Monday, August 17, 2015

The ‘dark side’ of political dynasties

dy·nas·ty (dî’nə-stê)

n. pl. dy·nas·ties

1. A succession of rulers from the same family or line. 
2. A family or group that maintains power for several generations: a political dynasty controlling the state.


[Middle English dynastie, from Old French; from Late Latin dynastîa, lordship; from Greek dunasteia, fromdunastês, lord; see dynast.] 
[http://www.thefreedictionary.com/dynasty]

Some social scientists (including political scientists) work on their theoretical constructs and argue that they can make equal cases for political dynasties being a force for social good, even as others make a case for these being social evils.

I think we need to deal with our current realities and our experiences with the phenomenon of Filipino political dynasties.

A number of my friends observed that the bill seems aimed squarely at the Binay clan. I agree with their observation only to the extent that the Binays are one of the obvious targets.

But they are not the sole targets.

Our officially written and approved history, incomplete, and many times inaccurate, records all kinds of socially, economically, and politically influential and powerful families that often got to dictate what should happen.

I remember growing up in the 1950s and hearing that there were in the country “big and powerful families that could make things happen,” and that people were well warned not to cross.

I heard names like the Osmeñas and the Duranos of Cebu; the Arroyos at one time and then the Eugenio and Fernando Lopez brothers of Iloilo; in Negros, the dynasties were more socio-economic rather than political but they, too, were known to support certain politicians.

There were the Romuladezes of Leyte and the Teveses of Negros Oriental. And there were the Muslim overlords in Mindanao -- names like Kiram, Ututalum, Pendatun, and Alonto. In Luzon, we heard of the Crisologos and Singsons of Ilocos Sur; the Montaños of Cavite; the Lazatins of Pampanga; the Cojuangcos of Tarlac; and the Reyeses and the Santoses of Bulacan.

To be fair, many of these families did a lot of good for the people they served initially. A number were known not to abuse their position. Many of those families of my youth are still there but are no longer considered dynasties. They are just “well-situated”.

What made these powerful families remain as powerful as they had?

The shift to the “dynasties-as-evil” phenomenon came with the Marcos-Romualdez reign. Marcos was probably the most intelligent and far-thinking president we ever sat in office. He had parlayed his skills to build political, economic and social capital, and once seated, worked to increase all of those.

Assured of his popularity with a re-election, he then connived with his cabal to consolidate his hold on the country by declaring Martial Law. Within this context, he was able to do what he wanted, but always cloaked in legality. The allies who worked with him were given the chance to develop their own fiefdoms, their own satrapies.

The Marcos-Romualdez alliance developed the first of the deep dynasties -- family members holding appointive positions in many sectors and elective positions at many layers of government. Through various means he managed to hold a nation enthralled, then much later in thrall as his administration’s various means of securing agreement or negating dissent became more widely known. And for a while it seemed that the country would be under this dynasty’s stranglehold for a long while.

Ferdinand’s and Imelda’s dreams, jointly and singly, fell apart as the illusion of prodigious Philippine growth development melting away, at first slowly, then with gathering speed and the lies were revealed.

It took ex-Senator Benigno “Ninoy” S. Aquino Jr.’s murder to catalyze the nation that until that time had been stricken into inaction by fear.

As a taxi driver told me a week after Ninoy’s murder, “Duwag po ako pero noong pinatay nila si Ninoy, para hung sinabi nila na kung nakaya nilang patayin ang isa, kaya nilang pumatay ng marami; Kung nakuha nilang patayin ang magaling at popular, kahit sino kaya nilang patayin.” [I am a coward but when they killed Ninoy, it was as if they were saying they can kill one and they can kill many. If they can kill one of the best, they can kill anybody.] The fellow never read Joseph Conrad’s “Lord Jim”.

We no longer have Marcos in power, though the rest of family are around, unrepentant, even defiant, eager to re-establish themselves. But the family’s resurrection into prominence isn’t what I call “Ferdinand’s Revenge”.

His real revenge is the way he has corrupted the minds of even some of of the best of us, people who spoke the right sentiments when in rebellion against him and his cabal but who were astute students of the cabal’s ways and means.

These people, given the opportunity, did not hesitate to build their own empires. They managed to get either appointed or elected into positions of power and influence from where they built their political, social and economic networks.

Instead of dismantling the mechanisms of abuse, they retained and improved them, drawing more resources than even the Marcos cabal did.

Today we not only hear of the Binays but the Revillas, the Remullas, and the Ejercitos. And there are many more that have chosen to stay regional and provincial but dynastic nonetheless.

Our anti-bribery/anti-extortion laws punish both the extorter and the extorted. If the extorter can plant the seed of seeming willful collusion on the part of the extorted, he or she turns them into bribers instead. Under such conditions, no business owner would risk blowing the whistle. No one will testify that foundational work permits are given only to outfits linked with the mayor; and that on top of that, that the company had to yield a condominium unit per tower.

Last I heard, one powerful political family demand a floor per tower. But that is rumor, of course, because one cannot get anyone to testify. And it will remain rumor until someone is brave enough to risk jail.

Our current cultural norms, rooted in agrarian society and feudal systems, is in confluence with the poverty of our people to ensure a system where powerful politicians can distribute ill gotten largesse, distributing these freely, promising more benefits while keeping people a state of false hopes.

To be sure, the system provides patronage through “KBL” -- kasalbinyaglibing [marriage, baptism, and internment] -- gifts and contributions help the poor, as do helping them get jobs; subsidized basic (substandard) education (assured by beggaring the education budget) and intervening in appointments of teachers and officials; subsidized health services; birthday cakes plus a P1000 gift; free movies for seniors, etc.

But the costs are clear to those who would understand.

We need to change our corrupt system.

A long term solution is improved mass education and continuing information, communication and education programs for our out-of-school and even our employed and supposedly knowledgeable people.

Ours is a steep uphill battle.

But fight it we must, for our self respect and dignity as a people, and more so for our children and grandchildren who will inherit all these. There is a saying that the worst thing that can happen is for our children to spit on our graves. Let us make sure this does not happen.

Mario Antonio G. Lopez teaches at the Asian Institute of Management and consults for business, government and civil society.

maglopez@gmail.com

source:  Businessworld

Monday, August 3, 2015

Changing our game by changing the Charter

This column will re-echo the popular call for the amendment of the 1987 Constitution’s economic provisions (only), with accompanying enabling laws and budgetary commitments, even if it’s falling on deaf ears and empty minds.

And I favor a process where results are obtained from inclusive, open, and transparent nationwide consultations, processed in a constitutional convention and approved in a national referendum.

I disfavor amending the Constitution by adopting the phrase “unless otherwise provided by law” because it seems to me that current restrictions will remain in place until Congress decides to amend these on its own good time, ignoring the urgency of the matter. A caveat: deceitful overreach into political territory like term limits and language to accommodate the Comprehensive Agreement on the Bangsamoro-Bangsamoro Basic Law might be attempted. It must be prevented.

We need to grow the economy, attract foreign direct investments (FDIs), improve our competitiveness, reverse the diaspora, increase purchasing power and disposable income, raise gross national well-being, and enhance national security. The Philippines, although awash with domestic savings, needs long-term capital particularly in strategic services and infrastructure, energy, mining, national defense, public safety and others required to attain and sustain a 7%-10% growth in Gross Domestic Product (GDP).

Our average foreign direct investment in the past five years has been below $3 billion.

While 2015 is expected to be a banner year compared to past performance, the FDI flows today versus that of other countries in the region would still pale in comparison. Although we’ve improved our report card in the “Ease of Doing Business,” and Japan’s taking the risk of divesting and relocating some of its China business to the Philippines, we’re still generally unattractive because of the Constitution’s restrictions, institutional unreliability, and corrupt practices that turn off foreign investors.

Lack of foreign competition has enabled local conglomerates to tighten their grip of the economy.

If inclusive growth is the way to go, Article 2 of the 1987 Constitution should be restated as follows: “The State shall develop a self-reliant, productive and competitive economy that will best serve the interest of the Filipino people.” The Filipino people should be the ultimate beneficiary of dynamic economic growth and sustainable development.

The lack of vital infrastructure is a disincentive to FDIs needed in manufacturing, agriculture, and services to effectively reduce poverty. We need FDIs to build and operate new, efficient airports and seaports; tollways, telecom facilities; irrigation systems; power utilities; information technology and defense capacities, to name some strategic areas that investors weigh, consider, and compare before making a decision.

Unlike Vietnam that recently lifted its ownership restrictions to boost FDI flows, we still need to amend our land ownership and 60/40 rules that encourage dummyism and restrict the choices of foreign players to a limited bench of local partners. We must plug the entry of dubious investors with hidden agendas that feed the corruption of our institutions and harm national security. A telltale sign is when the scope and quality of bids in public-private partnership projects fall below expectations.

As such, the following game changers should be considered:

• Limit the negative list to vital infrastructure impinging on public safety and national security.

• No equity limit.

• Allow foreign investors in the exploration, development and utilization of natural resources.

• Allow foreigners to own residential, commercial and industrial property.

• Liberalize investments in new media and tertiary education.

Globalization, science, and technology have facilitated with ease the movement and spread of information, funds, goods, services and human capital. Transnationals are quick to spot new markets and opportunities and move their resources to the planet’s farthest corners. Direct investments reduce transportation costs, and take advantage of the local workforce and natural resources.

Properly directed and well-managed FDIs expand the pool of capital; speed up technology transfers and know-how; compel domestic firms to innovate and compete; and create other positive spillover effects. Economic downturns in leading economies have intensified competition to attract global FDI inflows. This leads to the big question as to what factors encourage or discourage foreign investors from placing their bets on a specific location.

The World Bank cites the following:


Market size
Market size, which is usually decided by the host country’s population, GDP and per capita income, is one of the most important in FDI location decisions. Market size provides insights about the host location’s general economic and demographic conditions; potential demand, purchasing power and growth; economies of scale and local resources.

Trade openness
Openness and market freedom encourages FDI and economic growth. Companies prefer host countries that are close to their export markets, have friendly import-export policies and participate actively in regional or global trade agreements.

Tax incentives
Tax incentives serve as an indicator for investors where the host country wants to channel investments to preferred growth areas. All things being relatively equal, tax incentives impact on investors’ decisions when compared to other locations. The records show that countries with tax havens and low corporate tax rates attract a steady stream of FDIs.

Labor costs
Export-oriented FDI companies tend to move their production to places offering low tax rates, labor rates, raw materials, and energy to control costs and optimize profits.

Economic and political stability
Stability and predictability increase investors’ trust and sense of security about returns on their investment. Corruption, confusion, and dysfunction do not. Geopolitical instability also drives away risk-averse investors. Example: China’s aggressive military expansion and recklessness in the East and South China Seas.

Due to the tensions and hostility toward Japanese investors, their companies are divesting from China and relocating elsewhere.

What’s clear is the region’s geopolitical and economic dynamics that are changing the direction of foreign direct investment flows.

We must be quick and nimble to catch the waves of change to alter course to where the sun burns bright and never sets on all Filipinos.

Rafael M. Alunan III is chair of the M.A.P. National Security Committee. He was former Secretary of the Interior and Local Government, and also held the post of chair of the National Action Committee on Anti-Hijacking and Terror in the Ramos administration.

rmalunan@gmail.com

map@map.org.ph

http://map.org.ph

source:  Businessworld