Political spending helping the economy

With the gloves now off, people can expect even more heightened campaign activities from candidates especially those vying for the presidency, as seen in the increasing number of advertisements on radio and TV. And if there’s one good thing that elections can bring, it’s the fact that intensified spending from political ads will help the economy.

A presidential candidate will need at least P3 billion to mount a decent campaign, and with four or five major candidates vying for the top post, a total of P12 to P15 billion will be pumped into the economy. Estimates for political spending during the 2007 senatorial elections was at P30-P50 billion. This time, the figures could be higher since candidates for local positions from congressman to governor down to mayor and councilmen will be doing their own spending as well.

The Bangko Sentral ng Pilipinas says election spending for 2010 is expected to raise the country’s GDP growth by more than 0.5 percentage points. While there are those who glumly point out that the boost will only be temporary and short-term in nature, let’s not forget that political spending in the next few months leading up to the May elections will give a lot of people more job opportunities specially at this time when the global financial crisis has spawned a lot of uncertainties.

Aside from the newspaper, television, broadcast, public relations and advertising industries, other sectors will also benefit from increased spending by politicians. These include telecommunications, transportation, food and beverage, etc. which will be good for everyone. Printing companies will need more ink for stickers, posters, flyers; graphic artists and illustrators will have increased job orders for T-shirts and even komiks narrating the story of candidates; makers of pins, caps, visors and other campaign paraphernalia will earn more than usual; even out-of-school youth will have employment opportunities gluing posters on walls and every space available.

When it comes to campaign spending, the biggest spender is Manny Villar judging from the number of his advertisements airing on television and radio. And it seems his political advisers are learning, as seen in the more catchy and easy to remember lyrics with graphic messages that go, “nakaligo ka na ba sa dagat ng basura; nagpasko ka na ba sa gitna ng kalsada.”

The Villars have set aside a huge fund for campaign spending - and they are not embarrassed to say they are out to spend money to send his message across that they want to eradicate poverty in this country. Manny himself admitted he is spending so much on ads to “level the playing field” since he has no siblings in the entertainment industry. And as Manny’s wife Cynthia Aguilar had said, the Aguilar family has never lost an election and they do not intend to lose this one.

During the 2008 elections in the US, Michael Bloomberg confounded foes and critics alike when he spent an estimated $100 million of his “own money” to campaign for mayor – a record breaker. Bloomberg – America’s eighth richest man – was not fazed by criticisms since his spending was welcomed by local businessmen who said it was a huge help considering the recession.

Bloomberg’s spokesman also pointed out that it showed New York voters that there is a candidate who is independent and doesn’t take a dime from special interests. Certainly, Bloomberg’s opponent had a difficult task raising money in the middle of the recession – and it showed because Bloomberg won.

Joseph Estrada has also set aside funds for advertising but he is said to be cutting down on expenses at this time. Gilbert Teodoro, meanwhile, seems to be gaining traction with his “Posible” ads that take on the refrain from a Rivermaya song of the same title – which even young kids like and easily remember. But Gilbert may have some problems with the composer who is raising a howl because the ditty was used without his consent.

Meantime, the Liberal Party has not been spending that much on campaign advertising. Noynoy Aquino has also reportedly turned down offers of help from some businessmen whom he thinks have links to the current administration. Besides, someone from Noynoy’s camp reportedly boasted that “the Liberal Party does not need that much money because we’re sure to win.” Perhaps this also stems from the fact that the LP is counting on the support of showbiz celebrities starting with Noynoy’s sister Kris. Edu Manzano supporters are complaining that Pinky Webb was “persuaded” to part ways with the administration vice presidential bet because it would give him undue advantage. And now, Edu’s supporters are asking, “Why does Kris not also resign from her shows since she is giving unfair advantage to her brother?”

Campaign ads especially on TV seem to make a lot of difference because they can reach even remote barrios in the provinces, if one were to base it on the results of the latest SWS survey showing Villar narrowing the previous lead of Aquino from 19 to 11 percentage points. The next three months leading up to the May elections will be crucial because by then, a lot of voters will have made up their mind on who they want to elect.

In any case, the increased political spending will be good for many Filipinos, because no matter how temporary the effects may be, as gloom forecasters like to point out, it will still give people a breather. And who knows, Filipinos may even be able to save a little something for the proverbial rainy day.

The old habit of politicians giving money to people in exchange for votes continues, but Filipinos have wised up and just simply get the money and still vote for the candidate of their choice anyway.

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