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Inflationary Stem. Despite his shortcomings, Macapagal has made the first intelligent approach in years to the government and development of the Philippines. Land reform is on the books and progressing slowly in the provinces; the economic growth rate, just under 6% last year, is estimated to be doing about as well now. A firm friend of the U.S. and a dependable antiCommunist, Macapagal hopes that foreign investment can help stem inflation. What a visitor thinks about the Philippines' prospects depends largely upon his port of departure. "If you come here from Japan or Europe or America, you might think it's hopeless here," said a Liberal Senator. "But if you're coming from India or Indonesia, you can really see how well off we are."
On election day last week, Macapagal drove to his home town of Lubao in Pampanga province to cast his ballot. Then he returned to his baroque Malacanang palace in Manila to await the decision of some 7,500,000 voters. He predicted that the Liberals would win six of the eight contested seats, but at week's end, with only a few districts unreported, Liberals were leading in only four of the senatorial contests—just enough to give Macapagal control of the Senate by two votes.