On September 21, thousands of Filipinos poured into the streets to protest what they perceived as systemic corruption in the government. Their message was unambiguous. Every peso siphoned off through graft is money that could have funded hospitals, classrooms, transport networks, or social security benefits.
Yet, corruption in the Philippines is not just a domestic liability. It is also an international handicap that constrains the country’s ability to attract investment, access development aid, and maintain beneficial trade privileges.
At the local level, the consequences are visible. Corruption in procurement and infrastructure has led to half-built roads, shoddy public works, and services that fail to meet basic needs. Research by Davis, Mendoza, and Yap in 2024 shows how corruption risk in Philippine provinces has fluctuated over time, peaking in 2016, with political dynasties amplifying impunity and weakening checks and balances.
This underscores that corruption is not merely individual misconduct but structurally tied to the consolidation of political power. The result is underfunded hospitals, overcrowded schools, and failing flood control systems, all while citizens pay taxes meant to fund these services. The September protests were, in part, a rejection of this cycle of misgovernance.
Damaging optics
What is less often discussed is how corruption undermines the Philippines on the global stage. One recent case is South Korea’s suspension of a proposed 700 billion won, or roughly US$503 million, infrastructure loan for a bridge project in the Philippines. President Lee Jae-myung’s decision was explicitly tied to corruption concerns, even as Manila insisted no agreement had been finalized. Regardless of the technicalities, the optics are damaging.
If one of the Philippines’ key partners hesitates because of governance concerns, other donors and investors are likely to do the same. This chilling effect matters. Infrastructure loans, foreign direct investment, and development aid are critical for a developing country seeking to modernize. When doubts about financial integrity arise, the Philippines is not merely losing money. It is losing credibility, and once lost, credibility is difficult to recover.
Corruption also casts a long shadow over trade.
The European Union’s Generalised Scheme of Preferences Plus, or GSP+, grants the Philippines reduced tariffs, helping exporters compete in European markets. Yet as EU Ambassador Massimo Santoro recently noted, corruption is a key factor in whether the Philippines can continue to enjoy these privileges. GSP+ is not permanent. It is conditional on governance standards, including corruption control. If Manila fails to address its problems, the EU could revoke these benefits, jeopardizing billions in export revenue.
For an economy reliant on global markets, losing trade preferences would be devastating. It would hurt exporters and the workers whose livelihoods depend on them.
International rankings confirm the problem. Transparency International’s Corruption Perceptions Index gives the Philippines a score of just 33 out of 100, ranking 114th out of 180 countries. The index, based on assessments from business leaders and experts, provides a comparative measure of perceived public sector corruption. Its methodology draws on 13 sources, including the World Bank and the Economist Intelligence Unit. A score of 33 places the Philippines in the bottom tier globally, well behind neighbors like Malaysia or South Korea. In a world where investors and trade partners closely monitor such indices, this poor performance is a red flag.
The implications are not theoretical. Economist Iqboljon Odashev’s 2022 study on corruption perception shows that it directly shapes investor psychology. Major investors track indicators like the Corruption Perceptions Index when deciding where to put their money. Countries perceived as corrupt are seen as risky, less transparent, and less predictable.
Corruption also expands the shadow economy, further deterring investment. In other words, the Philippines’ corruption score is not just a number. It is a barrier to attracting the foreign capital needed for growth.
When power is concentrated
To understand why corruption persists despite its costs, one must consider the political landscape. The study by Davis, Mendoza, and Yap ties the problem to entrenched dynasties. When power is concentrated in families that treat public office as inheritance rather than responsibility, accountability diminishes. Corruption then becomes not an aberration but a predictable outcome of governance structures designed to perpetuate privilege.
The way forward is difficult but clear. Reforms must strengthen institutions that investigate and prosecute graft while also breaking the cycle of dynastic politics that allows impunity to flourish. Greater transparency in procurement, stronger whistleblower protections, and an empowered civil society are essential.
The message should also be framed in terms of missed opportunities. Every peso lost to corruption is a peso not spent on healthcare. Every suspended loan or revoked trade preference is a chance at development foregone. Every drop in international rankings is a signal that the Philippines remains a risky bet.
Corruption in the Philippines is not simply a domestic issue. It is a global handicap. It undermines the country’s ability to fund public services, deters foreign investors, threatens trade privileges, and damages credibility. As the September protests demonstrated, Filipinos are acutely aware of the costs at home. The challenge now is to recognize the costs abroad as well — and to act before opportunities slip away. – Rappler.com
Dr. Manuel R. Enverga III is Jean Monnet Chair and Director of the European Studies Program of the Ateneo de Manila University. His teaching and research has focused on a diverse set of topics, which include European politics, online culture, and digital diplomacy. Outside of his academic work, he hosts The Eurospeak Podcast, where he invites guests to discuss European cultural influences on global popular culture.
