Power itself is neutral. Unused, it is neither good nor bad. Power, however, is a powerful asset, medium and attribute that commands respect, awe, fear and even envy in others and serves as a compelling catalyst and impetus to action and change. In actuality, it is the use of power that determines its consequence, whether good or bad.
A strong and well-built person can use his physical prowess to make something of himself and be of help to others as by being an athlete or even a lifeguard. On the other end, he can use his physical advantage for malevolent ends as in being a hoodlum or a criminal. What he does with his physical attributes is entirely up to him.
A person with considerable means and resources can summon his wealth for the establishment of factories, plants and industries and, through his investments, catalyze economic activities that produce goods and extend services, employing people and generating revenues for the government in the process. At the other end of the spectrum, a rich man can employ his millions for unsavory intentions as in financing smuggling operations or getting involved in dark syndicates like that of drugs, prostitution or child exploitation. The choice on how one uses his economic power depends solely on his own will.
The same goes true with leaders and officials endowed with political power. The judges and justices, exercising judicial power, can either dispense true justice or have their decisions influenced for a certain price and consideration. The legislators — senators, congressmen, board members, city and municipal councilors — can enact laws and ordinances that will truly benefit their constituencies or else stand up selfishly for their own interest or that of vested groups. The officials of the executive department from the barangay councilman to the President of the land can also either offer the best governance they can to the best of their abilities for the country and people or, on the contrary, make unlawful use of the powers and attributes of their respective offices to serve their own interest as through graft and corruption. The option on how our leaders and public officials carry their public trust and wield their political power is entirely up to their own volition.
In the end, therefore, it is the actual use of power, whether for benevolence or malevolence, that is the yardstick by which power must be measured and rated. Power — be it physical, economic, political or whatever else that power manifests itself in — must be properly used for the good and benefit of the most number of people.
There is a special kind of power that we have, by law, endowed upon a special agency of government. The power to issue money is exclusively vested with the Central Bank of the Philippines. The central bank alone determines the level of money supply consistent with the economic, monetary and financial needs for development of the country and people. This is an awesome, if not ultimate, power of government.
As it is, however, we cannot help but observe that such benevolent power has been largely underused, if not mis-used, altogether, as the present local money in circulation is far way below the minimum monetary and financial requirement of the country for economic growth and development. In comparison with our progressive Asian neighbors, the Philippines has one, if not the lowest, money supply per capita in the region. It is no wonder then that, like an anemic patient low in blood supply, the country harbors under a sluggish economy and is still tied-down in a third-world environment.
As we have proposed and challenged in our earlier articles, the Bangko Sentral Ng Pilipinas must make full, benevolent use of its power by increasing the level of our money supply corresponding to the needs of our country and people. Then can we say that the central bank’s power has been properly used.
On a corollary aspect, we have been pointing out the extreme necessity of the central bank being empowered to directly buy long-term government bonds and securities that are secured against future taxes by issuing the corresponding new local money. The local money thus newly issued can then be used to finance all our internal development requirements for infrastructure such as roads, highways, bridges, seaports, airports, schools and hospitals as well as for the establishment of utilities such as for water, power and telecommunications. This will obviate the need, as is our current practice, for borrowing externally for our development needs that only exacerbates our already whopping foreign debt position.
The Central Bank, however, under its existing charter is prohibited (section 117) from purchasing government bonds. This restrictive provision of the law has curtailed the bank’s ability to help raise new local money to finance our own development. It is in this sense that we advocate the amendment of said provision and to instead allow the Bangko Sentral Ng Pilipinas to do so. With the Central Bank having this power and with the bank exercising this authority to directly buy government bonds with new local money, the proper power would have been entrusted to the proper government agency, and its proper use would have a lasting effect and impact in the development of our country and the progress and prosperity of our people.
You may write your comments / suggestions at 15/F Equitable Tower, Paseo de Roxas, Makati City or through e-mail at rgroxas2004@yahoo.com
(Note: We beg the indulgence of our readers who are at times tasked to read a lengthy piece. The purpose of our writings, however, being advocacy and not merely commentary in nature, compels us to dissect a given problem, analyze its causes and effects, and offer studied solutions. The length of the article should be irrelevant to such an approach..)