Rationalizing the severe corruption of the business sector

October 18, 2013 at 1:11 am (Amerikana, Corruption, Crisis, Debt, Economy, Financial Crisis, Graft, Hoodlums in Barong, Malacañang, Mindanao Peace, Philipppine internal problems, Politics, Social Concern, Thieves in Government) (, , , , , , , , , , , , , , , , , , , , , , , , , , )

Policy regime change is needed in the business and especially in the finance sector. The old paradigm of the Philippines and selected vassal type states with supplier economies, must be revolutionized. This will depend mostly on the act of the young, emerging, up-and-coming captains of industry.

The history of Philippine finance has been that of subservience and excessive docility towards superior super powers or stronger industrial economies. This cannot be the case any longer. Even with the excursion of individuals or groups like Enrique Razon to foreign frontiers, Ayala and other entrepreneurs – Eduardo Cojuangco Jr., Lucio Tan, Henry Sy, John Gokongwei to foreign enterprise destinations or missionary ports such as New Zealand, Australia, China, Latin America, Papua New Guinea, Vietnam, among many others, much has to be repaired in the Philippines.

Benevolent, jump-starting credit from both the public and the private sector is close to non-existent, breeding unsophisticated but widespread corruption within the private sector; the government is most of all helpless to stem this kind of graft and corruption within the world of Philippine business. The doctrine of trust as the most important item for purchase in the Philippines is extremely prostituted to nauseating proportions. At the end of the day, private enterprise becomes the receiving end of chastisement and censure for entering into haphazardly concocted schemes that bleed the public treasury dry or siphon the blood of the average consumer publics.

While banks deprive the vast majority of the country of credit, the financial sector lends indiscriminately to public sector institutions that simply steal the borrowed funds or connive with private business groups or ghost, or shell non-profit service providers to divert the loans and bank the same in private accounts.

Still, notwithstanding this cruel practice of the financial sector, Big Business engage in blatant theft of intellectual property of both local and foreign IP owners, enriching themselves without regard to any kind of regulation or rule designed to rationalize fair use of property rights.

One of the greatest failures of the state stems from the lack of a strong, collective espousal of concern for one’s country. The fundamental blame can be traced to this country’s entire educational system that is wholly inadequate in this regard in comparison with more nationalistic, patriotic states like Japan, Taiwan, South Korea, Malaysia, and others. Both the public sector and the business sector work in proverbial synchronicity towards improving the nation state – all in their own niches. Compounding this problem is that the sons and daughters of the captains of industry and political elite usually grow up under the watch and tutelage of more or less illiterate baby sitters (yaya) and imbibe a culture of Mr. Nonoy Marcelo’s nincompoopism, similar now to that exhibited by the national leadership.

As a classic example, in a few decades following the Second World War, Taiwan subsidized power, communication-telecommunications, among many other amenities so that business will grow. In the Philippines, both business and public sector will bleed the people dry for the use of these utilities but give way to the elite to be free of hassles in freely using and increasing their consumption of both power wattage and telecom air time.

Bangko Sentral ng Pilipinas (Wikipedia photo)
 
The country plunged into the mendicancy promoting program of handing out cash to the poorest of the poor. This entailed nearly 3 billion pesos (about US70 million dollars) per year during the time former President Gloria Macapagal Arroyo and ballooned into 21 billion pesos or more (approximately US490 million dollars) at the present, in the incumbency of Mr. Benigno Aquino.

If credit regime policy was revolutionized and this so-called cash transfer program, including the billion peso bribes to legislators and bureaucrats were spent instead for pump-priming national credit, if only the leaders of the country were more patriotically inclined instead of exceedingly greedy, a lot of change would have happened over the last three years.

It will certainly take a mere pittance of the 2014 2.26 Trillion pesos Philippine budget to create islands of growth in the financial credit sector. But if things go on as they are, this is mere wishful thinking but without doubt a situation that could breed bigger problems in the near future. The state of want and deprivation everywhere surely will translate into bigger crimes, fuel terrorist group’s recruitment efforts and spur a myriad social issues that will be difficult for any future administration to competently manage.

Then again, the same could have been hoped, if the previous regimes from the post-Marcos era to the present had entered into this kind of paradigm shift. But there appears to be no hope for the country given the kind of nincompoops pretending to run the government or acting like captains of industry in a country they will never consider to be their own love. The best next thing that could happen in the Philippines then, going back to the initial premise that the only redeeming factor are the youth and the conscientious citizens of this land, will be a full-blown, whole system resetting revolution or a self-imposed values reorientation and policy regime shift by the business sector.

Every source of decay dies of its own; however, there is absolutely no crime in removing the root of a disease even before its appointed death. Relatedly, any system can always have bugs. But no system admin would appreciate running the system with the bugs when ridding it of the problem issues will make the thing run smoother, more efficiently and make every affected end user happy.

Permalink Leave a Comment

Tinikling

November 12, 2011 at 9:27 am (Corruption, Crisis, Politics) (, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , )

The tinikling is the combination of grace and movement of feet with the dancer struggling on its feet between poles of bamboo. Tinikling evolved into a national dance inspired by the Philippine Heron popularly known as “Tikling”. The dance follows the movement of the Heron over grass where it makes motions of a dance. The dance originally came from Leyte. The popularity of the dance soared with the efforts of former First Lady Imelda Romualdez Marcos’ efforts to promote it, particularly through the Leyte Kalipayan Dance Company.

that would be really nice to get into. hmmm...

In the present version of the dance in today’s milieu, the severe and reproving hunt against the suspected purveyors of corruption led the President of the previous administration to seek treatment for her ailment in a foreign country.

The Philippine Government under its current leadership promises to fight corruption to the very end and prosecute those that are found to have violated anti-corruption laws and regulations.

Not to be outdone, the incumbent President barred the past chief executive from travel and promised to pay for the expenses of her foreign doctors.

The incumbent President, Benigno Simeon Cojuangco Aquino III,  appears to be dancing the Tinikling with former president now Rep. Gloria Macapagal Arroyo seriously.

According to one of his supporters, the President can boost his drive to clean up the government of corruption by stopping the practice of using the defense and military’s resources for the benefit of a minority in the armed services and very lucky persons in Malacañang. This holds true for all the other departments and agencies of government.

During the past administrations, a lot of money was allocated for purchases that are merely designed to line the pockets of a few people. The purchase of killer jets and airplanes for the Philippine military claimed the precious lives of many officers of the Philippine Air Force. The purchase of the second hand choppers for the police is another case in point. The list goes on and on and on.

OV-10 Bronco PAF Air Craft crashes

OV-10 Bronco crash

The military has a budget approaching the size and heft of nearly one hundred billion. The police has an allocation close at the heels of the military. Lagging behind is the recently separated service of the Philippine Navy – the Philippine Coast Guard that does not even get a pledge of half of the military and the police allocation.

But ask for the enhancement of a particular service and you will be rewarded with a standard reply: “We have no money for that.”

Subsequently, for many elements of the uniformed services waiting for project funds, the standard quip is: “Wait further for releases.”

So where does almost one hundred billion pesos go to? In the case of the police, where does the nearly sixty to seventy billion pesos go to? Now we know, and certainly now we hear of very high ranking persons going to jail to answer for their crimes. But is everyone involved in the crimes being held accountable? That is the problem.

To think that vital institutions like the Philippine Military Academy (PMA) and the Philippine National Police Academy (PNPA) receive a mere pittance of the combined hundreds of billions of funds supposed to be given to the uniformed services, and presidents have to eat up their budget by bringing in a military band during presidential engagements at Fort del Pilar in Baguio where PMA cadets struggle to finish their meager scholarship.

Spending on bringing over a military band just to play for a president and depriving the PMA as an institution, the cadets and professors of their already measly budget, forces the military academy to dance the Tinikling. Will I spend on this? Will I not? That becomes the predicament of the PMA Superintendent and his staff as well.

So it goes for its counterpart police academy. But even the president of the most powerful country in the world does not enjoy this privilege of having a band tagging along at his behind. Perchance, a simple presidential proclamation or administrative order, or letter of instruction could be made to put this practice to an end once and for all.

While it is good to engage in exercise and physical training, for petty reasons our government workers should not be made to dance the Tinikling.  Their feet might suddenly get caught by the thorny poles of bamboo and they will surely not like the cause and source of the injury.

Indeed, let the fight against corruption continue, but let it be a sincere effort.  Let it also be most of all, a fight against needless, mindless overspending. Spending beyond the design of any budget is the mother of corruption after all.

Permalink 7 Comments