Online Referendum for Economic Freedom in The Philippines

Monday, January 17, 2011

From corruption to freedom

To explain the corruption to pinoy citizen, let's explain its origin by a little story.

That's the story of a foreign company who want to invest in the Philippines. First thing they will have to do is to ask a business permit to the local government.

However, local government mostly don't publish their detailed budgets. To have its autorisation, the company will have to schedule local government.
First, this government will ask fees to the company, nothing's wrong.
However, they will ask more than the official fees : first step of corruption, but we can call it robbery.

The company, unhappy of this lack of respect will close its eyes. But two weeks later, they will contact them for another appointment. Not to give their business permit, but to tell them that it is refused, and if they want it, they will have to give a X-mas gift to them. Second step of the corruption, but we can call it rackeetery.

The company paid it, hoping it's the last time they will have to do that, and later they get their business permit.
But the local government now tell them that they have to register themselves to national sector autorities.
National government publish their budgets, so the company is safe of extra-fees for this time.
But in the appointment, the responsible would ask them also a X-mas gift in cash to get autorisation : Third step of corruption, rackeetery also.

Moreover, the company planing to invest here will learn at its depends that they can not own their lot and their business more than 40% (in most part of cases). So they would have to give the property of their investment to pinoy partners : Fourth part of corruption, also called robbery.
About the land, they would have choice between pinoy partners, or a long-term leasing : Fifth step of corruption, choice between robbery or being unstable and uncompetitive.

The business can start, the investor is reassured. However, a year later, autorities will ask a new X-mas gift if the investor don't want to lose its right to make business here : Last step of corruption in business who is also rackeetery.

At the end of the story, the investor is ruined (if not multinational company), robbed, humiliated, and must to sell its 40% of capital and runing away from the country.

Eventually, he could tell it to Police. But Justice also here is reputated corrupted.
Then if this affair become popular, most part of politics here will have lyrics saying "foreigners makes corruption" (mostly nationalist lyrics). And this, even if they are responsible of all this chain !!! (from revolution to marcos dictatorship).

At the end, foreign people thinking to invest abroad, knowing that, would avoid Philippines. And they would be right to say the truth. And without these foreign direct investments, Filipino power purchase is reduced exponentially.

The conclusion of this story is simple : to remove corruption in the country, remove this administrative and nationalist system, and make free entrepreneurship, free investment, forbid discretionary grants, and discretionary fiscal advantages.

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