 |
| Bongbong Marcos' Facebook Page |
Mrs. Aquino's successor, Fidel Ramos, whom she backed, was more practical and established greater stability. In November 1992, I visited him. In a speech at the 18th Philippine Business Conference, I said, "I do not believe that democracy necessarily leads to development. I believe what a country needs to develop is discipline more than democracy." In private, President Ramos said he agreed with me that a British parliamentary-type constitution worked better because the majority party in the legislature was also the government. Publicly, Ramos had to differ.He [Ramos] knew well the difficulties of trying to govern with strict American-style separation of powers. The Senate had already defeated Mrs. Aquino's proposal to retain the American bases. The Philippines had a rambunctious press but it did not check corruption. Individual press reporters could be bought, as could many judges. Something had gone seriously wrong. Millions of Filipino men and women had to leave their country for jobs abroad beneath their level of education. Filipino professionals whom we recruited to work in Singapore are as good as our own. Indeed, their architects, artists, and musicians are more artistic and creative than ours. Hundreds of them have left for Hawaii and for the American mainland. It is a problem the solution which has not been made easier by the workings of ta Philippine version of the American constitution.
It's sad how often LKY's quotes are used to berate the Marcoses while leaving out the bigger picture. It's crazy but it happens that people just focus too much on the late Ferdinand E. Marcos Sr. than on solving the damage. It turns out that, according to the Philippine Information Agency, President Ferdinand "Bongbong" R. Marcos' administration is pushing for regional trade resilience at ASEAN.
Department of Trade and Industry Undersecretary Allan Gepty and Department of Foreign Affairs Deputy Assistant Secretary and ASEAN 2026 Spokesperson Dominic Xavier Imperial outlined the country’s economic and political priorities at a press briefing at the International Media Center ahead of the 48th ASEAN Summit on May 8.
Gepty said the current crisis has underscored what regional cooperation is fundamentally designed to address, and why the Philippines’ chairmanship deliverables are particularly well-timed.
“National responses alone are not sufficient. We must strengthen regional coordination particularly in energy security, food security, logistics and supply chain resilience,” Gepty said, speaking at the International Media Center in Lapu-Lapu City.
A central Philippine priority is the implementation of a Memorandum of Understanding on the ASEAN Power Grid, which would establish the legal, technical and policy framework for cross-border electricity trade through submarine power cables—a long-term structural response to the region’s vulnerability to external energy shocks.
The Philippines is also pushing for a regional investment action plan to fast-track green industries including solar and offshore wind, a Digital Economy Framework Agreement to govern online trade transactions, enhanced regional payment interconnectivity and the conclusion of the ASEAN-Canada Free Trade Agreement to expand the bloc’s external trade network.
Gepty said an ASEAN Center for MSMEs is also being proposed to consolidate programs supporting micro, small and medium enterprises, a sector he described as a key growth driver that stands to benefit most from expanded regional market access.
“Their market is not only limited in the Philippines. They have the whole region as a market, and even the whole world, because of the various trade agreements we have forged,” Gepty said, responding to questions on how ordinary Filipino businesses can benefit from ASEAN integration within the next one to three years.
He cited preferential tariffs, simplified trade procedures, digital platform access and supply chain linkages with multinational exporters as the most immediate and tangible advantages available to Filipino MSMEs through ASEAN membership.
On the commitment to keep markets open during the crisis, Gepty said, “Whenever there is a crisis, some economies tend to impose restrictive measures. In ASEAN, it is very important that we remain committed to keeping the market open for trade and investment.”
Why the Philippines is better with ASEAN than out of ASEAN
People tend to say, "We must become isolationist in times of war." However, with the recent Iran conflict, ASEAN integration has become more vital than ever. If we read through the histories of the First World War and the Second World War, the winners were those who knew interdependence worked. In fact, we need to look at the two world wars and how joining forces was vital. In fact, the Second World War even forced the Communist nation of the United Soviet States of Russia, under Joseph Stalin, to join forces with the United States of America and the Great Britain.
The Philippines' state during the Second World War, under Imperial Japan, became isolationist. The results were anything but flattering. In fact, the Second World War website gives this very unflattering picture of the economic policies of the Philippines during that time:
## 8. Economic Policies and Development
The Second Philippine Republic faced immense economic challenges due to the ongoing conflict, resource constraints, and the overarching control of the Japanese military. Despite these hurdles, the Republic implemented various economic policies aimed at stabilizing the economy, addressing shortages, and promoting self-sufficiency. This section delves into the economic strategies, development efforts, and the impact of these policies on the Filipino populace during the period of Japanese occupation.
One of the primary economic policies of the Second Philippine Republic was to promote agricultural production and ensure food security. The war had severely disrupted agricultural activities, leading to widespread food shortages and famine. The government encouraged the cultivation of staple crops such as rice, corn, and root crops to alleviate hunger and support the war effort. Farmers were provided with seeds, tools, and other resources to boost production, though the success of these initiatives was limited by the destruction of farmland and infrastructure.
To manage the economic crisis, the Republic introduced rationing systems and price controls to stabilize the supply and prices of essential goods. These measures aimed to prevent hoarding, black market activities, and inflation. However, the effectiveness of these controls varied across regions, and many Filipinos continued to experience severe shortages and economic hardship. The black market thrived as people sought to obtain scarce goods, often at exorbitant prices.
The Republic also focused on reviving industrial production, though the scope was limited due to the destruction caused by the war and the commandeering of resources by the Japanese military. Efforts were made to rehabilitate factories, workshops, and small-scale industries to produce goods needed for both civilian and military purposes. However, the lack of raw materials, skilled labor, and capital investment hindered these efforts, resulting in only partial recovery of industrial activities.
Monetary policy under the Second Philippine Republic was characterized by significant challenges. The Japanese military introduced the Japanese-issued Philippine peso, colloquially known as "Mickey Mouse money," which rapidly depreciated due to overprinting and loss of confidence among the populace. Inflation soared, eroding the purchasing power of the currency and contributing to economic instability. The government struggled to manage the monetary situation, as the control of currency issuance remained largely in Japanese hands.
In addition to addressing immediate economic concerns, the Second Philippine Republic also attempted to lay the groundwork for long-term development. The administration promoted vocational training and technical education to prepare the workforce for post-war reconstruction. Emphasis was placed on skills that would be essential for rebuilding the nation’s infrastructure and industrial base. However, these efforts were constrained by the limited resources and ongoing conflict.
The economic policies of the Second Philippine Republic were deeply intertwined with the Japanese war effort. The occupiers exploited the Philippines' resources, including agricultural products, minerals, and labor, to support their military operations. This exploitation further strained the local economy and contributed to widespread suffering among the Filipino population. The Republic's efforts to balance economic stabilization with the demands of the occupiers were fraught with difficulties and often led to compromises that prioritized Japanese interests over Filipino welfare.
Despite these challenges, there were instances of resilience and ingenuity among the Filipino population. Community-based initiatives, barter systems, and local self-help groups emerged as coping mechanisms to address the economic hardships. These grassroots efforts highlighted the resourcefulness and solidarity of Filipinos in the face of adversity.
The economic legacy of the Second Philippine Republic is one of struggle, resilience, and the complex interplay of collaboration and resistance. The policies implemented during this period provide valuable insights into the challenges of wartime governance and the impact of foreign occupation on economic development. The economic experiences of the Second Philippine Republic continue to inform contemporary discussions on economic resilience, recovery, and the long-term impacts of conflict on national development.
People might argue that the Japanese occupation made Carlos P. Garcia's "Filipino First Policy" necessary. However, the reality was far from different. Garcia's Filipino First Policy was a road to disaster. The Philippines didn't achieve freedom from the Japanese Empire on its own. It needed allies like the USA to overthrow the Japanese forces. If it weren't for American intervention, the Japan that many people love today would never exist. We would never have Anime, Manga, the best rice cookers, DVD technology, the PlayStation video game series, etc. Because of that, Japan was forced to abandon its misguided nationalism in exchange for a global economy. The Chrysanthemum Throne became symbolic, and the Japanese Diet (its parliament) is what controls Japan today.
In fact, if we think about it, the Philippines needed American help during the Second World War, when the chaos was much higher than it is today. If we think about it, ASEAN integration was also necessary. The Philippines couldn't rely solely on itself. No nation is an island. The Philippines can learn from its ASEAN countries, do business with them, while retaining its sovereignty. Without American help, the Philippines may have slipped into a state similar to Venezuela.
The great opportunity loss of the Philippines (and Vietnam's gain) reexamined
We might want to do a historical lesson. The ASEAN website gives this history of ASEAN before we get into the details with LKY:
On 8 August 1967, five gentlemen – the Deputy Prime Minister of Malaysia, along with the Foreign Ministers of Indonesia, the Philippines, Singapore, and Thailand – gathered in the main hall of the Department of Foreign Affairs building in Bangkok, Thailand, and signed a document. By virtue of that document, the Association of Southeast Asian Nations (ASEAN) was established. Adam Malik of Indonesia, Narciso R. Ramos of the Philippines, Tun Abdul Razak of Malaysia, S. Rajaratnam of Singapore, and Thanat Khoman of Thailand would later be recognised as the Founding Fathers of arguably the most successful inter-governmental organisation in the developing world today. The document they signed would be known as the ASEAN Declaration.
As I was reading From Third World to First, there was the ASEAN contrast. Strangely enough, it was Vietnam, not the Philippines, that heeded LKY's advice. LKY already gave this advice to the Philippines some time ago. Here's something LKY already told us years ago during his speech at a Philippines business conference, which is from the National Archives of Singapore:
28. Since the swearing-in of President Ramos, there have been positive signs for the future. In August he announced the complete liberalisation of foreign exchange regulations and ended 40 years of foreign exchange control in the country. This has generated a sense of optimism over economic recovery. Banking activities have increased and the stock market is upbeat. If the president carries through his liberalising of trade and investment regulations he will generate a new momentum in economic activities. In the nature of an economic recovery, there cannot be instant dramatic reversal. You must expect domestic vested interests to exploit the political system to slow down economic liberalisation. But if the people understand what economic liberalisation means to them in jobs and wages there will be counterpressure on Congressmen, cabinet ministers and officials. Filipinos should not tolerate a slower pace of liberalisation than what their ASEAN partners have achieved, especially Thailand and Malaysia and now Indonesia.
29. The president in his State of the Nation Address has declared that he would pump-prime the economy; that his priorities are the construction of infrastructure, communications and transportation, water supply, power generation; that in trade and foreign investment that he is for more aggressive liberalisation policies. He would like to abolish all remaining quantitative restrictions on trade. To encourage foreign investment he will liberalise nationality requirements in the Omnibus Investment Code to make it possible for foreign investors to own their plant sites.
30. The president will have to show political skill and courage to cut a way through the conflicting interests of businessmen and the people. His duty first and foremost is to the people.
31. To recap,
First : Restore law and order. Make Manila safe from organised kidnapping and major crimes.
Second : Concentrate on economics not politics or more accurately, politicking . Lift restrictions on trade and investment. Dismantle the web of measures which keep out foreign companies and make Philippine companies compete to survive, not thrive at the expense of ordinary Filipinos.
Third : Build up your infrastructure, like power stations, roads and communications, either in partnership with or completely by the private sector.
32. In conclusion, I hope I have provoked you, the business and government establishment of the Philippines, into setting your priorities for getting your act together so that you can achieve your potential. If you maximise the six years of the Ramos Administration by freeing your economy, attracting investments, and if you work hard to create conditions that make these investments profitable, then you will get yourself back into the mainstream of growth and development and be in the same league of dynamic economies as your ASEAN neighbours.
However, Vietnam chose a different path from the Philippines as an ASEAN member
 |
| Nguyen Duy Cong (Do Muoi) and Lee Kuan Yew Source: VOVworld5 |
In fact, the Vietnamese had made progress. As a result of more contacts with foreigners and greater information on the market economy, ministers and officials had a better understanding of the workings of the free market. Greater street activity, more shops, foreign businesspeople, hotels--those were all signs of prosperity in Ho Chi Minh City and Hanoi.
Did Vietnam lose its sovereignty by following LKY's advice? In fact, it was noteworthy that LKY also mentioned on pages 309-310 in From Third World to First, the following things that may remind readers of the Communist Party of the Philippines or leftist blocs such as the Makabayan Bloc:
The Vietnamese cunningly exploited the fears and desires of the countries of ASEAN that wanted to befriend them. They talked tough over their radio and newspapers. I found their leaders insufferable. They were filled with their own importance, and prided themselves as the Prussians of Southeast Asia. true, they had suffered, taken all the punishments that American technology had inflicted on them, and through sheer endurance plus their skillful propaganda, exploiting the American media, defeated the Americans. They were confident that they could bear any power in the world, even China, if it interfered with Vietnam. For us, the puny states of Southeast Asia, they had nothing but contempt. they declared they would establish diplomatic relations with member states of ASEAN individually, and refused to deal with ASEAN as a group. Their newspapers criticized the existence of U.S. military bases in the Philippines and Thailand and spoke collusive relations between China and Singapore.
Such actions remind me of what the Makabayan Bloc does. They use the same boogeyman methods against FDI. That's basically keeping with the pre-Doi Moi Vietnam playbook. However, things went differently by 1986 when Vietnam went for Doi Moi. Global Asia says this about how isolationism was abandoned for Doi Moi, leading to prosperity:
FROM ISOLATION TO PROSPERITYBy the mid-1980s, the development model Vietnam had borrowed from the former Soviet Union and its East European allies had revealed numerous flaws and was proving outmoded. On the political and diplomatic front, tense relations with China, the heavy burden of Vietnam's troop presence in Cambodia and strict sanctions imposed on it by the US placed Vietnam in a difficult bind. On the one hand, the country was blocked from cultivating new relations with other countries; on the other, it had become ever more dependent on the Soviet Union for political support and economic and military assistance.The turning point came with a dramatic reduction in Soviet economic and military assistance after the mid-1980s and the economic hardship this caused. For the sake of the country's survival, Vietnam's leaders were forced to adopt economic and political reform, or Doi Moi. In essence, Doi Moi in its early stages was focused mainly on the removal of self-imposed barriers to progress and the utilization of various market-oriented measures, including liberalization of the domestic market, encouragement of foreign direct investment, or FDI, and the private sector, and reduction in subsidies to state-owned enterprises (SOEs).These steps quickly brought positive results. From a country faced with perpetual food shortages, Vietnam in 1989 for the first time exported 1.4 million tons of rice. It has since remained a rice exporter. In 2008, it exported 4.7 million tons, becoming the world's second largest rice exporter after Thailand. Indeed, Vietnam's exports were instrumental in stemming the threat of a severe international food crisis in early 2008.What impresses most, however, is the continuous high economic growth rate that Vietnam has recorded in the 20 years since the introduction of Doi Moi. Vietnam recorded average annual economic growth of 6.5 percent over that period, one of the highest rates among developing countries. And with annual per capita income of $1,000 in 2008, Vietnam was removed from the list of the world's least developed countries. The high economic growth rate in turn helped reduce Vietnam's poverty rate from 70 percent in the mid-1980s to 37 percent in 1998 and 19 percent in 2007.
 |
| Foreign Trade University's Facebook Page |
More importantly, the HCM Communist Youth Union went as far as this, according to the National Defence Journal:
Currently, the cause of national construction and defence are posing new and more challenging requirements for the work of building and developing human resources in general and the intellectuals, especially young intellectuals, in particular. The Fourth Industrial Revolution continues to develop robustly, fundamentally changing the social labour forces. Our country is promoting deeper and wider international integration, industrialisation and modernisation associated with the development of a knowledge-based economy,... This poses new requirements for people working in the science field that science must be built to become a direct productive force in all fields. Therefore, thoroughly grasping and implementing Resolution No. 45-NQ/TW, the Ho Chi Minh Communist Youth Union needs to continue to promote its role and responsibility in building the young intellectuals with the following measures:
Firstly, deploying diverse forms of propaganda about the Party and State's guidelines and policies on the development of Vietnam's young intellectuals, raising the awareness of the position, role and importance of the intellectuals and the young intellectuals. Promote the application of digital transformation, innovate content and methods, improve the effectiveness of propaganda and mobilisation work to enhance the consensus of the intellectuals for the Party's guidelines and policies, and State law. Focus on promoting the honour, morality, dedication, and responsibility of young intellectuals towards the Fatherland and the nation.
Second, continue to research and perfect the system of mechanisms and policies to innovate and improve the quality and effectiveness of training, fostering, using, remunerating and honouring the intellectuals and the talents, creating a favourable environment for young Vietnamese intellectuals to develop and contribute. In particular, there should be mechanisms and policies to mobilise intellectuals, especially the industry-leading ones, to directly train the next generations to make strong and comprehensive changes in the training of highly qualified human resources, and the development of talents in higher education institutions and scientific research institutions.
Third, discovering and honouring outstanding young intellectuals in a careful manner. Actively and effectively deploy the Creative Youth movement; create favourable conditions and environments for early training, discovery and honour of young intellectuals. At the same time, effectively leverage mass media, the press - publishing system, and social networks to propagate outstanding young intellectuals; the products and works of the young intellectuals; share models of honouring, supporting, connecting, and promoting young intellectuals at home and abroad.
Fourth, improving the quality of awards, contests, and competitions to promptly discover domestic and overseas Vietnamese talents, and create positive motivation for the young intellectuals to take part in training, improving themselves, and have the opportunity to be recognised and praised for their efforts.
Fifth, enhancing the support of young intellectuals to get access to opportunities of work, research, develop ideas, products, and start-up to legitimately enrich themselves, the community and the country. Support the implementation of startup ideas and projects of young intellectuals in practice, making practical contributions to the country's development. In addition, there should be solutions to support young intellectuals to access capital to start their business. Actively innovate the content and methods of operation of intellectual organisations, etc., contributing to the successful implementation of the Party's resolution, building a contingent of young intellectuals with dreams, ambitions, and aspirations to develop themselves, make contribution to the country, and follow the entire intellectuals of the country on the path of integration, development, and make the country increasingly rich, prosperous, civilised, and happy.
This is where the Philippines can learn from Vietnam. Did Vietnam lose its sovereignty through ASEAN integration? Not at all. Vietnam already swallowed its pride years ago. The Philippines should follow the course too. Delete Article XII's economic restrictions entirely and put all restrictions within legislation only. FDIs should be regulated with reasonable restrictions instead via legislation.
Comments
Post a Comment