Centrist Democracy Political Institute - Items filtered by date: December 2019
Thursday, 26 December 2019 13:25

Part 2: DU30 vs the Oligarchy

My column last Wednesday, December 18, suggested negotiations with the water concessionaires from President Rodrigo Roa Duterte’s (PRRD) position of strength, after these people blinked. But the oligarchy-owned water monopolies are simply the tip of the iceberg. They are into big-ticket projects in the country and their tentacles are entwined into many of the “public-private partnership.” These long-term risk-prone investments, that government must not and can’t take on its own, need to be protected by all stakeholders, government, investors and the people. The President’s initial foray against the Oligarchy — that Ongpin episode — was a welcome development but an aberration and appeared tentative. It came off as a mere “palabas” — a theatre, as there was no clear follow through.

This time, it’s different. The Deegong clearly has the upper hand and this may usher in a new paradigm requiring fresh protocols.

The multi-faced oligarchy
The Oligarchy, a small group of families that hold economic power, perforce wield political influence, has been a feature of this country for more than a hundred years. Some wear different faces at different times with different regimes. But above all, they are the inevitable results of a free market economy imposed by our American colonials, which in some ways, we adopted but with a twist. We married it to our traditional political practices. But the President needs to understand the nature and character of the oligarchy. Not all are his enemies; nor are all enemies of the people. What he should be after are the leeches that suck the lifeblood and marrow out of our people, yet they prosper in all administrations because their allies are ensconced in all levels of government and the bureaucracy. We have senators and congressmen who need the oligarchy and the elites to win elections and win power. Many are DU30 allies, too. The people appointed in the regulatory agencies overseeing their monopolies are simply their “living quid pro quo,” and they will be there long after the Deegong is gone. Because of this unholy alliance their network permeates vital institutions of this country — the courts, the military, police, both houses of congress; the very bedrock of our cherished values of democracy, freedom and the rule of law which they have perverted to their ends.

This symbiotic relationship between the oligarchy and the political elite has to be dismantled; provided the Deegong understands that the rule of law be applied equally well — without he himself or his administration becoming the transgressors. Now a cursory lesson on what he is faced with.

The noveau riche
These people are more often than not bred in the petri dish of incoming regimes like his own using their nascent clout to expand their political connections. They are a ubiquitous lot, prone to conspicuous consumption showing off their wealth whose sources could very well be illegitimate. Their fealty is pledged to the regime that allows them upward mobility on the social ladder. These are the emerging cronies; toddler steps to the elite class, new to the game of wealth accumulation, nevertheless ravenousness in their acquisitions. Most originally come from modest economic and social ranks. If they can parlay their embryonic network and sustain their influence towards the next regimes in the next generations; they may undergo gentrification and perhaps a patina and nomenclature of “old money.”

Old money oligarchs
The leading ones are of Spanish pedigrees “…the Zobel de Ayala Family is one of the prominent names in Philippine business. Forbes Magazine listed them as the Philippines’ wealthiest at an aggregate wealth of almost $6.5 billion; but in reality, their wealth can be aggregated to almost $100 billion. All the local business taipans are but their princelings, like the Sys, Gokongweis, Tans, Ongpins, Cos and other Chinese sounding names.” (Zobel de Ayala Empire — The Rothchild Empire of the Phliippines, Makers of Philippine Presidents, Delmar Topinio Taclibon, MBA, PhD, DA)

Since perhaps the Spanish and American eras, these people truly begun to believe that they do important services to the nation. And indeed, they do; and in some perverted ways, they are patriots. Their motivations may be seemingly altruistic but heavily weighted towards their survival, expanding their wealth, preserving their political prerogatives but more importantly a sterling legacy they must leave behind. These people are the risk-takers, with long term views, pioneers in industries that need big capital and managerial talents — where government are incompetent to tread into. Having invested their family’s fortunes in the country, they will not jeopardize these and therefore must work in partnership with any transitory government. The big proviso is that they have to adhere to the rule of law. And this, the Deegong must internalize in his negotiations.

Over the decades they begin to undertake the responsibility for steering the course of events the country must pursue by stage-managing the political environment. And they indeed set the trajectory of the political arc without the transparency, accountability and consent of we, the governed. And there’s the rub!

They exist upon the sufferance of our perverted political-economic system. And this faulty structure allowed the elite and the oligarchy to survive, flourish and manipulate the transitory elected officials, who govern us. And like magnets, they attract the dregs of society — from the rent-seeking “movers & shakers” up to the highest circles of the mighty and powerful.

DU30’s predicament
Paradoxically, the oligarchy is also the very people who are in a position to bring about the necessary changes. No President has ever confronted them directly except perhaps Marcos who in the end elected to create his own but was consumed by the very class he set forth to destroy. But PRRD in so crude a manner has telegraphed his intent in no uncertain terms. These oligarchs must have understood that this President is too much of a “mad man” to burn them along with him. Mutually assured destruction (MAD) is a doctrine the President understands exceedingly well. And with his vaunted political will, the legitimate use of state violence at his fingertips, boasting his record of “kills” and the adulation of his base; the oligarchs need no further arguments that to preserve their class and their prerogatives they need simply to moderate their greed and align their interest with that of the populist president. Long shot, but the seeds of change could be planted now with the Deegong in the lead.

Unsolicited advice
Negotiation is my default advice. But this is by no means the end of the narrative. But this is a good start. The President’s needs to follow through producing the proverbial “win-win” to erode this wicked partnership with the political elite. PRRD has enough allies in congress to provide the legal underpinnings.

But beware, the sycophants and the quislings in the corridors of power.

They will be whispering in PRRD’s ears to back off. The President needs to install a team prepared to be on a war footing and strategizing the next moves.

As inferred in my last column, the Deegong’s “Best alternative to a negotiated agreement” (Batna) is one that is clearly supported by his base and I suspect, a healthy number of Filipinos. Revolutionary Government!

Published in LML Polettiques
Thursday, 26 December 2019 13:25

Part 2: DU30 vs the Oligarchy

My column last Wednesday, December 18, suggested negotiations with the water concessionaires from President Rodrigo Roa Duterte’s (PRRD) position of strength, after these people blinked. But the oligarchy-owned water monopolies are simply the tip of the iceberg. They are into big-ticket projects in the country and their tentacles are entwined into many of the “public-private partnership.” These long-term risk-prone investments, that government must not and can’t take on its own, need to be protected by all stakeholders, government, investors and the people. The President’s initial foray against the Oligarchy — that Ongpin episode — was a welcome development but an aberration and appeared tentative. It came off as a mere “palabas” — a theatre, as there was no clear follow through.

This time, it’s different. The Deegong clearly has the upper hand and this may usher in a new paradigm requiring fresh protocols.

The multi-faced oligarchy
The Oligarchy, a small group of families that hold economic power, perforce wield political influence, has been a feature of this country for more than a hundred years. Some wear different faces at different times with different regimes. But above all, they are the inevitable results of a free market economy imposed by our American colonials, which in some ways, we adopted but with a twist. We married it to our traditional political practices. But the President needs to understand the nature and character of the oligarchy. Not all are his enemies; nor are all enemies of the people. What he should be after are the leeches that suck the lifeblood and marrow out of our people, yet they prosper in all administrations because their allies are ensconced in all levels of government and the bureaucracy. We have senators and congressmen who need the oligarchy and the elites to win elections and win power. Many are DU30 allies, too. The people appointed in the regulatory agencies overseeing their monopolies are simply their “living quid pro quo,” and they will be there long after the Deegong is gone. Because of this unholy alliance their network permeates vital institutions of this country — the courts, the military, police, both houses of congress; the very bedrock of our cherished values of democracy, freedom and the rule of law which they have perverted to their ends.

This symbiotic relationship between the oligarchy and the political elite has to be dismantled; provided the Deegong understands that the rule of law be applied equally well — without he himself or his administration becoming the transgressors. Now a cursory lesson on what he is faced with.

The noveau riche
These people are more often than not bred in the petri dish of incoming regimes like his own using their nascent clout to expand their political connections. They are a ubiquitous lot, prone to conspicuous consumption showing off their wealth whose sources could very well be illegitimate. Their fealty is pledged to the regime that allows them upward mobility on the social ladder. These are the emerging cronies; toddler steps to the elite class, new to the game of wealth accumulation, nevertheless ravenousness in their acquisitions. Most originally come from modest economic and social ranks. If they can parlay their embryonic network and sustain their influence towards the next regimes in the next generations; they may undergo gentrification and perhaps a patina and nomenclature of “old money.”

Old money oligarchs
The leading ones are of Spanish pedigrees “…the Zobel de Ayala Family is one of the prominent names in Philippine business. Forbes Magazine listed them as the Philippines’ wealthiest at an aggregate wealth of almost $6.5 billion; but in reality, their wealth can be aggregated to almost $100 billion. All the local business taipans are but their princelings, like the Sys, Gokongweis, Tans, Ongpins, Cos and other Chinese sounding names.” (Zobel de Ayala Empire — The Rothchild Empire of the Phliippines, Makers of Philippine Presidents, Delmar Topinio Taclibon, MBA, PhD, DA)

Since perhaps the Spanish and American eras, these people truly begun to believe that they do important services to the nation. And indeed, they do; and in some perverted ways, they are patriots. Their motivations may be seemingly altruistic but heavily weighted towards their survival, expanding their wealth, preserving their political prerogatives but more importantly a sterling legacy they must leave behind. These people are the risk-takers, with long term views, pioneers in industries that need big capital and managerial talents — where government are incompetent to tread into. Having invested their family’s fortunes in the country, they will not jeopardize these and therefore must work in partnership with any transitory government. The big proviso is that they have to adhere to the rule of law. And this, the Deegong must internalize in his negotiations.

Over the decades they begin to undertake the responsibility for steering the course of events the country must pursue by stage-managing the political environment. And they indeed set the trajectory of the political arc without the transparency, accountability and consent of we, the governed. And there’s the rub!

They exist upon the sufferance of our perverted political-economic system. And this faulty structure allowed the elite and the oligarchy to survive, flourish and manipulate the transitory elected officials, who govern us. And like magnets, they attract the dregs of society — from the rent-seeking “movers & shakers” up to the highest circles of the mighty and powerful.

DU30’s predicament
Paradoxically, the oligarchy is also the very people who are in a position to bring about the necessary changes. No President has ever confronted them directly except perhaps Marcos who in the end elected to create his own but was consumed by the very class he set forth to destroy. But PRRD in so crude a manner has telegraphed his intent in no uncertain terms. These oligarchs must have understood that this President is too much of a “mad man” to burn them along with him. Mutually assured destruction (MAD) is a doctrine the President understands exceedingly well. And with his vaunted political will, the legitimate use of state violence at his fingertips, boasting his record of “kills” and the adulation of his base; the oligarchs need no further arguments that to preserve their class and their prerogatives they need simply to moderate their greed and align their interest with that of the populist president. Long shot, but the seeds of change could be planted now with the Deegong in the lead.

Unsolicited advice
Negotiation is my default advice. But this is by no means the end of the narrative. But this is a good start. The President’s needs to follow through producing the proverbial “win-win” to erode this wicked partnership with the political elite. PRRD has enough allies in congress to provide the legal underpinnings.

But beware, the sycophants and the quislings in the corridors of power.

They will be whispering in PRRD’s ears to back off. The President needs to install a team prepared to be on a war footing and strategizing the next moves.

As inferred in my last column, the Deegong’s “Best alternative to a negotiated agreement” (Batna) is one that is clearly supported by his base and I suspect, a healthy number of Filipinos. Revolutionary Government!

Published in LML Polettiques
NO, Mr. President, you can’t do that! We are a country of non-violent people and the rule of law, however misunderstood, still prevails. Your base may be swayed by populist harangue, still their default action is toward moderation and compassion — altogether noble Filipino traits. Many will tolerate your diatribe, as we ourselves are frustrated with this state of affairs. But your bullying won’t alleviate our frustrations. We too are exasperated like you when we don’t have water when we want it, at the time we need it. And there is something that smells when the suits filed for arbitration in Singapore were done in secret. And the stench even more pervasive when the Philippines lost the case awarding P3.4 billion and P7.3 billion payment to the two water concessionaires (“Aquino, Hilbay agreed to keep water arbitration suits secret,” Roberto Tiglao, The Manila Times, Dec. 9, 2019). The Filipino has been screwed by the past government, perhaps by sabotaging its defense, a “lutong Macao.” Perhaps we were meant to lose the case for monetary considerations. Perhaps!

They blinked!
They surrendered, just like that. But knowing these concessionaires, with this strategic retreat, they will lick their wounds then marshal their forces. That P10.7 billion is nothing to them — a drop in the bucket. They must really be making tons of money on us.

To recall, during your campaign, you labeled these people “‘a cancer on society’ and ‘illustrious idiots’ who flew around in private planes while the Filipino people suffered…the plan is to destroy the oligarchs embedded in the government. I’ll give you an example publicly: Ongpin, Roberto.” (Aurora Almendal, “Crony capital: How Duterte embraced the oligarchs,” Nikkei, Dec. 4, 2019.)

And you did. Your true believers were ecstatic. Even we ourselves, the Centrist Democrats did. But now he’s back and richer than ever. “Far from taking down the oligarchy, Duterte’s attack on Ongpin merely transferred some of his wealth to a more powerful family with whom Duterte has maintained a strong alliance… Gregorio Araneta 3rd, the son-in-law of Ferdinand Marcos” (Aurora Almendal).

This fight was elevated to something personal between you and the oligarchy. But is this really a dispute between you and the oligarchy, or are you just being goaded by populist demands of unthinking free-riders who simply want “freebies”? Alex Magno put it succinctly “… If the populists had their way, they would want water tariffs priced as close to zero as possible (Philippine Star, Dec. 7, 2019).

FVR and privatization
Meantime, you need to understand that these water contracts were perfected long before your watch and President Benigno “PNoy” Aquino 3rd’s administration; at a time when a universal call for privatization of parastatals (electric power, water and other utilities) were called for by multilaterals and international banks as preconditions for concessional loans. This was at a time too when President Fidel V. Ramos (FVR) successfully broke the back of the PLDT Inc.-Cojuangco monopoly ushering in the liberalization of communications, improving services, allowing cellphones and the internet to bloom.

Water privatization was being considered during the closing years of the Corazon “Cory“ Aquino administration, but the serious work started only when the financial crisis of July 1997 hit during President FVR’s time. The contract provisions were thoroughly examined by the organs of government, from the Metropolitan Waterworks and Sewerage System (MWSS), to the Investment Coordination Committee, National Economic Development Authority, Office of the Government Corporate Counsel and Department of Justice before the contracts were awarded to Manila Water of the Ayala and Maynilad of the Lopez families.

Romeo L. Bernardo, who was then-undersecretary of finance under FVR has this to say in his column “Introspective” (Business World, Oct. 13, 2019): “Water security is ensured only when long-term investment and financing for the sector are sustainably and efficiently done to meet the needs of a growing population, the economy and the environment.” And indeed, the two water concessionaires invested a total of “…P105 billion [and more] to upgrade and expand water and sewage network [and] achieved without adding to government’s fiscal burden or public debt exposure.”

Populist demands and govt interventions
But this water security was threatened in the subsequent administrations succumbing to populist demands, with the MWSS itself, “the partner” of the concessionaires, intervening to prevent gradual increases in tariffs and even push for arbitrary reduction in water rates. The medium-to-long-term investments by the concessionaires were compromised. This brought about the inability of the Lopez-owned Maynilad to sustain its operations and sell out to Manny Pangilinan’s group, “a lackey of Antoni Salim, an Indonesian.” (Rigoberto Tiglao, “The Arrogance of an Indonesian Magnate’s Lackey,” TMT, June 26, 2016.)

The international business community “… views the MWSS’ unilateral and arbitrary act of changing the terms or interpretation of the concession agreement, in total disregard of the contractual rights and intent of the parties, with grave concern.” This prompted the water concessionaires to file suits for arbitration in Singapore as they can’t receive fair hearing from our rent-seeking bureaucrats. And we lost!

In retrospect, water distribution, similar to electric power generation and distribution, is still a business where owners must make a profit, though highly regulated. Therefore, only the big guns in the country with enough capital for long-term investment can afford to get into the act. In the first place, tariff was controlled, perforce affecting their bottom lines, but limited to annual maximums; in this case not going beyond the “appropriate discount rate” (ADR). This is where the conflict starts, when government disregards procedures and the concessionaires start cutting corners and camouflaging costs — as in charging corporate income tax (allegedly anomalous) but has been tolerated for years. They have to pay their bank loans on their huge investments. Or close shop and return the concessions to government. And if they do, we are back to government subsidizing water and none coming out from the tap — like the dark days of old — prior to privatization.

Threats and intimidation
“I am prepared to go down as president and self-destruct. ‘Yang mga Ayala na ‘yan, bibirahin ko talaga ‘yan ng economic sabotage.” Your threats already worked. Additional ones are mere theater. Besides, you have the legitimate use of state violence. And these old families understand brute force.

So, my short-term unsolicited advice for the remaining years of your regime. Negotiate! Use the full majesty of your office to review the contracts to make the same fair for our people. You are only good up to 2022, when another election is to be held; and the elections in this country are the basic lifeblood of the oligarchy, not for its democratic intent, but for the opportunity for co-opting candidates in need of funds for expensive electoral campaigns

The alternative to a failure in negotiation is deadly for all. You can rescind the contracts, and they return the concessions. And you could offer Manila Water Co. Inc. and Maynilad Water Services Inc. to another set of oligarchs — those salivating in the sidelines purporting intimacy with your regime. And there goes the Philippine policy of “leveling the playing field for investors.” And we can kiss long-term foreign direct investments goodbye.

Or you can declare revgov — and let the s**t hit the fan!
Published in LML Polettiques
Wednesday, 11 December 2019 08:45

Sara, for heaven’s sake, it’s just a song!

AND your father, the Deegong, in a rare unguarded moment was caught in the euphoria thumping to the beat of “Manila, Manila” — the band Hotdogs’ iconic song. I wrote a similar comment on my Facebook page as all major newspapers reported this: “Davao City Mayor ‘Inday’ Sara Duterte-Carpio has questioned the song choice used when the Philippine delegation paraded during the opening ceremony of the Southeast Asian Games on Saturday” (The Manila Times, Dec. 2, 2019).

Her arguments were neither here nor there, proselytizing for the need for inclusivity “…when we encourage our countrymen to cheer…” And she went on with rambling non sequiturs, “…’Di po ba Philippine flag ang dala, why would you play the song ‘Manila’? Did Lapu-Lapu die for Manila?”

Imperial Manila

People, particularly the federalists in our midst, would have understood and sympathized with her position objecting to the song in praise of Manila — Imperial Manila — if the song was meant to reflect a federalist view that political authority is being centralized in the capital city to the exclusion of the rest of the country.

However, I think the song was not a political statement. If the good mayor had couched her arguments in something ennobling — for instance, elevating the political discourse into the need for the dissolution of our current unitary system of government and move towards a Federated mode — we would have understood her and even make her a champion for our cause. But she is not even a federalist. She is merely an influential daughter of a federalist, the President, who found it impossible to push for the federalist agenda — letting it wither in the vine.

We federalists have always voiced our objections against the centripetal migration of powers, and how along with it come pelf and entitlements easily abused by the center. We’d much rather hope that centrifugal forces propel the dispersal of powers, economic and political, towards the periphery. And this is the core concept of our advocacy these past several decades — the establishment of a parliamentary-federal system and the abolition of presidential-unitary government, which has been the source of endemic problems of poverty, social injustice and the perversion of the rule of law. (For more intensive arguments on fed-parl, please access www.cdpi.asia for my past articles.)

But going back to that grand Southeast Asian (SEA) Games opening and the positive emotions it evoked from our people, perhaps the words of a Filipina now living in Edmonton Alberta, Blossom Gonzales, who succinctly posted in her Facebook page says it all for all of us, after she saw on TV the SEA Games opening: “The song ‘Manila’ that was played created memories for the older generation of Filipino migrants to fend off homesickness and loneliness, which helps many OFWs (overseas Filipino workers) get by until now.” 

Sport as international attractions

At this juncture, I may be able to salvage the arguments of the good mayor and articulate what in part I discern to be what she meant. To be fair, she has some arguments hidden somewhere if she were only more articulate. And this would involve the treatment of international projections of Philippine imagery, similar to the SEA Games opening program or other sports events that would spotlight the diverse cultural nuances of our people. Sports events have a way of attracting international media. This is true for FIBA (Basketball Federation), FIFA (Football) and the mother of all sports gatherings — the Olympics. The recent 2019 FIFA Women’s World Cup, for example, held for a month in France, showcased nine cities, where the 52 games were played. These French cities had the chance to present their best to an international audience attracting tourists. But what makes this interesting is that the local stadiums were renovated with subsidies from the central government freeing local funds for other purposes.

The 2008 China Summer Olympics was held in Beijing, but secondary venues were located in regional hubs and several cities scattered across Eastern China hundreds of kilometers apart. Even the equestrian events were held in faraway Hong Kong and Qingdao was chosen for sailing events. The opening ceremony was extolled by the international press as the most spectacular show of any Olympics by far.

On a smaller scale, the 2019 SEA Games, which by itself is already world-class and impressive by any standard, could have been made more memorable for international audiences and more importantly the Filipinos themselves. Not to detract from the efforts put in by the Deegong’s people, some details could be considered at least for future similar endeavors.

Inclusive dispersal of sporting events

Instead of just Metro Manila and its environs, and Clark and Subic, we could have planned on farming out sports venues to other cities — Cebu, Bacolod, Iloilo, Cagayan de Oro and even Davao. And probably, our good Mayor Sara can highlight the “Budots Dance,” an upbeat danceable song, which she claimed was invented in Davao. Why not? And we may even ask Sen. Ramon “Bong” Revilla Jr. to be the lead dancer.

But, more importantly, these venues will be awarded the appropriate infrastructures, which can later be turned over to local governments to likewise enhance their sports programs. One idea worth emulating is that some of the athletes’ villages in past Olympic sites have been turned over to the local governments and converted into apartment or offices for rent. Some have been turned into hotels and shopping malls. Imagine each city bestowed with such largesse can flip this over toward some creative economic activities.

If this is what Mayor Sara had in mind, notwithstanding her objections to a popular medley, she could have probably gotten the enthusiastic nod of her constituencies. But first, she needs to make up her mind on the more basic questions of where she situates herself with her father’s stated advocacies. Is she really for the empowerment of the local governments with all temporary appurtenances of devolutions and delegation of authority and responsibility; which can be legally withdrawn as the exigencies of politics will dictate? Or will she push for the constitutional imprimatur, which will alter permanently the relations between the center and the periphery — the creation of autonomous states towards a federal republic. These are central questions, which need to be resolved in the eyes of the public as the daughter’s actuations and body language points to an ambition beyond the confines of local governance — despite her father’s admonitions against such presidential cravings, if any. Or is this another of the Deegong’s so-called Machiavellian gambit to deny, deny and deny — until ambition and reality can no longer be denied.

Just celebrate for what it’s worth

But meantime, back to the “feel-good” mood after that grand opening and the following days’ harvest of golds. Once in a while we Filipinos all, Diehard Duterte Supporters, Yellows, fence sitters and centrist democrats, need to bask in the glory of our ingenuity, joie de vivre and celebrate our unity — fragile though it seems. Cast aside this week the crab mentality that lurks within us and join our athletes and those of our neighboring countries “win as one.” Let’s postpone our quarrels for the week after.  ka!

Published in LML Polettiques
Wednesday, 11 December 2019 06:36

Not Rody’s cup of tea

Any claims and attacks being made in relation to this matter are from the opposition and by interest groups that are against the socio-economic policies and reforms by this administration.

As President Rodrigo Duterte lashed out against oligarchy and the domination by rich businessmen of the country’s utility businesses particularly water services, an article in a popular Asian magazine accused him of cronyism by allegedly favoring business associates.

In a situation briefing he presided over in Legazpi City in the aftermath of powerful typhoon “Tisoy,” the Chief Executive ordered the filing of economic sabotage and plunder cases against Manila Water Co. and Maynilad Water Services Inc. owners and legal counsel, and all those involved in the crafting of the deals, including agents and lawyers of the government.

Contrary to the article, “having connections and relations with officials in this administration doesn’t entitle any individual or any business entity to privileges that would allow them to bypass government policies and legal procedures,” Presidential Communications Operations Office (PCOO) Secretary Martin Andanar said yesterday.

The Palace official branded as “baseless” and “erroneous” the report that came out in Nikkei Asian Review about supposed cronyism under Mr. Duterte.

Andanar attributed the report’s allegations as part of an offensive by the opponents of the President and business interests affected by his campaign against business monopoly.

“Any claims and attacks being made in relation to this matter are from the opposition and by interest groups that are against the socio-economic policies and reforms by this administration. Not only are these baseless assertions erroneous, but they are also highly deplorable,” he added.

In a statement, Andanar denied that Duterte and his administration are practicing partiality in awarding jobs and other advantages to friends or trusted colleagues.

He cited the Duterte administration’s refusal to ingratiate itself with Manila Water and Maynilad after learning that their “onerous” deals with the government have resulted to “unfavorable repercussions not only to the government but also to Filipino consumers.”

”The Duterte administration has constantly and blatantly condemned cronyism in our society,” the PCOO chief said.

Wild allegations

The report, which appeared in Nikkei’s 4 December issue, indicated that Mr. Duterte promised to “destroy the Philippine’s elite” because he “chose his own.”

The report, titled “Crony capital: How Duterte embraced the oligarchs,” noted that during the presidential campaign, Duterte took aim at the “corruption and excesses of wealth-hoarding families” like the Ongpin clan.

The report, however, claimed that Duterte’s three years in office showed that the systemic transformation has turned out to be “more like a personal vendetta.”

“One prominent tycoon who spoke on condition of anonymity described the takedown of Roberto Ongpin as ultimately insignificant — ‘a grain of sand,’” Aurora Almendral’s article read.

”Rather than sending a clear message to the country’s business oligarchs, the episode left many believing that Duterte has simply opened the door to a new wave of businesspeople and loyalists, who have been given access to political power and lucrative government contracts,” it added.

Competitive climate

Andanar debunked the report, stressing that Duterte has been persistently lashing out at oligarchs “who have promoted corruption, provided bribes to government officials in public-private transactions, and eked out favors through their political connections.” “These are actions the President vowed never to tolerate,” he said.

On Tuesday, Duterte directed the Department of Justice and the Office of the Solicitor General to draft a new water concession contract that is “favorable to the State and the Filipino people.”

To further refute the alleged cronyism in the country, Andanar stressed the current administration’s commitment to enforcing rules and regulations that will make the country’s business climate “competitive.” He said the government has been implementing “fair and impartial” procedures for private companies that want to invest in government infrastructure and development projects.

Level field

”We will continue to be tough on regulating the business sector as we advocate for a competitive economic climate so that the cronyism which has already allowed our government and society to be mired in corruption and abuse for decades will no longer prosper,” he said.

”In fact, we have continuously strengthened measures and undertaken steps along the way that would allow for fair and impartial procedures on public-private partnerships,” Andanar added.

He also noted that the Executive Order (EO) on the Freedom of Information (FoI) gives anyone access to government transactions for “better transparency on project biddings as well as on the allocation and usage of the people’s money.”

Duterte on 24 July 2016 signed EO 2 on FoI to make documents and records in the Executive branch available for public scrutiny.

”This (EO on FoI) undermines any form of possible corruption and bribery as we bring out in the open our transactions for public scrutiny,” the communications chief said.

Andanar said the Duterte government has also advocated for an equitable application of the law to all business entities, regardless of origin, through the strengthening of the Philippine Competition Commission, Anti-Red Tape Authority and National Economic Development Authority’s functions.

He said such a move would “undermine monopolies and duopolies.”

The PCOO Secretary also took note of the government’s plan to amend the 1987 Constitution on business ownership, as well as to open up the Philippine economy to more foreign investments.

”Our Comprehensive Tax Reform Program furthers this commitment as we continuously promote the reduction of personal and corporate income tax to promote a competitive and inclusive business climate while curtailing the tax incentives that have been abused by large corporations and oligarchs for decades,” he added.

Published in News

President Rodrigo Duterte promised to destroy the Philippines' elite. Instead, he chose his own

MANILA/DAVAO, Philippines -- The day Rodrigo Duterte became president, Roberto Ongpin was one of the Philippines' richest men. Ongpin had survived -- and prospered -- under six presidential administrations by trading favors and greasing friendships with politicians. He had a full arsenal of luxuries at his disposal, including a billionaire's island dotted with villas, serviced by butlers and accessible by a fleet of private jets, and an exclusive club at the center of the capital's business district, where the whiskey was poured each day at precisely 5 p.m. and far into the night.

During his populist campaign for president in 2015 and 2016, Duterte took aim at the corruption and excesses of wealth-hoarding ruling families like Ongpin's. He called them "a cancer on society," and "illustrious idiots" who flew around in private planes while the Filipino people suffered.

Then, just four days into his term, Duterte unloaded. "The plan is to destroy the oligarchs embedded in the government," he said. "I'll give you an example publicly: Ongpin, Roberto."

Shares of Ongpin's public companies plummeted. By Duterte's second month in office, the tycoon had stepped down as chairman of PhilWeb, his online gambling company. "He knew the game was up," Apa Ongpin, Roberto's nephew and former executive at PhilWeb, recounted in an interview with the Nikkei Asian Review.

The stunning takedown of a man who was a fixture in the murky borderlands between Philippine politics and business sent waves of shock and fear through the country's elite.

Three years on, what Duterte framed as a systemic transformation has come to look more like a personal vendetta. One prominent tycoon who spoke on condition of anonymity described the takedown of Roberto Ongpin as ultimately insignificant -- "a grain of sand." Rather than sending a clear message to the country's business oligarchs, the episode left many believing that Duterte has simply opened the door to a new wave of businesspeople and loyalists, who have been given access to political power and lucrative government contracts.

"The cast of characters is not changing," said Lala Rimando, a journalist, who is writing a book on the Philippine business elite. "They're just being added to."

One former high-ranking elected official went a step further. Far from taking down a system of businessmen and politicians working together for personal profit, Duterte is "cultivating his own set of cronies," he said.

Davao connections

Few men have had a more spectacular rise than Dennis Uy.

Uy, a 45-year-old third-generation Chinese-Filipino from Davao del Norte, is the son of provincial traders who dealt in copra, maize and bananas. As he described in an interview with Nikkei in 2017, Uy met Duterte in Davao city, where he was mayor for over two decades. The men became friends. "He is a mentor in life [and] in leadership," Uy said of Duterte.

Uy built Phoenix Petroleum Philippines, his fuel company, into one of the largest in the country, capable of going head-to-head with Chevron. He also expanded his business into shipping and logistics. By 2016, Uy was one of Duterte's top presidential campaign donors. The next year, Duterte rang the bell at the Philippine Stock Exchange on the 10th anniversary of Phoenix going public. Uy and Duterte patted each other on the shoulders and traded effusive public compliments.

Since then, Uy has embarked on a head-spinning acquisition spree: convenience stores, a digital startup, a bakery chain, a Ferrari dealership, water utilities and a casino franchise. On top of all that, he gained rights to develop a 177-hectare multiuse city with office buildings, high-end retail outlets, sport centers and a resort, rising from a former American air base 90 km north of Manila.

Uy has racked up directorates and seats on the boards of companies, many of them owned by old-money oligarchs eager to associate with a man so closely linked with Duterte. Before Duterte became president, Uy was on the board of three public companies. By 2019, that number had shot up to 27. This year, he debuted on Forbes' list of the richest Filipinos at number 22. He has, in the past, denied using his personal relationship with Duterte for economic gain. Uy did not respond to multiple requests for an interview for this article.

Even though Uy projects an image of soft-spoken, provincial humility, one tycoon who has had dealings with him described a man fond of ostentatious displays of wealth and with a penchant for sports cars and other luxuries.

"He has a Richard Mille watch that you should not be wearing when you've got so much debt to the banks," he said, referencing timepieces that sell for six figures. He wants to be a "big shot," the tycoon said. "He wants to be the next taipan."

His rush to the top has been fueled partly by borrowing. Uy is estimated by Forbes Asia to have amassed around $2 billion in debt.

Uy's next venture takes him into a sector that has long suffered from the concentration of power in the Philippines' political and business communities: telecommunications. Dominated by two companies headed by the country's richest families -- the Zobel de Ayala family, who are majority stakeholders of Globe Telecom, and the tycoon Manuel V. Pangilinan of Smart Communications -- the industry has long been a cautionary tale of regulatory capture, stifled competition and the power of the oligarchy.

In 2016, at the start of Duterte's presidency, telecommunications service in the Philippines was a hair-pulling combination of dropped calls, webpages that struggled to load, unstable connections and buffering video broken up by brief spells of pixelated images. The poor service was a drag on businesses dependent on internet services. In Asia, the only country with slower service than the Philippines was Afghanistan, and access costs more than triple the global average.

Duterte railed against the companies, referring to them as a price-controlling cartel and threatening to break up the duopoly with foreign competition. The telcos responded to the threats and speeds doubled within three years, but the Duterte administration pressed on with the promise of a third telco anyway.

In the final round of bidding for the third license, a joint venture between Dennis Uy's company, Mislatel -- now known as Dito Telecommunity -- and the Chinese government-backed China Telecom remained as the sole contender. Mislatel won the deal despite Uy having little or no experience in telecommunications. Critics cried foul, alleging that some of Duterte's closest political associates had been spotted riding in Uy's private jets and summering in his luxury mountain villa, and that they had sped up the bidding process.

"As it is, it's now oozing with preferential treatment and, at worst, cronyism," Antonio Trillanes IV, a former senator and vocal critic of Duterte, said of the selection shortly after the announcement of Mislatel's win.

Ronald Mendoza, dean at the School of Government at the Ateneo de Manila University, said that the bidding process lacked transparency and the ultimate outcome -- that a company "very, very much linked to the Duterte administration" emerged in the final stage as the sole contender -- is "arguably the creation of yet another powerful force of economic concentration."

The telco episode appeared to have traded on political favoritism and rent-seeking, the same currency used by the existing telco companies, which resulted in the dismal state of Philippine telecommunications.

The deal is not likely to be seen as a signal that change has come, Mendoza said. "In fact, what that episode signaled is more of the same."

One businessman with knowledge of the sector had a different interpretation -- that Uy was doing Duterte a favor. "The next five years is not, in any form, going to be a good investment for anyone," he said. "Not for China Telecom, not for decades. But Dennis had to do it, because there's going to be a lot of egg on the president's face if the third telco project didn't happen."

Payback

As fellow Davao native Dennis Uy makes his name nationally, government funds are flooding into Duterte's home province. Between 2016 to 2017, the budget for the Department of Public Works and Highways Region XI, which encompasses Duterte's stronghold of Davao city, Davao del Norte, Davao del Sur and Davao Oriental, increased by over 100%. By comparison, other regions have had their DPWH numbers flatline, and the national average increased by 31%.

Backhoes, bulldozers and dump trucks are parked up on the sides of the roads next to piles of gravel and rolls of geotextile. Men with their faces wrapped in T-shirts to keep off the sun hoist scaffolding and sacks of cement onto their shoulders at dozens of public and private construction sites scattered across Davao city.

Public infrastructure investment has boosted private businesses. Ayala Land, part of one of the Philippines' most prominent family conglomerates, broke ground on a 20 billion peso ($393 million) mixed-use development in Davao city in 2017. Business delegations from China, Singapore, the United Arab Emirates and Taiwan have visited Davao, scouting for opportunities. According to data from the Davao City Chamber of Commerce and Industry, new business registrations in the first half of 2019 indicate a sharp increase in investments in the city, a development they credit to the increase in attention from the national government.

For some, the money is there for the taking. In 2017, Don-don Opreza stumbled onto a group of contractors while strolling the beach behind his house. They were struggling to find an access point to a new coastal road project, causing delays. Opreza paid 30,000 pesos to a neighbor for the access road. The contractors rewarded him with the rights to supply construction materials to the coastal road.

Trucks started lining up outside his container box office, heaving with boulders, armor rocks and backfill sand. As a middleman, Opreza tripled his earnings from his previous business supplying itinerant harvesters and laborers to the region's banana plantations. In comparison, counting the trucks coming in was easy money.

"I still can't believe the opportunity," Opreza said, who is settling into his new role as patriarch of his extended family, sending nieces and nephews to college, paying for vacations to the United States and buying up prime lots for his own mango and banana plantations. Even as he praises Duterte for allowing small players like himself to chip off a piece of wealth, he mentions a new supplier for the coastal road, someone close to a local politician, with whom he was recently compelled to split volume, handing over what he estimated to be 40% of the business.

"It's good, it's normal," Opreza said in defense of his competitor using political influence to gain market share.

Despite all the money flowing in, progress has actually been stop-start, as companies with capital and political connections capture projects they may not have the capacity to finish, leading to delays.

In 2019, the Commission on Audit found more than 4,000 DPWH projects were delayed nationwide, worth a total 118.4 billion pesos.

On a recent Wednesday afternoon at the new coastal road, among the largest projects currently underway in Davao, there were few workers to be found. A lone backhoe shifted rocks just by the coastline, and a black dog loped across the empty expanse of the construction site while a toddler in diapers dug into the sand with a plastic shovel. Dean Ortiz, spokesperson for DPWH Region XI, said that in 2019, the agency's goal was to complete 1.1 km of the planned 18 km road.

John Carlo Tria, vice president of the Davao City Chamber of Commerce and Industry, said the increased budgetary attention from the national government has spurred private investment in Davao, but project delays were in danger of letting the moment slip away.

"People are seeing the potential, but they are apprehensive at the same time," Tria said.

While the region desperately needs infrastructure, at the moment only a small number of people are benefiting from the influx of state funding.

A 2018 investigation by the Philippine Center for Investigative Journalism found that just a handful of large companies have scooped up most of the infrastructure projects in the Davao region, more than they could finish. The report singled out CLTG Builders, a company owned by Desiderio Go, the father of Duterte's longtime special assistant and current senator, Christopher Lawrence T. Go, who bears the same initials as his father's contracting company. According to the PCIJ investigation, the construction company has won over 700 million pesos in contracts from DPWH since Duterte became president in 2016. At the time of the investigation, all of CLTG's projects were delayed.

Opposition politicians called for a Senate investigation into what appeared to be preferential treatment given to the family members of Duterte's closest aide, an accusation Go denies. Ortiz said the agency did not conduct an investigation, but confirmed that following the accusation, CLTG did not bid for new contracts with DPWH in 2019.

One contractor, who requested anonymity to protect his business, said that while his company has grown steadily in recent years, he had not seen a spike in projects as a result of the increase in government investments.

"Those funds are intended for the construction companies close to the politicians," he said. "It's an open secret."

Emerging and midsize contracting companies like his cannot afford the bribes, which he said typically ranged from 5% to 10% of the contract value. He said that the large contracting companies should focus on complex projects of national importance and leave simple road projects to smaller companies. "Of course progress is going to be slow," he said. "They're clogging up the system."

The booming infrastructure industry in Davao could become another cautionary tale on the dangers of an economic system run by rent-seeking oligarchs, with the result of poorer services for average Filipinos, whether in roads, transportation, or telecommunications, critics say.

"This cycle of groups benefiting from political connections, but not necessarily innovating, nor thriving in a competitive environment, will certainly hit consumers. But I think that the most pernicious effect is in terms of job creation," Mendoza said. "Where rent-seeking is rampant, and corruption is always a threat, that environment is not conducive to sustained growth and job creation."

Vested interests

Despite his populist claims, Duterte has shown himself willing to work with the Philippines' old-money families.

The Del Rosario-Floirendo clan in Davao del Norte has long stood for the provincial consolidation of power in business and politics. For more than three decades, the keys to the governor's mansion and the seats to Congress passed between members of the clan. They ran one of the world's largest banana plantations on land leased from the government. The clan owned the provincial banks, sold the farm inputs at high prices and bought the harvest at below-market rates. After farmers defaulted on their loans, they came to own the farmers' land as well.

This year, in midterm elections, a new candidate stood against them. Edwin Jubahib, the son of farmers, had to practice putting gel in his hair and walking in hard-soled leather shoes before facing down the incumbent governor and scion of the ruling clan, Rodolfo del Rosario, Jr.

He tapped into the rising frustration among voters in Davao del Norte and won by a landslide. Jubahib's spectacular takedown of one of the Philippines' most entrenched political dynasties should have been the embodiment of Duterte's public support of populist ideals. Jubahib even partially modeled himself on Duterte, copying his "open door" style of leadership, in which constituents are able to visit his office and petition him directly.

In the midterms, however, Duterte backed the incumbent. Antonio Floirendo Jr. donated 75 million pesos -- the largest cash donation by far -- to Duterte's presidential campaign.

Being close to Duterte is no guarantee of safety. Several of the president's friends and relatives have come into government only to be arrested, compelled to step down, or investigated for corruption.

Jesus Dureza, a friend of Duterte's since high school, resigned as presidential adviser after two of his officers were fired for corruption. In September 2017, the president's son, Paolo Duterte, vice mayor of their hometown, was hauled before a Senate inquiry into a $125 million shipment of illegal drugs that came into the country through Manila. Four months later, Paolo stepped down after a public fight with his daughter on social media. He has since been elected to Congress.

Duterte's former foreign secretary, Perfecto Yasay, was arrested on charges of bank fraud. His first secretary of justice, Vitaliano Aguirre, was accused by rival and gaming operator Charlie "Atong" Ang of protecting Kim Wong, a casino magnate who was implicated in a billion-dollar heist from the Bangladeshi central bank, whose perpetrators used bank accounts in the Philippines to launder the money. Aguirre has denied the allegations.

The remaining old-money families, however, do not appear to be running scared. Duterte's populism has proved hollow, with limited benefits for average Filipinos, and few real implications for the elite. An October 2019 poll by Social Weather Stations, a local agency, found Duterte's approval rating among the rich and middle class to be at its highest since the start of his presidency, even as it slips among the poor.

"They have no real vision except disruption. They've anchored everything on disruption. Change is coming," said Apa Ongpin, referring to Duterte's campaign slogan. "But what does that change? They don't know."

As for Roberto Ongpin, he is still one of the Philippines' richest men. Ongpin sold his shares of PhilWeb at a deep discount to Gregorio Araneta III, the son-in-law of Ferdinand Marcos, the former dictator, who along with his wife Imelda, created the blueprint in the Philippines for cronyism and kleptocracy and whose family remains one of the Philippines' most enduring political dynasties. Far from taking down the oligarchy, Duterte's attack on Ongpin merely transferred some of his wealth to a more powerful family with whom Duterte has maintained a strong alliance.

In the glittering, softly scented lobby of the Shangri-La Hotel, a luxury franchise his uncle brought to the Philippines 30 years ago, Apa Ongpin thought for a moment about other wealthy families who should fear Duterte's distinctive brand of populism. As he considered the question, waiters in national costume quietly laid pressed-cloth coasters under glasses of sparkling water and picked up dropped napkins.

"No," Apa said, "I can't think of a case of anyone who should be worried right now."

Published in News
Wednesday, 04 December 2019 12:52

America — a terrorist state

MY grandson Maximillian has been fascinated of late by wars and history. When not absorbed in “Mine Craft,” the internet video game that has occupied the waking hours of his peers (he is seven years old), questions about his country’s wars intrigue him. He has never been ambiguous about his identity. Despite his 50-percent Filipino blood, New Yorker by birth but now a (temporary) resident of Manila — he clings to his stateside ways, his accent (doesn’t speak Tagalog), his demeanor and his fierce sense of individualism. Just like most Americans. I also have another grandson, Javier, who may not speak the local dialect, asserts his Filipino pedigree, but is learning to speak Chinese — as the Philippines, I believe, will someday be a province of China.

Max’s queries are roused by documentaries on Cable TV and Netflix — which I welcome, rather than that he be engrossed in “Paw Patrol” or spend hours video-gaming. These are about wars and conflicts his country has been involved in; which gave me a reason to research on the topics. And the data is appalling. I will not tell Max these facts, just yet; he will learn about these in his own good time.

9/11 — New York
The dastardly act of pure terrorism perpetrated by Al Qaida in the 9/11 Twin Towers attack introduced into the world’s stage a new instrument of public display of atrocity and unmitigated horror that was meant to inflict numbing fear never before seen since perhaps the era of the Spanish Inquisition of 1478. The perverted nature of the deed left a great nation bewildered and shocked into an understandable demand for collective revenge — something really out of character of a civilized people, but totally within the purview of its equally traumatized leadership. Thus, President “Dubya” Bush may have been left with no choice as he discerned the desire of a wounded people and embarked on a war of retribution. His righteous indignation reflecting the people’s anger was justified, but his subsequent methods, faulty.

The attacks that day resulted in 3,000 fatalities; it forever distorted the perception of any country’s safety and security, amidst threats from a band of fanatics capable of elevating such conflicts to another level. And the panic that ensued that day awakened the dormant and unspoken fear and pent-up biases brought about by ignorance of cultural and religious nuances. It was convenient for Bush and the American political-military clique to lay the blame on countries in the Middle East and easier still to sell to the American people that it was Islam, and no dichotomy was countenanced between the greater majority of the peaceful Muslims and extremists. What was being peddled was that al-Qaida, with predominantly Islamic adherents out to sow terror, were the perpetrators using Afghanistan as their base under the protection of the Taliban. Despite the fact that the majority of the 9/11 terrorists were from Saudi Arabia, an ally of America, whose despotic princes are personal family friends of the Bush political dynasty, that country was spared.

War on terror
Bush, the 43rd US President, barely needed a pretext to exact revenge. Aside from Afghanistan’s Taliban, Iraq’s Saddam Hussein was a convenient villain; and perhaps to finish what Bush the 41st US President left undone during the “Desert Storm.“ Quickly hammering out the “coalition of the willing,” the US-led multi-national forces invaded Afghanistan and Iraq. Thus, a reprise of what was once a similar blight on medieval Christian Europe — a modern-day Crusade appeared to bring about the downfall of not only a regime, and the Muslims themselves were convinced, justifiable or not, that it was a war with religious undertones. A clash of civilizations. America had to hype the danger of Iraq possessing nuclear weapons (a hoax we now know). A regime change was set in motion. With the occupation of Afghanistan and Iraq, America has surrendered the moral high ground.

But let us briefly examine the consequences of 9/11 that killed 3,000 Americans and other nationalities. President Trump admitted that the US has spent almost $7 trillion since. But American leadership never admitted that the death toll within that period was approximately 500,000 to 800,000 souls.

More deadly, the Global War on Terror, the linchpin of Dubya Bush’s foreign policy initiatives of retribution, produced a convoluted mindset in conflict resolution which subsequent American presidents have continued to apply with disastrous results.

Extraordinary rendition
To skirt US laws, suspects are snatched and brought to secret facilities, carried out by the US government as an extrajudicial practice, to be interrogated and tortured. The sites of these interrogations are in third-party countries, not in American soil. This preserves the fiction of American justice and adherence to the rule of law. Some successes resulted in the eventual capture and killing of Osama Bin Ladin — the mastermind of 9/11 and founder of al-Qaida. In all these cases, the much-revered moral concept of the the end justifying the means is reduced to mere petty verbiage.

Global assassination campaign
As an offshoot of these protracted wars and the desire to eliminate the ghost-like leadership of al-Qaida, IS and the insurgency that mushroomed in their aftermath, the use of advanced and sophisticated drone technologies was promoted. “The worst terrorist campaign in the world right now by far is the one that is being orchestrated in Washington — the global assassination campaign,” says Noam Chomsky, the eminent US theoretical linguist, philosopher, social critic and political activist. This has permitted the murder of America’s enemies, sanctioned by government, into an impersonal endeavor, detaching the act of killing and all the moral baggage it carries with it into simple acts of technicalities.

Drone strikes are deadly as the unmanned combat aerial vehicles are employed even in heavily populated civilian areas among whom the terrorist leadership purposely hide. The drone operators are safely snuggled with their video consoles perhaps a thousand kilometers from the targets, thus lessening the number of American lives lost. On the other hand, the collateral damage produced by this type of warfare is substantial. The United Nations Human Rights Council has declared that such strikes may have violated international humanitarian laws as civilian casualties are immensely disproportional to the targeted terrorist lives. According to the same study “…during one five-month period of the operation… nearly 90 percent of the people killed in airstrikes were not the intended targets.”

Brown University’s Watson Institute of International and Public Affairs reports that more than 801,000 people have died as a direct result of the fighting, 335,000 of whom have been civilians. The US is currently conducting counter-terror activities in 76 countries, or about 39 percent of the world’s nations vastly expanding its mission across the globe.

The US Code of Federal Regulations defines terrorism as “the unlawful use of force and violence against persons or property to intimidate or coerce government, the civilian population, or any segment thereof, in furtherance of political or social objectives.”

It seems to me that after 9/11, American leadership has inexorably plunged the country into state terrorism. Chomsky may have been right after all when he proclaimed that “the United States is the world’s biggest terrorist.”
Published in LML Polettiques
Wednesday, 04 December 2019 09:29

America — a terrorist state

MY grandson Maximillian has been fascinated of late by wars and history. When not absorbed in “Mine Craft,” the internet video game that has occupied the waking hours of his peers (he is seven years old), questions about his country’s wars intrigue him. He has never been ambiguous about his identity. Despite his 50-percent Filipino blood, New Yorker by birth but now a (temporary) resident of Manila — he clings to his stateside ways, his accent (doesn’t speak Tagalog), his demeanor and his fierce sense of individualism. Just like most Americans. I also have another grandson, Javier, who may not speak the local dialect, asserts his Filipino pedigree, but is learning to speak Chinese — as the Philippines, I believe, will someday be a province of China.

Max’s queries are roused by documentaries on Cable TV and Netflix — which I welcome, rather than that he be engrossed in “Paw Patrol” or spend hours video-gaming. These are about wars and conflicts his country has been involved in; which gave me a reason to research on the topics. And the data is appalling. I will not tell Max these facts, just yet; he will learn about these in his own good time.

9/11 — New York
The dastardly act of pure terrorism perpetrated by Al Qaida in the 9/11 Twin Towers attack introduced into the world’s stage a new instrument of public display of atrocity and unmitigated horror that was meant to inflict numbing fear never before seen since perhaps the era of the Spanish Inquisition of 1478. The perverted nature of the deed left a great nation bewildered and shocked into an understandable demand for collective revenge — something really out of character of a civilized people, but totally within the purview of its equally traumatized leadership. Thus, President “Dubya” Bush may have been left with no choice as he discerned the desire of a wounded people and embarked on a war of retribution. His righteous indignation reflecting the people’s anger was justified, but his subsequent methods, faulty.

The attacks that day resulted in 3,000 fatalities; it forever distorted the perception of any country’s safety and security, amidst threats from a band of fanatics capable of elevating such conflicts to another level. And the panic that ensued that day awakened the dormant and unspoken fear and pent-up biases brought about by ignorance of cultural and religious nuances. It was convenient for Bush and the American political-military clique to lay the blame on countries in the Middle East and easier still to sell to the American people that it was Islam, and no dichotomy was countenanced between the greater majority of the peaceful Muslims and extremists. What was being peddled was that al-Qaida, with predominantly Islamic adherents out to sow terror, were the perpetrators using Afghanistan as their base under the protection of the Taliban. Despite the fact that the majority of the 9/11 terrorists were from Saudi Arabia, an ally of America, whose despotic princes are personal family friends of the Bush political dynasty, that country was spared.

War on terror
Bush, the 43rd US President, barely needed a pretext to exact revenge. Aside from Afghanistan’s Taliban, Iraq’s Saddam Hussein was a convenient villain; and perhaps to finish what Bush the 41st US President left undone during the “Desert Storm.“ Quickly hammering out the “coalition of the willing,” the US-led multi-national forces invaded Afghanistan and Iraq. Thus, a reprise of what was once a similar blight on medieval Christian Europe — a modern-day Crusade appeared to bring about the downfall of not only a regime, and the Muslims themselves were convinced, justifiable or not, that it was a war with religious undertones. A clash of civilizations. America had to hype the danger of Iraq possessing nuclear weapons (a hoax we now know). A regime change was set in motion. With the occupation of Afghanistan and Iraq, America has surrendered the moral high ground.

But let us briefly examine the consequences of 9/11 that killed 3,000 Americans and other nationalities. President Trump admitted that the US has spent almost $7 trillion since. But American leadership never admitted that the death toll within that period was approximately 500,000 to 800,000 souls.

More deadly, the Global War on Terror, the linchpin of Dubya Bush’s foreign policy initiatives of retribution, produced a convoluted mindset in conflict resolution which subsequent American presidents have continued to apply with disastrous results.

Extraordinary rendition
To skirt US laws, suspects are snatched and brought to secret facilities, carried out by the US government as an extrajudicial practice, to be interrogated and tortured. The sites of these interrogations are in third-party countries, not in American soil. This preserves the fiction of American justice and adherence to the rule of law. Some successes resulted in the eventual capture and killing of Osama Bin Ladin — the mastermind of 9/11 and founder of al-Qaida. In all these cases, the much-revered moral concept of the the end justifying the means is reduced to mere petty verbiage.

Global assassination campaign
As an offshoot of these protracted wars and the desire to eliminate the ghost-like leadership of al-Qaida, IS and the insurgency that mushroomed in their aftermath, the use of advanced and sophisticated drone technologies was promoted. “The worst terrorist campaign in the world right now by far is the one that is being orchestrated in Washington — the global assassination campaign,” says Noam Chomsky, the eminent US theoretical linguist, philosopher, social critic and political activist. This has permitted the murder of America’s enemies, sanctioned by government, into an impersonal endeavor, detaching the act of killing and all the moral baggage it carries with it into simple acts of technicalities.

Drone strikes are deadly as the unmanned combat aerial vehicles are employed even in heavily populated civilian areas among whom the terrorist leadership purposely hide. The drone operators are safely snuggled with their video consoles perhaps a thousand kilometers from the targets, thus lessening the number of American lives lost. On the other hand, the collateral damage produced by this type of warfare is substantial. The United Nations Human Rights Council has declared that such strikes may have violated international humanitarian laws as civilian casualties are immensely disproportional to the targeted terrorist lives. According to the same study “…during one five-month period of the operation… nearly 90 percent of the people killed in airstrikes were not the intended targets.”

Brown University’s Watson Institute of International and Public Affairs reports that more than 801,000 people have died as a direct result of the fighting, 335,000 of whom have been civilians. The US is currently conducting counter-terror activities in 76 countries, or about 39 percent of the world’s nations vastly expanding its mission across the globe.

The US Code of Federal Regulations defines terrorism as “the unlawful use of force and violence against persons or property to intimidate or coerce government, the civilian population, or any segment thereof, in furtherance of political or social objectives.”

It seems to me that after 9/11, American leadership has inexorably plunged the country into state terrorism. Chomsky may have been right after all when he proclaimed that “the United States is the world’s biggest terrorist.”
Published in LML Polettiques