GDP growth driven by corruption? | The Manila Times Online

The reason elections here are so expensive [“election spending always has a big impact on GDP”] is because many candidates buy votes in order to achieve a pork barrel “jackpot,” otherwise why would they be so expensive as to impact GDP? I wonder if the candidates do an economic evaluation of the likelihood and size of the return on the investment in vote buying against the reward of the pork barrel allocation and the other benefits that they get? It can be no wonder that people get shot, and why in a well ordered state would Ms. Naploes be in fear of her life for exposing corruption or 90 percent of the murders of the many Filipino journalists exposing corruption have complete impunity?
The Philippines is over-politicized to a paralyzing extent and political power and the money that goes with it is a much sought after prize, once obtained don’t let it go, hence the dynasties. Political motivation is all about grabbing money and power whatever it takes and not as it should be to selflessly serve the people. To do any form of economic development here requires political patronage and there are usually other politicians and oligarchs pulling in opposite directions because they want it for themselves, thus paralysis. Of course you might say the same about China and other places but the difference here is that there an oversupply of selfishness, there is no sanction on the abuse of power and worse there is not even an appreciation of the need for [or is it the capability to actually implement?] sanctions on such abuse.
The dependence of the Philippine economy on its domestic capital market and “hot money” [which adds nothing to development] is fast becoming absolute and that is a very bad thing indeed. Is it really the nature of Philippines political class to be the “most selfish and culpable in Asia” as I read recently in a new book on economics in the region? I think that would be a tag that the Philippines really would like to dispense with and to do that requires a drastic wholehearted overhaul of the political and economic system. Discretionary funds obviously have to go and a full range of politicians need to be appointed by votes that are not bought and who actually want to serve the people and not themselves. Only then will the Philippines be “open for business.” Oh, and we need a bit of effective anti-trust legislation that is made to work, an executive branch of government that is properly paid and works to implement the law even-handedly rather than spending its time discussing regulatory dots and commas, a proper social security system, an effective rule of law and lots more real decent jobs, and a few more bits and pieces. And this list is not to achieve perfection or some form of ideal society it is just in order to make the Philippines a place that once again appears on investors radar screens as a place where you really can “do business.” Perhaps it’s just too much to ask?
via GDP growth driven by corruption? | The Manila Times Online.