Sunday, November 30, 2014

Gridlock and growth


By Jojo Robles
Long after he has returned to doing whatever he was doing before he became President, Noynoy Aquino will be remembered for making the correlation between traffic gridlock and economic growth. In Cebu in January last year, while campaigning for his Senate candidates in the midterm elections, he uttered these unforgettable words:
“The better problem is traffic on Edsa, because this means our economy is very much alive,” Aquino said. “I’d rather have that than have no traffic on Edsa because people don’t have money to buy gasoline.”
I was reminded yesterday of Aquino’s statement, obviously aimed at absolving his government of culpability for Metro Manila’s traffic woes while simultaneously patting himself on the back for lucking into a resurgent economy, when the latest official economic numbers were released. The 5.3-percent growth in the Philippines’ gross domestic product for the third quarter was significantly lower than the 6.4 percent posted in the previous quarter and the 7 percent recorded in the same quarter last year and cast serious doubts that the economy will even hit the lower end of the whole-year government growth target for 2014 of 6.5-7.5 percent.
The news has injected a dose of much-needed reality in the business sector, with local and foreign economists quickly revising their growth targets for the Philippines in order to appear, as economists are wont to do, that they predicted it all along. Meanwhile, for the quarter, the Philippines fell back two places to fourth after its long stint as the second fastest-growing economy in Asia after China.
The government, through the National Economic Development Authority, was quick to blame many factors for the downturn, including (and I am not making this up) super-typhoon Yolanda. Like a good Aquino soldier, Economic Planning Secretary Arsenio Balisacan did not identify a single reason that could have been in any way misconstrued as the fault of the government.
But many businessmen I’ve talked to have already long made the inverse relationship between traffic and economic growth, and it’s not even the vehicular traffic on Edsa that they’re talking about. The gridlock that bedevils Manila’s seaports, which has dramatically slowed down the flow of both imports and exports and caused consumers to absorb higher passed-on prices for all sorts of goods (and for which the government is largely responsible) should really be looked into as a big cause of the dampening of economic growth.
Of course, commuters and motorists are also very much aware of the fact that no one but a President who drives around town with a fleet of “hawi” escorts can delude himself into believing that getting stuck in traffic for four or five hours a day is a sign of an improving economy. And more and more Filipinos are coming around to the really obvious conclusion that traffic is really a reflection of bureaucratic indolence and incompetence.
Indeed, if you exclude the ongoing PPP infrastructure projects that we all have to pay for through extortionist toll rates, this administration will also be remembered for not building a single major road project to ease the traffic situation, especially in Metro Manila. But when you have an administration that is actually proud of the gridlock that it does nothing to solve, then you end up hearing crazy stuff like what Aquino said in Cebu nearly two years ago.
Oh, and by the way, Aquino also promised that he would have himself run over by a train if the proposed extension of the Light Rail Transit’s Line 1 to Bacoor, Cavite is not completed next year. Not a single concrete post has been put up for that much-delayed project, but at least this gives us a real traffic solution to look forward to.
* * *
I’ve always wondered how Mandaluyong Rep. Neptali “Boyet” Gonzales II, the House majority leader and knee-jerk defender of the Aquino administration, has escaped prosecution for misusing his pork barrel funds for so long. Since the middle of last year, when the Commission on Audit released its report on lawmakers suspected of pocketing their Priority Development Assistance Fund allocations for the period 2007-2009, Gonzales has somehow managed to remain uncharged—until now, that is.
Of course, the plunder charge against Gonzales (also known in the House as “Baby Frank,” not only for his brown-nosing but also for his alleged super-sized appetite for pork) was not filed by any government agency but by a group of private individuals, this one calling itself the Sentinels of the Rule of Law. The group accused Gonzales of misusing PDAF allocations totaling P315 million, which made up the lion’s share of P550.14 million given to three congressmen—all of them palace allies —for the three-year period.
According to the CoA report, Gonzales reported giving his pork funds to a total of 28 suppliers who have since denied involvement in 167 transactions amounting to P28.744 million; he also spent P263.676 million for pork-related transactions that were considered questionable because the suppliers were not legally and/or physically existing, made unexplained cash advances worth P275 million; and bought P6.6 million worth of hamburgers from fast food chain Jollibee.
Perhaps we should all stop waiting for the Department of Justice to pursue the cases of pork barrel looting committed by Aquino allies. Perhaps that’s the only way to corral all of those politicians who pocketed their pork.

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