Manila Bulletin

Does federalism in the Philippine­s make sense?

- RICHARD JAVAD HEYDARIAN

By

AS Nobel Laureate Economist Joseph Stiglitz once remarked, sometimes our fundamenta­l problem is that we focus on the wrong problems.

In many ways, this seems to be the case in countries like the Philippine­s, where pundits and politician­s often highlight all sorts of problems and offer correspond­ing solutions; yet, what’s often lacking is a fundamenta­l understand­ing and sensible diagnostic of systematic deficienci­es.

This is why it’s first important to grasp what is the problem that we are trying to solve in our country. And how charter change per se could pave a path forward for national redemption and transforma­tion.

As I discussed in part I of my federalism essay series, our primary challenge as a nation – above everything else – is our oligarchic political system.

Yet, nowadays, one often hears the argument that what lies at the root of our national failure is our societal culture. Thus, as the argument goes, no matter what form of government we adopt, we are destined to fall into the same trap of national mediocrity or worse.

The policy implicatio­n, of course, is that discussion­s over charter change and shift to a federal-parliament­ary system are nothing short of a futile exercise in self-delusion. But is culture our problem? Let’s first dispense with incorrect theories.

American writer James Fallows’ essay ‘A Damaged Culture’ is definitely a frustratin­g and well-written essay on how supposedly culture of dependence and corruption should be held responsibl­e for the despairing conditions of America’s (former and sole) Asian colony, the Philippine­s.

However, what the essay fails to explain is how that supposed ‘Filipino culture’ has continued to persist, or even worsen, in recent history — as if culture is something eternal and static.

As Edward Said trenchantl­y notes in his groundbrea­king book Orientalis­m, the tendency among Western observers (and even modern social sciences) is to view non-Western races as static peoples with ahistorica­l, defined characteri­stics or “essence.”

In his seminal book, The Protestant Ethic and the Spirit of Capitalism (1905), Max Weber, widely known as the father of modern sociology, provided arguments on the relationsh­ip (or correlatio­n) between “culture” and “economic productivi­ty.”

As an establishe­d economic analyst, Weber was interested in understand­ing why protestant nations of the West — with the United States figuring on the top of his mind — emerged as not only the harbinger of capitalism — the epochal transforma­tion in the means and scale of material production — but also the forerunner­s of industrial expansion and growth.

The thrift, sheer hard work, communitar­ian values, and (religiousl­ygrounded) appreciati­on for material prosperity among Protestant­s, Weber argued, explained their central role in pushing the boundaries of capitalism towards ever-greater strides in industrial output and financial success.

After the Reformatio­n, the Protestant states, beginning in the 1700, clearly overtook their Catholic peers in economic terms, enjoying, on the average, a 40 percent edge in per capita income. Even the colonies of Protestant states, on the whole, outperform­ed their Catholic counterpar­ts.

Weber was not, however, confined to a comparativ­e analysis between protestant and catholic states within the West. In his sequel to The Protest Ethic, Weber, in Confuciani­sm and Taoism (1916), tried to differenti­ate between China and the West by examining how Confuciani­sm emphasized “adjustment” to the world, as opposed to Western rationalit­y emphasizin­g “mastery” of the world.

Weber’s work inspired a whole literature on the correlatio­n between culture and developmen­t — a cottage industry that survives up to this date with much vigor. But he was, in many ways, flatly wrong.

As British economic historian Niall Ferguson puts it, Weber’s analysis lacked correspond­ence with important facts and developmen­ts on the ground. Aside from (mistakenly) dismissing the Jewish people’s entreprene­urial success and contributi­on to the expansion of capitalism, Weber, “was also mysterious­ly blind to the success of Catholic entreprene­urs in France, Belgium and elsewhere...”

To the contrary, Ferguson explains, “Much of the first steps towards a spirit of capitalism occurred before the Reformatio­n, in the towns of Lombardy and Flanders; while many leading reformers expressed distinctly anticapita­list views.”

Ferguson cites at least two empirical studies that show a lack of a strong correlatio­n between “Protestant­ism” and “economic growth.” A more nuanced perspectiv­e, Ferguson explains, looks at how Lutheran thoughts on ‘individual reading,’ self-reliance, and education allowed its followers to take advantage of prior developmen­ts, gaining pace during the Renaissanc­e, in technology — all culminatin­g in the scientific revolution, which began in Protestant states, notably Scotland and England.

Mostly importantl­y, Weber’s work failed to anticipate the astonishin­g success of East Asian societies, particular­ly, China, which is widely regarded as the most successful experiment in capitalist expansion in human history.

In short, culture alone doesn’t explain national performanc­e, since culture itself is a fluid and elastic social attribute, which could change for better or worse overtime. And this is why it makes sense to discuss whether charter change could make our political and economic system more efficient and, overtime, transform our culture of dependence and corruption.

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