Last July 13, President Rodrigo Duterte spoke before soldiers in Jolo, Sulu and triumphantly declared he “dismantled the oligarchy that controlled the country’s economy without the need to declare martial law.” This came a few days after a committee in the House of Representatives rejected ABS-CBN’s franchise renewal bill.
During his penultimate State of the Nation Address on July 27, Duterte took another swipe at the oligarchs whose great wealth has enabled them “to influence public policy to their advantage.” He cited as an example the Lopezes “who used their media outlets in their battles with political figures” including himself during the 2016 elections.
People seem to forget that Duterte’s avowed mission to put oligarchs in their proper place was part of his 2016 campaign promise to stamp out corruption. At that time, he said the corruption in the Bureau of Customs and the Bureau of Internal Revenue was “small change in comparison to the high-level corruption that runs in the billions among the economic elite.”
Oligarchy means the rule of the few, but its meaning has evolved to refer to powerful individuals or groups outside of government who are able to benefit from political connections to amass vast amounts of wealth and gain control of major industries. The term “oligarch” started popping up recently in mainstream and social media but its context in relation to what is happening in our society has become warped and obfuscated. To be fair, the President has given credit where credit is due, even to the so-called oligarchs when they helped the government in this COVID-19 crisis, but he said it is their abuses that he abhors.
On several occasions, House Speaker Alan Peter Cayetano pointed out how oligarchs use their wealth to gain power, while the political elite used their power to amass wealth. He expressed full support to Duterte’s advocacy in changing the current system where he believes the people “willingly consent to being held back by the few who control the economy and through that, the running of the nation.”
According to Cayetano, the real threat to the stability of our socio-political and economic systems are those backroom deals that make exploitation legal – “the quiet acquiescing to a system that naturally favors the ultra-rich and very powerful.” He believes that not all oligarchs are bad, saying in a media interview: “Just like every entrepreneur wanting to expand their business, these would-be oligarchs might very well have started off with the most benign or even benevolent intentions. But the malignant DNA of unabated, uncontrolled capitalism, especially corporate capitalism, eventually comes to play, leading to people and systems being abused and exploited.”
Cayetano clarified, though, that capitalism and democracy work as we have seen in other economies. He thinks the situation in the Philippines is not hopeless, and we can begin to change this corrupt system by acknowledging there is a problem and we are part of it. “This is a battle between those who are willing to fight their self-interest and change with the system, versus those who deny that there is anything wrong with the status quo, specifically as it relates to themselves, and instead simply choose to blame the politicians and officials in government,” he said.
This brings to mind the statement attributed to a Cabinet member of former President Gloria Macapagal-Arroyo who advised another top official to “moderate your greed.” Another cautionary tale is found in the recently re-launched book of Ricardo Manapat, who served as National Archives Director during the Arroyo and Ramos administrations. Manapat’s book is titled “Some Are Smarter Than Others: The History of Marcos’ Crony Capitalism” which is a classic work on anti-cronyism exposing the ill-gotten wealth of former President Ferdinand Marcos.
Oligarchs may not be totally wiped out in the Philippines, since developed economies even have to contend with their presence. But Duterte’s relentless campaign against them could very well result in moderating their greed and freeing the country from their tight grip.