THE ROLE OF PHILIPPINE CORRUPTION IN THE GLOBAL ECONOMIC ORDER

By: Michael Ambrozewicz & Fiorenzo Arcadi

The US finally got the attention of Sergey Lavrov, the Foreign Minister of Russia, with the deployment of missiles to Europe and Asia. His demeanor shows concern and his resolve to act. Lavrov understands many things, especially Russia’s security and Chinese paranoia. Even if the intentions are arbitrary, it really makes no difference now.

Now, Russia and China’s intent is maneuvering their policy towards a militaristic one. Russia and China do not have the military and technological capabilities that the US has and they also realize the fiscal drain from the maintenance of a large army encompassing the globe. Where does the US government get the money to maintain the most sophisticated military and technological assets? Through the issuance of T-bills and bonds to the American public.

In geopolitical terms, for Benigno to label China a ‘Nazi Country’ is very suspect. The Philippines still execute more economic trade with China than the US. Any national leader with any degree of sensibility would never use such a term. So the question is, where did it come from and why? There are times when a corrupt leader understands their own motives rather than the motives of the people they were elected by. The South China Sea issue is based solely on the issue of having a missile defense system in the Philippines. Benigno’s corruption is based on discretionary government funds used by officials to buy and sell political favors. What it means is that the biggest economic crooks in the Philippines are the senators that have a direct hand in massive institutionalized thievery.

Benigno Aquino III, President of the Philippines, presides over a country that is plagued with corruption. Philippine anti-corruption groups have asked numerous times for his impeachment. He won his political term by cleansing political corruption, yet he is the biggest culprit in the deteriorating economy of the Philippines. The backward nation of their economy has more to do with their association and partnership with the United States. They were never able to build any industrial infrastructure because of their dependency on American generosity.

Asian countries that adopted this form of policy with the US are much worse off than their counterparts. Educational institutions in the Philippines still rank among the lowest in the Asian region and the world. Political corruption is so systemic that Benigno is known to be called ‘The Boss’. Any type of construction or government projects are filtered in some way through Benigno’s political hacks and then through Benigno himself. The President of the Philippines lacks a strong political personality to venture outside of the United States’ influence. It really doesn’t matter what leader the Philippine people choose. They can not rise above their economic rout and corruption.

The United States must be happy that the Philippines aren’t part of the OECD. Recent statistics have indicated a mass exodus of Philippine professionals, primarily doctors, to the US to accept less-qualified jobs such as nurses. The economic consequences of losing professionals in a third-world nation are quite drastic. Over 100 hospitals have been closed down and enrollment in professional education institutions has decreased significantly. The decline in infrastructure shows no sign of slowing down as the economy continues to slump due to uncertainty among political leaders. The complete failure of Benigno’s reign is the fact that he hasn’t expressed enough interest to be included in the OECD to reverse the economic slump the Philippines are currently facing.

The problem with Benigno’s political philosophy that you can not diminish corruption is the misallocation of funds that continues to damage the educational sector of the Philippine people. If you can not raise the standards of education in a country, then you can not enlighten them with economic growth. The provincial elites and Manila oligarchs control government-funded infrastructure that requires senators and government representatives to be paid with hush-money. This political and economic environment that the Philippines adhere to plays a significant role in how the US can influence the political judgment of the Philippines.

A poor uneducated population pays dividends to having US military bases in the Philippines. The Philippines are stuck in a vicious circle of interdependency on US culture and economic reliance and security of their nation. Very few countries have accepted this format in terms of their growth. The Philippines rely heavily on the credit ratings of Fitch and Moody to raise funds. This is the only type of loyalty that they could ever muster up from the US state department. The continued economic and political retardation is based on loyalty at the expense of growth.

The United States’ desire to have a missile defense system is primarily for the destabilization of the Asia-Pacific region. China is saying that if this is what the US wants, then why dance around the issue? If the US wants to aim the missiles at China, then they should go right ahead and do it. The One Belt, One Road project, that aims to connect the Eurasian countries including the Philippines, commands the support from over 50 nations. The supporting nations wean the American dominance and prestige within the region and are seen as a threat. Many of the US multinationals generate revenue from the Chinese economy. Their growth platform is therefore based on the population of China. The Obama administration is walking on a tightrope here. On the one hand Obama must appease the American military complex. On the other hand, the multinationals could wind up as the losers.

One good example is Apple Inc.; Apple has already seen some success in China unlike Japan, which contributes a relatively small amount of Apple’s overall revenue. China has increasingly become a market that is a major factor in Apple’s current financial success. Apple Incorporated reports that in the first nine months of the fiscal year, the Asia-Pacific region, excluding Japan, accounted for a staggering 20 percent of Apple’s revenue. This 191% increase in the Asia-Pacific region houses 1/5 of Apple’s $16 billion worldwide revenue and plays a significant role in their future growth prospects.

In geopolitical science, perhaps China and Russia have come to understand the US mind frame. The US State Department recently said that Chinese entities are supplying missile parts to countries of concern. Sergey Lavrov and Chinese Foreign Ministry Spokesperson Hong Lei stated that US accusations of biological activities for potential military use seems to be fabricated. China and Russia have always supported the US in their effort to curb Iran’s and North Korea’s nuclear proliferation program. It was the US that indicated that Iran will have nuclear capabilities in a year from now. You’re dealing with a country that simply knows how to play the game. For all parties concerned, it is testing their limits and their resolve.

Sergey Lavrov and Xi Jinping understand the importance of patience, but unfortunately it’s grinding to a halt and the US will be the one facing the consequences. The legitimacy of the world order is deteriorating.