Describe the business-government-civil society relations in the Philippines from a

“developmental state” perspective.

- Using the unrefined developmental state definition of developmental states in the

Philippine context, the business-government-civil society relations are limited.
Businessmen and the bureaucracies are inseparable as the people in both fields are
either the same or interrelated. As Paul Hutchcroft mentioned in his 1991 article
‘Oligarchs and cronies in the Philippine state: the politics of patrimonial plunder’, it
is hard to distinguish between the “official” and the “private”. The expanded scope
of the oligarchs and cronies through the “padrino system” then have dominated and
monopolized certain industries. These industries, which were central to either
export-oriented industrialization and important substitution industrialization were
managed by a handful of families or business groups only instead of having multiple
players. Thus, the interests of the civil society then are compromised as
business-government interests are prioritized over national interests. The
government was supposed to be the central authority, the facilitator between
business and the civil society. However, state intervention was used inappropriately
which led to accumulation of ill-gotten wealth of the elite. The civil society
continues to be at a disadvantage as they are the ones directly affected by the
practice of crony capitalism.

Identify the prospect and challenges of “developmental states” in the Philippines setting.

- One of the major challenges of the country as a developmental state is

globalization. In fact, globalization is a double edged sword; it is good because it
has become a door of opportunities whereas on the other side the country suffers
from the repercussions of regional and international organization agreements as the
country’s industry is premature to cater to the demands of the developed states.
Another challenge is the democratic nature of the Philippines which makes
liberalization of the market and the multilaterilzation of it has been easier, making
the country’s development dependent on the private sector. One prospect for the
country is, it is abundant in both natural resources and manpower, however, there is
little to no investment in human capital which would help the population reach its
full potential. Aside from that, these natural resources would go to waste if it is
not properly utilized. The country’s working age population is continuously growing
 yet this would not benefit the country if diversification of knowledge and skills is
impossible.

Recommend “ways forward” on how to transform the Philippines into a developmental state.

- My takeaway from Paul Hutchcroft’s ‘Oligarchs and cronies in the Philippine state:
the politics of patrimonial plunder’, the direct relation or involvement of oligarchs
and cronies in Philippine politics has severely affected the developmental policies of
the country. In order to move forward, the country has to change its policies that
favors oligarchs and cronies. It would need to undergo political and economic
reform that would nurture and protect the domestic industry (application of the
infant-industry theory). As policy formulation is critical, such reforms should
include strategies or policies that would lessen the possibility of oligarchs and
cronies being involved as well as political dynasties as Ateneo De Manila University’s
School of Government Dean Ronald Mendoza says, political dyansties are considered
as real oligarchs for they are the ones who expand their influence and centralize
power (2020), thus lessening the opportunity of those who have less to no political
impact. Political leadership driven by grit and not personal interests is necessary
for development – pursuing economic growth for the general welfare of the people
is a cliché statement yet remains true as selflessness and sincere public service is
imperative for effective policy formulation and application. On economic reforms,
this would include lessening dependence on international financial institutions and
states as too much dependence on them affects domestic policy formulation, which
are not necessarily applicable to the economic environment of the country.
Investment in human capital should also be given priority as human capital as it is
necessary for productivity improvement and also to keep up with the current
demands of the 3rd industrial revolution and the upcoming 4th industrial revolution.

Additional reference:

Manila Standard. (2020, August 10). Political dynasties ‘real oligarchs’ in PH, says Ateneo
dean. Manila Standard. Retrieved from
https://www.manilastandard.net/news/national/331017/political-dynasties-real-olig
archs-in-ph-says-ateneo-dean.html