Philippine Corruption: Not Because Of Political Culture, But Due To State Capitalism

In watching the live coverage of the unfolding Libya unrest at the Al Jazeera.net, a news segment reported on the 25^th celebration of People’s Power revolution here, in the Philippines.

Al Jazeera interviewed a local political analyst who said that the People Power has not vanquished many of the deeply rooted deficiencies, primarily corruption, in the Philippine society mainly due to “political culture”.

This is a vivid example of misreading the effects as the cause.

Where the definition of Culture, according to wikipedia is “the set of shared attitudes, values, goals, and practices that characterizes an institution, organization or group”, this only means that what has been represented as “political culture” is actually the embedded incentives that has shaped “the set of shared attitudes, values, goals, and practices” of society.

Obviously, corruption as a culture didn’t emerge mainly from tradition or religion, but from arbitrary “noble sounding” anti-competitive and redistributive welfare laws which has underpinned the local political economic platform.

Given the social democratic ethos of the local society, where government has been romanticized as supposedly the nation’s “would be” saviour, and where the failure to attain government utopia has been attributed to the lack of virtuosity, then obviously, but unknown to many including the above expert, economic dependence based on non-price sensitive political distribution of resources only nurtures and feeds on corruption.

This is because society’s main energy have been directed towards lobbying, in order to secure politically granted economic rents, instead of competing to satisfy consumers via voluntary exchanges.

And that’s how corruption emerges—by determining society’s winners and the losers, the politically granted winners rewards or shares the rent with the political authorities.

So the maxim “it is NOT what you now but WHO you know” encapsulates the operating environment under the political culture of overregulation and patron-client based corruption or state/crony capitalism.

Thus the expectations of a virtuous government represents as no less than signs of ignorance of how the politics of violence has and will always be wielded. And that’s why we keep getting the same set of recycled leaders to the dismay of the many wrongheaded deluded idealists.

The only way to reconfigure “political culture” is NOT to elect or put to power a virtuous central planner, which is an illusion and a source of sustained frustrations, but to divert the energy or activities of the population from politics to productive voluntary exchanges.

We have to remember that governments comprise of human beings who suffers from the same flaws as everyone else, i.e. subject to personal biases, lack of knowledge, operates on preferred networks and comfort zones, has their own distinct and most likely flawed perception and interpretation of events and etc...

Importantly politicians and the bureaucrats are also self interested agents whom are subject to personal preferences and needs—career, self esteem or etc…

The only difference is that they have the mandate to use force over us.

So the power to control and the human aspect of supposed “public servants” makes them vulnerable to asymmetric (patron) exchanges with select economic clients.

Thereby the only way to eradicate corruption is by reducing dependence on political power as means to distribute economic opportunities, which alternatively also means expanding society’s reliance on the price based market system.

We can start with the junking of many of inequitable and protectionist laws and streamlining of the others.

In short, let the rule of law and respect of property rights prevail, culture will follow.