An IMF research had linked corruption to lowered development, funding and extra inefficient public spending. Ah, that explains loads!
In response to the IMF, if our corruption had been lowered to ranges like Singapore’s, the investment-to-GDP ratio would rise by roughly 6.6 proportion factors, and annual per capita GDP development would enhance by about 1.65 %.
In different phrases, we had been overtaken by our neighbors as a result of assets for development had been siphoned off our economic system by corrupt officers and public works contractors, amongst others.
Our neighbors have corruption too however they cope with it extra decisively. Folks really go to jail for corruption in Vietnam, Indonesia, Thailand.
Then there’s the Suharto mannequin of corruption in Indonesia and the Marcos (the daddy) mannequin within the Philippines. Suharto’s corruption tended to maintain the cash inside Indonesia, circulated by home energy networks and establishments.
However, Marcos largely took his fruits of corruption offshore, hidden in Swiss and offshore accounts by subtle mechanisms.
A 1986 Washington Submit report noticed that not like the Philippines, in Indonesia, corruption didn’t contain ostentatious spending or large wealth parked overseas.
The Submit experiences: “Within the Philippines there was a scientific ripping off of the nation,” stated a global banker. “You don’t hear the identical tales right here.”
Then once more, it appears the Indonesian lawmakers caught the Philippine ostentatious corruption bug. However the Indonesians is not going to tolerate it. Therefore the riots over the previous few days in Jakarta.
The influence of corruption on financial development within the Philippines has been measured. Fashions counsel that decreasing corruption can meaningfully enhance funding and financial development. Furthermore, estimates underscore the numerous alternative value in misplaced public funding and better borrowing.
Little question about it, corruption scandals sap confidence within the economic system.
Our unfolding scandal over ghost flood management tasks has worn out a unprecedented P1.7 trillion in worth from our inventory market in simply three weeks. From Aug. 11 to Aug. 29, 2025, the whole worth of the market’s worthwhile firms plunged by 12 %, tumbling from P14.3 trillion to P12.6 trillion, in line with S&P World Market Intelligence.
What makes the collapse weirdly alarming is that company earnings have been rising throughout this era. In different phrases, buyers should not fleeing due to weakening fundamentals — they’re fleeing due to crumbling belief.
Corruption is a weapon of mass wealth destruction as a result of it erodes confidence within the capability of Philippine establishments from the presidency, the legislature and the judicial system to supply good governance.
How a lot do taxpayers lose?
The World Financial institution, ADB and IMF estimates that corruption is diverting 20 % of the finances to politicians’ pockets — implying as a lot as P2 trillion (on a finances of P6.352 trillion).
DOJ information from 2019 estimated nationwide stage corruption at 20 % of the annual finances. Utilized to the 2024 nationwide finances, this loss would translate into about P1.6 trillion yearly.
For comparability, the DepEd finances for 2025 is P1.055 trillion.
This excessive stage of corruption means the misplaced funds may have financed important infrastructure, schooling and well being care initiatives. We’re exceeding secure limits of our debt-to-GDP ratio. We’re borrowing to pay curiosity on curiosity. All this borrowing crowds out growth-promoting expenditures.
Some present estimates of finances losses by corruption counsel 50 % to 70 % of the finances for building and even 100% for ghost flood management tasks.
The opposite massive downside is the tendency of these concerned in corruption to take their ill-gotten wealth overseas and/or have interaction in ostentatious consumption. A DPWH district engineer admitted in a Senate listening to that he and his assistant district engineer are common gamblers in casinos.
Public officers, public works contractors and their younger kids have proven no sense of patriotism or love of nation. That is sufficient purpose for us to have a legislation to strip them of citizenship. All of them have golden visas to Europe anyway.
Most crooks haven’t any worry. The Constitutional mechanisms for coping with corruption have confirmed impotent by the years. The final Ombudsman wouldn’t even permit reporters to research the SALNs of public officers.
Provided that our judicial system can also be as corrupt as the remainder of the federal government, it’s uncertain if stricter legal guidelines will deter corruption. No massive fish politician, contractor or DPWH official has ever gone to jail. We’re well-known for having the perfect justice system cash should buy.
To a DPWH contractor awash with cash, a corruption case solely means having to bribe his method out of the mess, a enterprise expense.
Society is responsible too. Even the mainstream media is responsible. The plunderers are lionized and featured in life-style applications. One daughter of such a contractor has attracted a reported 300,000 followers on social media desperate to see her newest exploits in Paris and her multi-million-peso luggage and vogue objects.
Worse, in line with my colleague Tony Lopez, the spouse of Senate President Chiz Escudero (uncovered receiving political donations from a DPWH contractor) drew 16 million views for her newest multi-million-peso vogue and bag purchases.
One purpose we’re consuming Vietnam’s mud is that they take corruption significantly — a tycoon acquired the demise penalty for a monetary fraud that brought about an estimated $27 billion in losses.
What we want within the Philippines is a pattern case to interrupt the same old inaction interpreted as tolerance. Certainly, from the 15 contractors cited by BBM, most if not all of them are responsible of some type of corruption.
Earlier than he was sacked, former Sec Manny Bonoan stated the district engineers concerned in corrupt tasks shouldn’t be jailed however simply reassigned. Not less than two of these engineers look responsible as hell with their seen Patek watches and designer attires.
The following transfer is BBM’s. He should present his dedication and sincerity to maneuver in opposition to corruption. He should uphold nationwide curiosity for a change.
We are able to hope to be shocked.
Boo Chanco’s e mail tackle is [email protected]. Observe him on X @boochanco
