“WHEN there is no corruption, there will be no poverty.” This was the enticing slogan that helped sweep Philippine President Benigno Aquino to power in 2010.

But can the President deliver? And is the anti-corruption campaign the only thing the country needs to eradicate poverty?

It is tempting to answer “yes” to both questions. Almost alone in Asia, the Philippine economy is expected to grow faster this year than last. The stock market is performing creditably, business process outsourcing is booming and the country counts itself among those likely to see an increase in manufacturing investment as costs rise in China. In January, investors expressed their faith in the economy by snapping up US$1.5 billion (S$1.9 billion) in US-denominated bonds.

Credit rating agencies seem to agree. In June last year, Moody’s Investors Service raised the Philippines’ debt rating to its highest level since 2005, bringing the country just two notches below investment grade. Further upgrades are expected later this year.

Philippine government debt is equal to about 55 per cent of gross domestic product, down from more than 70 per cent in the early 2000s.

Even so, there are signs that not all is as it appears. One reason for the widely expected economic pickup this year, for example, is higher government spending in the wake of slow disbursements last year.

Another is the seemingly narrow focus of anti-corruption efforts on the activities of former president Gloria Arroyo. She was charged last November with vote rigging, allegedly conspiring with officials to tamper with the results of 2007 congressional polls to favour her candidates.

In April, Arroyo faced trial on separate charges relating to a US$330 million government contract with Chinese telecommunications giant ZTE Corp. Her husband was also alleged to have accepted bribes to ensure the approval of government contracts.

Last week, Supreme Court Chief Justice Renato Corona, a close associate of Arroyo, was removed from office by the Senate for allegedly failing to declare his assets fully. Observers say his absence will accelerate criminal proceedings against Arroyo.

But Mr Aquino’s motives have also been questioned. Mr Corona claims that his impeachment is the result of a personal vendetta by the President following a Supreme Court ruling that broke up Hacienda Luisita, a giant sugar estate owned by Mr Aquino’s clan.

But while the high-profile prosecutions have proven popular – and may even help shore up the President’s popularity after criticism of the government’s handling of rising fuel prices – other observers remain unconvinced.

According to an annual corruption survey by the Hong Kong- based Political and Economic Risk Consultancy, foreign businessmen believe that corruption in the Philippines remains as bad as ever. “The Philippines has the distinction of being perceived in the worst light this year,” the survey stated. “People are just growing tired of the inaction and insincerity of leading officials when they promise to fight corruption.” And Transparency International continues to rank the Philippines in 126th place out of the 182 countries it surveys.

Clearly, a much broader and deeper anti-graft campaign will be needed to convince investors of the government’s seriousness. Corruption did not begin with the Arroyo administration, and it is unlikely to end with it either.

But even if the anti-corruption campaign is successful, will it be enough to bring prosperity and eliminate poverty?

The sad fact is that, apart from his high-profile anti-graft campaign and popular stand against Chinese incursions in the South China Sea, Mr Aquino has little to show for his first two years in office. Public-private sector partnerships – widely acclaimed at the start of his administration as a panacea for the nation’s seriously inadequate infrastructure – have yet to take off.

Such failings have prompted critics to coin a new word – “noynoying”. Derived from Mr Aquino's nickname, “Noynoy”, it involves adopting a languid pose that allegedly mimics the President’s approach to solving national problems.

The criticism may not be entirely fair. A recent study by financial services provider UBS noted several tentative improvements to the business environment. But it does have a point. Speaking at a gathering of Harvard University alumni in Manila last month, Mr Oscar Lopez, patriarch of the wealthy Lopez family, put it well. The Aquino government, he said, was “concentrating on anti-corruption, which is good. But we have to go beyond that”.

(C) Singapore Press Holdings Limited