Two to tango in smuggling

In the 2012 American action thriller movie, The Bourne Legacy, the concluding portion was shot in the Philippines, something which we Filipinos eagerly looked forward to watching.

When the movie was finally shown, there were mixed feelings – pride that our country was shown in an international film, and somewhat disturbed for that other tongue-in-cheek message, i.e., it’s so easy to get lost in the Philippines, even from the all-omnipotent CIA.

With thousands of islands, and consequently, more potential entry/exit points by sea, the flow of contraband goods and even people into, within and going out of the Philippines should be one of the toughest jobs for any border patrol and customs units, even without corruption figuring in the equation.

A report by Global Financial Integrity has put losses from this kind of smuggling in 2011 at almost $4 billion, while close to $26 billion in illicit money has crossed our borders during the same period.

Crippling effect

Smuggling, or the illegal entry or exit of goods, cash and people in the country, is indeed a crippling activity for the economy both on the micro and macro levels, and definitely on businesses both big and small that have to survive within government-regulated environments.

How rampant smuggling in the country is has always been a hotly debated issue that involves various kinds of products including agricultural products, electronic and other consumer items, even people.

The flow of this unlawful trade depends on where the products are more valuable, or scarce. For example, since rice production is cheaper in other major rice producing countries, it therefore becomes tempting to bring these in undeclared or wrongly declared.

Now that there is going to be a shortfall in local rice production because of the past year’s typhoons, then expect rice smuggling to become even more prevalent and even fiercely contested by opportunists eyeing a quick big buck.

Helplessness

It doesn’t help that the government leadership continues to be helpless in preventing the smuggling of goods and people despite technology tools as well as millions of dollars in assistance from anti-corruption institutions and organizations.

It’s no secret that information data shared by countries show huge discrepancies in trade figures, something that should alert our government to do something about correcting the imbalances.

One cannot expect the Chinese government, for example, to decipher why in 2002, some 3.9 million square meters of ceramic tiles were shipped to the Philippines, but only 600,000 square meters were recorded by the Bureau of Customs.

Similar examples in other products have continued through the years and many in increasing quantities. And yet, as in the case of ceramic tiles, should this not have been traced? Or at least, should this not have been halted?

Clearly, it’s not enough for P-Noy to give declarations of the need to fight corruption and of taking the morally right road (daang matuwid). Actions speak louder, and the worsening state of corruption is a clear barometer that the slogans are not being translated into deeds.

If P-Noy chooses to make good governance the hallmark of his six-year term, he has to do something more concrete. And this means not just putting someone the caliber of Kim Henares or some hotshot in the position to fight crime and corruption in the ranks of our customs offices.

Endemic problem

If it’s any consolation, the war against corruption has been waged in the past decade, and continues to be fought, not just in the Philippines but also in many other developing countries. Industrialized countries also record corruption cases, but these are not as rampant as in the less-developed nations.

But there are tools to fight them, and human nature can be influenced to make this less susceptible to offers of bribery. Transparency International, for example, is one organization that has been relentless in the last decades for helping find solutions to rampant customs corruption.

The fight is not simple, but it can be done – perhaps not within the last years of P-Noy’s term, but definitely at some point in time when the proper ingredients come together to turn the tide.

Accepting corruption as part of life

The biggest challenge, as studies have pinpointed, is the fact that society has been cowed into accepting corruption as an integral part of life. There are numerous cases of honest government officials who are sidelined in the bureaucracy for not “toeing the line.”

Businesses that don’t tolerate corrupt practices are “penalized” by the “success” of those that had paid their way to getting goods that evaded the right tax levies. These are just a few of the many examples of “normalized” corruption.

More change agents needed

To counter the sea of corruption, change agents are needed, not just in government, but also in powerful institutions like media, civil society, and even in the business ranks.

We need more skilled ombudsmen in government who will unselfishly go after fraud, much like persistent detectives solving murders. P-Noy need not create the same expensive structure that Hong Kong developed to successfully stem smuggling, but can draw inspiration from it.

Definitely, media should support these initiatives not just by exposing the findings of such investigative endeavors, but also by initiating its own campaigns.

The same effort from civil society groups and business organizations would also greatly help. There are funds available to support such initiatives on long term basis to ensure continuity of projects undertaken.

Two to tango

Lastly, we must remember that greater transparency, accountability and merit-based human resource management in public administration are the three most important ingredients that will make it possible to truly curb corruption.

But let’s not also forget that smuggling will flourish as long as there are profit-hungry and morally-deprived businessmen ready to take in these illegally obtained items. Smugglers in cahoots with corrupt officials and willing buyers work in tandem to make the activity a lucrative proposition.

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