The Foolishness of Wanting (or Even Demanding) for Better, More Affordable Public Services While Rejecting FDIs That Can Provide Better Public Services

I could remember the time when former Philippine president, Rodrigo R. Duterte, signed the Public Services Act of 2022 (read my reaction here). I would say we totally need to remove the negative list entirely.

However, there will always be foolish people who would make their objections. Among them were "thought leaders" like Carwyn Candila of the League of Filipino Students (LFS) and Sarah Jane I. Elago of Kabataan (Youth) Partylist. I wasn't too surprised at the Facebook posts. Both Candila and Elago spoke against the Public Services Act of 2022 as an act of imperialism. Ironically, such foolishness was done on American platforms such as Facebook or Twitter. I'm not even surprised that some of them are using iPhones and MAC Pros (most likely manufactured in China and Vietnam) to write them down. Just reading what they wrote gave me a serious headache. I got that headache after reading the late Lee Kuan Yew's famous book, From Third World to First. Neither Tynenol nor Biogesic can easily relieve that headache. The irony is that they want (or even demand) better public services) while rejecting the idea that foreign direct investments (FDIs) should include public services.

When these "thought leaders" aren't worth taking seriously with their claims

Below is just an example of what these "thought leaders" have to say that gives me a heavy migraine:

It's really hard for me to take this congresswoman seriously. It's not because she's still a youth (and right now, Sandro A. Marcos, son of Philippine president, Ferdinand R. Marcos Jr., is even younger) but because of what she said. For the sake of non-Filipino readers, I'd like to translate what she said in Tagalog as follows:

The suffering of the countrymen is too much. Enough of following the dictates of foreigners. Kabataan (the name of the partylist, emphasis mine) objects to allowing foreigners to handle the critical services of the Filipino, because the future of the countrymen and the countrymen are at stake.

Services for the people, don't turn it into a business.

I was reminded of why I can't take lawmakers from Bayan Muna seriously. It's a good thing that Neri Colmenares lost the senatorial race again. Though, I'd also like to talk about how Teodoro "Teddy" A. Casino's service as a senator was anything but splendid. The "solution" that the likes of Colmenares and Casino of Bayan Muna would go like this such as this taken some time ago from Casino's Facebook page:

At the moment, his main advocacy is the lowering of prices of electricity, oil and water as well as regulation in the price of education, healthcare, mobile communications, toll fees and other basic utilities and services.Toward this end, he has filed bills on the removal of VAT on power (HB 2719), oil (HB 1630) and toll fees (HB 5303) as well as the regulation of oil prices (HB 4355), mobile phone services (HB 5653), tuition fees (HB 1961) and interest rates (HB 4917). He has consistently opposed the budget cuts in our state colleges and universities as well as the privatization of our public hospitals and water districts.

This is where foolishness strikes lawmakers like Casino and Colmenares. How can you lower the prices of electricity, oil, and water (as well as other services) when the supply is low and the demand is high? It's all about basic economics taught even in high school. Sure, it took me until college to understand how economics is part of life. However, I don't need a doctorate in economics to understand that Casino's solutions are really ridiculous. If we removed the VAT on services then how can the country have more money? If we remove certain toll fees then how can the company pay for maintenance? These are proposals that are asking the pigs to fly or the fish to breathe on land. In short, we're talking about absurd demands. It's as absurd as asking for lower prices, higher salaries, and handouts for everyone (read why here).

This is where I also wrote about the scare tactics last Halloween (read here). Their "best sources" are probably nothing more than social media gossip. Maybe, their "best source" is simply summarized, as, "Just trust me." It's almost like a swindler who says, "This isn't a scam." when it's really a scam. It's not like as if there aren't any rules that any country can set such as environmental laws and information protection laws. If you bought a SIM card or availed of services--companies are required to follow the information protection law. What makes them think foreign investors are "exempt" from following such rules and regulations? Singapore still has its green policy enforced for all people in the country. Foreigners are never exempted from following the rules of the country. It's like there's a policy for visitors.

Besides, the very idea of nationalizing all utilities in government hands is just stupid (read here). This is why even some Communist countries (such as China and Vietnam) have opened their doors to FDIs. Right now, Vietnam has overtaken the democratic Philippines economically. Vietnam has become a new powerhouse that may even overtake China. Meanwhile, one can look at how "efficient" and "effective" it has been for North Korea and Venezuela. Those two countries suffer from so much inflation. Trying to blame South Korea and the United States of America (USA) is just like blaming your rich classmate for your parents' irresponsible money habits.

How then can FDI also help in bridging the supply and demand gap?

It's not about being foreign or Filipino but the quality of the service. This is what the "thought leaders" fail to see in regard to public services. Instead, we should listen to the likes of Lee and Kishore Mahbubani. Lee praised Deng as a great man. Mahbubani cited in the VRPO documentary called The Singapore Economic Model a statement that would make his fellow former UN diplomat, Hilario Davide Jr. cringe. As a lawmaker, Mahbubani knew what he was saying, Mahbubani said that FDIs help develop the country. Lee rightfully called the "development economists" who believed that as stuck with third world mentality. That's how "thought leaders" who still reject FDIs that provide better public services are--third-world mentality.

The supply and demand gap can be filled in this way. The basic premise that controls prices is supply and demand. Asking companies to sell at a loss will soon get rid of services. Asking the government to be the one to provide the public services will soon need more taxes (and we know, they'll complain). Instead, the solution has been competition. Privatization of some public companies isn't enough. Sure, we had privatization under the regime of two late former Philippine presidents, Maria Corazon S. Cojuangco-Aquino and Fidel V. Ramos. The privatization was objected by people who I believe are leftists or have a commie mindset. However, privatization encourages one thing needed for competitiveness--competition. No competition means there will be no competitiveness. Remove competition and we will no longer be able to eat delicious affordable food. Instead, delicious food becomes a luxury instead of something even lower-class people can access to.

It would be a no-brainer to understand the supply and demand gap. Why are public services usually so bad and expensive? It's because there are too many customers and too few public service providers. Just rethinking about Ruping during the 1990s and last year's Odette (which canceled Christmas for some for that year) made me think of the problem. Can the providers of electricity work faster when there's so much clearing to be done? The electricity providers have to follow several safety guidelines. There's so much damage that the other areas (such as Consolacion in Cebu) weren't easily reached. Reliving Ruping during Odette was a terrible thing. If there were more public service providers--I think it'd be easy to reach out the far-fetched areas. I'd say that if FDIs providing electricity were in far-flung areas--I think the bottleneck would be reduced. We see that the high demand and too little supply contribute to why costs are high and services aren't as good.

Meanwhile, the acceptance of FDI in relation to public services will bridge that huge supply and demand gap. For one, far-flung areas may soon start to avail of a new FDI providing public services. Local public service utility providers will be forced to upgrade their services while having less demand load. The supply and demand gap for public services will be brought closer. If the supply is higher than the demand then prices will naturally go lower. That means the local providers will be able to (and in turn be obliged to) provide better services at lower prices. If anything, both FDIs and local providers are still bound by consumer protection laws, the fair competition act, and information protection laws. FDIs are, after all, still required to follow such rules and pay their income taxes. That would provide better services at lower costs while providing the government more revenue.

This is where we need to get serious. Get the facts about economics straight. I'm not here to be popular. I'm here to write awareness of the need of economic reforms in our constitution.

Get Stuck with EDSA, End Up Like Nokia

Yes, we should never forget what history teaches us. A classmate of mine, back in high school, wrote a simple and blunt essay called "History: A Teacher". I doubt he still has a soft copy, given it was already more than 20 years ago. I'd like to quote Duterte critic Andrew James Masigan wrote this in Philippine Star --something that should remain relevant: I would never undervalue the 1987 Constitution. It dismantled the legal framework of a repressive regime and established the democratic institutions we enjoy today. For this, I am grateful. The 1987 Constitution was crafted with the best of intentions. It sought to put the Filipino first in all aspects of governance and to level the playing field amongst sectors and peoples. But it is far from perfect. It failed to consider the importance of foreign capital and technologies and the stiff competition we would have to face to obtain them. In short, its economic provisions were short-sighted . So despite the Constitut...

#SahodItaasPresyoIbaba Economics' Bad Accounting

I would like to apologize in advance to my readers. The picture I'm presenting is in Tagalog, and not all my readers speak Tagalog. I would translate the picture's text into English for convenience. It says: "Ano ang bumubuo sa mga presyo?" means "What comprises the price?" "Gastos ng materyales" means materials expense "Gastos sa kasangkapan" means depreciation expense ""Gastos sa pasahod" means salary expense "Kapitalista" means capitalist Renta is well, rent "Kayang pababain ang presyo" means "Prices can be lowered". It says that capitalists (industrialists, landlords, bankers) and elitist governments are part in the gross profit. Get rid of excise taxes (either permanently or temporarily) for the prices of goods and services. In the times of crisis, in the burden of sacrifices, we need to be watchful for capacity. Whatever savings for times of difficulty by the workers and countrymen, the...

Past Chinese School Education in the Philippines was Based on "Sǐ Jì Yìng Bèi"

Chinoys of my age (and older) may remember these textbooks. I called them as the "symbol of trauma". It was memorizing something without understanding it . One would just memorize (without understanding it) because it was typical. Not being able to memorize what was assigned? Get a bad grade? One can expect physical punishment like hitting the hand with a ruler or chili in the mouth. Chinese language teachers are stereotypically strict . The language textbooks (above) are what were used during the 1990s to the early 2000s. As I wrote it, the Sinjiang textbooks aren't effective in teaching Mandarin , in a world where Mandarin has over a billion speakers! There's a Chinese proverb that says, "死記硬背 sǐ jì yìng bèi" or "Memorize to the point of death". That's exactly what those textbooks are. Memorize to the point of death! Okay, it may sound exaggerated. However, that's how Chinese language teachers in the Philippines were made to teach the ...

Migrante International's Really Bad Economic Literacy

March 17 (which is tomorrow) seems to be an unofficial holiday for some people, right? I'm sickened that the late Flor Contemplacion has been treated like she's some national heroine (and thankfully, tomorrow isn't a holiday) even after Singapore had proven her guilt. A movie was made by Joel Lamangan called The Flor Contemplacion Story . The call for Migrante (Migrant) International has been to remember Flor even after several years. What's not too surprising was to learn that Flor's sons were all arrested for drug-related charges. Even her eldest son died while in prison. You have Migrante International wanting to end the labor export policy. However, a post by Migrante really shows how this group fails basic economics. I will not post the whole press statement but one part that made my eyes roll. >> Further opening the country’s economy to foreign ownership and control will worsen the exploitation of our people and the environment without creating a susta...

"Filipino First Policy" Has NO PLACE in the Rising Asian 21st Century

I guess nobody saw the Asian 21st Century coming, right? China was once a poor nation but look at it now. Vietnam was once a poor nation but look at it now. Singapore was once a poor nation but look at it now. The late great Lee Kuan Yew wrote his book From Third World to First . I'm afraid some people have been using it to go against the presidency of Ferdinand R. Marcos Jr. while ignoring what else Lee Kuan Yew had to say. Lee Kuan Yew described the Filipino press to be rambunctious on pages 304-305 which I agree. I'm afraid that the Filipino press may have had a hand in getting rid of any economic or political reforms that could help the Philippines. Yet, one policy has been holding back the Philippines for decades and yes, it's the Filipino First Policy . Reviewing the Filipino First Policy and why it has no place in the rising Asian 21st century I remembered how the values education subject taught Carlos P. Garcia's stupid Filipino First Policy as a Filipino value...

Has Passing Down Hatred for Singapore (Because of Flor Contemplacion) Economically Helped the Philippines?

PEH.ph It was on March 17, 1995, when Flor Contemplacion was executed in Singapore. I've noticed that I've been addressing her as the late many times, even if the late is a statement that may be ony appropriate if the person has been recently deceased within 10 years. It's about to become 30 years since Flor was hanged in Singapore. However, generational hatred would've been passed down from 1995 up to 2025. Some people are still tagging #JusticeFor Flor. These traits may be passed down from the Batang 1990s to their children in this generation. It may also be passed down from parent to child, even if the child was born in the 2000s to 2010s. Somebody born in 2000s and beyond might even say, "Papa and mama told me about Flor Contemplacion! That's why I hate Singapore!" Talk about a child born in 2004 who's probably angry with Singapore, because his parents kept telling him about how Flor was supposedly "unjustly treated" over there. Some tim...

Getting Stingy at the Cost of Fire Safety?

March is fire prevention month, right? If there are people who are too extravagant then I'd like to talk again about stingy people (read the article here ). I've tried growing up with the stingy vs. extravagant extremes. Some people become stingy even with the necessities. It's one thing to deny a child a children's party since it's a want . It's another thing to deny a child stuff they need all in the name of saving money . Even worse, some people may be more than stingy enough to ignore fire safety. A stingy person just wants to save. It's almost like the story of the Miser and His Gold or The Rich Miser . I really find these stories entertaining at the same time, irritating. The first story has the miser who hid his gold under the ground. Some people today are too distrustful of banks and investments. The second story has a rich man who even dresses in rags, denies his son's shoes, had his wife cook some cake only for him, and was so greedy he had it ...

Trying to Plan Out What to Do as a Bull Market Starts

I was laughing just thinking about ignorance about the bear and bull markets. Yes, we know about social media gossipers (seldom called a marites in Filipino) tend to spread gossip. I ran into several people panicking when the Philippine Stock Exchange Index (PSEi) was mostly red. Others would panic but Warren Edward Buffett recommends, "Be fearful when others are greedy. Be greedy when others are fearful." That's the best market timing. Some people do cost averaging because it's practically less risky in contrast to lump sum investing. Buffett recommends that non-technical people should periodically invest in a low-cost index fund over a period of ten years. Now, the Philippine Star has an article by Wilson Sy, where the first paragraph talks about the Philippines' entry towards the bull market : Most stock markets have undergone a dramatic shift to start the year, transitioning from a bear market to a bull market. Peak inflation, a slower pace of interest rate h...

My First Taste of Sichuan at Yang Hero IT Park

I was doing some random historical study. One of the many things I recalled from Asian history class was the Chinese Communist Party in Sichuan. It's an interesting piece of historical detail that Mao Zedong (and other Chinese communists) were avid lovers of spicy food . Yang Hero had its first branch in Gaisano Tabunok. It opened a branch in IT Park last May 25, 2023 . The menus had Chinese translations. The establishment has made me realize the importance of learning Mandarin . True, I could order their food without speaking Mandarin. However, I still feel that the increasing number of Chinese businesses left and right would mean, "You may need to learn some Mandarin now to connect with more people in the world." For a bit of background, here's what I gathered from Sun Star Cebu: Evanmarie Mendoza, social media specialist at Yang Hero, said: “The Chinese barbecue is also a must-try for foodies as it differs from the regular ones that we typically have here in the P...

Tealive's Aren Caramel (Kaong Sugar Caramel) Series

I usually tend to associate sugar with cane sugar. In this case, Tealive (read my review here ) uses a sugar known as gula aren. I did some research and found out that Gula Aren is made from the sap of the sugar palm tree. The fruit is also known as kaong in the Filipino language. Granted, the Filipino language also derives from the Malaysian and Indonesian languages--it may be derived from the Indonesian word kolang kaling . The Philippines may also be producing its own gula aren or palm sugar. Sugar palm or kaong is pretty much grown as a staple in Filipino cooking too. Here's a video from an Indonesian woman. Watching this, it's safe to assume that kaong farmers in the Philippines follow more or less the same routine. Maybe, some people may call it latik though latik is made from coconut milk and not coconut sap. Though, some Filipinos may still call palm sugar as latik. The video above also shows an Indonesian binignit with some kaong. I was shocked to learn kaong is also u...

Shaun T. Dy's Business & Economics Perspective Blog

Search This Blog