Why Philippine Elite Schools Are Inclined Towards Statism

Recently a libertarian colleague frustratingly observed that elite Philippine schools appear biased towards socialism.

Before dwelling directly with this issue, we should first look at the bigger picture and ask whether Filipinos, in general, are inclined towards (classical) liberalism or socialism.

In observation of the major source of influences which shapes the public’s mindset—particularly, the context of TV and newspaper or mainstream media’s reports and opinions, combined with the influences of the Church (largely the Catholic Church), one may conclude that Filipinos seem largely predisposed with the notion of social democracy (socialism).

And this is why domestic politics has popularly but erroneously been seen as the elixir to prosperity: just put in the “right” people and everything will be fixed. Yet this prevailing mindset has led to the public’s undeserved fixation towards politics at the expense of enhancing productivity.

And conversely, this seems to be the reason why (classical) liberalism seems to be a strange and unpopular concept here.

And only with the help of the internet has the principle of individual freedom, upholding private property as means of production, freedom of contract and social cooperation (or peace) via free trade gradually spread to a handful of adherents.

And likewise given that the domestic education industry has been highly regulated in terms of the enforcing curriculum standards, education cycle (see How Bro. Armin Luisitro’s 12 Year Basic Education Cycle Will Benefit The Big League Schools), the obsession towards compulsory education (e.g. subsidies to private schools for underprivileged students- See Is There A Brewing Bubble In The Philippine Education System?) and in many other aspects, this only suggests that Philippine educational system could somewhat constitute as a form ‘indoctrination’ towards the acceptance of state absolutism.

Apparently this hasn’t escaped the elite schools.

But there seems more to this.

In my view the most important factor is what I would call this the insider-outsider dynamics.

Insiders, represent the symbiotic relationship between the economic elite and ruling political class while the outsiders are the average citizen.

In consideration of the operating framework of the domestic political economy, where the Philippines is considered economically less free, and where, to quote Joe Studwell in Asian Godfather: Money and Power in Hong Kong and Southeast Asia (bold highlights mine), ``business interest gain so close a control of the political system that they are unaffected by the changes of government that do occur (as in Thailand and the Philippines). In both instances politicians spend huge sums to maintain a grip on power that has some semblance of legitimacy. This can only be financed by through direct political ownership of big business or more usually, contributions from nominally independent big business that is beholden to politicians. Whichever, the mechanism creates a not entirely unhappy dependence of elites between politicians and tycoons”, the elite schools has served as THE breeding or training grounds into fostering and nurturing the union of this exclusive insider political-economic relationship.

In other words, the primary reason elite schools have been inclined towards statism is because they benefit from such relationship. They represent the status quo.

Think of the Presidents who came from the ranks elite schools, including the incumbent. Or think of the cabinet members or bureaucrats who emerged from such top rank schools throughout the past and present administrations.

In addition, think of all those “donations” made by “Godfathers (tycoons)” to the elite schools, after having financially benefited from “political concessions” (monopolies, subsidies, cartel, access to funding, and etc...).

It’s been a give and take for the elite schools and the privileged political and economic class.

This also means that for people aspiring to get assimilated with the privileged clique, the best chances to gain entry would be through the elite schools route, via networking or by establishing connections. And obviously the passport has costs—skyrocketing tuition fees!

This also implies that elite schools are likely to fight to maintain status quo by promoting statism, despite the oxymoronic rhetoric towards ‘good’ government.

However, not all of the graduates of the elite schools aspire to be part of the insider. And I am talking about myself and a handful of emerging local contrarian classical liberals.

That’s because the status quo political economy benefits some at the expense of the rest of the society by instituting inequality of political and economic power through arbitrary laws and regulations.

And classical liberalism hopes to disentangle this “inequality”—by giving everyone (or democratizing) the “equality” of opportunity to succeed.

At any rate, for my colleagues, Murray N. Rothbard offers the best way to disseminate the principles of classical liberalism...

This is why, by the way, strategically, if you're an Austrian, you shouldn't spend time trying to convert Paul Samuelson or Milton Friedman. These guys are not going to be converted: they're locked into their paradigm. You convert people who are just coming up, new people, people who are on the fence. Graduate students, these are the people you can convert. Don't waste your time trying to convert Samuelson or Friedman or whoever the other paradigm people are.