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It is remarkable that little, if any, has been remarked about the
testimony of columnist Angelito Banayo before the Senate Blue Ribbon
Committee last month. Banayo was summoned to recount the details of
the “secret meeting” he, Jun Lozada, Senators Ping Lacson and
Jamby Madrigal had with Romulo Neri last December.
Reproducing a diagram Neri handed out at the
meeting, Banayo tried to recall the ex-NEDA chief’s explanation of
how the “political economy” has come under the “regulatory
capture” of “the national oligarchy.”
Banayo’s comprehensive recollection hinted at
a sharp memory, but his senatorial interrogators failed to mine it
for the gems it obviously contained. In fact—as Banayo
recalled—what Neri laid out was a critique of Philippine society,
outlining the dynamics of the wealth and power that are concentrated
in a tiny clique.
What perked the senators’ interest was the
mention of such names as “Ricky Razon” and “Tomas Alcantara,”
who were portrayed as exerting much influence on the Arroyo
administration.
Reference was also made to other big
businessmen—mostly ethnic Chinese—but for some reason the
senators decided not to delve any further on those magnates.
Taipan minefield
Why Lacson et al. feared to tread on the taipan
minefield, observers could only speculate. Unfortunately, just when
the Blue-Ribbon inquiry seemed to have finally hit upon the
underlying causes of corruption, the senators suddenly turned gun
shy.
The terms Neri—as recounted by Banayo—used
to describe his assessment of the state of the nation probably
sounded too scholarly for the senators’ intellectual threshold
and, more important, political purposes. Yet, these academic
concepts and constructs are precisely what can help us understand
what the heck is really wrong with this country.
For instance, “political economy” is used
to analyze the ways individuals and groups with common economic
interests have used politics to effect changes beneficial to their
interests. It refers to various, but related, approaches to studying
economic and political behaviors, ranging from combining economics
with other fields, to using different, fundamental assumptions that
challenge orthodox economic assumptions.
“Regulatory capture” refers to the
phenomenon where government regulatory agencies, supposedly
operating in the public interest, become dominated by the vested
interests of the industries they theoretically oversee. Vested
interests have a stake in the outcomes of political decisions.
Regulatory capture thus ensures that they will find means—direct
or indirect—to hold decision-makers captive.
“Oligarchy” is a form of government where
political power belongs to a tiny elite, distinguished by wealth,
family or military power. Power is not exercised openly as oligarchs
prefer to remain “the power behind the throne,” exerting control
through economic means.
The senators’ reluctance to dig deep into the
root causes of corruption—according to Neri, as recounted by
Banayo—is a disturbing signal.
They have readily accommodated derogatory
information on the President and her underlings to press their case
for her removal. However, their apparent aversion for a thorough
analysis of the underlying causes of corruption hints loudly of
their real motive—as well as the real likelihood that the problem
will remain even if GMA were somehow ousted.
Of course, lifting Executive Order 464 should
allow Neri himself to expound further on the political economy,
regulatory capture and oligarchy.
DENR cited
Secretary Lito Atienza of the Department of
Environment and Natural Resources has been dragged into the NBN-ZTE
scandal after he was “set up,” as he put it, by Jun Lozada.
Away from the Senate inquisition, however,
Atienza has been reaping good reviews. Recently, the World Bank
cited his department as the most transparent and accountable
government agency in the procurement of goods and services.
Although the WB citation has been largely
unpublicized, Atienza vowed to continue reforms that would eliminate
graft and corruption in the DENR.
The World Bank gave the DENR its high rating
after noting the following: the quality of notices published and
associated documents; registration of all suppliers and bidders;
on-line downloading of bid documents; identification of
participating bidders; posting of contract awards; and the average
period of posting awards notices from closing date.
Atienza said while he had made a good start at
the central office, the more challenging part involves mainstreaming
reforms to all DENR bureaus and field offices. He urged the private
sector and civil society groups to help the government push reforms
in the procurement process.
“The DENR will not let go of what it has
started and will ensure that adequate resources are provided in
implementing the law,” said Atienza, referring to Republic Act
9184, the Philippine Procurement Law, signed into law by Mrs. Arroyo
in January 2003.
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