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ON THE OTHER HAND
Economic or Political Freedom?
By Antonio C. Abaya
February 18, 2004


�Ideally,� he said �you give economic freedom with tight political control. Political freedom will come when, with the improved economy, people are no longer hungry.� If a country insists on having political freedom first, then its economy will grow at a much slower pace.

If that sounds, to communist and liberal Filipino ears, like the ranting of your friendly neighborhood fascist, it may come as a surprise that the speaker was none other than Washington SyCip, one of the most respected wise old men in Philippine business circles. Who, nevertheless, would still rank as a friendly neighborhood fascist in the estimation of those who subscribe to either Marxist-Leninist orthodoxy (which rejects any accommodation with �rightist� regimes which routinely decimate their ranks) or American-style liberalism (which theoretically rejects any diminution of political and civil rights under any circumstances but actually supports it whenever it is in their national interest to do so).

Said SyCip, as reported in the Feb. 9 issue of the
Philippine Daily Inquirer: Freedom of the press and of political expression are �still quite distant� in China, �but the drop in poverty levels has been the fastest in world history��.The Philippines demonstrated the highest growth rates in 1973 and 1974, during martial law, he pointed out.

SyCip�s observations are by no means original or suddenly revelatory. Many other observers of the Asian or Philippine scenes have been saying or writing as much for many years, but they  were usually ignored or overwhelmed by the usual liberal concerns about our �cherished democracy.�

That someone of SyCip�s stature has chosen to come out openly with such heretical opinions should spark some debate in media (which, however, is almost totally liberal and often radchic pro-Marxist in orientation). My own views have been expressed in earlier columns, principally �
The Dilemma of Liberalism� (Aug. 1, 2002) and �Even Raul Roco Would Fail� (Dec. 15, 2002).

In the euphoric few years after EDSA 1, before disappointment and despair set in, many thinking Filipinos consoled each other with the thought that, although South Korea, Taiwan, Singapore, Malaysia, Thailand and China had overtaken us in per capita income, export earnings, tourist arrivals, domestic savings rates, tax collection as % of GDP, gross international reserves, foreign direct investments, quality of education, ratings of schoolchildren in science and math, and just about every other indicator in the books � and Suharto�s Indonesia was about to do the same - we, however, were more developed politically than they were because we were a liberal democracy, while they were refugees from, or were still under, authoritarian regimes and had little or no experience with such liberal-democratic niceties as a free press and free and open (though not necessarily honest) elections.

The election to the presidency in 1998 of a criminally inclined ignoramus has settled that argument conclusively and has shown our boastful claim of political superiority over our economically successful neighbors to be not even a
consuelo de bobo. The Philippines is, it has long been apparent, not only economically retarded but politically backward as well. The looming election in 2004 of other wildly popular ignoramuses suggests that we will retain this dubious distinction for at least another 12 years, perhaps even 18, perhaps forever.

I do not know what Wash SyCip thinks about it, but my own feel is that our political system is so far gone in the spiral of irreversible decay and trivialization that it is no longer capable of cleansing and regenerating itself. SyCip mentioned education as �the most effective equalizer� between the socio-economic classes. True, but with our best teachers now working as maids in Hong Kong, Singapore and Western Europe, who will do the educating? And what about the population bomb ticking ever so loudly in our front yard, backyard and every room in our over-crowded and dilapidated bahay kubo?

The thesis that economic freedom should come ahead of political freedom is certainly borne out by the successes of South Korea, Taiwan, Singapore, Malaysia, Thailand, Suharto�s Indonesia, Vietnam and the People�s Republic of China. The Philippines is unique in this part of the world in trying to do it the other way around, or at least in trying to have both at the same time, with palpably disastrous results as is graphically evident from the tattered condition of our body politic and our limping economy.

Sure, we enjoy the freedom to criticize, demonize and pulverize every government official, from the president down, but half the population have sunk below the poverty line, and their numbers are increasing with each passing year. Sure, we got from the Americans the right to vote for our leaders way ahead of everyone else in East Asia, but not even the Americans could have predicted that we would use that right to vote into power criminally inclined ignoramuses, convicted child rapists, fugitives from the FBI and certified electoral cheats. In the meantime, the peso keeps on sinking and everyday 3,500 (or almost 1.3 million a year) of some of the best Filipinos leave for jobs abroad that they cannot find here.

On the other hand, to this day, the Internal Security Act (ISA), which the governments of Malaysia and Singapore inherited from the British, still pointedly excludes �subversives� (meaning, communists and their sympathizers) from their politics and their economics, as did the military governments which modernized South Korea, Taiwan, Thailand and Suharto�s Indonesia with much more draconian measures than the ISA. For their part, the communist governments of Vietnam and China do not allow anyone to challenge the primacy and monopoly of power enjoyed by their communist parties.

Such diminution of political freedom has not impeded their march to broad-based economic prosperity (hence the economic freedom of most of their people), largely through the export of manufactured goods. On the contrary, it can be argued that economic freedom would not have been achieved by any of the above countries, on either side of the ideological divide, if their malcontents had been given the political freedom to protest, pillory and put down viciously every act, every program, every initiative of their governments. And the negative example cited to illustrate this principle is often none other than  Philippines, My Philippines.

So, on which side are the angels ranged, economic freedom or political freedom? 

I recall that more than ten years ago, when a multi-choice survey asked Filipinos which world leader they admired the most, Lee Kwan Yew of Singapore received by far the  most votes. Which suggests that even then, when things had not yet deteriorated to their present state, Filipinos were already instinctively choosing economic freedom over political freedom, the contrarian voices of communists and liberals notwithstanding..     

                                                                      *****

The bulk of this article appears in the February 28, 2004 issue of the Philippines Free Press magazine.


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Reactions to �Economic or Political Freedom?�



Sycip ain't that wise. Like Zobel whose mouth starts      spewing he is (most kindly put) just a stuffed shirt. If he were an ordinary hombre drinking beer at a roadside carindera he would be called a plain nut.

Political freedom doth enhance economic freedom. Lee Kuan Yew puts a lid on political freedom to justify PAPism. So what? Is that truth already?

Transparency in especially government deals is very important. You need full political freedom to enhance that.

Sycip, Zobel and the like: just slide to your crypt without fanfare.

Ross Tipon, [email protected]
February 26, 2004

MY REPLY: Are you saying, then, that Lee Kwan Yew of Singapore, Park Chung Hee of South Korea, Chiang Ching-kuo of Taiwan, Mahathir Mohamad of Malaysia, Prem Tinsulanana of Thailand. And Deng Xiaoping of China�all should have �slid into their crypt without fanfare� for not having given their people �full political freedom� during their watch�.and that only the Philippines� Cory Aquino-Fidel Ramos-Joseph Estrada-Gloria Arroyo had it right?

And aren�t you contradicting yourself? In your previous reactions to this space, you have often  said that Filipinos are not ready for self-governance and should have remained a colony of the US. Wouldn�t a colonized people enjoying �full political freedom� be a contradiction in terms, an oxymoron? 


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Dear Mr. Tony,

Many thanks for the articles you are sending me regularly, I really love them. I also like this "CII" you penned on our infamous mustachioed ex-president... Criminally Inclined Ignoramus. I wish you could come up with another one for the books the up & coming another IGNORAMUS.

Hope you're in good health.

Regards,
Napoleon P. Serrano, [email protected]
Saudi Arabia
February 26, 2004

MY REPLY: How about a Fake Presidential Jerk?

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(Through the Talsik egroup)

Hello Mr AA,

   Are you a CPA (cut/paste artist) of the
Free Press Magazine or an
honest to goodness columnist of said magazine?  Ideas propounded
therein are very interesting.

Luis �Eaglewings�, [email protected]
February 26, 2004

MY REPLY: Why don�t you check with the
Free Press editors at Tel. 844-4388?

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Tony,

I have already forwarded this article to Dee for posting in <iskandalo.com>.

My comments:

1. Political Freedom versus Economic Freedom - one hell of a controversial issue.

The Quezonians would prefer "...to see a country run like hell by Pilipinos, than to see one run like heaven, by Americans (foreigners)."

McKinley and his so called "imperialist" supporters put it quite the opposite:  "We cannot give the Philippines back to Spain...that would be ignoble.  Nor ought we sell it to England, Germany or France...as it would be bad business to engage in business with countries whose perceptions of human values are not supportive of ours.  And we cannot afford to return the Philippines to the Pilipinos, because they are incapable of self-rule and self-governance...and they will have anarchists worse than those they had experienced under their 350 years of Spanish colonization. And so I have decided to keep the Philippines as an annex and commonwealth of the USA and there it will stay for as long as I am president."

Unfortunately (for those who believe to date that the Philippines would have been better off under the Americans), but exhuberantly (for those who imagined that political sovereignty equated with economic independence), McKinley's term of office was abrubtly cut short when he was felled by an assassin's bullet....and his successor Woodrow Wilson and his cabinet worked towards the gradual and eventual political independence of the Philippines. That was some 100++ years ago.  So far, the Quezonians have been winning with MLQ's self-fulfilling cursed hope.

From 1946 thru 1965 (19 years of new-found political freedom), we had 5 different leaders who took turns trying to propel the economic wheels towards progress. Roxas, Quirino, Magsaysay, Garcia, Macapagal...then the A-hole Marcos came along and for the next 20 odd years 1965-1986 unrelentlessly and mercilessly screwed and sodomized the country. That was some 28 years ago.

And now, we still have all the "loyalistang-balimbings," - the sipsips of Imelda,  the same "mga tuta ni Marcos"...(except that now they are old, decrepit, ranting, raving na mga "asong ulol") - hanging on to lost political power, in their last desperate effort to salvage their equally diminishing economic possessions and stranglehold...

Indeed, Tony, a society that FORGIVES, too readily, FORGETS, too easily, and DENIES, too adamantly, all too soon ignores the lessons of the past...and inevitably becomes doomed to a dismal future.

Pepeton J�anton, [email protected]
February 26, 2004


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That is why you are one of my favorite analysts.


Ricky Carandang, [email protected]
ABS-CBN
February 26, 2004


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Dear Prof Abaya:  Thank you very much for forwarding me your article.  I agree with your views.  I was your student at the UP Diliman many moons ago, in PI100.  As you rightly ask, when will we ever get to the level of our neighbors when our next president is fpj?  Is there hope for our beloved Philippines?

Ed Valenciano, [email protected]
February 26, 2004

MY REPLY. Sorry, I was never a professor or student at UP Diliman. You may have mistaken me for my uncle, Hernando Abaya, who passed away about ten years ago.

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Dear Mr. Abaya:

A choice between political freedom or economic freedom is not necessary.  In the Bill of Rights of the U.S. Constitution, the rights of the individuals are not prioritized.  In a democratic institution, the fact that you have economic freedom does not necessarily assure the country of a political freedom.  You gave Washington Sycip as a strong advocate of economic freedom first and then political freedom follows.  Being aware of Wash Sycip's background in my college days in the Philippines, he is and relates to the American way, being a naturalized U.S. Citizen from a Chinese background.

In this coming elections, the more important choice for the Filipino people is its future leader.  What are the choices-GMA, FPJ, Roco, Lacson, Villanueva and Gil.  I have read your treatise on many issues, be it "Is FPJ an ET?", " Political Revolution" and so forth.  However, it would be educational and interesting for the voting public if you could analyze the presidential candidates incisively.  We are aware that FPJ is avoiding the debates.

Maybe it might be informative if you could design some kind of a mock interview for FPJ in this format:  ACC:  Mr. Da King FPJ, what do you think of globalization?  FPJ:  Global, bilog yan, parang bola, nagbasketball din ako noon, alam ko 'yan, pare.    ACC:  What can you do about our runaway debt which is now in the trillions?  FPJ:  Trillions, ano yan.  hanggang pesos lang ang alam ko.  Magaling akong businessman, I make one movie a year, blockbuster, although for the last years or so, palpak lahat.  Politika na ako ngayon-  may pera d'yan.  These are just minute capsules of the possible interviews in mock form.

The investors, businessmen and other influential groups should be aware of the pitfalls of making the wrong decision come voting time.  I cannot answer for the masa, however, there are also intelligent poor people and should not be taken for granted.

Mr. Abaya, thank you for your time.  Your writing is exceptional.

Jay Bart, [email protected]
February 26, 2004

MY REPLY. A mock interview with FPJ would be useless. For one thing, he would not get around to reading it as he doesn�t read anything except movie scripts. For another, it would not have any effect on him even if he did read it. I agree that while there are the
masang tanga, there are also the masang matalino. I just do not know at this point in time which is the more numerous masa.


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Dear Sir,

I�m not sure if you posted this on Pilipinas Forum, but anyway my reactions are this:

1) We are now in a Catch-22 of sorts: while our political system has already decayed, we no longer have the ability or desire to revert to an authoritarian system.  That process would take socio-political forces that would produce the leadership capable of such administration. 

2) The revolution, methinks, if ever that would happen, would come from the middle class, if only they realize it.  However, unlike the middle class of 1986, which consisted of home-based Filipinos steeped in our politics and current events, the diaspora has resulted in a new OFW �middle-ized� class.  This class of people has the economic but does not have the interest or opportunity to exert its influence.  The failure of the DFA and Comelec to attract even 10% of the so-called OFW vote is a testament to this, despite all the bragging put up by the OFW organizations when RA 9189 was passed last year.  Of course, there is also the factor that many of our OFWs are illegals.

3) We were always in the �wrong� system from day one that the Republic was founded, insofar as the political maturity of the people and the leadership are concerned.  This socio-historical trend has always been the case since the Revolution of 1896.  Jose Rizal correctly predicted that any revolution in the Philippines would fail because the people were not ready, and that the Americans would subsequently annex us.  (His hopes, though, of a benevolent American administration proved to be partially wrong).  Andres Bonifacio was a great leader in that he was poor but had a great vision.  In fairness to the ilustrados who later became revolutionists, the Revolution was hijacked by their bourgeois politics and inclinations, resulting in the sell-out of Biak-na-Bato and later the accommodation with the Americans.  Had they gone down fighting it would have been a different story for the Philippines, at least in the sense that the revolutionists would have had an opportunity to purify their vision, cull and then increase their membership with truly committed members, and establish a legacy of idealism before they were crushed (which I believe would have happened given the American efficiency --- the Native Americans, the Spaniards in west North America, and Latin America as examples). 

Of course, the great fortunes of the Lopezes, Cojuangcos, Aranetas, Ayalas and the rest of the ilustrados would have gone to different hands.  I say this with only regret, but no rancor.  Who knows what people like me and my generation would have done had we been in the same boat?

4) I agree with your thesis that economic freedom would mean opportunities to seek true political freedom. To what vision? To what concept of the Republic?  I guess this can be never be answered simplistically.  On the note of a devil�s advocate, there is also the consideration that it is not only our economics that ails the country.  Wash Sycip correctly points out that it must be the state of mind of the country that must be changed.  Yes, education helps.  As you also succinctly pointed out, with our best minds leaving the country, that might be farfetched.

5) Which goes back to my hope and belief that the Filipino middle class would work for change � and that means having the sense of volunteerism to do whatever can be done to help the country.  And that just doesn�t mean paying taxes and spouting some opinion in the paper.  Sure, that�s a good sign, but what I mean is that people go out and help organize others to do something good.  This is where the Church has been struggling, in the right direction, for years to do � getting the laypeople to be the true heirs of the Church.  Alas, there is still the mentality of �what is not in backyard is not mine� and �what�s in it for me?�

About twenty years ago, we reached the high-water mark of volunteerism after Ninoy Aquino died and almost everyone cared about what�s happening. We need people in the country to care again, and then to put their lives on the line for that caring.  We need more Sunday school teachers.  We need more builders of the Gawad Kalinga variety (I disagree with their ideology, but shucks, I think they�ve got something right going there).  We need people to put in more money for charities and what�s more, dispense the charities themselves by going out there and telling people they can make a difference.  We need more marriage counselors and family encounter programs to help rebuild the institution of the family.  And yes, we need more enlightened administrators beginning at the barangay level.

But this needs real people who have otherwise economic-centered lives go out and start doing something different.  It takes people to believe they can be something different.  It would take many of this generation to start thinking out of the box because no one else would do the thinking for us. 

Otherwise � in any authoritarian or semi-authoritarian state people would die.  Sadly enough, it would be the people who care NOW who�ll die first

Joseph Angelo P. De Guzman, [email protected]
February 27, 2004-03-02

MY REPLY: This article was emailed to all my egroups, but I do not know or care if pilipinasforum posted it.

1. Whether we will revert to an authoritarian government, or invent a new strongman but essentially democratic rule, in reaction to our (your words) �decayed political system�, does not depend on what we write but on the situation on the ground, if and when it happens.

2. The revolution, if and when it happens, will be carried out by the middle class here at home, not by the middle class overseas.

3. We were not under �the wrong political system� during the Marcos years. At that time all the countries in East Asia, without exception, were under authoritarian rule. Marcos� sin was his failure to build an export-oriented economy for the Philippines the way the other modernizing authoritarian leaders built for their countries. So the South Koreans, the Taiwanese, the Mainland Chinese, the Singaporeans, the Malaysians, the Thais and the Indonesians enjoyed widening economic prosperity (largely from the export of manufactured goods), which made up for the loss or absence of some civil and political rights. In the Philippines, the loss of some civil and political rights was not compensated for by any economic prosperity of the scale enjoyed by our neighbors.

4. I agree with you. It is not just the economics and the politics of this country that need a make-over. The media environment also needs drastic change. At present, our media are too focused on showbiz, conspicuous consumption and other trivialities, on the one hand, and are too adversarial towards the government, on the other. Not even Lee Kwan Yew or Mahathir or Park Chung Hee could have performed their miracles in their countries if they had to operate in a media environment like ours.    


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I agree with you 1000 %, I was among those Filipinos who left Philippines at the time of Cory Aquino. I was among those who went to EDSA, stayed vigil, and stand in front of those tanks to stop them from going to Camp Crame. I was one of the first to go to Malacanang and even nab a looter and gave them to authorities. My heart was full of patriotism at that time and really felt that it is the right thing to do. Throw away the dictator, and on with democracy. Little did I know that it is the worst thing to happen to our country.

I am not a loyalist nor a die-hard political affilliate. I was a regular Businessman doing great at the time of Marcos, I own a "Wire Tray Coating plant" in Malabon, I fabricate and supply large displays in the big Supermarkets, I supply Promotional and Advertising materials to big Multinationals, I have a 11-hectare Fishpond in Calatagan, Batangas, I have a 100-sow Piggery in Angono, Rizal, a big "Billiard hall/Restaurant" in Meycauayan, Bulacan, I export Children's and Ladies Dresses to South America, and I have a silk-screen printing shop in Paranaque. All of them are doing good and making good money, but right after the EDSA Revolution, everything slowed down.

One year after, the Multinationals started holding on to their promotions and advertisements, budgets were slashed and they started pulling out of the country. Major calamities such as Flood, Typhoons, Power blackouts every day and a lot of Coup-d'etat happened, new politicians emerged, graft and corruption became so apparent and no one stopping them, the poor became poorer and prices of basic commodities went up so high while employment and salaries went down. The big Earthquake came in 1990,  and  it affected the business all throughout the country, mostly Luzon where the bulk of the business is.

Conferring with my fellow businessman, we knew that it is the start of the decline, the worst decline that will happen to us and the Government officials are busy enriching themselves and powerless to do anything because they simply don't care. I sold all my business and migrated to California. Right after I left Mt. Pinatubo erupted and it added to the worst situation. Then the next Presidents together with their "alalays" didn't do anything except become richer.

Now, we are again in a dilemna, our country because of the Political Freedom, is again in danger. In danger of  more graft and corruption, rampant stealing, kidnapping, murder, economic chaos, brain drain, and high prices because our politicians, our presidentiables do not have any Economic Plan to lift the country out of POVERTY.

It is so sad to see our people getting hungry, working as Maids in other countries, our Professionals working out of the country, leaving and fed-up with the situation. Filipinos excel abroad, but those who were left are getting hungry and miserable.

There is no future to stay, not even a sign of improvement and the clear sign to see is the imminent danger after the election. Rich, Poor, Proffessionals and almost everybody wants to leave the country, they will go anywhere because anywhere is better.

I have always advocated that the only thing which could save the Philippines now, is to make the whole country "DUTY-FREE" just like Hongkong and Singapore. There is a lot to consider I know, and a lot of studies to make, but is there any economic alternative that anybody can suggest? Duty-Free has made Hongkong and Singapore, they have no natural resources like Philippines has, their country is smaller than Philippines, we have better people, better culture, better educated and industrious people, better Tourist places, beaches and sceneries.

Philippines can surpass Hongkong and Singapore, Filipinos are more flexible and patient, and the country has so much more to offer than those two countries. The government can impose 2% sales tax on all transactions and exports. This will amount to billions of dollars enough to improve our power supply, Roads, Bridges, Communications, and Trains to facilitate fast and cheap transport of goods from Luzon to Mindanao. It will lure Foreign Investors, Foreign money, create employment, low prices, and build infrastructures. It will lead Philippines to become World Exporters of quality products just like Hongkong, and be considered as Financial capital in Asia just like Singapore.

There are more benefits to get, as of now nobody wants to invest in the Philippines,  even us Filipinos outside the country are so adamant to invest. There is no fresh money coming in, and what's left is being siphoned by our politicians including the military and the others who are in power. I do not know who to get hold of our presidentiables or to any of their cronies to suggest this proposal and make them study it further. They are in a better position to study this and get the pros and cons.

Taiwan made their money by not honoring the copyrights and patents, they copied machineries,  products, and anything that they can get their hands on and export it to the world cheap. This has given them more than 75 billion dollars surplus money as of 1990 when I last went there. All these Asian Countries used to send people to us to learn and study our industry, the Milkfish industry, Rice Planting, Rattan Furniture making, Dressmaking and Embroidery, Basket Weaving, Woodcarving. We used to be the leaders in these fields, but now we are the lowest. We can also do what Taiwan did, but it is quite late.

It's about time that we do something in the Philippines, Duty-Free Philippines would give us Financial Freedom, World recognition, and bring back our fellow countrymen.

I am also dreaming of coming back to the country I love, but only if it can give me an assurance that there is hope for a better Philippines.

I am hoping that you would consider and think of this economic proposal and you may have the capabilities to let this suggestion be heard by our people back there.

Fred Santos, [email protected]
Antioch, California
February 28, 2004

MY REPLY: Making the Philippines duty-free, like Hong Kong or Singapore, will just compound our problems. In fact, this has already begun. Under the Free Trade agreement of ASEAN, all the member-states have been reducing their tariffs on imports from other AEAN countries to 5%, which will be reduced even further to zero in a few years. In anticipation of this, many multinational manufacturers have reduced or stopped altogether their manufacturing activities in the Philippines because, under Free Trade, it is more profitable for them to just import their products into this country from their factories in other ASEAN countries.

For many multinational manufacturers, the Philippines is the least attractive country to locate their factories in because of high energy costs, poor infrastructure, widespread corruption, a meddling Supreme Court, labor militancy from communist unions, political instability and rampant criminality. 

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Dear Mr Abaya,
For whatever it is worth count my vote for economic freedom to have priority over political freedom.

Let us start with freedom of the press. Philippine media is the #1 promoter of the kind of politics that we have here. From those slanted news or broadcast we could strongly suspect envelope journalism. i.e. envelope containing cash that ensures press releases of politicians will land in the press.  But how do we prevent the practice of envelope journalism by the media?

Perhaps we could start with a rating body that would rate media practitioners versus the criteria of credibility, relevance, and atbp. Another is the formulation and adoption of a Code of Conduct for Media Practitioners. Another is licensing of media practitioners particularly beat reporters. Another is a rating system for each news release against the criteria of credibility, accuracy, relevance, etc.

I believe that if only media itself could have some kind of restrain and responsibility the kind of destructive politics we have here would be discouraged

Jorge Matanguihan, [email protected]
February 29, 2004

MY REPLY:I agree with you, 1000%, that Philippine media � radio, TV, cinema and print � are responsible for  the kind of society that we have evolved into. But how to shape Philippine media into a more responsible force for good is the 64 million peso question, since we are enamored of the concept of �absolute freedom from the press� which we inherited from the Americans.

In Malaysia, all journalists have to follow 14 (or is it 13?) Commandments, which restrict their freedom of reportage and commentary. In Suharto�s Indonesia, all journalists were required to be licensed by the state, which license they could lose if they were to be too liberal with criticism of the state. In Singapore, the government hales to court any journalist and/or media organization that accuses or even only suggests wrongdoing by any government official or agency, on the grounds that if the government allows those accusations to go unchallenged, they would be believed by the public as true. None of these countries had the misfortune of being colonized by the Americans.

I doubt if these restrictions would be accepted  by Filipino media persons, so expect no changes in our media environment. So we will continue being the people that we have become because of what the media have made us.


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