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Action for Economic Reforms

MORE ON FPJ

The author is the coordinator of Action for Economic Reforms.


The rise of FPJ as a leading presidential contender is phenomenal. Yet,

this phenomenon can easily be explained. It has been generally observed

that the masses yearn for a messiah in times of crisis and helplessness

and in conditions where the elite has lost the capability and the

credibility to rule.


Recall again Lenin and his Bolsheviks: They seized power, thanks to the

rottenness of the tsardom and the fecklessness of the Mensheviks.

Hitler and the Nazis rose to power in the wake of Germany’s defeat in

World War I and the hardship and humiliation its people suffered

arising from the terms of surrender.


In contemporary times, the Venezuelan masses elected, and continue to

support, the populist but demagogic Hugo Chavez as a demonstration of

their indignation over the rapaciousness and social irresponsibility of

their elite. In other parts of Latin America, the existence of

programmatic Left parties with charismatic and sensible leaders (e.g.,

in Brazil) has fortunately averted the spread of demagoguery.

Nevertheless, the masses in Latin America treat the likes of Lula da

Silva as their savior.


The conditions in the Islamic world are far more complex and volatile.

It is nonetheless sufficient to note that the Muslim poor have

increasingly turned to charismatic fundamentalists to deliver them from

the yoke of oppression.


In Europe, the far-right, charismatic personalities have made inroads

at a time that the mainstream socialist and conservative democratic

parties are stumbling and groping for new visions. The search for

saviors is obviously not confined to the borders of developing

countries.


And in the Philippines, we just had Estrada. This is not to say that

the Philippines is just following a global trend. In the last analysis,

the national conditions define the rise of charismatic but simplistic

political leaders. In this regard, the threat of the FPJ candidacy

stems from the very specific Philippine context of the post-Estrada

transition.


Many of us believed that Estrada’s removal through people power would

have taught the people a hard lesson. EDSA II that ousted Estrada was

the instrument to realize what the Supreme Court later invoked the

people’s welfare as being the supreme law: Salus populi suprema lex.


The so-called EDSA III (more appropriate is the term “EDSA reaction,”

coined by Emmanuel de Dios), on the other hand, was likewise the

people’s voice, although manipulated by the reactionary opposition. It

was nevertheless an angry tone that warned the elite to heed the

pent-up demands of the masa.


EDSA II was a rare opportunity to implement bold reforms, if not

transform Philippine society altogether. EDSA I gave us that golden

opportunity, but the elite blew it. Lightning struck twice, so to

speak, with the occurrence of EDSA II. EDSA II might well be the last

opportunity. Sadly, the Macapagal-Arroyo administration failed to

exploit the favorable conditions then brought about by EDSA II to

institutionalize changes. The momentum for reforms created by EDSA II

simply dissipated.


This criticism is not new. The Yellow Paper group had already raised

this point at a time that the events of EDSA II and EDSA III were still

fresh. To quote the Yellow Paper document written by de Dios: “The main

danger however is the loss of tempo and will for economic and political

reform. Instead this is being replaced by a creeping sense of inertia

and growing cynicism that, EDSA notwithstanding, no major changes are

impending.” Moreover, the Yellow Paper correctly predicted that this

danger would lead to a “further retreat of investor confidence” and “an

erosion of the administration’s original political base, particularly

among civil society.”


On top of this, investor uncertainty has increased in light of the

approaching presidential elections. The businessmen would rather wait

for the outcome of the elections before making investment decisions.

Moreover, the forthcoming elections prevent Gloria Macapagal Arroyo

from undertaking bold reforms that would cost her votes. It is likewise

regrettable that the reformists in her administration have been

neutralized. In fact, some so-called reformists are working hand in

glove with the administration in the implementation of a narrow “agenda

of compromise.” It is therefore no surprise that the people have grown

tired of the Philippines.


The sense of disappointment and despair is manifested in the migration

to other lands of scores of thousands of Filipinos from different

social strata. A fewer number – the newly politicized – join the ranks

of radical groups. But it is the majority of non-politicized and

immobile Filipinos – largely the masses – whose options are much

reduced. Understandably, they would pin their hopes on a public figure

that they can identify with. Hence, it may be bye-bye, Erap, hello and

welcome FPJ.


To discredit FPJ and campaign against him at this time is premature.

This could even backfire. In the first place, FPJ has denied that he is

seeking the presidency. Of course, there is mounting pressure for him

to run for public office. All quarters, not only Estrada and the

conservative opposition, are courting FPJ. The GMA administration would

gladly accommodate FPJ into its ticket. It has also been reported that

Raul Roco, who has begun a discreet campaign, is seeking FPJ to be his

running mate.


The campaign against FPJ assumes that the masses who intend to vote for

him are not well-informed. But is it simply a case of information

failure?


Recall the popularity of Estrada. The masses voted for and stood by

Erap even as they were bombarded with information that Estrada was a

gambler, a drunkard, a womanizer, etc. Leading intellectuals who

supported Estrada, especially those from the University of the

Philippines, also had direct knowledge of his ugly side. Still, they

calculated that on balance Estrada was then the correct choice.


In FPJ’s case, the masa would still prefer him to GMA, even as they

recognize that he, like his friend Erap, comes from a “frivolous

profession.” After all, they can reason out, the professional

background of the president does not matter. GMA – a trained economist

with a Ph.D. from the premiere university – has not delivered even on

their most basic needs. In times of despair and vulnerability and

offered with no credible alternative, the masses would see the FPJ

advantage – his ability to reach out to the poor, to empathize with

their plight, and thus give them a sense of belonging and hope. All

this fits neatly into the framework of bounded rationality but one that

goes beyond the problem of information.


FPJ can indeed beat GMA, regardless of whether the voting is rational.

GMA cannot compete in a popularity contest. Further, the alarming

budget deficit constrains her from adopting populist but financially

costly policies. The honorable option for her is to recapture the

spirit of EDSA II and give flesh to it by focusing on key reforms that

can restore investor confidence, national pride, and social cohesion.


In this regard, the threat of an FPJ candidacy can compel GMA to pursue

the reform track. In economics, the threat of competition-that is,

market contestability-increases overall welfare. We can likewise apply

this concept to politics-the threat of losing to someone who has not

even announced his intention to run-may well pressure GMA to reform.

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