Leadership for inclusive growth
Dr. Bernardo Villegas, one of the founders of the Center for Research and Communication (now the University of Asia and the Pacific), emphatically stated that “one of the major obstacles that has affected our economic growth is the great influence of the oligarchs in almost every aspect of our national life.” This was part of his inspirational message for the year- long celebration of the Center’s Founding Anniversary, beginning with their kickoff last Aug. 17, 2016.
Yet, this statement cannot be farther from the truth as even President Rodrigo R. Duterte expressed in the strongest terms early in his presidency that this power bloc has designed and controlled the economic architecture of our country to their own advantage for so many years.
Past presidents right after the EDSA Revolution and the predecessor of the incumbent coexisted with this privileged few, avoiding confrontation to maintain relative peace. But in the process, these oligarchs gained more power and influence in the guise of economic prosperity.
Webster dictionary defines oligarchy as a form of government in which few people have the ruling power. While our country has professed, advocated, and abided by democratic principles, as they are enshrined in the Philippine constitution, political power rests in the hands of a very few. This ruling class controls the economic system, and the rest of our way of life. It validates the principle that political power begets economic power and vice-versa.
The rule of the oligarchs traces its roots to the colonial era, particularly the period of Spanish rule. Those who were close to the conquistadores got favors and preferential treatment, which eventually gave rise to the landed gentry.
This class and this privilege have been handed down through generations, hence, the present social structure has not changed much, clearly an evolution of that which was born so many centuries before. It was and has been an extractive institution that perpetuated the interests of the oligarchs at the expense of the people’s interests.
Similar cases are reflected in many countries, like Mexico, Guatemala, the South American countries, to name a few. The elite and their wealth dominate the economic system. In the book Why Nations
Fail, Kamer Daron Acemoglu and James A. Robinson used the term vicious circle to illustrate how extractive political institutions create few constraints in the exercise of their power, in order to deny contending parties from neutralizing their positions and insuring control of the state. Extractive economic institutions imply that there are great profits and wealth to be made by controlling power, expropriating the assets of others and setting up monopolies. This iron law of the oligarchs refutes the bases of fair play and equity.
The present economic landscape of the country points to just such a vicious circle. A review of essential industries would portray the dominance of the elite. In the mining and logging industries, concessions were awarded to political elites and supporters, and land grabbing is very pronounced in many areas. Even public land and waterways have been arrogated. Compounding the issue is the church support for the oligarchy, further exacerbating the inequitable distribution of income and undue advantage at the expense of the poor and underprivileged.
The extractive nature of governance has left the rich natural resources to be feasted on by the few. The fruits of its produce are not plowed back to benefit the greater part of the population, only the rich and the powerful are able to access and earn from the bountiful resources on our 7,101 islands.
As a people, we have been very conscious of our freedom as if freedom was the only major input to progress. Too much freedom has produced a lot of discordant voices, enough for us to lose focus, not seeing the forest for the trees. Unless it is balanced by a well- defined sense of responsibility, the country will always find itself at the mercy of the elite. Freedom has provided a wide latitude of power blocks to pursue unrestrained and uncontrolled prerogatives at the expense of the common good.
The innate influence of the oligarchs has produced a manifest resistance to obedience and compliance. They use their influence to pressure government to adopt extractive policies, resulting in a culture of graft and corruption.
Two People Power Revolutions ( or protest campaigns as some would prefer to call it), engineered by an oligarch-church conspiracy, have not achieved the promised economic and social reforms. People Power has deposed a dictator and unseated a popular president but, in turn, it destroyed fundamental values that rocked the foundations of institutions. The by- product of these two revolutions have contributed further to the extractive nature of our system. It in fact allocated a huge chunk of the largesse to an elite that proclaimed themselves to be heroes.
Pursuing further the treatise of Why Nations Fail, progress and development can only proceed if inclusive growth institutions are established. The wealth of a nation must not be concentrated in the hands of a few. Inclusive growth can be attained through the emergence of virtuous groups. This concept, however, is easier said than done.
It is my strong personal opinion that the framework of inclusive growth institutions rests upon the foundation of strong, manifest, and decisive leadership that does not compromise with the vicious group; one that can square- off with the strong and the mighty, without reservations; one that can apply his/ her life, honor, and position for the common good without fear or favor, firm and uncompromising.
The present dispensation has shown signs of seriousness that has relayed a very strong signal to the political vicious groups which no administration has ever done before. These efforts should be sustained at all costs to frustrate any attempt to consolidate and unleash their grip in all fronts of power which can mitigate extractive intentions.
What measures then are necessary to speed up the momentum for change and progress, because human nature dictates that once power is assumed and enjoyed, every fortress is erected to defend its position?
The basic requirement is the existence and availability of a leader that has the personal courage and authority to turn the tables upside down. An iron hand is necessary. Machiavelli On Modern Leadership by Michael Ledeen highlights the Iron Rules that change the destinies of many nations. Lee Kuan Yew of Singapore, Nelson Mandela of South Africa, Lech Walesa of Poland, and many others used the authority of their office to the fullest with sheer personal courage that made all the difference. We have been brainwashed too much into thinking that force and authority are anathema to progress.
The proliferation of government policies that gave rise to PDAF, crony capitalism, fertilizer scam, election fraud and many more are by- products of effeminate leaders who succumbed easily to the pressure of “vicious groups.”
Calibrated authoritative methods are essential in certain cases to bring corrupt institutions back to health, and eliminate the purveyors and instigators of corrupt practices.
Leaders provide the answer, lead the charge against the old guard, the powerful few. “The problem is to find suitable leader, a good man willing to enter into evil to accomplish good ends. Such men are in short supply, good men shun from evil, and evil men are not interested in good ends,” points out Michael Ledeen.
This is a tall order. It only proves that our educational system, public and private professional culture, and more importantly our value system are insufficient and unprepared to shape new thinking and assertive action needed to dismantle an extractive system and replace it with inclusive institutions.
We need bold thinkers, brave fighters, passionate nationalists, our modern- day versions of Jose Rizal, Andres Bonifacio, and Antonio Luna. We need to heed a long- standing wake- up call and take charge of our future. We need to band together, as Filipinos, fighting for our future! �
The article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines.
We have been brainwashed into thinking that force and authority are anathema to progress. An iron hand is necessary.