The Public Choice Theory Applied to the Philippine Pork Barrel Scam

Public Choice represents “theories and methods of economics to the analysis of political behavior” founded on the notion that instead of political authorities acting to “faithfully carry out the “will of the people”” they act to fulfill self-interested goals.

Economist James Buchanan calls the public choice theory "politics without romance" from the illusion of the superiority of government fixes which instead can do more harm.

The Public choice on pork barrels, from economist William F Shughart II (bold mine)

Ballot initiatives, referenda, and other institutions of direct democracy aside, most political decisions are made not by the citizenry itself, but by the politicians elected to represent them in legislative assemblies. Because the constituencies of these representatives typically are geographically based, legislative officeholders have strong incentives to support programs and policies that provide benefits to the voters in their home districts or states, no matter how irresponsible those programs and policies may be from a national perspective. Such “pork barrel” projects are especially likely to gain a representative’s endorsement when they are financed by the taxpayers in general, most of whom reside, and vote, in other districts or states.

In short, political dispensation of taxpayer resources by incumbent politicians have concentrated benefits, which are seen by the public, and becomes focal point for localized vote generation. 

However these comes with diffused costs or burdens by taxpayers that has  largely been unseen by the public.

Let us apply this to du jour Philippine politics setting which involves the unfolding Pork Barrel scam via the Disbursement Acceleration Program (DAP)

From today’s Inquirer:  (bold mine)

Among the projects approved by Aquino were the P6.5-billion augmentation of lawmakers’ Priority Development Assistance Fund (PDAF) under the item “various local projects,” some P6.5 billion in “LGU support” and P2 billion in road works for his home province of Tarlac, said Bayan secretary general Renato Reyes Jr….

Reyes said the approved projects amounted to P32 billion, including P2 billion for Tarlac roadworks and another P8.3 billion “various local projects.”

Now, how about the public choice perspective of “logrolling” or trading votes in exchange of support for political goals? (bold mine)

In the first DAP memo issued by the DBM dated Oct. 12, 2011, the President signed and approved the release of P72.110 billion.

Another document, dated Dec. 21, 2011, or 10 days after the House of Representatives voted to adopt the articles of impeachment against then Chief Justice Renato Corona, showed the President approving additional projects worth P13.379 billion.

On June 27, 2012, or about a month after the Senate voted to impeach Corona, Aquino signed and approved another Abad memorandum seeking the “omnibus authority to consolidate savings/unutilized balances and their realignment.”

The connection? From another Inquirer article:

In a privilege speech in September 2013 defending himself in the pork barrel scam, Sen. Jinggoy Estrada alleged that senators who had voted to convict Corona had been “allotted an additional P50 million.”

“Honest” government or publicity PR ruse? 

From Bubble economy to bubble politics.