True Revolutionary Change and What Needs to be done: Propelling the Philippines into a super economic giant of the New Era

I am breaking my self-imposed silence because of Mr. Federico Pascual, my good friend and columnist of the Philippine Star. His column today makes an interesting read and needs further elucidation.

First, let me be clear that I am opposing Federalism at this point because the country is not prepared for it. Why do I say so? Three reasons: first, Federalism requires a politically mature society. Sadly, we are not at that level at this time. Our people are still being misled by populism and celebrity-driven politics that prostitute the electoral process altogether. Money drives elections in the Philippines. For sure, those who will be elected in these federal parliaments will always be the propertied and privileged class. Surely, these assemblymen, as what Speaker Pantaleon Alvarez describes them, will pursue their personal interests over the interests of the people. Elections will be manipulated to suit the whims and caprices of these economic elites.

One example would be these powers already entrenched in say, the National Capital Region (NCR) which include as many as 30 families all competing for power. Unless you give Manila the status of a full state or at least Manila as a sub-state, such a scenario where a former president will compete with the Gatchalians of Valenzuela, the Bautistas and Belmontes of Quezon City, the Fernandos of Marikina, the Binays of Makati, the Cayetanos of Taguig, the Gonzaleses and Abalos family of Mandaluyong, the Olivareses-Aguilars of Paranaque will surely happen. Obviously, these heads of cities will gun for the title of first governor of a federated NCR. Imagine the massive conflict Federalism will cause the minute we federate NCR.

Second, let me be clear that the primary reason which drove these so-called Federalists to compaign for the adoption of this system is economic. Their logic is simple--- inequality in the allocation of national funds. Several regions, particularly in Mindanao, remain underdeveloped because most funds are being allocated elsewhere. Federalists think in terms of getting the economic pie for themselves instead of getting just slices of it. They blame government for not allocating funds for infrastructure development of their areas.

Without public funds, these regions will not improve and therefore, most people will be stuck in the rut of poverty, Federalists claim. With Federalism, the state itself will be able to use funds generated by the state itself for its own development.

Let me ask proponents of Federalism---how much percentage of your proposed federal budgets will be contributed to the national union of federates? Is it not that federal states will still allocate a certain percentage of your funds to fuel the unitary Federal government? So, expect minimal change in our situation since federal states will not be able to fully enjoy or utilize their own budgets anyway. Why change the entire governmental structure when the solution is really legislate the way the national government allocate national resources?

True economic development in impoverished regions will happen if local government units will (1) implement a more effective economic planning of local resources; (2) improve tax collections by eliminating red tape and corruption; (3) spur the local economies by identifying areas of specialization (for example, if the economy is agrarian, then, focus on modernizing the agrarian sector by machination, improving infrastructure to enable producers to directly send their produce to market, extend SME loans to those who are engaged in non-agrarian businesses and lift restricted access to land by those who want to be agrarian producers) and liberalize the economic environment by encouraging competition by local and foreign capitalists.

I’ve been closely studying the economic structure of our country. Since we adopted capitalism, economic development depends on so many things but if we simply it, it depends on the flow and movement of capital.  In areas where capital is monopolized, economic development is slow. Whereas, areas where competition is vibrant and abundant, capital flows freely and available to everyone that it spurs economic growth.

Looking at our economic landscape, we see regional economies being monopolized and manipulated by big-time landlords, bureaucrat capitalists and the comprador bourgeoisie. Those who run for elective offices are those who also control the local and regional economies. One example is Batanes. The governor of Batanes is the one who owns the shipping firm that supplies foodstuffs to these islands. Imagine how would you discourage that economic-political family to surrender its privilege now to a Governor of Cagayan-Isabela under a Federated setup? Surely, the Dys will be interested in monopolizing the economy of these Batanes group of Islands.

Look at other regions and you’ll find that most government officials in these regions have interlocking economic interests in their respective areas.

That is my point---Federalism will not break the hold of oligarchs in our regional economies. The fact is, Federalism will further fortify oligarchical rule in these regions because these economic powers will now have the constitutional power to legislate laws that favor their interests over federal welfare. For sure, Federalism will promote extreme policies which will restrict the entry of foreign investors in their respective controlled areas. Under Federalism, members of the parliament of the federal state may enact whatever laws suit them.

Expect Federalism to be used as a weapon of these economic elites against globalization. Instead of seeing a freer, more open regional economies, under Federalism, expect to see Federal states controlled by economic elites in those regions and imposing regulatory policies that restrict the flow of capital into these controlled economies. There will be laws that will serve as barriers to entry of capital. I ask—how then will economic development develop in impoverished areas where competition will not exist? Capitalism thrives in competitive environments. Poverty, inequality and instability follow in economies where concentration of capital is tight.

Imagine Federal states having different utilities providers. Some areas may prefer Globe services while others, Smart. There will be that possibility of areas without these telecomm providers there, maybe local telecom providers created by elites controlling the economy of that federal region. Translate that to electricity and water utilities. It highly possible that all utilities will be controlled by economic elites also managing these federal states.

Such a landscape is a discouragement to foreign investors. Instead of simplifying bureaucratic processes, federalism will complicate foreign investment entry. Some states will probably adopt strict regulatory policies while others will be liberal. Hence, there will surely be an uneven economic development since other states will be developed while others will surely lag behind.

What will definitely happen is increased in-country migration of people, in such catastrophic proportions never before seen in this nation. People from underdeveloped Federal states will surely migrate to more economically developed ones. There will be massive disruption.

Lastly, given all these reasons, there will surely be destabilized states due to incessant politically-driven conflicts among major and minor economic and political powers in these federal regions. One example would be if we implement federated states bringing together rival ethnic groups into one state. Surely, Maranao politicos will compete with Maguindanaoans, and Tausugs will battle for power with Basilan-based tribes and those of Zamboanga.

How about in region 1, which includes Pangasinan? Under a Federated state, the Marcoses will now battle it out with the Singsons, the De Venecias, even with the Ablans and other political dynastic families in those regions. How about in CAR? There are non-Ifugao political families with economic interests already involved in politics there. For sure, economic and political powers will definitely compete for the penultimate title of Federal Governor among families involved in the Leyte-Samar-Cebu areas. And we know what happens during these politically-driven conflicts? Not just political instability but serious economic disruptions as well.

Proposal

This mode of governance works well in Western and some Asian countries who already underwent a serious civil war and unified themselves later to balance the interests of the landed and propertied with the un-landed and un-propertied. The Philippines is the only country in Asia which skipped this bloody chapter in its history. Instead of just one bloody month of in-fighting, we are undergoing almost a centuries-old pseudo civil war which impedes our growth both as nation and as a economic powerhouse.

Admit it---we are being managed by a bureaucratic government which is being dictated upon by a small group of economic elites who use their stooges in all branches of government to perpetuate their economic statuses and pursue their own fiduciary interests. Government will remain ineffective because it is to the best interests of these economic powers to make the state weak so that it is pliable to their whims and caprices. We will continue to suffer under graft and corruption because it is thru these that elites continue their hold over political power groups. These elites encourage corruption because that is the glue that holds both economic and political powers together in a symbiotic relationship of gains.

Underdevelopment is being encouraged by these economic and political powers because this is being used as a reason for them to use public funds to fund massive build-build-build projects that about 20-40% of allocated funds go to their respective pockets. Review all Public-Private Partnerships and you’ll find that all companies owned by existing elites are taking part in it. These firms are getting wider and bigger slices of the public funds’ pie to fuel their own operations.

We need to break this hold. The only way for us to break this hold of the elites is thru a campaign of re-engineering the superstructure of our state. 

We need a state that we will use as a hammer to break the hold of these parasitic elites in our economic, social and political lives. The state must be the People’s Weapon against oligarchy.

Our Asian neighbors did it thru revolutions, like China, Vietnam, Cambodia and Laos. Such revolutions are risky and costly since these involved loss of lives. We have been experiencing interracine wars for half a century and surely, we have learned our lessons. We are tired of launching another revolution which results to the same despicable arrangement. What we need is a revolution that is (1) blood-less yet will result to the same things our Asian neighbors achieved.

We know that it is only thru genuine politics that we will be able to change the system.

Re-engineering our superstructure requires three valuable steps: first, we need a strong state managed by people under one strong political party. Eliminate complication. Let us promote a national political party that will serve as the vanguard of this revolution. We need such a party to instill discipline among its members. The party will serve as a bastonero against members who will stray from the agreed collective path of the Party. This party should be patterned after the Katipunan, pre-Aguinaldo. Erring and corrupt members are meted proper penalties, even death.

Under the tutelage of this political party, we then seize political power. We will then lay down a 10-year plan for the nation.

The 10-year plan will involve the following:

1. Review of all agencies of government. We will inform all heads of agencies to vacate their respective posts. We will streamline the bureaucracy. Eliminate agencies with similar functions. We will encourage members of the academe to serve as heads of these agencies. Experts will be asked even forced to accept bureaucratic roles in the government.

2. We will allow the functioning of the courts still under the Supreme Court until such time that it necessitates the total overhaul of the judiciary department. This will also be effected in the legislative departments. All members of Congress will be asked to vacate their posts. A commission will be established to review records of judges and justices. Those who are adjudged incorruptible will be given posts in the judiciary. Corrupt judges and justices will be charged in court or asked not to take part anymore in government. Same goes to members of the House. Politicians charged with corruption or other crimes will be asked not to take part in politics anymore or risk incarceration. Perpetual ban or disqualification in holding public office will be meted against these people.

3. We will gather all economic elites into one group. Those who control utilities will be asked to give these up to government. A Commission will review their records. Those firms which have not been involved in anti-people and anti-Philippine practices will be asked to join a select group of business leaders who will serve as advisors of government. If possible, all capital will be concentrated in the hands of the State. Sympathetic economic powers will then be asked to elect among themselves five to join the National Governing Council.

4. We will gather all military leaders into one advisory Council. Leaders will be asked to join the Party. Those who will refuse membership will not be given serious responsibilities. Five military leaders will then be asked to join the National Governing Council.

5. Religious and non-govenment leaders including members of the academe will also be invited to form a Council. They will elect among themselves at least five members to head a National Council.

6. The head of the Party will serve as temporary head of a National Governing Council. This Council will be composed of 21 members which will emanate from five from the political party, five from the Church and NGO, five from the military and five from the economic council. The NGC will serve as the transitional government for 3 years.

7. The NGC will appoint a Constitutional body to create a new Constitution. This body will be composed of 50 members selected by the NGC and 50 members elected at large by the people. Eighty percent of members of this body will be Partymembers and only 20% non-party members.

8. The NGC will then review the governors and mayors. Those who are not members of the Party will be asked to give up their posts for Party members. Those who elect membership to the Party will be given such right provided that the candidate does not have any criminal case, especially ones involving graft and corruption. Those who are charged with graft and corruption will be asked to vacate his post and will be meted perpetual disqualification for holding public office. Local officials who belonged to the economic elites of the city or province will be politely asked to withdraw from politics. They will be banned perpetually from holding public office until such time that they give up their economic interests.

9. The NGC will create an anti-crime superbody to eliminate all syndicates and monopolies. This body will be given the power to use physical force to destroy syndicates and monopolies.

10. For 3 years, the Constitutional Commission will do its tasks of research and writing the draft of the new Constitution. There will be a full year explaining the new Constitution in a public campaign. Afterwards, a plebiscite will be called. After duly certifying the Constitution, then a democratic elections will then be called.