RE-DEFINING GOVERNANCE to ADDRESS SOCIO-ECONOMIC INEQUALITY in the PHILIPPINES1 Teresa S
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ПРАВО В СОВРЕМЕННОМ МИРЕ Article RE-DEFINING GOVERNANCE TO ADDRESS SOCIO-ECONOMIC INEQUALITY IN THE PHILIPPINES1 Teresa S. Encarnacion Tadem* DOI 10.24833/2073-8420-2019-3-52-10-22 Introduction. The article is devoted to political and socio-economic processes in the Philippines in the context of re-defining and re-understanding of the “Good Gov- ernance” concept. The term “good governance” in the Philippines is generally defined politically. As noted by the University of the Philippines Diliman National College of Public Ad- ministration and Governance (UP NCPAG), “good governance” is mainly concerned with improving the quality of government (QOG) which it perceives plays a key role in reclaiming democratic space. Thus, the main thrust is “to address the issues of anti-corruption, ethical public service service, efficient and effective delivery of public services by concerned Philippine institutions” (Forum Concept of the CLCD2018). Material and methods. To address meaningful governance for UP NCPAG therefore is to assess the country’s democratic institutions. This all leads to the ma- jor aims to assess the country’s democratic institutions and whether democracy has led to meaningful governance reforms in the Philippine context. This definition of governance has generally characterized the assessment of the post-martial law admin- istrations of Corazon C. Aquino (1986-1992), Fidel V. Ramos (1992-1998), Joseph E. Estrada (1998-2001), Gloria Macapagal-Arroyo (2001-2010), Benigno S. Aquino (2010-2016) and Rodrigo R. Duterte (2016- present). Results. Although political reforms to strengthen the quality of government is indeed pertinent, this paper will, however, argue that these political reforms will only have a substantive impact on the democratization process in the country if it is coupled with policy reforms which address the growing socio-economic inequalities in Philip- pine society. In particular, there is a need for socio-economic policies which will ad- dress redistribution. Without this, not only will the economic but also the political gap between the rich and the poor remain wide, but it will also make the implementation of political reforms close to impossible. Discussion and Conclusions. The first part of this paper will, therefore, define how the term “governance” has generally been applied to the Philippines. It will eluci- date how its definition has been generally limited to the political sphere and why there is a need to expand on this to include the socio-economic domain. It will highlight this concern in the post-martial law administrations. The second part, on the other hand, will elaborate on this issue in the current Duterte administration. * Teresa S. Encarnacion Tadem, Ph.D., Professor of Political Science, College of Social Sciences and Philosophy, Executive Director, Center for Integrative and Development Studies, University of the Philippines Diliman. e-mail: [email protected] ORCID ID: 0000-0003-0397-2932 1 Paper presented at the International Political Science Association (IPSA) Joint Coloquim of Research Committees 14, 28, 50 and 13 “Diversity and Democratic Governance: Legacies of the Past, Present Challenges and Future Direc- tions?” University of Sarajevo, Bosnia-Herzegovina, 12-15 June 2018. 10 Право и управление. XXI век ПЕРЕСМОТР ГОСУДАРСТВЕННОГО УПРАВЛЕНИЯ Introduction empowering and which thus also address the problems of the basic sectors. This is not only in he political definition of governance is terms of how growth will be distributed across generally derived from its association class but also along sectors, for instance women Twith government’s primary role. There and the indigenous peoples. In other words, po- is thus the need to strengthen government in- litical reforms will only be mere palliatives or stitutions to make these effective instruments bandaid solutions to consolidating democracy in implementing political and socio-economic in the country if it is not coupled with socio- policies. The major concern in developing soci- economic policies which will address growing eties, like the Philippines, is the issue of corrup- class discrepancies. However, one of the most tion which impedes the efficient fulfillment of important political tendencies of our time is a government programs. certain strengthening of authoritarian elements “Governance, however, is also a broader in the political regimes of the world [47. P. 98]. term than govenrment”, whereby government This trend is not global so far, but it is important is seen as only one of the institutions involved to understand how local specificity affects the in governance. It is therefore possible to have processes of democratization. “governance wtihout government” [16. P. 74]. Bad governance and exclusive growth. The Furthermore, the wider use of the term “reflects argument for good governance as the panacea the blurring of the state/society distinction, to addressing poverty was illuminated during resulting from changes such as the develop- the martial law period, whereby the Philip- ment of new forms of public management and pines was the basketcase of the Southeast Asian the growth of public-private partnerships” [16. region. This was, however, not blamed on the P. 74]. The involvement of the private sector economic policies which were perpetuated by through partnership with the state is under- the International Monetary Fund (IMF) and the standable given the growing complexities of so- World Bank but on the corruption of the Mar- ciety whereby the state cannot do it alone. This cos dictatorship. Thus, there was no economic definition however sees the state as class “neu- growth to address the country’s poverty and tral” and for private partnerships, it assumes a underdevelopment. Fast-forward to the post- level playing field. martial law period, and one would see that the Governance and the neo-liberal development country continually enjoys a high economic paradigm. For advocates of the neo-liberal de- growth rate, as high as 6% to 7%. “In 2017, the velopment paradigm, the term governance is Philippines’ 6.7 percent full-year GDP growth compatible with what it is advocating for, that remains one of the fastest in the region, after is, development which emphasizes on the role China’s 6.9 percent and Vietnam’s 6.8 percent” of the market, liberalization and/or free trade, [30]. This was validated by the World Bank in deregulation, and privatization. Thus, for the its June “Global Economic Prospects 2020” re- business community, the major concern is “eco- port which stated that the Philippines “will re- nomic governance” which like “political gov- main as one of the fastest-growing countries in ernance” is concerned with levelling the play- East Asia” at 6.6 per cent [23]. But there is still ing field and strengthening institutions for the massive poverty and the further widening gap efficient and unimpeded implementation of between the rich and the poor. Furthermore, economic policies. It is also generally concerned there is still unabated rampant corruption. with regulating competition among members of Such a growth is also attributed not mainly the business community. The major role of the to neo-liberal economic policies but to Overseas state is thus regulatory. The mantra therefore is Filipino Workers or OFW remittances which, lesser government and more private sector. according to the Bangko Sentral ng Pilipinas, A basic limitation of these perspectives of (Central Bank of the Philippines) in 2017 to- governance is the assumption that everyone talled to USD28 billion [10]. As of July 2018, can participate if the rules are followed and OFW remittances totalled to USD2.7 billion. implemented. But even if this is the case, not This is “higher by 4.5 percent compared to the everyone can join because only those with the level posted in the same month in 2017” [19]. means can do so. In other words, in societies Deprived of job opportunities in the coun- like the Philippines, which is marred by wide try which can afford them a decent living, socio-economic inequalities, only a few can OFWs are forced to go abroad to seek greener partake in society’s political and economic ac- pastures. This is because the high economic tivities. There is a need therefore to widen the growth in the country is also jobless growth. definition of governance to include the socio- Joblessness is mainly found in the agriculture economic policies which are redistributive and and manufacturing, sectors where one finds the №3(52)/2019 11 ПРАВО В СОВРЕМЕННОМ МИРЕ vast majority of unemployed Filipino people. global growth”. Coming from the IMF, this call Instead, the country has the growth of the ser- is ironic given that for 40 years, thisi nterna- vice sector in the form of the business process tional financial institution (IFI) “has driven eco- outsourcing (BPO) companies, which mainly nomic liberalization of global economies” [42]. consist of call centers; hotels and malls, as well This brings forth the issue of global economic as property development, catering generally governance. The triumvirate which has dic- to the needs of the upper- and middle-classes tated the global development trend and which of the Philippines. The popular usage of good has impinged on local economies are the IMF, governance does not address this concern. the World Bank (WB), and the World Trade Or- Without addressing socio-economic in- ganization (WTO). equalities, political reforms in the country will Unlike the IMF and the WB, which were es- fall short of addressing the power structure tablished in the 1940s, the WTO was founded in which currently defines Philippine society. 1985. The IMF “was set up to oversee the global “There is no checks and balance and does not rules governing money in general and, in par- bring forth a competitive environment. In other ticular, to maintain currency stability through a words, society is no longer democratic” [43]. system of fixed exchange rates.“ Since 1971, the The argument therefore is good governance is IMF has embraced a neoliberal economic mod- impossible if socio-economic inequality is not el, and requires countries to carry out stringent adequately addressed.