Impact of a Corrupt Government

The statistical analysis of data emanating from the documentary analysis from existing reports (both printed and electronic formats) used the Spearman Rank Correlation to determine the significant relationship between graft and corruption and rule of law, economic growth, human development and gross national happiness of citizens.

Based on the findings, the gross domestic product per capita posted a significant relationship with the corruption perception index (CPI).  This means that a more corrupt regime or government will have less productive or poorer citizenry.    This confirms the results from the expert interviews** conducted that a corrupt government deters growth of the economy because investments will not escalate; entrepreneurs will not be encouraged to put up a business because before cash registers will have to be utilized, you have already spent it for grease money; foreign investors will be discouraged to invest.    A corrupt government destroys Filipinos morale fiber, desensitizes people, promotes poverty, creates a greater number of poor people, no inclusive growth, and delays in infrastructure project implementation.

The corruption perception index was matched against Human Development Index (HDI) of the Philippines, and analyzed across 36 randomly selected countries.  The HDI is a relative new barometer of economic development of a country.     As a result, there is a high correlation as well.  Life expectancy, population literacy, incidence of poverty, and other human development indicators are apparently better in countries perceived to be less corrupt.  Meanwhile, the same human development indicators posted worse figures in countries perceived to be more corrupt.  Thus, there is a strong link between good governance and incidence of corruption in a country.   This further confirms the results from the expert interviews that a corrupt government results to poverty and poor quality of life, a wide gap between the rich and the poor, and inadequate social services.

Further, the gross national happiness (GNH) index is perfectly correlated with the corruption perception index across Philippine presidencies.  This means that if a government is clean and not corrupt, its citizens would be very happy and satisfied with the delivery of services.  Since this measure was recently introduced by the United Nations, only the presidencies of Benigno Simeon Aquino II and Gloria Macapagal Arroyo were compared.    Across 36 randomly selected countries, the gross national happiness index and corruption perception index (CPI) were correlated.  Once again, there is a strong link between the two variables.

Finally, across 36 randomly selected countries, there is a high correlation between the rule of law index and corruption perception index.  This means that if a government is clean and not corrupt, there will be effective enforcement of system of laws.

There is a need to determine the relationship of the incidence of graft and corruption and rule of law, economic growth, human development index and gross national happiness because it analyzes how graft and corruption undermine every effort to enforce the rule of law and establish good governance in the land.

Based on the findings, there is a direct link of corruption and the rule of law, economic growth, human development and gross national happiness   The GDP per capita of the Philippines is described as low.  This can be attributed due to the country’s weak institutions, weak revenue performance, weighty debt service, and high input costs which put a strain on government spending.  Corruption and political instability are also unique in the Philippines in terms of its unpredictability and extent, which serves as a disincentive for the private sector to invest.   Moreover, poverty remains a critical social problem in Philippines.  

On the other hand, human development index (HDI) measures the quality of life of individuals in a certain country.    The Philippines ranks 114 on HDI and is classified as “Medium Human Development” according to the 2013 Human Development Report released by the United Nations Development Programme.    There is a slow increase in the overall value of the HDI in the Philippines.    Quality of life in the Philippines remains unchanged as more Filipinos remain to be vulnerable to poverty despite a booming economy.  Having a low CPI at 38 explains why the Philippines has a higher perception of corruption because of its experience of lower quality of life. 

Gross national happiness (GNH) measures the level of satisfaction of the citizens of a country.    If a government is clean and not corrupt, its citizens would be very happy and satisfied with the delivery of public services.  A significant finding indicates that the gross national happiness (GNH) index is perfectly correlated with the corruption perception index across Philippine presidencies. 

Finally, the rule of law index measures how the rule of law is experienced by the public across the globe.    If a government is clean and not corrupt, there will be an effective system of the rule of law.  The Philippines ranks 51 on Rule of Law Index according to the World Justice Project Rule of Law Index 2015.   This explains why the rule of law in the Philippines is not effective. 

  References:

Nelson, R. (2007), “The Philippine Economic Mystery,” The Philippine Review of Economics, Vol. XLIV No.1 (Manila, Philippines).

Amojelar, D. (2013).  “Quality of Life in Philippines stagnates despite economic boom- UNDP Report,”  Interaksyon.com.

The World Justice Project.

** Expert interview -- A qualitative interview involving 30 experts on good governance was undertaken to determine:  a)  the root causes of graft and corruption in the Philippines;  b) impact of having a corrupt government;  and c) suggested laws, interventions or measures to curb the incidence of corruption in the country.   The qualifications and credentials of these experts were carefully determined to enhance the credibility of the collated opinions.  These 30 experts emanated from the academe, government, judiciary and private sectors.

Root causes of the high incidence of graft and corruption in the Philippines

A perception survey on the root causes of the high incidence of graft and corruption in the Philippines was conducted using a quota sampling technique.  The respondents were categorized into 6 sectors, namely:  business, labor, academe, government, legal profession, and marginalized groups.   

Table 1 describes the breakdown of the respondents who participated in the perception survey.

Sector	Description	Respondent	%
Business	Business owners	78	14.9%
Labor	Employees in private firms	123	23.4%
Academe	Educators and students	127	24.2%
Government	Employees in government agencies	64	12.2%
Legal Profession	Lawyers	55	10.5%
Marginalized	Informal settlers, persons with disabilities, senior citizens, indigenous people	78	14.9%
Total		525	100%

Table 2:  Sectoral Breakdown of Perception Survey Respondents

Olken (2007) asserts that perception surveys are a good measurement of knowing and confirming objectively the extent of corruption.

The statements in Table 2  were used to determine the root causes of the high incidence of graft and corruption in the Philippines:

Statements	Weight	Interpretation
Electing the wrong public officials (Senate, House of Representatives, LGU) will stimulate corruption within government agencies and units	5.438	High
Electing the wrong president is the start of a potentially corrupt administration	5.371	High
The role of families and households is critical in the development of a culture of corruption in society	5.248	High
The business sector and other sectors of society oftentimes create opportunities for officials to commit corruption	5.055	High
The educational system of the country contributes to the culture of corruption	4.592	High
Corruption in the Philippines is hopeless	3.684	Moderate

 

Table 2:  Premise statements to determine the root causes of graft and corruption in the Philippines

   

              There are many root causes of graft and corruption in the government.  But the most critical is that electing the wrong President will be the start of a corrupt administration.

              This confirms that the country’s unitary presidential form of government coupled with a free and open party system created weak political parties, weak judicial structures and weak legislature, thus contributing to the emerging phenomenon of an imperial presidency which president tends to overwhelm the other two co-equal branches, the legislature and the judiciary.  Thus there is a need to review our country’s system of government and considering changing the country’s free and open party system.

Since the country is suffering from a democratic deficit, there is also a need to create stronger political parties to close such deficit, making Philippine democracy more responsive to the citizenry as a whole and address the interests and demands of those at the bottom of society.

However, corruption is not an exclusive domain of the government.    It permeates the most basic social unit of society, the family.

Moreover, these values are further aggravated by the worsening poverty level, lack of opportunities within the country, technological innovations, exploitation by media and commercialization of culture and education.    Currently, a research was conducted where one in every ten families give money, gifts, or favor to facilitate availing of a service from a government service.   Vote buying is already prevalent in every election especially during the campaign period, or on the election day itself when the voters are about to enter the polling booth.

Mass media has become the most powerful tool used by the politicians to manipulate the voting public. It shapes and molds opinions and attitudes and defines what is normal and acceptable.   What is disturbing is that the mass media’s influence in delivering information has always been political.

What is also critical is that the business sector creates opportunities for government officials to commit graft and corruption in order to gain favors for the business enterprises 

Finally, the failure of the Philippine educational system to educate young Filipinos contributes to the high incidence of graft and corruption in the country.   This lack of education results to the lack of sense of nationhood which eventually connects to the core values of love of country, honesty and integrity.  Results of the qualitative interview emphasized that the country’s lack of sense of nationalism goes back to the foreign occupations by the Japanese and Americans; the effects of the war in our country led the Filipinos to forget these values.  Thus, corruption also happens within the classroom and within the boundaries of the school.  Teachers are considered major influencers to the youth.    Hence, the power of the youth vote in any electoral process cannot be understated.  That is why it is important that a law for an extensive voter education at the grassroots level (households, schools and communities) be enacted.   

References:

Griffin, E. (2009).   First Look at Communication Theory (7th ed.). New York, NY: McGraw-Hill Higher Education.

Hutchcroft, P. & Rocamora, J. (2003).    “Strong Demands and Weak Institutions: The Origins and Evolution of the Democratic Deficit in the Philippines."  Journal of East Asian Studies 3 (2003), pp. 259-292.

Sison, J (2013).  “Vote Buying,”  Philippine Star Global (Opinion).

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