Wishful thinking

In the faint hope that presidential candidates may listen, I will suggest a few goals that they should commit to if they become president. They should do so through a publicly-signed, notarized document, now, so we know they are committed.

First, they should commit to removing the high level of inequality where the family income of the poorest 40 percent is 13 percent of the total wealth while the richest 20 percent have 53 percent (we will need some specifics on how, what they’d do). The huge inequality that exists today must go. There must be no more who are poor. It is horrific that there are more poor people today than there were when GMA came to power. Some 43.9 million in 2000 on the Social Weather Stations’ self-rated poverty survey (which is a more reliable indicator) against 48 million in 2008. There could be no worse indictment of a leader than that—4.1 million more who are poverty-stricken.

There should be a promise that poverty incidence will be halved to 16 percent from 33 percent (to 16.8 million from 27.6 million poor people in 2006, using government’s rather questionable statistics), and per capita income will be $3,000-$4,000, making the Philippines one of the world’s upper middle-income countries, by 2016 (the next national elections).

Make this an equal society. A society that is not socialist, but where opportunity is equal for everybody, where everybody has an equal chance for a decent, fulfilling life. The government should play no favorites.

It won’t be done by doles, and it won’t be done through socialist dictate. It will be done by creating a truly free environment, not just one in name. One where businessmen will want to invest and build businesses that will give people jobs—the only way to break the poverty trap. Entrepreneurship will be actively supported.

The rich won’t be persecuted, they will just pay their taxes correctly so that the poor may be educated. So that, in turn, they may be qualified for jobs, so they may create their own jobs if they choose.

We are listed as one of the most corrupt countries in the world (139th most transparent).The Philippines is ranked worse today than when President Gloria Arroyo came into power. The corrupt, the really big ones, should be jailed. The money stolen will go to feeding the poor and keeping them healthy. The honest employee will be rewarded, the whistleblower will be applauded and protected. The government needs massive funding for all the services it should provide. It doesn’t have it because it is being stolen. Corruption can’t be stopped but it can be brought down to tolerable limits. Honesty must start from the top; the example has to be set.

The institutionalization of graft will be broken up. Any contractor who can bring proof of a bribe attempt should be given a 10 percent price advantage on the project he’s bidding for, or the next one if that one is already awarded.

Building infrastructure will be quickly and properly done so businesses will want to come. The 5 percent of GDP will be spent, not the dismal two to three percent outlay of recent years. Priority will be given to speeding traffic and people and goods movement in the Greater Manila Area where 33 percent of the nation’s economy is currently derived. The countryside will benefit from the money that will flow from making the Manila area more efficient.

Policies won’t be changed on a whim. They won’t be changed to favor a few or pander to populism. Policies will be announced on Day One and will only change for the better, or for very good and acceptable reason. And only after talking to everyone involved or likely to be affected.

There will be a free, open market economy with as few restrictions as possible. The government will only intervene to ensure adherence to the law, honest dealings of firms and individuals and maintenance of health, safety, and security standards. Government will (as Ramos said) get out of businesses business can do. It will not compete with the private sector nor impose market-distorting controls.

Government’s focus will be on assisting those areas where there is an inherent advantage: Tourism and its derivatives (such as medical tourism, retirement, etc); mining, to responsibly develop the enormous richness the country is blessed with; IT services, using the innate skills of the Filipino, and others. The Philippines will be known for its excellence in these industries. These will be the base for driving the economy to grow further. A GDP growth of seven percent per annum can be achieved if supported by these strategic industries, which will serve as basis for a more rapid poverty reduction. To do that, we need an environment where people will strive for excellence. Bahala na is not good enough.

An open-skies policy will be introduced to support tourism, but Philippine airlines will be protected from unfair, subsidized competition.

In education, there will be 12 years of schooling, 30 kids to a class in a properly constructed schoolroom, error-free books available for every child, teachers earning more than call center agents, and curricula that prepare children for a productive life.

There will be a major tax reform to make taxes more equitable—the rich will pay, the poor won’t. A tax consultancy firm will be hired to study practices worldwide and recommend the best systems, for radical solutions. Taxes on business will be competitive. Revenues must be generated in a much fairer manner. While that review is being done, the Bureau of Internal Revenue will be equally radically reformed. The 14 percent tax effort today is unacceptable. It should be at least 17 percent which was the peak in mid-1990’s. Everyone must pay their taxes.

The mining sector law will be amended to provide that the local government share of taxes is paid directly to them, not via the national treasury. In this regard, the local government units’ share of national taxes will be paid on time and without any discrimination.

Executive privilege will be canceled, government should have nothing to hide. You want to see government books? As a Philippine citizen you have every right to do so.

But it’s with our children that the real change must occur. The various religions should become more active participants in this task, a task God commanded us to do. Teach our children to live honest, moral lives.

Changing attitudes won’t happen overnight, but it can come in time if a start is made now. –Peter Wallace, Manila Standard Today