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Business

Can we govern ourselves?

DEMAND AND SUPPLY - Boo Chanco - The Philippine Star

Honestly, after almost 80 years of running our own government, can we say with a straight face and no eyes rolling that we can govern ourselves?

I know… better to be run like hell by Filipinos than being run like heaven by Americans. The only consuelo de bobo about what Quezon once said is that Americans are also running their government like hell these days.

Two major things show we can’t govern ourselves and need international help: delivery of justice and managing our national finances.

We had to ship Duterte to the International Criminal Court in The Hague because there is no way a Philippine court of law can exact justice on behalf of EJK victims. Recently, the Supreme Court rushed a flawed ruling on VP Sara’s impeachment that showed the power of the Duterte appointees to the High Court.

At the rate the Department of Finance is borrowing, we may be courting an embarrassing intrusion into how we spend our money from multilateral financial institutions and other lenders.

We are now borrowing to pay the interest on our previous borrowings. And the Treasury is systematically plundered by powerful politicians to enrich themselves and their favorite contractors.

If we go on like this, our creditors will be calling for painful austerity measures. We have been there before.

Are we hopelessly incapable of good governance? Is there something inherently wrong in the character of the Filipino that explains the shameful dishonesty of the people we elect?

Back in 1992, the late Singaporean Prime Minister Lee Kuan Yew spoke before a group of Filipino business leaders in a conference here. During the open forum, LKY said we should be better off than we are as a country.

“The Philippines has everything a country could dream of — abundant natural resources, an educated population fluent in English, a strategic location at the heart of Asia — but what holds this country back is its politics.”

The legendary founder of Singapore compared the difference between them and us.

“The contrast was clear — Singapore, with no natural resources and even a shortage of clean water, had chosen a different path: investing in education, enforcing discipline in the civil service, punishing corruption decisively and creating a clear set of rules for business.”

A Japanese journalist raised his hand. “If you were tasked with fixing the Philippines, where would you start?”

LKY’s response was embarrassingly true.

“Start by having leaders who do not steal. Then make the people believe that the rules truly apply to everyone.”

In his speech, LKY also commented that our political system is inappropriate for enhancing development.

“I do not believe that democracy necessarily leads to development. I believe that what a country needs to develop is discipline more than democracy.

“The exuberance of democracy leads to undisciplined and disorderly conditions which are inimical to development.”

I do not fully agree that our democratic system is to blame for our mess. Our ruling elite corrupted democracy.

Then we tried the Singapore LKY way. The 14 years of martial law under BBM’s father was like LKY’s authoritarian rule in Singapore. It led to a massive plunder of our economy by the older Marcos and his cronies.

Marcos used absolute power to install friends in crucial industries, creating a system of crony capitalism. Crony-run firms needed continual bailout through GFIs like the Philippine National Bank, DBP and GSIS, worsening fiscal strain.

The Marcoses and their cronies stashed plundered funds abroad in Swiss, US and Liechtenstein accounts, causing significant capital flight.

On the brink of a crisis, PM Cesar Virata had to tell Marcos the only way to avert a default was to ask “his friends” to return some dollars. It was clear, Virata’s biography recalled, “that Marcos understood who he needed to contact.”

In short, authoritarian rule only made things worse for the Philippines. Mass media was silenced and political opponents were jailed, exiled or killed.

So, LKY speaks only for Singapore because he, as its leader, was scrupulously honest. Most of our leaders, on the other hand, had the genes of Ali Baba and his thieves.

LKY suggested the need for a strong anti-corruption unit. Our Constitution tried that through the Office of the Ombudsman.

But the Ombudsman proved underwhelming over the last 40 years. It was only under Justice Conchita Carpio Morales that it seemed to work. It was even a hindrance in fighting corruption during the Duterte era.

But I agree with LKY that “The laws against corruption should be tightened to shift the onus of proof on the person who possesses more assets than his income warrants. Two or three big fish brought to justice successfully, will have a salutary effect on everyone.”

What do we do?

Draft a new Constitution incorporating the lessons learned since 1987. A unicameral legislature with half the current members. No party list. Adopt the parliamentary system.

Subject the economy to competitive forces from here and abroad.

An anti-political dynasty provision that needs no Congressional action.

Limit the ability of the government to borrow when our debt level is growing faster than GDP.

Require publication of SALNs that also includes an automatic waiver on bank secrecy rights.

The current Constitution has proven ineffective. The earlier we work on a new Constitution the better for the country.

We need to prove that we can govern ourselves to boost our national morale.

As LKY said, “What is needed is confidence, the confidence of investors, Filipinos and foreigners, that the government and the people are determined to get themselves out of the hole they are in.”

Lawrence Wong, the current Singapore Prime Minister said something Filipinos should take as good advice:

“To keep Singapore going, we must be a ‘we first’ society. Because if everyone only thinks about ‘me,’ and puts ‘me’ ahead of ‘we,’ then we are finished.”

That’s our story, fellow Pinoys. Me first. So we are all screwed.

 

 

Boo Chanco’s email address is [email protected]. Follow him on X @boochanco.

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