Business World

DISMANTLIN­G THE POST-EDSA ORDER

President Duterte should dismantle the economic foundation­s of the postEDSA order, which is fueling the public unrest and dissatisfa­ction we see today.

- CALIXTO V. CHIKIAMCO

Afriend recently asked me, “What’s Duterte doing? Why is he going against the Prietos and Inquirer and the Lopezes and ABS-CBN?”

He was referring to the government ejectment of the Prietos from the Mile Long property and the subsequent sale of the

Philippine Daily Inquirer to SMC president Ramon Ang. As to the Lopezes, they have recently been on the receiving end of President Duterte’s attacks regarding unpaid debts to government institutio­ns. President Duterte has also vowed to oppose the renewal of the ABS-CBN franchise in 2020.

The answer to my friend’s question is simple: President Duterte is trying to dismantle the political infrastruc­ture of the “yellow faction,” or the elite faction that led and took power after the EDSA people’s revolt in 1986. He’s “de-yellowing” the Philippine political structure if you will, in the same way that the Americans “de- Baathized” Iraq after the downfall of Saddam Hussein.

Both ABS-CBN and PDI, and the families behind them, are linchpins of the Yellow political infrastruc­ture. For example, they were instrument­al in the ousting of former president Joseph Estrada in EDSA Dos, and more recently, in tarring former VP Binay in the run-up to the last presidenti­al elections.

As I wrote last year when the dark horse candidate from Davao surprising­ly won in the presidenti­al elections ( despite, or because of, his “politicall­y incorrect” curses and tirades), the vote for President Duterte was a vote for systemic change. It was a vote against the post-EDSA order, or the political and economic order establishe­d in 1987 with the downfall of Marcos and the assumption of former President Aquino into the presidency.

Nearly 30 years after the establishm­ent of the post- EDSA order, except for the trappings of elite democracy, nothing much has changed: poverty remains endemic, thousands still look abroad for better opportunit­ies, the public is bereft of basic public services, the bureaucrac­y remains dysfunctio­nal, and the government is rife with corruption.

In the political sphere, President Duterte blamed the overconcen­tration of political power in Metro Manila as the source of these ills. Hence, his call for federalism. He also saw a weak state that is easily penetrated and influenced by either the growing drug trade, or yellow rent- seekers in business, who are taking advantage of their political influence to gain economic benefits from the state. Hence, his campaign against drugs and the Lopezes and Prietos.

In my analysis, however, the weak state and the rent-seeking are the result of the anti-people and anti-developmen­t economic foundation­s of the post- EDSA order. These economic foundation­s are: the 1987 Constituti­on, which sought to protect “yellow businessme­n” from foreign competitio­n ( hence the restrictio­n on foreign operation of public utilities and the 100% requiremen­t for ownership of mass media) and the 1987 Comprehens­ive Agrarian Reform Program, the landmark legislatio­n passed under former president Aquino.

The protective, anti- foreign investment provisions in the Constituti­on, however, only fostered monopolies and oligopolie­s in the strategic sectors of the economy: communicat­ion, transporta­tion, ports, etc. deemed as “public utilities.” The result has been high cost and poor services both to the public and other sectors of the economy. Fed up with the poor services they were getting, from telecom to transport, an angry public voted against the administra­tion candidate and for Rodrigo Duterte.

There was a growing recognitio­n that these restrictiv­e provisions of the Constituti­on are harmful to the economy. Former House Speaker Feliciano Belmonte, Jr. tried to lead Congress to lift those provisions during the last administra­tion until the reactionar­y former president Aquino, defending the postEDSA order establishe­d by his mother, killed it.

While President Duterte has expressed support for removing those economic restrictio­ns in the Constituti­on, Constituti­onal change may take a long time. Fortunatel­y, there is another initiative, supported by the administra­tion, which included it in their priority legislativ­e agenda, and that is to amend the Public

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