First word

THE frustrating onion crisis that has driven government and citizenry alike to distraction and confusion across the archipelago, has brought to mind a two-part series that I published on December 14 and 16 in 2015, in recognition and appreciation of an acute analysis and review

which one reader performed on the Philippine situation and prospects, as the country was preparing for national elections in 2016, which would signify a new presidential administration.

The column carried the arresting title, “The Philippines is an onion.” The article was not the outcome of research and invention on my part; it was rather a contribution and assist from one reader, who regularly corresponded with me in reaction to some of my columns and generously shared his thoughts on what was happening in the country and the world.

The reader, whom I shall refer to here as Hector, first caught my attention when he sent me his comment on the proposed Bangsamoro Basic Law (BBL), that the Noynoy Aquino government had forged with the Moro Islamic Liberation Front (MILF). He titled his comment “BBL is a Trojan horse.” He agreed with my suspicion and distrust of the role that the Malaysian government played in the peace negotiations and peace agreement leading to the BBL. He viewed the BBL as a cover for Malaysia’s continuing interference in Philippine affairs in Mindanao and Sulu. He signed the comment with the name Hector, alluding to the tragic story and siege of Troy and the role played by the warrior-prince Hector, as told especially by Homer in the The Iliad.

Through our frequent correspondence, Hector and I discovered a shared interest in management and leadership studies. I deduced from his emails that he was an international business executive or consultant who was in temporary residence in the country for an international corporation or project.

Through his repeated reference to notable management professors in Insead, I deduced that he was an MBA graduate of the prestigious business school and that he had a wealth of experience in international business management.

Sometime in 2015, in line with a book that he planned to write, Hector decided to undertake a strategic analysis and review of the Philippines and its future prospects. The country was then preparing for national elections in May 2016

When he finished the article, he emailed me a copy, and we mutually agreed that I could publish excerpts in my column.

The article turned out to be an incisive analysis of contemporary Philippines. He gave it an intriguing and beguiling title, “The Philippines is an onion.”

He thought of the title, he said, because “[u]nderstanding the Philippines is like peeling away the layers of an onion — it can make you want to cry in the process!”

Hector’s ideas pour out in a torrent. They remind me of the Englishborn American political activist and philosopher Thomas Paine writing on the eve of the American revolution. He became the voice of America’s struggle for freedom, and gave the world such immortal lines as: “These are the times that try men’s souls,” and “We have it in our power to begin the world all over again.”

The article outlines a prospective strategic review of the Philippines in the light of Asean integration and globalization.

It opens it with a quote from Justice Louis Brandeis of the US Supreme Court: “A country can have democracy, or it can have wealth concentrated in the hands of the few, but it cannot have both.”

Strategic review

“Corruption at the top means poverty at the bottom, and the only thing which trickles down is deceit and hypocrisy.

The Philippines is now losing up to P2 trillion pesos a year (equal to nearly 100 percent of annual budget, and circa 20 percent of GDP) to corruption by politicians and tax avoidance/evasion by the oligarchs and multinationals.

Furthermore, the illegal smuggling/gambling/mining of the growing shadow economy, which according to Bloomberg, is now the 25th biggest in the world, and which equates to $150 billion a year — 50 percent of official GDP — results in an additional P2 trillion per annum in lost government revenue! ...

The Philippines has now truly become a full-blown kleptocracy, with all the attendant symptoms, and the metrics show that it has become fully entrenched under PNoy Aquino.

What has become of the country? Is there no politician of integrity?

The country needs a new breed of conviction politicians, and the current crop of politicians should be convicted. But the chances of either happening are remote.

Such unbridled theft from the national coffers is the primary reason why, over the past five years, there has been no reduction in poverty levels, an increase in income inequality, a lack of strategic investment, and long-term structural unemployment. It really is as simple as that. And it is certainly not average Juan who is stealing billions, it is those with access to funds, with the opportunity, and with the impunity. It does not take a Sherlock Holmes to ‘follow the money’ and see where it ends up.

5 key measures

The solution to the malaise is also not very complex — in theory. The twin barriers of lack of political will, and the intertwined vested interests of the oligarchs and dynasties provide a more imposing challenge, and needs an Alexander to unravel the Gordian knot, and liberate the Philippines.

Five key measures are needed to steer the Philippines in the right direction, bring it into the 21st century and, belatedly, begin to develop its potential:

1. Change the 60-40 economic provision within the Constitution.

2. Implement a meaningful antidynasty law.

3. Enact a strong freedom of information bill (FOI).

4. Education, education, education! (Open the market, increase percent of GDP spent on education, use modern teaching methods and quality textbooks, train the best teachers. and pay them accordingly).

5. Adopt an integrated approach to entrepreneurship, and a balanced portfolio of added value in agriculture, investment in manufacturing, innovation in services and R&D.

It is imperative to focus upon these priorities which represent maximum return long-term…

Without the right foundation any effort in building is wasted, prone to high maintenance, damage and, ultimately, destruction.

Illusion and delusion are the hallmarks of a politician, and is clearly the approach of PNoy Aquino.

Some people cannot see the big picture and prefer to hide when decisions are needed, or courage is called for . ...

Politicians have crossed the line with their greed, incompetence, and sense of entitlement. The pendulum has swung too far and needs resetting. The natives are getting restless.

To date, very few have matched political talk with concrete action, particularly PNoy Aquino who has reneged on all his campaign promises.

A leader who abuses his country is like a father who abuses his children.

Enough is enough

Enough corruption, enough incompetence, enough human trafficking, enough human misery, enough discrimination, enough elitism, enough feudalism, enough cronyism, and enough propaganda/outright lies.”

Lagging behind

Hector concludes his strategic outline with a downer that bluntly contradicts BS Aquino’s claim that he had spread optimism in the country and among the people:

“The Philippines has clearly lost its way and become a very divided nation.

In competitive terms the country is already at a distinct disadvantage. The GDP per capita of Vietnam is now double that of the Philippines. At a time when it should be planning and getting ready for the big game — Asean integration and globalization — it is squabbling in the locker room.

Everyone knows about income inequality, but few realize its full extent, the direct link to poverty, understand the underlying reasons, or consider the long-term implications.

The Philippines has an illusory headline GDP growth of 6 percent, but a real growth of possibly only 2 percent, and, most critical, no inclusive growth at all.

Economists agree that even a 2 percent growth rate in a developing country with a trickle-down strategy, and a high GINI coefficient (inequality index — the Philippines has the worst in Asean, and more alarming, it has worsened in the last five years) will have zero impact on poverty levels.

The Philippines is reluctant to embrace modern economic thinking, best practice, or even proven solutions. Instead it clings to protecting the status quo, at a very real cost to the majority of the people.”

(To be continued on Saturday, January 14)