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    It is governance, stupid!

    The present administration keeps on harping that it is focusing on the economy and cannot be distracted by “political noise.”

    Again and again, the mantra of the famous 7.3-percent gross domestic product (GDP) growth is repeatedly drummed into the exasperated citizen’s ears. The briefing for the business sector on February 15, a few hours before the massive rally in Makati, was largely on the same theme.

    However, economists themselves are saying: “It’s not only the economy. It is governance, stupid!”

    “The 7.3-percent GDP economic growth is fantastic!” So said one of the gushing listeners during the briefing of the President. What does this number mean for the majority of Filipinos? So-called growth can only be meaningful if it results in increased incomes, more jobs and stable prices for the man on the street.

    Where is the growth coming from? Who are the main beneficiaries? The agriculture, forestry and fishery sector registered the lowest rate of growth of 5.1 percent. Unfortunately most Filipinos, particularly the poor, are in this sector.

    On the other hand, the rate of growth of industry is at 6.6 percent while the service sector is highest at 8.7 percent.

    The rate of growth of the subsectors presents a sobering picture. The forestry subsector has a very high growth rate of 12.2 percent with agriculture lagging far, far behind. This has implications for environmental concerns, particularly global warming and massive flooding, as in Quezon, Bicol provinces, Leyte, and, most recently, Samar.

    In the industry sector, the subsector of mining and quarrying registered the all-time highest growth of 25 percent. Again, one asks, “What precautions have been taken about the environment?”

    The subsector of manufacturing has the lowest rate of growth of 3.3 percent, much lower than that of agriculture. Ironically, it is this subsector which employs huge numbers of workers. This worrisome rate is probably due to the closure of many export-oriented firms in Luzon, Cebu and Mindanao, sending thousands of jobless workers to the streets. 

    Sustained jobless growth?

    It is said that millions of jobs have been created.

    It is alarming to note, though, that the National Capital Region (NCR), which has the densest population in the country, has the lowest employment rate at 89.4 percent. Put in another way, the NCR has the highest unemployment rate at 10.6 percent. This is very dangerous because it can exacerbate criminality and a host of social problems, including suicide.

    Finally, government figures show that of the total unemployed in the country, 39.5 percent are college graduates. This means that levels of frustration are very high. 

    Invisible governance?

    When I was an activist 40 years ago, a book came out detailing the sinister activities of the Central Intelligence Agency (CIA) in many developing countries, including the Philippines. It was called “The Invisible Government”, an unseen entity collecting information, influencing government decisions, triggering murders, change of governments and even wars. The book proved to be a powerful weapon in the global campaign against the US presence in Vietnam.

    There is an invisible government running the country at present. Others might call it a “parallel” government. In organization theory, it is called the “informal organization.” The informal organization does not reflect the formal government structures. It does not reflect formal decision-making processes. Yet, it shapes policy, oversees implementation and allocates resources drawn from the formal organization.

    The national broadband network/ZTE deal reflects the workings of invisible governance. Look at the key players—the president of a corporation whose activities are not even remotely related to the National Economic and Development Authority (Neda), the chairman of the Commission on Elections, the son the then-Speaker of the House, a foreign corporation and a certain Famous Gentleman. Their one link is the director general of the Neda and his principal.

    These characters have no accountability with regard to the contract, but there they were, busily wheeling, dealing and negotiating over major changes in government policy and sharing of commissions; not in government offices, but during golf sessions, over hamburger snacks and in hotel rooms abroad.

    Once reached, decisions of the invisible government were transmitted to the formal organizations, namely, the Neda and DOTC, which legitimized the deals.

    Thus, a small cabal of persons with no accountability succeeded in committing the government to a $329-million loan contract!

    The invisible government operates where there are huge infrastructure contracts, megaprojects and massive funds. That means most of the public administration system. It succeeds because decision makers in the visible government collaborate with it.

    My friends ask me, “Why is it that corruption has never really been eliminated across administrations in spite of the zillions spent in governance reforms?” I always tell them it is because reform efforts are concentrated on visible governance.

    To those who use the fantastic (or fantasy?) economy as an excuse for inaction, it is not only the economy; it is governance, stupid!

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