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A peace-loving people crushed by corruption

Andrew Laming

by Andrew Laming

16 Oct 04:35am

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Filed under: Asia, Corruption, International Politics, Philippines

27 comments

It is Australia’s invisible northern neighbour. The Philippines are south-east Asia’s first democracy and only Christian nation. Most of us know at least one of the 230,000 Pinoys who live here in Australia, but that is about it. Virtually none of us learn their national language of Tagalog, trade is negligible and tourism is effectively non-existent.

Filipino Muslims show support for the new peace deal. Photo: AFP

This week, the Philippines hit our headlines for all the right reasons. After forty years of civil war in the south, uber-popular new President Noynoy Aquino struck a peace deal with Muslim separatist group MILF. The previous day, he had released details of a national audit of his predecessor President Arroyo’s regime, which found $3.2 billion dollars had vanished in potentially corrupt payments. Apparently, 744 officials could face prosecution.

But the veneer of good news is little more than skin deep. Aquino has devoted half his first term to fighting Arroyo appointments like the Chief Justice. Last week he had Arroyo herself re-arrested, a move that was foiled only by her dash to hospital for medical care. It all makes for great TV, but fabulously little impact on the ground in this nation of over a hundred million peace-loving people and seven thousand islands.

Last week, candidacy lists for the 2013 election were submitted to the national election commission. Because political parties are weak to non-existent, incumbents jumped on the “Liberal Party” bandwagon under Aquino’s banner to ensure they retained access to federal funding largess. Such politicians are known as butterflies, seeking out whichever light is brightest at the time. In a nation where opposition is truly the place not to be, using incumbency to align with the President is the latest game in town.

The Philippines are actually cursed by high voter turnout. The 80% presidential election participation rate effectively confers legitimacy on a system which is dominated by powerful families and media personalities. Every Filipino Senator is a millionaire. Term limits are bypassed by shuffling or rotating family members through Congress, the Senate and mayoral positions. For all the frustration that should evoke, every day Filipinos appear mostly indifferent, save for a people’s revolution every couple of decades - which only leads to more of the same.

This is a nation where 70,000 candidates seek election to 17,000 positions running over 60,000 public agencies. Keeping tabs on the mostly centrally-collected tax base as it trickles through millions of hands is an audit challenge of inconceivable complexity.

Nearly 10% of Filipinos work overseas, with their remittances contributing a similar amount to the national GNP. Tax collection is just 13% of GDP, which is half what it should be. Of that amount, authorities estimate that 30% disappears in corruption. A quarter of the population earns less than $1.50 a day and self-rates as perpetually hungry. Workplace productivity has flat-lined for a decade. Walk into many retail stores and you can hardly get to the shelves because there are so many staff on the floor.

Transparency International lists corruption in the Philippines at 134th worldwide. There were only 44 nations ranked lower which were safe enough to measure. For ease of doing business, the nation ranks 148th, making it the home of sovereign risk. In the Philippines, being a corruption whistle blower is a dangerous business; for you and your family. If you don’t pay with your life, then it is your family who can be rubbed out if a wealthy or connected family deems you a threat. Since 1992, 34 journalists have been killed doing their work.

In the overwhelmed judicial system, wealthy families can buy off witnesses, judicial officials and avoid prosecution. The appalling 2009 Maguindanao massacre saw 57 civilians and journalists shot, raped and buried with a back hoe. There have been no convictions. Even the corrupt aren’t safe, if they stumble on someone wealthier; like the customs official who, in a road rage incident, ended up firing on a family member of his own Commissioner. President Aquino has embarked on a massive push to publish all procurement online and issue local municipalities with certificates of “good housekeeping”. His efforts represent brave but long overdue steps in the right direction.

This year, Australia will be Philippines’ largest grant donor. It’s just one example of the enormous effort we make in the region, much of which is unheralded. Australia’s significant education investment in the poorest provinces of the southern Philippines is an extraordinarily targeted approach. This week, Filipino Army Lt. Gen Juancho Sabban said that development programs and education were more effective than armed action in combating extremists like Abu Sayyaf.

For every ten Filipino children, only four finish high school and just two make it into university. In rural areas it is not unusual for one teacher to rotate between two classrooms of sixty children each. Boosting teacher numbers and quality is probably the best entry point for foreign assistance and the most incorruptible path to return the Philippines to a leading role in the ASEAN alliance.

Andrew Laming returned last week from an APEC political leaders’ delegation to the Philippines.

Comments on this post will close at 8pm AEST.

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27 comments

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    • acotrel says:

      06:19am | 16/10/12

      That could be the ultimate extension of conservatism in Australia if current ideology prevails .

      Reply

    • Gregg says:

      07:12am | 16/10/12

      @acotrel
      ” Because political parties are weak to non-existent, incumbents jumped on the “Liberal Party” bandwagon under Aquino’s banner to ensure they retained access to federal funding largess. Such politicians are known as butterflies, seeking out whichever light is brightest at the time. In a nation where opposition is truly the place not to be, using incumbency to align with the President is the latest game in town. “

      Your head might be spinning a little more than usual this morning old son for you are getting labor moths confused with butterflies.
      The moths like those dark dank areas where being faceless and ugly is of no concern whereas butterflies like it sunny and full of colours other than just red.

      Get back to your Utube.

    • Mark says:

      08:40am | 16/10/12

      Why is this clown still allowed to post here? Erick was banned for less than this.

    • Modern Primitive says:

      09:14am | 16/10/12

      I’d suggest it’d be the ultimate extension of the labor/union movement acotroll, considering all the corruption in that party.

      Gillard/slater Gordon debacle
      Craig Thompson debacle
      The illegal union blockade of a site in Melbourne.

      And they even knife each other in the back for leadership over there too!

      You wouldn’t catch Malcolm Turnbull getting up to such dishonest antics.

    • expat says:

      12:59pm | 16/10/12

      The unions are as bad as one of these regimes, extorting businesses out of money with strikes etc etc.

    • Gregg says:

      07:23am | 16/10/12

      Filipinos can only live in hope that someone like their President Aquino can see the country better off for the masses though it is not going to be easy.
      ” This year, Australia will be Philippines’ largest grant donor. It’s just one example of the enormous effort we make in the region, much of which is unheralded. Australia’s significant education investment in the poorest provinces of the southern Philippines is an extraordinarily targeted approach. “
      Just what can be achieved by continual aid also needs to be asked, especially whilst a recent report indicates that 1 in 8 Australians are living with poverty and that number is ratio is likely a lot less if we considered all those who are continually battling to stay not much above what is considered the poverty level.

      Another recent report indicated that whilst crime levels generally may be static, there has been a huge increase in what is called silver crime, and yep that’s more people with silvery grey hair abiding by laws less and less, things getting continually tougher for those on fixed lower incomes or relying on term deposits and low interest rates.

      Reply

    • PW says:

      07:33am | 16/10/12

      Metro Manila is a quarter the area of Sydney, if that, with three times the population. Although it is poor by world standards, it is comfortably the wealthiest part of the country per capita and thus people from the provinces head here.

      If you think there are traffic problems here, you’ve never been to Manila. It is indeed fortunate that only the rich can afford to own cars, as it wouldn’t take too many more to achieve total gridlock.

      This is close to the most polluted city on Earth. The waterways are absolutely disgusting. They’ve cleaned up the Pasig River to some extent but all the others are just festering stinkholes. The drainage system is woefully inadequate, which is why the place floods so readily.

      This country was ruled by the USA for half a century and it really shows. They have inherited the worst of the US brand of capitalism. Hospitals, medical and educational facilities, are only available to those who can afford them. Even the roads are used predominantly by the rich, who can afford cars, the middle classes ride motor scooters, the poor walk. There aren’t even any footpaths in most places, as this would mean less space for cars. In this place you will see huge American 4WD’s, bigger than anything you can get here, averaging under 10km/h because of the traffic.

      There are security guards everywhere, and as was indicated in the article 10 workers in retail stores and supermarkets for every one there would be in Australia.

      Nonetheless the people appear contented. Living in this country for several months gave me new-found respect for the Catholic Church in this country, the effect it has on the people. There is very very little crime. You don’t see teenagers or anyone else drunk on the streets even though booze costs far less than here and can be bought anywhere. There is no graffiti problem. Young adults respect their elders. People have respect for what infrastructure there is. I can only put it down to the church. The Church was at the forefront of the EDSA revolution which saw Marcos exiled. The people have enormous respect and reverence for their church. This place would change many minds about religion and its benefits.

      I can see this city going forward similarly to somewhere like Mumbai or even Singapore in the hands of the right leader, a leader who hasn’t yet been found. The housing density needs to increase dramatically. There is some highrise appearing, but it is quite expensive there needs to be more. Like the author, I cannot see where the taxes are being spent.

      The Philippines needs a Lee Kwan Yew. Simple as that.

      Reply

    • TrueOz says:

      08:38am | 16/10/12

      @PW
      How ignorant you are. The Pope has so much to answer for in a country where in excess of one half of the population is under 20 years of age - and contraception is espoused as a sin for which you will burn in Hell. The most controversial Bill in the Philippines right now is connected to reproductive rights. Check it out.

      You talk of Manila. Try visiting a remote and impoverished province like Leyte, Samar or Romblon. Watch the children crawling in the animal filth. See the houses with no electric, water or the most basic of sanitation. Then watch the Catholic priest in action each Sunday, collecting Pesos from people so poor tat they can’t afford rice to feed their children.

      The Philippines is Catholicism at its very worst. Filipinos practice a highly superstitious and silly form of religiosity, where the outward appearance of what you do is far more important than your (veiled) actions. The worst offenders are the corrupt government officials, fully endorsed by the local Catholic hierarchy. They are all on the take. You can see them every Sunday at church.

      A few weeks (or months) in Manila is not enough time for you to understand the sick nature of Filipino society, nor to see the important role played in maintaining that by the Catholic church. Go back, visit the provinces where most Filipinos live. Open your eyes.

    • PW says:

      09:20am | 16/10/12

      My wife is from Samar. It’s poor all right, but not quite as you paint it.

      This sounds more like the darkest depths of muslim Mindanao.

    • TrueOz says:

      09:58am | 16/10/12

      @PW
      Sorry mate, but I’m not too sure where you were looking when you’ve been there,or if you’ve been to the other places that I mentioned. The Catholic church is perhaps the root of most problems in the Philippines. They do some good work too and many of their people are well intentioned, and dedicated to assisting the less fortunate. This doesn’t change the reality of what they teach young people, nor does it change the consequences.

    • Scotchfinger says:

      10:38am | 16/10/12

      Impasse?

    • PW says:

      05:35pm | 16/10/12

      “The Catholic church is perhaps the root of most problems in the Philippines.”

      TrueOz

      I dont agree one bit with this, and I went over there with somewhat anti-Catholic views, but I did attend the Church with my wife and was married in it (in a civil ceremony). I don’t see the Catholic Church as any sort of negative in the Philippines. It is the glue that holds the place together.

      The simple fact is that most (by far) of the nation’s population actively follow this faith and believe it to be of benefit to them. Despite the country’s poverty, it still has much going for it, particularly the demeanour and spirit of the people in the face of a fairly tough situation, not least of which is the corruption you clearly know quite a bit about.

      Now if you want to suggest that all the Catholics in the Philippines are misguided and it is not doing them any good, you are free to, but I think this is a very disrespectful and condescending position to take with what is a very proud race of people. And it is futile in the end, you must have seen the depth of faith in this country, it isn’t going to change any time soon.  They are people with free minds who have made this choice and it not really your place or mine to knock it.

    • simonfromlakemba says:

      07:43am | 16/10/12

      MILF..Lol

      Poverty is always going to breed corruption.

      Reply

    • PW says:

      07:50am | 16/10/12

      The corruption we’re talking about here is coming from the rich….we’re talking Chief Justices and ministers of Governments, not some poor labourer in Malabon.

      It’s a culture that goes back to Marcos and probably much further.

    • Gordon Thomson says:

      08:07am | 16/10/12

      @Gregg,
      Poverty in Aust is NOT the same as poverty in SE Asia.
      Poverty ,to me, is being unable to feed your family, or provide shelter from the elements.
      Nobody in Aust need starve.

      Reply

    • Gregg says:

      10:25am | 16/10/12

      @Gordon,
      Sure, poverty in Asian and many other less developed countries is far different to what we have in Australia, it all being relative to the country you are in, our life standards here re facilities etc. just far higher and then our cost of living is so much higher too.

      You are right in that nobody in Australia need starve but there are many who do go without better quality food and also do not get adequate medical or dental care and then we have many homeless too, many as a result of floods or cyclones.
      Our numbers for all that may be well down on what it is in Asian countries but then we have far less people to start with.

    • owl says:

      08:30am | 16/10/12

      What a depressing state of affairs.
      Religious mumbo jumbo of all persuasions is just another tool used by those in power to wield over the poor.
      Catholicism = Blessed are the poor, turn the other cheek, money offerings, inequality of the sexes, no birth control etc etc.
      Sure they appear content - they’ ve got a statue of Mary to fix their woes.

      Reply

    • PW says:

      09:14am | 16/10/12

      You are entitled to believe whatever you want, Owl.

      Over 100 million Filipinos are entitled to do the same.

      Don’t knock it, it works for them. And don’t knock it until you’ve been there and seen it.

    • TrueOz says:

      10:31am | 16/10/12

      @PW
      I’ve been. I’ve seen. I agree with owl.

    • TrueOz says:

      08:54am | 16/10/12

      “The Philippines are actually cursed by high voter turnout.”

      There is a good reason for this Andrew. Much of the money that Senators steal is used to have them re-elected. This is done by directly paying people to vote for them, and is rampant out in the Provinces. The going rate is around P2,000 (about $50 AUD) - a relative fortune to people who barely see this sort of money for weeks of hard labour.

      There is a saying that people get the sort of governments that they deserve. Anybody who has spent serious time living in the Philippines understands just how true this is. Many (perhaps most) Filipinos consider it clever to be elected as a senator, then steal from your own people. It is a country of inherent dishonesty. Corruption is EVERYWHERE at EVERY level in society.

      President Noy-Noy has been a highly effective and even handed president. Most hated by the current kleptocracy has been his success in directly collecting taxes, together with other fees and charges due to the government. He has an almost unthinkable job ahead to try and even identify where theft occurs, let alone stop it. He’ll be fortunate indeed if the mighty powers that are against him don’t have him assassinated.

      Australian grant monies would be best utilised in developing effective audit systems for government departments, then identifying and prosecuting government officials for theft and corruption. Clear examples need to be set in the Philippines that “theft is not clever”. Until the voters are convinced of this, nothing will ever change.

      Reply

    • TheRealDave says:

      11:36am | 16/10/12

      Hang on…why would anyone fight against MILF?!?!?

      Reply

    • TrueOz says:

      01:41pm | 16/10/12

      @TheRealDave
      You obviously haven’t spent any time in the Philippines. No MILF’s anywhere in sight - they’re all young and beautiful. The fight against MILF’s is obviously working. grin

    • PW says:

      05:37pm | 16/10/12

      On this point we agree TrueOz.

    • expat says:

      12:56pm | 16/10/12

      I would take corruption over excessive red tape any day of the week.

      Reply

    • TrueOz says:

      01:23pm | 16/10/12

      @expat
      Corruption works in many places in Asia. It doesn’t work too well in the Philippines, because as well as being corrupt, their civil servants are also horribly inept. Paying a bribe is no guarantee that things will be done. It’s usually just a way of avoiding further unwarranted harassment - until another public official is elected - when the entire process begins all over again.

      By the way, Philippines bureaucrats could give Australian public servants lessons on creating red tape. They are masters of the art and it’s often exactly how their blatant theft avoids detection. As I said in one of my earlier comments, Australian aid money would be well spent in developing strong audit systems that detect theft right where it occurs - which is most often at a very grass roots civil servant level.

      Reply

    • expat says:

      02:44pm | 16/10/12

      Corruption does not work well in the Philippines assuming that you have gone about business with the western mindset of obtaining all the licenses and permits in the first place. I won’t go into details on a public forum but like you said these countries know how to milk money from regulation aimed specifically at western business and people. Many large companies have been burnt trying to move into Asia.

      People will always get on their moral high horse about corruption, but everybody has a price, even in politically correct Australia.

    • TrueOz says:

      03:21pm | 16/10/12

      @expat
      Couldn’t agree more on that particular observation. In the Philippines. ‘tis far easier to seek forgiveness than ask permission.

      I no longer even try to do business in the Philippines. I consider the risks to be far too high for the paltry rewards that may be available.

      They Philippines has a large and relatively well-educated, English speaking, underemployed pool of professionals that work for about one tenth of the real cost of employing an Australian graduate. I now exploit that from OUTSIDE of the country and avoid the BS that goes with trying to operate there. It’s just too difficult.

 
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