Solving the Financial Crisis

Yes, the Philippines is in a financial crisis. As if we needed President Arroyo to admit it before we realize it. Did we really think that by not talking about it, the probem would just go away? A lot of proposals has been made in order to make up for the huge budget deficit and the burgeoning private loans. Three of which are tax reforms, cutting the Internal Revenue Allotment (IRA) and the slashing off of the legislators Countrywide Development Fund (CDF), more popularly known as the pork barrel. Although these three proposals may look good on paper, I doubt if it will solve the problem on a long-term basis, or if it will solve anything at all.

Tax reforms will only pose an added burden on those who are already, and for a long time have been, suffering from the economic crisis. As I have already poined out, tax reforms will most probably have a bigger impact on those who do not have enough to cover their basic neccessities while those who are enjoying more than enough will juts have to give up a few luxuries, if ay at all.

Similarly, depriving local government units (LGUs) of their IRA will only manage to deprive the struggling LGUs of much-needed resources for their constituency’s basic needs and to solve their own problems which have time and time again been snubbed by the government, unless a photo op is available. Not only would this policy be unfair, it is, above all, UNCONSTITUTIONAL.

Meanwhile, although I am for reducing the legislators’ pork barrels, I am not agreeable to totally depriving the legislators of funds. Currently, each representative is entitled to P70,000,000 (P70 MILLION) while each senator is given P200,000,000 (P200 MILLION) each year. Each legislator may use it as they deem fit to serve the interests of their constituents. Undeniably, most legislators use these funds to either earn pogi points by making waiting sheds and paving roads or to fund his personal needs. It woul be prudent to leave the legislators with funding to maintain the balance of power among the different branches of government. Moreover, it would also serve the best interest of the country if the President herself, would serve as an example to other public servants by slashing some of her own “pork barrel” known as the intelligence fund and social fund.

While these may solve our problems for the meantime, or rather would seem to solve it, we still face a rather bleak future beyond this fiscal crisis. The current fiscal crisis is symptomatic of our government’s bigger problems. Public funds are slim due to tax evasion, most of which continue to be ignored by the government, and most of the little we have are lost to the systemized corruption in the government. Unless there is a shift in our culture, unless there is a change in the status quo by reducing corruption and changing the prevailing paradigm, we will continue to suffer, economically, and more importantly, morally.

Typhoon or no Typhoon

Allegedly, two typhoons hovered above the country but never hit us all along. However, most of Luzon still suffered the repercussions of a typhoon. As of yesterday, Pampanga, Pangasinan and San Miguel, Bulacan were declared in a “state of calamity”. There should be a warning signal for things like this even if there wasn’t an actual typhoon within the country. Let us not be idiots and slaves to our own rules. DUH! Although there wasn’t any typhoon or typhoon signals, there was obviously enough rain and wind coming our way to wreak havoc.

Moreover, something has to done as precaution against the yearly barrae of typhoons in Luzon and some parts of Visayas. Every year, usually during the same time of the year, typhoons come in, destroy homes, crops and even end a few lives but apparently, the government is not doing anything to safeguard life and property. Every year, people are evacuated, handed out a few relief goods and left to their own devices after the photo ops. Surely, something can be done to prevent the yearly destruction.

Needless to say, most of the flooding would have been avoided if the forest were not deforested and the street seweres were not clogged with litter.

The yearly and almost predictable destruction of life and property due to typhoons is very taxing. Not only on the victims, but also on the economy and on the regions of the country whose problems are pushed aside everytime a calamity of this sort arise. Surely, something can be done, a well-made, effective dam maybe, or actual working flood gates. Or there might be some other less expensive ways. But something has to be done.

Clean Air Act

These past few weeks, we’ve been reading about the air quality in Metro Manila. There has been much uproar over DENR’s claim that the air quality in the Metro is within the limits set in the Clean Air Act. The air quality monitors they set up around Metro Manila has been reading lower levels of air pollutants around the Metro. However, the residents have not experienced this. Nonetheless, it is indeed good news (if it’s true) that the pollutants levels have lowered. It appears that the Clean Air Act has been implemented sufficiently… within the Metro.

But it begs the question: how is the rest of the Philippines’ air quality doing??? Are there air quality monitors outside of Metro Manila? What changes have happened to the rest of Luzon, Visayas and MIndanao? Or is the Clean Air Act and its implementation taking effect in Metro Manila only? Needless to say, Metro Manila can be used as a benchmark, being the most polluted area in the country. However, it would only be fair to monitor the air quality elsewhere. Otherwise, the government, specifically the DENR, could be considered amiss in their duties.

Although I am quite confident that most of the rest of the country is within the set limits of the Clean Air Act, I would be more confident if there are actual evidence (read: scientific) that would prove it. Once again, the government has forgotten that there exists a Philippines beyond Metro Manila.

Proper and sufficient implementation of the Clean Air Act would mean the lowering of air pollution levels not only within Metro Manila but the rest of the Philippines as well.

Patriotism

Last night, my friend told me that I am a patriotic person, which is rare nowadays. He added that I can afford to be one anyway. In a time when it is getting harder to survive without working extra hard, it is increasingly difficult for Filipinos to care about anything else but themselves and their families. Understandably so.

When learning our elementary (and even high school) Philippine History, Jose Rizal, Marcelo del Pilar and the other reformists and revolutionists were painted as living in a hand-to-mouth existence. Isang kahig, isang tuka. Having to give up financially rewarding endeavors to spend their every peso for the pursuit of national democracy. Even now, the patriotic is seen as either the NGO (non-government office) worker who of live a simple, if not below average (financially), life lacking in luxuries or the socialite who has enough money to not be compelled to earn anymore.

What most people fail to see is that patriotism does not necessarily mean self-sacrifice. One does not have to be assasinated or live a life committed to a specific to be considered patriotic. To be patriotic is to be truly Filipino in every way. Every choice, every decision matters.

The simple choice of living here in the Philippines and making do with whatever is available here can be counted as patriotic enough. Although the choice of living and working abroad is a question of survival for most, there are some of us who would rather thrive abroad than tough it out here in the Philippines. Doctors, teachers and countless other professionals and businessmen would rather take up Nursing to make it big in the USA than help our economy here in the Philippines.

The simple decision of choosing to patronize quality (read: good) Filipino products over imported ones would help our economy a lot if more people did it. Buying local products wold ensure jobs for some of our kababayans and secure the business of others. Patronizing quality Filipino films would also eliminate or at least minimize the slew of R-rated trashy movies that are constantly being shown.

Even choosing local tourist destinations over Bangkok, Hong Kong and Singapore would help our country a lot. Not only would we be boosting our tourism industry but more so the countless Filipinos working in the tourism industry.

There are a lot of simple choices and decisions we make everyday and if we choose to make the good of our country part of these, we would be patriots without having to shed a blood or sacrifing our personal economic growth.

Thanks, but no thanks!

A lot of people, specifically, those in the media business have time and time again went by the belief that bad publicity is still publicity. Today, instead of reading articles about how successful the Kadayawan Festival here in Davao was, I read an article on how “unsafe” Davao streets are for suspected criminals on the Across the Nation section of the PDI (08/23/04). Even the most publicity-hungry city wouldn’t want this kind of publicity.

For the longest time, Davao City, along with the rest of Mindanao has been suffering from an unsubstantiated negative image which has left the city struggling to uplift its economy, specifically, its tourism industry. Despite of all the good things that has been happening in Davao, it is still most popular for its iron-fisted Mayor and the infamous summry killings supposedly done by the Davao Death Squad. It seems to me that Davao City or any other city outside Metro Manila only gets airtime or newspaper space when it has a controversy brewing.

How about praising Davao and Region XI for having the highest percentage of collected taxes for 2003, which by the way is 98%! Or how about pointing out the fact that inspite of the alleged summary killings, Davao has the lowest crime rate in the Philippines pegged at only about 5 per 1,000 residents? Take that! Aside from a couple of pictures on the Kadayawan, which I suspect to be nothing but mere space-fillers, there was not another word about it. Nothing on the 100% hotel occupancy rate, nothing on the various activities, the concerts, the fluvial parades, the float parades, etc, etc…

I could go on and on about the wonderful things here in Davao which I believe are worthy of a news article (or articles) that can be read by the entire nation. The point is, what does a city have to do to deserve national attention? Or rather, what does a city have to accomplish to achieve positive national attention? Bad publicity might at least put Davao on the map, but it isn’t something I appreciate. I would rather live in an obscure city than a city that is notorious for its “salvagers”.

On the Proposed Tax Reforms

On the top of President Arroyo’s ten point agenda is the implementation of tax reforms which consist mainly of higher tax rates and heavier taxes on luxury items such as cigarettes. She defends this position by saying that it entails the sacrifice of every Filipino to keep our economy afloat. During one of her PR stunts aka Pulong Bayan Forums, she emphasized that for the government to deliver its services properly and adequately, the Filipinos should pay the price. I beg to differ.

Although I am not entirely familiar with our current tax system, I believe that the problem is not in the amount of taxes that people pay. The problem is how taxes are being collected (or not collected) and how the money is utilized. Although we have a current system in which people with more money supposedly pay bigger taxes, it is undeniably the people who earn or have less which feel the brunt of paying taxes from which they benefit minimally. Already, average (read: POOR) Filipinos are earning way beyond their needs with the progressing deflation of the peso, the rising oil prices, the over-pricing of basic utilities and the ever-increasing price of commodities.

Although the region is not wholly benefiting from it, Region XI registered 98% collection of taxes for 2003. Which only means that proper and adequate tax collection can be done. And it does not just entail work on the part of the government but more importantly, cooperation from the private sector, specifically, the big businesses. Currently, there is an overdue case against a popular taipan who owns/controls a lot of big businesses. How he and his companies managed to hoodwink the BIR for years amazes me. Despite of this known fact, the government still favors him and his businesses. If only cases like this are resolved swiftly and sufficiently, other tax evaders or would-be tax evaders would think twice before trying to BS the BIR.

Given that the systemized corruption in the government is unavoidable and already accepted as the Filipino way of life, I recognize that it is impossible to wholly rid of the possibility of misappropriation funds within the government. However, I do not believe that minimizing it is impossible. Sanctions and penalties on erring officials would discourage the corrupt practices within the system. As citizens of our country, civilians have the responsibility to be eternally vigilant of our public servants. Watching silently while our supposed servants deprive us of what rightfully belongs to us is nothing but criminal.

President Arroyo’s aim to keep our economy afloat is indeed commendable. But the means by which she wishes to accomplish it leaves so much to be desired. Unless tax evaders and corrupt government officials are rightfully brought to justice, higher tax rates would only mean more money for the corrupt to obtain. Even if some miracle happens and corruption is somehow decreased to the minimum, it is undeniably those who already do not have enough who will be suffering more. The imposition of higher tax rates right now would have minimal impact on those who can contribute more, perhaps forcing some people to give up a vacation or lessening the number of cigarettes they smoke, while burdening those who already have less than they need.

IRRELEVANT, for now

There has been much ballyhoo whether Gracia Burnham cleared or implicated the Armed Forces of the Philippines (AFP) regarding the alleged collusion with the Abu Sayyaf. For the moment, specifically for the on-going trial, I think that it is an irrelevant issue brought up by the defendants to cloud the on-going trial. Whether there was indeed a collusion between the AFP and the Abu Sayyaf does not prove or disprove the innocence or guilt of the suspected Abu Sayyaf members in this particular case. If indeed there was collusion between the AFP and the Abu Sayyaf, it does not make the Abu Sayyaf less guilty of what they did. Proving that the AFP had a hand in the crime that was committed does not make the crime less horrendous. Proving or disproving the AFP’s innocence is an important issue that should be discussed but should be saved for some other time, some other venue.

Davao Death Squad

For years, the government’s mantra against illegal drugs has been “Save the user, jail the pusher.” This is, supposedly, a proactive way of eliminating the illegal drugs trade. On August 2, 2004, the Mindanao Times, in its latest tally, has counted 52 summary killings by the so-called Davao Death Squad, a local vigilante group, who guns down alleged drug users and pushers. So far, there has been a recurring outcry regarding these summary killings from human rights groups but no real plan to stop it from the side of the government.

Although the supposed “mission” of the group is laudable, their means of doing it, is just not justifiable. Do these people really believe that through these summary killings, illegal drug users will stop their addiction? More often than not, drug abusers do not value their wasted enough. Threatening them with death, will probably have no effect on them whatsoever. Drug users are to be saved, not eliminated.

Moreover, most of those who were already killed are the so-called “small fish” drug pushers. Does anyone actually believe that these people who walk down the streets of Davao City have enough money to manufacture illegal drugs? These people, I daresay, are usually the victims. Victims of poverty driven into the illegal drugs trade. They are mere “runners” and distributors. Killing them would actually do no harm on the people who fund these illegal businesses.

Majority of Davaoeños have kept mum on the issue although they feel strongly against it. Maybe because they fear for their own lives. While some others do not feel that it is something they should worry about. Lives are being taken because of unproven allegations. The justice system is being undermined, the local government is paralyzed, and more importantly, the name and image of Davao City is being tainted. Do we really want to belong in a community which keeps its silence while a great injustice is being carried out? Do we want other people to stand by, watch and observe in silence while out fathers, brothers, cousins and friends are gunned down one by one instead of being offered help? Are we to be silent participants to the continued concealment of big time drug pushers, while their hired “runners” and distributors are gunned down one by one?