Monday, April 29, 2013

Prevalence of Poverty in the Philippines


While Mona Lisas and Mad hatters, sons of bankers, sons of lawyers 

turn around to say good morning to the night 

for unless they see the sky but they can't and that is why 

they know not if its dark outside or light

Mona Lisas and Madhatters, Elton John-Bernie Taupin, Honky Chateau, MCA Records, 1972


Mona Lisas and Mad hatters set to poetry the indifference of the rich and powerful towards the poor from an entirely separate time when the pace of life was slower, the world bigger and the population was only half  of what it is today. 41 years hence, radical changes took place where population exponentially increased, technology hastened pace of life while compressing  the world into a village and Sir Elton, contributed to the new era by departing from the stereo type macho rock star image by marrying another man. We thought, the world would never survive that, whew!
Still the indifference remained with the disparity between rich and poor becoming more acute where 1% of the richest owning 40% of the world wealth and a majority surviving on U$2.50/day. Some advance the idea that poverty ebbed somewhat , down 30% of world population from over 50% back in 1981. The World Bank even made an audacious announcement to eradicate extreme poverty by 2015, part of the millennium development goals.
Because the world will forever be burdened with scarce resources made more scarce by a burgeoning population compounded by greed and indifference, it will never rid itself of poverty. 


Here in the Philippines, scarce resources such as land and capital are controlled by less than one percent of the population (100M as of 2012). The  disproportionate distribution resulted in  26% of the population living below the poverty line and probably, the same percentage, sitting on its fringes. The abject poor consists of the 7% unemployed in the labor force plus another 19% underemployed  and their dependents. 
Poverty is a wholly economic perspective characterized by a set of parameters that deprive individuals of decent living conditions including adequate nourishment, shelter, clothes and education. Government views poverty with alarm knowing the direct proportion of hunger and rebellion. The devil and polluticians see a mass of corruptible souls to be exploited while the pious value poverty as a ticket to the pearly gate or its equivalent. The ordinary working stiff tries hard not to get sucked into it and those living it, may not be able spell the word. 
While so much  government initiatives (i.e the comprehensive agrarian reform program , the conditional cash transfer and country side development through the priority development assistance program among others) have been uploaded to alleviate poverty , one wonders why all these moves failed to make a dent on pervasive poverty. On top of the initiatives, the Philippines made so much  economic headway- the 6.6% GDP expansion, a comfortable foreign reserve and investment upgrades leading to commentaries of the country as the rising star in southeast Asia. Unfortunately, the economy always seem to be rising but never reaching the top with the impending landing into first world category always falling short of the runway of  reality.
Indifference theory
An assessment of the problem may lead to a conclusion that we've been pushing the wrong item as far as comparative advantage goes, therefore limiting investments. For a long time, labor has been the Philippines' comparative advantage made more pronounce by overseas remittance. Labor is the everyday man eking a living- technically capable, English proficient but considered the new nigger of the world and in his home, over taxed, under represented, underpaid and living in treacherous conditions.Labor could easily transform into a broad industry of entrepreneurs if nursed into that transition but, it is neglected. 
Look at the justice system. Magistrates reconfigured the process to serve solely the rich and powerful. A poor man cannot just enter the courts to press his rights. 
What is a temporary restraining order (TRO)? It is not a reevaluation of a case but a petition requiring security equal to 10% of the financial attachments. TRO is the exclusive domain of the rich. With all the TROs released, the justices now enjoy their renovated  Baguio hideaway of a seven star spa category.
Meanwhile, questions linger on controversial rulings. What led to the decision to open the gates of the party list system to every carpetbagger? Why the flip-flop on PAL?   How come the Vizconde massacre came out differently compared to the Abadilla five when both cases hung on the testimony of a single witness? Of the ombudsman, how can she let loose these people who jeopardized national security to enrich themselves. Are their lifestyles not enough evidence? Have we gone senile?
Lady justice maybe blind but she feels. Numbness on display by the justice practitioners is not making people comfortable on the whole much less about investment.
Insult to injury, there is under representation with the legislators who instead of protecting, defining and expanding rights are so absorbed with farm to pocket projects, ghost NGOs and realigning MOOE for additional perks. Legislators unleashed the cyber crime prevention act to stifle freedom of expression, burdened the public with EPIRA to answer for the skimming of profits and outright stupidity of stranded cost, decided to saddle us additionally with VAT while now campaigning under the platform of poverty alleviation.   
And of taxes, you know how much the government is ripping off your hard earned pay, almost half, 35% on income tax plus 12% for VAT, that is if you're a regular working man. If you're lucky to be above the formal economy, a taipan, a captain of industry, a professional, a sitting politician, or below the formal economy, a drug dealer, a gun runner, a pimp, then you pay only 12%.
What do you get in return for paying taxes, a justice system to protect your rights? An armed force to secure your well-being? Peace and order? 
Based on news, our police force is seemingly filled with psychopaths while the environment, of rampant crimes. It has gotten so bad that children have turned criminals and what do you know, the legislative body is looking at a bill that lowers the age for criminal liability. That is entirely lame. 
Meanwhile captains of industries get away with 5-5-5 contractualization and other unenforced laws for the labor group.
Equality as an economic ingredient
What is needed is an environment of equality where rights and privileges of every citizen would be protected;
where big and small landowners would not be deprived of the use of their assets, squatting would be crime, the CARP would issue justified valuation;
where misuse of funds by politicians would be prosecuted, no matter title or social standing;
where there would be just one set of laws to apply to everybody;
where dynasties would not be tolerated;
where civil servants fulfill their oaths of allegiance to the constitution;
where the court rules according to law;
where special interest are sacrificed for the common good, the party list system abolished;
where legislators actually know their craft;
where elections are not won by wealth;
According to the CIA fact book, our population ranks 12th in a universe of 239 countries with a density of about 300+/sq km (Macau has 19,000 people for every sq km). Government feels it is the biggest problem of the country and prescribed the RH as the strategy to combat the bloating numbers of the poor. I think their take on population growth is on the dark side.But the problem is not so much the increase but magnification of prejudice in our society. Prejudice and fear managed to shred our nation into ethnicity, religion, dialect, politics and creed. The RH is saying the poor cannot multiply because government cannot protect its rights. 
To fix the many social ill, the nation has to learn equality.Exacting equality will never eradicate poverty merely injustice. Injustice comes from indifference; indifference comes from wealth and power; wealth and power comes from undue advantage, a primary source of which is too much government intrusion but no governance.
Equality will never create heaven on earth but probably will create viable opportunities to neutralize the prevalent poverty.

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