Poverty is the effect, not the cause . . .

It is encouraging – if news reports reflect the country’s changing perspective – that we seem to be recognizing the need for an open economy. Why so? To replicate the advances achieved by our neighbors . . . we now realize the need to lift our restrictive investment climate? Yet the media are sounding impatient about the efforts of the Aquino Administration to move us forward as an economy – from truly addressing corruption to demonstrating plan execution and efficiency? For instance, we continue to slip in the Global Economic Freedom rankings, while the EU is nagging us about the taxes we ‘impose on airlines’ and as importantly, ‘to pick up the pace in our free-trade talks’; and the ‘delay in tariff mechanism is dampening [foreign investor’s] interest in [our] renewable energy’ initiative.

Is lack of urgency again on display? Writes Lee Kuan Yew about Marcos, in ‘From third world to first’: ‘I was to discover that for him, the communiqué was the accomplishment itself; its implementation was secondary, an extra to be discussed at another conference’. Is it another explanation of why the world has left us behind? And it brings to mind a Jesuit friend (May he rest in peace!) who would talk about the need to be grounded in reality – as opposed to being ‘plastic’, being results-driven not PR-driven’!

Compassionate as we are, we must recognize that poverty is the effect, not the cause of our failings? Put simply, job-one is not poverty – it is to lift the economy! Fundamental in problem-solving is to identify, define and attack the cause – the way doctors process their diagnosis and cure? Until we turn our economy from impoverished we would have massive poverty – the pie is simply too small [for dole outs], so says President Ramos! And thus the Aquino Administration is on the right track by focusing on investment. And that means not just local, but as importantly, foreign investments – because they can bring us technology, innovation, talent, products and markets; precisely what we need to raise our competitiveness and be relevant in the 21^st century!

Another reality we have to confront is that a truly open economy would impact – be a threat – to our ‘big boys’ or major industries especially those in infrastructure. They require major investments and by definition are regulated under the assumption that they need to be viable, and not exactly ruled by open-market competition. Unfortunately, when the ‘sun is not shining’ big-time corruption is not far behind – e.g., Terminal 3 and other major projects – making world-class investors shy away from the Philippines; while making international institutions out to assist us given our poverty to scratch their heads in wonderment – why do we keep digging our own grave (yet we insist we are patriotic and do care for the poor)? And we’ve had 40-50 years (or ‘106 years of old habits’, as spelled out in one scathing op-ed piece) of this egregious custom – and so we’re literally in the dark ages owing to inadequate power supply, for example. Not surprising, says Lee Kuan Yew: “The Philippines had a rambunctious press but it did not check corruption. Individual press reporters could be bought, as could many judges.”

But our worst failing, because of our oligarchic economy (or ‘two different societies’, as described by Lee Kuan Yew), is we did not develop our competitive sense and spirit, crucial in today’s competitive world if we are to lift the economy and our standard of living – which is what human institutions are meant to be? And why the international community initiated the Global Economic Freedom rankings, for instance.

It’s nice to hear our concern about poverty, yet the real challenge is to expunge our two different societies? That while it may be more convenient to give fish than to teach how, we must pursue smart economics . . . for the greater good of the greater number? And that means all of us pulling together?

We must recognize where we are so that we can get our bearings right and then figure out where we’re going? “One of the best ways for us Filipinos to realize the Truth about ourselves and our country is to find out how people from other countries observe us and our society”, says a concerned Filipino, referring to the words of Lee Kuan Yew.