'To get rich is no sin'

In a rare TV interview 25 years ago, Chinese Communist Party leader Deng Xiaoping made a declaration that came as a surprise to the capitalist world: “To get rich is no sin.” It was after all a fact that the concept of privatization was in its relative infancy and the reforms initiated by Deng were still being challenged by conservatives at that time, made more difficult because of Chinese bureaucratic inefficiency.

Deng certainly did not share the view of Mao’s “cultural revolution” and the hardliners’ insistence that “poor communism was preferable to rich capitalism,” believing instead that the role of the state is to “keep increasing the material wealth of society and steadily improve the life of the people.” In short, only when material abundance is present can one realize the true essence of a communist society. “There can be no communism with pauperism, or socialism with pauperism,” he stressed. Because of his belief and since it was the height of the cultural revolution, Deng’s son was thrown out of a building window paralyzing him — never to walk again.

Three decades after China embarked on reforms and started opening up to the rest of the world, the goal that Deng Xiaoping envisioned continues to be realized. China’s phenomenal growth has turned it into an economic and political giant (both admired and feared for its influence), with an average GDP growth rate of 9.4 percent, one of the highest in the world. In 1978, its foreign trade was worth a little over $20 billion. Today, China’s foreign trade accounts for four percent of the world economy at approximately $851 billion.

I had the rare opportunity to meet Deng Xiaoping in 1974, part of the Philippine delegation as a TV reporter covering the “basketball diplomacy” that the Philippines embarked on. There was no question — China was as backward as one could ever be. There was only one hotel, known as The Friendship Hotel, with large rooms that looked more like a dormitory. It is simply unbelievable to see in my lifetime how China has grown by leaps and bounds — producing multi-millionaires almost overnight. Last August, I joined P-Noy’s state visit to China as part of the business delegation and it was simply amazing to see skyscrapers dotting the skyline with luxury hotels and high-end boutiques competing for attention. If anything, China has become the epitome of how wealth formation — capitalism in short — can transform a country and its people.

Centuries ago, the Chinese invented “business” as the original traders and merchants of the world, with the uncanny ability to (usually) prosper wherever they may be. Many of the Philippines’ wealthiest are Chinese-Filipinos who trace their lineage from China, a lot of them described as self-made billionaires who worked their way to wealth and prosperity.

The Cojuangco family traces their roots to Hongjian village in Fujian province with the first generation coming from Co Yu Huan who traveled to the Philippines in 1861, changing his name to Jose Cojuangco when he converted to Catholicism. Among his descendants are Jose Sr., Antonio Sr., and Eduardo Sr. — and if these three branches combined all their assets, they could perhaps be considered the wealthiest family in the Philippines with business interests in telecommunications, banking, agriculture and vast land holdings.

Unfortunately, with enormous wealth comes social responsibility. Hacienda Luisita is one social issue that has been around for several decades now. While the Supreme Court decision ordering the distribution of almost 5,000 hectares is hailed as a triumph for the farmers, there are those who worry that in the end, this may spell more problems for the beneficiaries.

Peping Cojuangco (the President’s uncle) told us in an interview last year that the essence and the basic objective of land reform is to uplift the living conditions of the people — but just simply giving them land would not be the solution and could in fact become a detriment especially if the farmer does not have the “support services” necessary to make the land productive such as seeds, fertilizer, irrigation, etc. Some of those who were given land lost it completely and got buried in debt, Peping said, because they borrowed from usurers and were at the complete mercy of traders.

According to Peping, the landed rich like the Cojuangcos have given more land to the land reform program than most other families in the country, contrary to what some left leaning groups are claiming in an effort to agitate the poor and make them resentful of the rich. This resentment of the wealthy is perhaps a weakness among Filipinos, especially by those afflicted with crab mentality — an attitude developed during the time of the Spaniards when Filipinos wanting to be in the good graces of their Spanish colonial masters would destroy the reputation of others through machinations such as malicious whispers in the ear of the Señor or Senora.

The fact is, many Filipino-Chinese built their wealth through sheer hard work and perseverance like for instance Henry Sy — the richest Filipino today according to Forbes — who started with a small shoe store in Quiapo in 1946 and now has an empire that spans retail, banking and real estate. Business drives the economy by providing jobs to many. Instead of pulling down or resenting the rich, Filipinos should emulate the example of those who have a rags-to-riches story and have done well. There is really nothing wrong with being rich especially if one practices social responsibility. After all, Deng Xiaoping was right — “To get rich is no sin.” Just look at the example of his country today.

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