this is happening around the world, even in the US , due to the increase in oil prices as imposed by producers.

The result in the political sphere can go either way or perhaps a compromise can be achieved. Whatever comes out should be one that strengthens our economy even in the short run or immediate future. Otherwise, the resolution of the political conflict will have no meaning and impact.

The reforms in our political system such as amending our constitution will certainly take a long time to put in place. There are many provisions which many sectors, including our lawmakers, want to amend. Each one will take weeks perhaps even months to resolve. And then these have to be approved by the electorate. Again this is a time consuming process. Our economic situation has to improve and can be improved dramatically within a shorter period of time.

This is the challenge to our leaders at this time.