Combating corruption

Corruption is at the core of all developmental constraints in the Philippines, spinning a web of problems that entangle government efforts and cocoon our growth.

A recent paper titled “Philippines: Critical Development Constraints” published by the Asian Development Bank (ADB) painted in detail this dark picture of corruption in the country.

In gist, the paper argued that corruption lowers investment confidence and lessens tax revenues which, in turn, means fewer resources for infrastructure, social services and economic services.

When contrasted with other countries with similar economic performance, the Philippines is among the most corrupt. Unfortunately, we have been slow at combating corruption—our country has remained at the bottom spot in terms of controlling corruption since 1996.

This incompetence at containing corruption has deterred our economic growth in terms of investments and market sustainability. We have among the lowest foreign direct investments in Southeast Asia, and our industrial base is narrow and small compared with other economies in the region.

This, coupled with poor tax administration, robs the government’s coffers of badly needed revenue, resulting in fewer resources for infrastructure investments and social and economic services. Social services as a percentage of gross domestic product dipped from 6.5 percent in 1997 to 4.7 percent in 2005, while economic services were halved during the same period.

It’s no wonder why we are lagging behind in poverty alleviation. In the region, inequality is most prevalent in the Philippines. At 0.45, we belong to countries with the highest Gini coefficient (a measure of statistical dispersion most prominently used as a measure of inequality of income distribution or inequality of wealth distribution. Zero corresponds to perfect equality [everyone having exactly the same income] and 1 corresponds to perfect inequality.)

To address corruption, the ADB has proposed two key measures, including the computerization of election returns to restore credibility in the electoral process.

In a country where corruption is rampant, syndicated and structural, computerizing elections is a significant step toward restoring peoples’ faith in elections. But more than that is needed.

Structural problems demand surgical solutions. A political-party system that tolerates corruption and turncoatism needs not only computers, it demands a major overhaul.

In the Senate, I have filed the Political Party Development Act, which aims to develop, support and strengthen political parties in the country and hinder turncoatism.

The bill seeks to help fund political parties in their platform-based activities all year round, and bars politicians from changing parties for the sake of political expediency. It also introduces more transparency in campaign finance.

Through this bill, we hope to initiate a series of systemic changes that will lead to a more mature and democratic political-party system in the country.

THE Agricultural Competitiveness Enhancement Fund (Acef) was part of the government’s response to the popular demand for “safety nets” following the decision in the mid-1990s of then-President Fidel Ramos and his allies in Congress to open up the Philippine economy to global free trade under the so-called Uruguay Round.

You know the US dollar has problems when comedians start working it into their acts.

An article about the Philippines hit the Internet last week with the completely misleading headline, “Survey: Philippines Viewed by Japanese as One of the Riskiest Places for Business.”

Mirror on the wall: Taxes not solution to reducing smoking

Rep. Danilo Suarez of Quezon argues that taxation is the most effective tool to controlling tobacco consumption. But it being the case, the taxes, though raised many times, what he wants the government to do is to further raise taxes on all tobacco, and cigar and cigarette products.

Omerta: Rice—the true story

THE country’s current rice problem is really not all that serious. Trouble is, the actual situation has somehow been blown out of proportion, sending the commercial prices of the staple to “abnormal” levels which, in turn, sent consumers on a mild and short-lived buying frenzy—but only for cheaper government rice.

Sen. Edgardo J. Angara: Combating corruption

Corruption is at the core of all developmental constraints in the Philippines, spinning a web of problems that entangle government efforts and cocoon our growth.

Dr. Pablo S. Trillana III: The Philippine bar exams

The results of the 2007 bar exams have just been released by the Supreme Court. Three schools that usually provide bar topnotchers again landed in the top ten: Ateneo de Manila, University of the Philippines (UP) and San Beda College.