Friday, August 24, 2007

Anti-Development: Permanent Crisis

What is Development?

According to Walden Bello development is economic growth, environmental protection, and an equitable distribution of wealth and resources, with the goal of improving and raising the standards and quality of living for everyone.
It suggests that development is sustainable where it “meets the needs of the present without compromising the ability of future generations to meet their own needs.” As such, sustainable development implies maintaining a delicate balance between the human need to improve lifestyles and feeling of well-being on one hand, and preserving natural resources and ecosystems, on which we and future generations depend.


What is Anti-development in the Philippine state?

It is quite alarming that seven million Filipinos live or work abroad and one in five wants to emigrate. What has gone wrong in the 20 years since the popular ousting of President Marcos? In their analysis of the roots of failure, Dr. Walden Bello shows how the political system remains dominated by a competitive elite who oppose any significant attempts to address the country's huge social inequalities. They illuminate how the “people power” or EDSA Revolution of 1987, driven by the forces of the lower- and middle-classes, ironically ushered in a new breed of elite democracy. Thus, the ruling elite failed to deliver economic prosperity and reduce inequality in their desperate attempt to protect their vested interests. Some of the glaring examples from past and present administrations are as follows: (1) The Aquino administration’s failed implementation of land reform and derailment of social programs sacrificed to the national priority of foreign debt-repayment; (2) The Ramos administration’s trade liberalization, deregulation, and privatization state or state-run enterprises and services that are in line with neo-liberal, free-market doctrine; (3) The Estrada administration’s capital accumulation that linked the underworld and the state through the use of influence by the office the president; and (4) The Arroyo administration’s social-reform initiatives and development policies granted by the United States aid and investments.

What makes it a permanent crisis?

Marcos administration until the Arroyo’s administration there is a continuously existence of internal and external factors that cause in the massive income inequality among Filipinos.

What has to be done?

Walden Bello pointed out that there should be a strong central leadership of the strategic planning process. This must be coupled by decentralization, sustainable production in key areas like agriculture. The government must coordinate its national development strategy with Asean neighbors. There is a need to establish an international economic bloc with common interest among developing countries to effectively develop or participate in the international economy. The alternative to the political of anti-development in the Philippines is to dismantle anachronistic system of governance of the EDSA state.

I am of the opinion that the prognosis of permanent crisis in the anti-development in the Philippine state is valid. However, I do agree to some of Walden Bello’s propositions of change such as strong central leadership, decentralization, and establish international bloc of developing countries. I do classify these propositions as the skeletal framework. However, there is a need to assess the effectiveness of the skeletal framework to ensure its efficiency in operation. We must also take into consideration the importance of people’s orientation that shall man the structure. To achieve a strong state it must come first and foremost from an individual decisive, defined and goal oriented person. The foundation of the strong state is to have an impartial public official wherein his personal relationship among the political elite; oligarch will not intervene in his objectivity in decision-making as a public servant. Political candidates must be decisive not to be enticed by financial favors of the oligarchs before and during election period. In this scenario, no return favors will be attached in their public functions and in this theme we can hope that developing a strong state is possible. A state that is impartial to its entire citizen in delivering services for the good of the majority. I consider this as an effective alternative to the political of anti-development in the Philippines. This is to dismantle anachronistic system of governance of the EDSA state by our individual decisiveness to change “Padrino System” that has ruined our development as individual and as a nation. I do stand for an idea that individual Filipino citizen should take hold of his personal responsibility to contribute to the development of this country. May we be guided with the famous quotation of John F. Kennedy “ Do not ask what your country can do for you rather ask what you can do for your country.” In this regard, at the end of the day we can claim that we have given our best efforts to establish development in our selves and for the Filipino society.

Booty Capitalism

BOOTY CAPITALISM

What is booty capitalism?

Paul D. Hutchcroft attributed the Philippines’ longstanding “development bog” to the country's system of booty capitalism, which he examined in the particular area of private commercial banking. He explained further that “booty capitalism emerged from relations between a patrimonial state and a predatory oligarchy.” In essence, “booty” or “crony” capitalism means that private interests are pursued using public resources and in which economic and political oligarchs abuse the apparatus of the state.

What was the effect of booty capitalism on the Philippine political economy?

Philippine economic growth was second only to Japan’s in the 1960s. Unfortunately, the Philippines at present is viewed as one of the sick men of Asia. Hutchcroft explained the stagnation of the Philippine economy in the 1970s and 1980s compared to what is otherwise distinguished as a comparative Asian miracle in surrounding countries. He used the banking system as a prism for his empirical analysis of the state and various economic agents. According to Hutchcroft, the main problem of the Philippines is a lack of a strong, reliable State apparatus to direct economic transformation or to even carry out minimally defined socio-economic functions. The economy is presented as made up of agents whose entire economic existence is based on a rent seeking quest. The oligarchs, according to Hutchcroft, have been, and still are, plundering the State apparatus for their own particularistic advantage.

The Philippine experience highlights the importance of moving beyond the blind state-bashing of neoliberal ideology. It also requires recognizing the damage done to the economy given an oligarchy, assisted under American rule, to consolidate its control over a weak central state. Without a state that is able to provide more predictability in its adjudication and administration, Hutchcroft remains pessimistic about the future of the people of the Philippines.

Does the present law in the banking system address the inadequacies of Philippine financial system?

The New Central Banking Act (RA 7653) states that the Bangko Sentral has supervision over the operations of banks and exercises such regulatory powers over the operations of finance companies and non-bank financial institutions performing quasi-banking functions. As such, I am optimistic that oligarch capitalism can be regulated to ensure an efficient bureaucratic apparatus. I honestly believe that the Philippines is faced with the gigantic task of reforming the bureaucracy, which requires the implementation of a merit-based recruitment system and a clear-cut career incentive scheme to attract and sustain the best and brightest into the civil service. To overcome these challenges, there is a need to continue formulating a series of reform packages to strengthen the Philippine state and its institutions of governance.

Friday, August 10, 2007

An Anarchy of Families

What is the primordial purpose of a public servant?

A public office is a repository of public trust and confidence. Therefore, the public servant’s primordial duty is to deliver public service for the comfort and convenience of the community.

However, analyzing the Political history of the Philippines Alfred McCoy noted that the nobility of being a public servant has been distorted and become a self-serving power for acquiring wealth. He pointed out that both educated and uneducated politicians have the same agenda in the political arena. The irony in Philippine history is that those who had legal education were the very ones maneuvering the illegal means to be in office.

Can the trend in Philippine Politics be changed?

In the history of Philippine elections it was observed that there was consistency in the strategies employed by the political candidates to ensure one’s victory. The following strategies are bilateral kinship, patron-client relations, rent-seeking activities and coercion and violence.

Improving Philippine politics is possible through the conscious efforts of the electorate in truly assessing the credibility and performance efficiency of the political candidates in ruling the nations as public servants.

However, Alfred McCoy claims that there were changes in the current trend of the political leadership. The electorate chose its candidate based on their skills and no longer on bilateral kinship or patronage- client relations. It was stressed that old politicians can leave their good name, money, political machineries and reputation to their respective successors. The skills and charisma remains to be the individual uniqueness of the older politicians and it cannot be totally inherited by their younger generation.

Therefore, it is important to consider the qualifications of the new political leaders who are members of anarchy of politicians. This is to ensure improvement on the quality public service among our new generations of Philippine leaders.

Can Philippine election be possible without political violence?

In the recent 2007 national and provincial elections there were reported instances of coercion and political violence. However, with the use of modern technology in reportage, transparency in the counting of election were somehow assured. This was achieve through the assistance of the media, intensive involvement of the civic society and civilian awareness in reporting anomalies. This was, to some extent, acted upon by the Commission on Election in identifying and isolating election results of Maguindanao which were tainted with fraud, violence and coercion. The Filipino people were encouraged to take active part in assisting the government to ensure that 2007 election is clean and honest, without much risk in the life security of the populace.

In this scenario I believe that the Philippine electorate is now moving towards maturity in electing public officials and they are not totally helpless nor influenced by the whims and caprices of the anarchy of families whose only interest in public office is their personal protection and preservation.

Friday, August 3, 2007

POLITICS AND DEVELOPMENT

Importance of development in the society

Development has led to great suffering and adjustment difficulties for extremely large numbers of people. Development is a universal problem especially to Third World countries. There is a need to identify and to analyze the roots of the developmental problems purposely to put the resources to a better use. However, this requires the use of the given resources to get the best possible development by identifying how and for whom it is more advantageous.


Ways of achieving development in the society

To achieve development in the society there were arguments that we need to use models of neo-liberal, Marxist and the like that will contribute in solving the developmental problem of the society. However, others would attribute the root of the problem to the historical analysis of the effects of colonialism, imperialism, feudalism, cultural and local differences and other specific features such as path dependent, rent seeking, democratization, civil society and social capital to the politics of democratization.

What is the answer to the development problem of the society?

The Third World needs international support that is directed to a specific support of genuine actors in the process of democratization. It is useless to argue effective models to use, blaming on respective colonizers and other theories because no absolute answer has been drawn to address the development problems.

There is a need for us to draw among ourselves the authenticity of our intentions to implement assistance to underdeveloped countries without any vested interest for assistance rendered or offered. The credibility of one’s action and intention should be evident enough to convince the civil community to purposely draw their participation and cooperation to achieve a successful and holistic perspective of development especially for Third World countries.

The Philippine government needs to be cautious in all the financial aid offered by foreign agencies. The public leaders need to scrutinize the written and unwritten provisions of the contract. This is to ensure that we are not trapped by circumstances that might compromise the welfare of our nation in lieu of deceiving developmental programs.

Landlord and Capitalist

LANDLORDS AND CAPITALISTS

Who is responsible for the impending Philippine development?

The Philippines failed to deepen and sustain its initial industrial growth in 1950 because of the absence of autonomous developmentalist state and institution to direct the transformation of land-based wealth into industrial capital.

Landed capitalists influenced the government and diverted the massive state resources to traditional elite economic activities.

The shift to Export- Oriented Industrialization (EOI) from Import-Substitution Industrialization (ISI) was not feasible because of the absence of strategic guidance and intervention of strong developmentalist state. It was cited that the factors that limit the country’s industrial growth was because we have a weak state that fails to construct or oversee a social coalition for sustainable industrial growth. The state programs favored emerging manufacturing elites over the traditional exporting agrarian elites and transnational actors opposed the exchange and import controls.

What are the ways to strengthen industrial growth of the Philippines?

I agree to the prognosis of Temario Rivera that to strengthen the state’s autonomy there is a need for a decisive reform in the government’s key agencies especially the police, military and revenue-generating units.

Progress cannot proceed without a competent and honest bureaucracy.


How are we going to start this process?

The process of reformation in the Philippine government agencies is futile if we exclude our individual needs to be autonomous from the influence of our own capitalist circles to effectuate Philippine development.

Are we determined as individuals to sacrifice the inherent personal advantages in implementing projects for the benefit of the majority?


Industrial growth for the Philippines entails both a commitment and dedication by the state and its citizens in redefining their individual competency and honesty to rule this country.

We cannot proceed to redesign political and constitutional framework for economic development and democratic consolidation unless we first settle the issue of establishing an honest and efficient citizenry. The issue of efficiency and honesty is crucial in achieving a holistic approach in order for us to generate a strong state that is led by principled, competent and honest Filipino leaders in implementing industrial development.

Individual competency and honesty will be the backbone to construct growth coalition of the state for a sustainable industrial growth and development that is supported by the best initiatives and resources from the civil society.