Monday, April 16, 2007

The Philippines Downward Spiral From Industrialization -- An Analysis


We risk being a bit redundant, as some of what ensues, has been touched on before; Specifically, our Retort to the piece, FILIPINO PRIDE, written by an American Expat, living in the Philippines, presently. It is not my inclination to write, preferring instead, at pursuing TRUTHS. There are instances, however, when one is compelled to share one's thoughts/ideas. for clarity, and to present issues, "on the other side of the coin", to controversial and interesting matters, about the Philippines.

Lest it be dismissed, or even forgotten, the Phil. in the Glorious decade and a half in the Sixties to the early Seventies, we bested all the Economies of developing Asia, including Taiwan, Korea, India, China, et al. by having the highest Economic Growth. The Phil. Peso's equivalence to the Dollar ranged from 2, in the 60's, to 8 in 1978, when I went home for the first time, in 24 years. We have seen the loss of the Peso's value, as a consequence of the Economic downturn, since then.

WHAT WENT WRONG?? First, we try to learn from Historical Lessons, again. The following Countries, have improved the Lot of their people, and undergoing or have undergone Industrialization in the aftermath of a War, be it Global, Civil or an Internecine one. Examples are:
1) Israel -- after 3 wars with Arab neighbors, and continues to this day.
2) Germany, Japan (World War), China -- world and Civil Wars, South Korea--an Internecine War brought about by Geopolitics; Taiwan -- refuge from a Civil War
3) Vietnam -- winning 2 Wars--Colonial and Geopolitical with 2 Superpowers, one with the mightiest Army on Earth, a feat unprecedented in Modern Human History -- Now, on the Road to Industrialization, and Economic Progress.
4) Singapore, Malaysia, Brunei , India, Thailand -- no War baggages to carry -- now, on their Roads for uplifting their Citizen's economic status.
5) Indonesia, an Archipelago like the Phil., despite a decades of one man rule, and enormous Natural Resources, has nothing to show. Shares with the Philippines, and Bangladesh with the highest unemployment rate in Asia.

WE HOLD THESE PRECEPTS AS ESSENTIAL REQUISITES IN THE ECONOMIC EVOLUTION OF A NATION:

1. THE GOVERNMENT -- be it Kingdom, Oligarchy, Dictatorship, Democracy, in the true sense, and not the '"DEMOCRAZY" for the select Elite few, as practiced in the Phil., etc. MUST BE STRONG IN ENFORCING ITS LAWS, AND PUNISH AS APPROPRIATE FOR THE CRIMES COMMITTED. In developing countries, it is innate in Human Nature, for leaders to aggrandize, and enrich themselves -- plunging the country into Ruin. We have a lot of examples of these Leaders. This tendency is offset by the Strong Government enforcing its Laws. Thailand threw out its Prime Minister, Gen Chun of South Korea was indicted, Israel is wary of its President, Malaysia is another strict nation. Simply put, NO ONE IS ABOVE THE LAW, WHOEVER THEY ARE!!! GRAFT AND CORRUPTION exists even in developed countries. It is the Government's job to curb, minimize and punish!! This kind of Government projects Stability and Coherence, conducive for Economic Progress, by infusion of Foreign capital to bolster home grown businesses, or International Businesses, outsourcing their Manufacturing/services Divisions.

2. THE LEADERS - Very rare, indeed , are Leaders who started Nobly, and left an enduring legacy without losing their Integrity, uncorrupted by the Power they have achieved, and with examples, are on the road or have achieved Economic Progress for their respective countries. We may not agree with their politics, but the Leaders of China, Vietnam, Singapore, Israel, to name a few -- didn't aggrandize and plunder their respective countries. Examples of excesses are the Philippines, Indonesia, Iraq, The Congo, etc.

3. THE PEOPLE - The Article «A DAY WITHOUT FILIPINOS», by Fr. Jess E. Briones, SVD - Superior Legatus, Argentina, is an excellent source of the world-wide contribution of overseas Filipino Workers. In my Retort to 'FILIPINO PRIDE', the Physicians, Physiotherapists and especially our Nurses, rate among the best in this world. In large Metropolitan, and inner city areas- emergency depts. and critical areas in Hospitals can not run smoothly without the latter. Just as the saying goes, ''every man is like the Moon, each has a Dark Side." We have misdirected Nationalism -- favoring expensive Foreign Goods to our own (and why not if you can afford it, uplifting oneself to the social and economic stratum, with the Awe, and perhaps, the Power that goes with it). In a Time magazine about the Phil. in the past,-- my mortgage is carried on the wrist of a Nouveau Rich's son -- a Cartier bejeweled wrist watch !!!

We are by Nature--peaceful, forgiving, and very tolerant, and lacking of altruistic tendencies to the point that it does not affect us, we sideline ourselves. This is why our decrepit and corrupt system of government, perpetuates and recycles itself with newly minted Nouveau Rich, hungrier and more aggressive than the predecessors. Meanwhile, the POOR who have nobody to turn too, but the Gov't, are shamelessly forgotten, and left to forage for their Basic Needs for Existence. This is where the Remittances go -- to poor, and even struggling Working Class relatives, incapable of making ends meet. These monies do not go to Mega-Malls!! We are lucky to have our esteemed Colleagues who do Medical Missions to the Phil. -- lending their skills, expertise, etc. to their indigent countrymen. These are people who should be given MacArthur awards, and even Gold Humanitarian Medals, for their unselfish and at their expense contributions to the Needs of their countrymen. There are others -- my Family included, who helped financially, a hard-working, bright CPA, migrate to the USA. She, in turn, was able to educate all her Siblings, including a Nurse now working in the USA. These, are examples of what our system of Gov't can not provide to our Needy Citizens.

4. OUR PRODUCTS - A. The overseas Filipino Workers world-wide, whose Remittances furnish the Dollar to purchase our Energy and Life's necessities, and helps stem the downward spiral from Economic Glory to Economic Collapse. We are very fortunate as the 3rd largest English-speaking Nation -- to parlay to Industrial Nations, this attribute. Unfortunately, because of our Political Immaturity (all the years since Independence we have been perpetuating the same SYSTEM OF NO RESPECT FOR THE LAW, AND THE CORRUPTION THAT ABOUNDS -- we lose out to Countries within the region, without these flaws for the Outsourcing/Manufacturing/Services 0f International Companies. The Ivory Coast variety of coconut, with its plentiful yield, and much earlier maturity for fruit-bearing, led to the demise of our Copra Industry. Similarly, we should have been the beneficiary of the Cuban Sugar Embargo, but Louisiana with the state wide planting of Sugar Beets, led to the same end. We teach other Nations via the Ford Foundation Rice Research Institute, in Los Banos, yet we import the Rice despite an Agricultural Economy. The same can be said of the Tobacco Industry in the Ilocos, in the 60's, destroyed by unscrupulous and greedy middlemen, abetted by corrupt gov't officials with their payolas in upgrading the poorly grade tobacco to a desired grade. We are fortunate for INTEL, and a few other Int'l Cos., but these are not enough for employment. Again, thank our good Nature, for the world-wide employment. What else can we offer -- to trade???

5. THE ROAD TO INDUSTRIALIZATION OF A DEVELOPING NATION/ECONOMIC PROGRESS. There are Historical Lessons we can benefit from already accomplished and almost- there Nations, in their Economic Evolution. Free Enterprise is the key supported by a Forceful and Strong Government, willing to punish and make fearful of individuals who break the Law; that no one is above the Law. The Leaders themselves are Noble, and true to their principles in aiding and furnishing their Citizen’s basic needs; and leading Exemplary Lives for the populace to follow.

An Industrial Nation can be built in 2 ways---from the top-down exemplified by the USA, whose wealth and history is quite unique-- with a segment of the population with 2 or 3 cars, and all the amenities of daily life, but, with a class of homeless individuals, and 35--40 million people without Medical Coverage, and expensive education to Top rated schools and Universities. We have patterned our road, to this example. Unfortunately, we do not have the wealth, and the Grants/Scholarships/Student Aids, and the Emergency Medical Coverage that one can turn to in time of need for deserving Americans. The other method is the down-top alternative, which forgoes the 2-3 cars and life's luxuries, by gov't striving to give its citizens first -- the Basic Needs, e.g. health, education, food and housing- welfare and, progress to the top. This example is what China and some other countries took. The strong Central Gov't serves to stem, hinder, and punish Corruption, which is innate to Human Behavior.

6. WHY HAS OUR GLORIOUS ECONOMIC TIME SLIDE AND SPIRAL DOWNWARDS TO NEAR-ECONOMIC COLLAPSE??? The ANSWERS lie in the above. NO GETTING ATTENTION-SLOGANS OR 'ENCHANTED KINGDOM' -MONICKERS will accomplish Industrialization unless we undergo a RADICAL POLITICAL CHANGE, WITH A GOV'T THAT COMES CLEAN AND PROJECT STABILITY AND MATURITY TO INTERESTED NATIONS BRINGING THEIR BUSINESS, AS PARTNERS TO OUR SHORES!!!

QED
Ding Avecilla, MD

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