A condensed history of the rich
There’s an ongoing discussion about “the elite” outside of their regular turf (society pages and magazines). This is an excerpt from an article I wrote in 2005. It appeared in the Hong Kong Standard, but I can’t find the link. The full text appears in Twisted 8.
It is generally assumed that the “old rich†are descended from the Spanish who colonized the Philippines. They maintain the impression by conversing among themselves in a sort of Spanish, or at least cursing in Spanish. With a few notable exceptions, most of the people we call mestizo are actually descendants of the Chinese mestizos who built their fortunes in trade during the Spanish colonial period. During the American period, they acquired the agricultural lands of the Spanish religious orders and became hacenderos. And when the Americans introduced a bicameral legislature, the mestizos with their rural economic base were well-placed to take political power. They congregated in Manila to attend the sessions of the House and the Senate and became the ruling class.
In The Spectre of Comparisons, Benedict Anderson refers to the years 1954 – 1972 as “the heyday of the oligarchyâ€. They had complete access to the state’s financial instrumentalities. “Under the guise of promoting economic independence and import-substitution industrialization, exchange rates were manipulated, monopolistic licenses parcelled out, huge, cheap, often unrepaid bank loans passed around, and the national budget frittered away in pork-barrel legislation. Some of the more enterprising dynasties diversified into urban real estate, hotels, utilities, insurance, the mass media, and so forth. The press, owned by rival cacique families, was famously free.†The newspapers published damning exposés on the abuse of power, but the author points out that no one was ever convicted for graft and corruption. At least, no one from the right family.
When pundits wish to beat their breasts over the state of the Philippine economy, they remind us that in the 1950s and 60s, the Philippine economy was the strongest in Asia, second only to Japan. Anderson notes that “uncontrolled and parasitic plundering of state and private resources tilted the Philippines on its long plunge from being the most “advanced†capitalist society in Southeast Asia in the 1950s to being the most depressed and indigent in the 1980s. By the end of the golden era, 5 percent of the country’s income earners received, probably, about 50 percent of total income. At the same time, over 70 percent of state revenues came from regressive sales and excise taxes, and a mere 27.5 percent from income taxes—largely paid by foreign corporations.â€
When the dictator Ferdinand Marcos declared martial law in 1972, he promised to wage war on the oligarchs. True, the less cooperative political families fell out of the loop and were replaced by Marcos relatives and cronies. But when Marcos was overthrown in the People Power Revolution at Edsa in 1986, and Corazon Cojuangco Aquino ascended to the presidency, the oligarchs came back in a big way. Representatives of traditional political families dominated Senate and Congressional elections. They still do, despite recent electoral successes by show business personalities.
The World Bank has noted that income distribution in the Philippines is substantially less equal that in most low and middle income countries in Asia. The income gap between the rich and the poor is still widening. The inequitable distribution of incomes and assets feeds the unending cycle of poverty.
March 27th, 2008 at 10:01
And their descendants strut about, acting as if the world owes them something. The idea of an elite class in a third world country such as ours is, to me, ludicrous; it’s like insisting one wears gold-studded shoes when one’s feet are riddled with scabies.
Or wearing a leather jacket in the tropics.
Pathetic, and sad. Yet funny too, in a way. Does that make sense?
And… oh yes. Are society pages in our newspapers really necessary?
In a mad world, only the mad are sane.
March 27th, 2008 at 10:23
My friend from Colombia and I bitch about our countries all the time. Our histories and complexes are so similar. Our class formations are also frighteningly similar. Another Latin American friend calls us Latin Asians. Now if only we can do away with the Latin – and hook up with the Asia Pacific capitalist dynamo coming. I’ve had enough of the 19th century. I’m sick of it.
March 27th, 2008 at 12:37
Our ‘high society’ is so middle class. We even call them bourgeois (burgis). It’s like Carlos Celdran said, our high society came from merchants and farmers. They still have the sensibilities of the burgis.
March 27th, 2008 at 22:39
We are a democratic state being ruled by monarchs (or oligarchs, whichever you prefer). Democracy is supposed to be the rule of the mob, and truly, the mob is the Philippines (sounds like Connie Nielsen in Gladiator, “the mob is Rome”). The monarchs must ensure their stronghold to power by entering into politics to protect their empire. Hence the convenient marriage between power and politics. This is the aquarium that we have been swimming on for the past hundred years or so, and I don’t think the water’s gonna be changed anytime soon.
March 27th, 2008 at 23:49
hi!
i’m really sick of this set-up. it’s so old and cliche.
all of us can bitch about it, how it’s so effed up.
and really, it makes me sad that my beloved philippines is like this: riddled with injustice, with the undeserving rich, who appear to be as uncivilized as their unfortunate counterparts, getting the upper hand.
question is: what can we do about it?
March 28th, 2008 at 07:48
That realization after reading this piece totally hit me. It’s depressing to think that class warfare continues to dominate the social and political landscape in The Philippines. Why are our people still stuck in 19th century Europe?
March 30th, 2008 at 00:46
This is depressing. Is there no future for our country? I want a Philippines with good governance, where crime rates are low, with just salaries for all, with free health care and education is at par with the education in first world countries. I might be dreaming Utopia but at least I can still dream.