On Philippine Political Economy

Examining the Philippine Economy

Salient Points to PonderThe Philippine economy is a highly unequal one.

Wealth and economic opportunity are highly concentrated among the privileged.There exist significant barriers to economic success.

Historically, the performance of the economy can only be described as modest.

Periods of growth have been outweighed by recurring bouts of economic crisis.

Some More Salient Points to PonderPolitically, a lack of direction in economic policy has been the rule, not the exception.

Notwithstanding the number of capable economic managers in the country.

Further, attempts to reform the economy have been stymied on numerous occasions or remained ineffective.

The political-economic question is, why?

Different Kinds of States, Different Kinds of Capitalism

States as Bureaucratic EntitiesThe modern state is characterized by, among other things, its bureaucratic structure.Bureaucracies exist in order for government to function effectively and efficiently in spite of social complexity.

Bureaucracies are the rational-legal structures that exist within government that delivers services in a

fixed, predictable and continuous manner.

State AutonomyPa

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But Previously...?

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Rent-Seeking Bureaucratic

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AnalysisThe Philippine state is patrimonial-oligarchic because it is captured by the vested interests of an elite class.

Ironically, it was through governance that such a dominant class cemented its place in society.

Hence the reality that economic success or failure in the Philippines has often been tied to access to the state apparatus.

More AnalysisThe patrimonial-oligarchic nature of the Philippine state is further entrenched by our own political culture.Hence, the ineffectiveness of policies aimed at reforming either the economy or state institutions, which fly in the face of established interests.

Not only has the state been unable to muster the political will to transform the economy:

it has been generally proven incapable at performing those roles for sustaining a free-market economy.

Even More Analysis?!Understanding the formal structure of institutions is insufficient to explain how they affect society.

It is perhaps more important to understand how they substantively worki.e. “What they are” vs. “What they do”

States can be powerful agents of economic transformation depending on a confluence of factors.

By Way of Conclusion

For the Philippine state to be an effective agent of economic transformation, it must at least......overcome the prevalent political culture in the business of governance.

...help offer alternative means to mitigate the dominance of the landed oligarchy....become more accessible to interests outside the traditional oligarchy.

...engender a professional and apolitical bureaucracy (in the true sense of the word).

On the Brighter Side...

There are many other countries far worse off than the Philippines.

(If it wasn’t so tragic it might just be funny!)

~end~ ⓒ ベレン●ブライアンFueled by Apple Sauce