The cost of no corruption

The fight against corruption is laudable and perhaps the slogan that swung the votes in the May 10 elections. But today those who voted for no-corruption are finding it has a cost just as detrimental if not worse to the public weal.

Roel Landingan wrote in an article for the Financial Times describing the paradox: If there’s a cost to corruption, there’s also a price to pay for fighting it.

This is not to say that corruption is good but there are other factors to consider other than making unworkable slogans. Given the status quo where the rich and powerful have a monopoly of access to government in the Philippines, it is not surprising that some should pay their way in for equal treatment. But since we do not have a level playing field, no-corruption in a status quo favors those who have government connections and or influential friends. This lack of a level playing field is present from top to bottom. The number of Filipinos disillusioned by the economy, the loss of jobs, lack of investments, necessary infrastructure still undone etc., etc. by the alleged no-corruption government is growing.

In the article, Landingan says that the cost of no corruption is one way of looking at “why the Philippine economy grew by a modest 4.9 percent in the first quarter from a year ago — at the lower end of the government’s target range of 4.8 to 5.8 percent and below median analyst forecasts.”

He adds that “though a slowdown from 2010’s revised growth rate of 7.6 percent was expected because of a weaker global economy, the disasters in Japan and political turmoil in the Middle East and Africa, the deceleration was made worse by sharp cuts in government spending as the 11-month old administration of President Benigno Aquino III froze many big infrastructure projects for review.”

He argues that “since Aquino won by a landslide” in the May 2010 polls on a largely anti corruption platform and promised to subject to strict review the major projects and contracts entered into by his predecessor, Gloria Macapagal Arroyo, the cost of no-corruption has been mounting.”

But the depth of the cutbacks was unforeseen. “In the first quarter, public construction was down 37.3 percent from a year ago after falling by 18.8 percent in the first six months of Aquino’s term, which began in July 2010. Even government spending for salaries and regular operations fell by 17.2 percent after contracting by 6.5 percent in the previous two quarters.”

It may have been better if government statisticians had allowed public spending to grow at the same pace as last year, GDP growth in the first quarter could have been a much higher 5.4 percent. “If outlays had been frozen at last year’s levels, growth would have been 5.1 percent.”

The author asks if the price of no-corruption is worth paying? A suggestion comes from Benjamin Diokno, a former budget secretary who said that running after crooks should be left to a select group of investigators, leaving other top officials free to implement government programs. Otherwise no-corruption ties up the country even more.

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MISCELLANY: It is good to hear that former Speaker Jose de Venecia is keeping himself busy at what he’s good in doing. Just heard that he has been invited to be a panelist in the “Scoping Conference of the UN University’s new International Institute for the Alliance of Civilizations” in Barcelona. Among the proposals he will make at the conference are: a survey course on how the great civilizations dealt with one another in the past as a guide to how they might live together in the future and to seek ways and means to a better understanding of the pros and cons of cultural globalization.

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Last Friday was a lucky day for me. I met with some ladies during lunch who persuaded me to join their worthwhile cause on how to economically empower Filipino women as a way to move the country forward. Filipino women as also women in general are more productive and need only the opportunity to get into the market.

The Philippine group will be networking with the Global Platform for action on sourcing from women vendors. The aim of the group is to give women the opportunity to get their products into a worldwide market. Among the ladies who lunched were Joanne Javelosa, Maria Isabel Ongpin, Pacita Juan, former Ambassador Isabel Wilson and their guest, the lady ambassador from Turkey Hatic Pinar Isik and of course, the indefatigable former Philippine Ambassador to Germany Delia Albert.

There will be a meeting of the global platform in Chongking, China, the largest trading hub in China where the group will make a pitch for Philippine products made by women.

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Joanne Javelosa who also writes for the STAR promptly handed me an invitation for the evening of “Rizalizing the Future.” The event that evening launched celebrations to mark the 150th anniversary of Rizal’s birth and the 100th anniversary of the Yuchengco Group of Companies.

The exhibit put together a wide collection of Rizaliana, including his diplomas, his hat, and a rattan baul all gathered from relatives and friends of the big Rizal clan who were there in force. Jeannie Javelosa and Liza Tinio Bayot worked together as the moving spirit of the event that would reach a wider Filipino public of Rizal’s persona.

This is the first time that a Rizal event has been treated with care and purpose. It was a feat to gather together all the descendants of our national hero thanks to Liza whose mother Lulu Tinio is a descendant of Rizal’s sister Saturnina. It was a resurrection of Rizal that had not been done before. By the way, even Leonor Rivera’s family from the Englishman Kipping was also there.

I saw Bea Bantug and family as well from the Narcisa Rizal group. The exhibit will run until October so do make an effort to see it because Rizal comes alive not just through his novels and writings but through all the little things that made up his life.