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A look at how corruption works in the Philippines

The Philippines is perceived to be one of the most corrupt countries in the world. Of 180 countries, the Philippines ranked 116 in terms of being least corrupt. This means that the country is almost on the top one-third of the most corrupt countries, based on the Corruption Perceptions Index (CPI) published by Transparency International.

According to CPI, the Philippines scored a total of 33 points out of 100. Even as far back as 2012, it has fluctuated around the same CPI score, with the highest score being 38 points in 2014 and the lowest being 33 points in 2021 and 2022. To further contextualize how low it scored, the regional average CPI score for the Asia-Pacific region is 45, with zero as highly corrupt. And of the 31 countries and territories in the region, the Philippines placed 22nd (tied with Mongolia).

It must be noted, however, that CPI measures perceptions of corruption and is not necessarily the reality of the state of corruption. CPI reflects the views of experts or surveys of business people on a number of corrupt behavior in the public sector (such as bribery, diversion of public funds, nepotism in the civil service, use of public office for private gain, etc.). CPI also measures the available mechanisms to prevent corruption, such as enforcement mechanisms, effective prosecution of corrupt officials, red tape, laws on adequate financial disclosure and legal protection for whistleblowers.

These data are taken from other international organizations, such as the World Bank, World Economic Forum, private consulting companies and think tanks.

Of course, measuring actual corruption is quite difficult, especially as it involves under-the-table activities that are only discovered when they are prosecuted, like in the case of the ill-gotten wealth of the Marcoses, which was estimated to be up to $10 billion based on now-deleted Guinness World Records and cited as the “biggest robbery of a government.” Nevertheless, there still exists a correlation between corruption and corruption perceptions.

4 Syndromes

Corruption does not come in a single form as well. In a 2007 study, Michael Johnston, a political scientist and professor emeritus at Colgate University in the United States, studied four syndromes (categories) of corruption that were predominant in Asia, citing Japan, Korea, China and the Philippines as prime examples of each category.

The first category is Influence Market Corruption, wherein politicians peddle their influence to provide connections to other people, essentially serving as middlemen. The second category is Elite Cartel Corruption, wherein there exist networks of elites that may collude to protect their economic and political advantages. The third form of corruption is the Official Mogul Corruption, wherein economic moguls (or their clients) are usually the top political figures and face few constraints from the state or their competitors.

Finally, there is the form of corruption that the Philippines is familiar with. Oligarch-and-Clan Corruption is present in countries with major political and economic liberalization and weak institutions. Corruption of this kind has been characterized by Johnston as having “disorderly, sometimes violent scramble among contending oligarchs seeking to parlay personal resources into wealth and power.” Other than the Philippines, corruption in Bangladesh, India, Malaysia, Nepal, Pakistan and Sri Lanka falls under the same syndrome.

In the Philippines, Oligarch-and-Clan Corruption manifests itself in the political system. As Johnston noted, in this kind of corruption, there is difficulty in determining what is public and what is private (i.e., who is a politician and who is an entrepreneur). Oligarchs attempt to use their power for their private benefit or the benefit of their families. From the Aquinos, Binays, Dutertes, Roxases and, most notoriously, the Marcoses, the Philippines is no stranger to political families. In a 2017 chart by Todd Cabrera Lucero, he traced the lineage of Philippine presidents and noted them to be either related by affinity or consanguinity.

Corruption in the Philippines by oligarch families is not unheard of. In fact, the most notable case of corruption in the Philippines was committed by an oligarchic family—the Marcos family. The extent of the wealth stolen by former dictator Ferdinand Marcos Sr. and his wife has been well-documented. In fact, several Supreme Court cases clearly show the extent of the wealth that the Marcoses had stolen.

In an Oligarch-and-Clan system of corruption, oligarchs will also leverage whatever governmental authority they have to their advantage. Going back to the Marcos example, despite their convictions, the Marcoses have managed to weasel their way back into power, with Ferdinand Marcos Jr. becoming the 17th President despite his conviction for tax violation. Several politicians have also been convicted of graft and corruption (or have at least been hounded by allegations of corruption) and still remain in politics. As observed by Johnston in his article, though Ferdinand and Imelda Marcos are the popular images of corruption in the Philippines, he also noted other entrenched oligarchs throughout the country.

Finally, factions also tend to be “unstable and poorly disciplined.” The term “balimbing” is often thrown around in local politics but, more than that, the Philippines is also familiar with politically-motivated violence and disorder.

All these features are characteristics of Oligarch-and-Clan corruption, where these oligarchic families continue to hold power and politicians exploit their positions to enrich themselves or their families.

Corruption, no matter what kind, needs to be curbed. It results in loss of government money, which could have been used to boost the economy and help ordinary citizens, especially those from the lower income sectors.

According to the 2007 study, the Office of the Ombudsman had, in 1999, pegged losses arising from corruption at P100 million daily, whereas the World Bank estimates the losses at one-fifth of the national government budget. For relatively more updated figures, former Deputy Ombudsman Cyril Ramos claimed that the Philippines had lost a total of P1.4 trillion in 2017 and 2018. These estimates are in line with the World Bank estimates of one-fifth (or 20 percent) of the national budget.

So grave is the adverse effect of corruption that the international community recognized it as an international crime under the United Nations Convention Against Corruption where perpetual disqualification of convicted officials is recommended.

But the question stands: can corruption be eradicated in developing countries like the Philippines? Many Philippine presidents promised to end corruption in their political campaigning, but none has achieved it so far. If the government truly wants to end corruption, it must implement policies directed against corruption, such as lifting the bank secrecy law, prosecuting and punishing corrupt officials, increasing government transparency and more. INQ

This is part of the author’s presentation at DPI 543 Corruption: Finding It and Fixing It course at Harvard Kennedy School, where he is MPA/Mason fellow.

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This article reflects the personal opinion of the author and not the official stand of the Management Association of the Philippines or MAP. He is a member of MAP Tax Committee and MAP Ease of Doing Business Committee, co-chair of Paying Taxes on Ease of Doing Business Task Force and chief tax advisor of Asian Consulting Group. Feedback at [email protected] and [email protected] .

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Analysis: Why Corruption Thrives in the Philippines

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Why Corruption Thrives in the Philippines

A marcos might soon be back in power in manila. that’s because political dynasties are more powerful than parties..

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With Philippine President Rodrigo Duterte ineligible for reelection, Ferdinand Marcos Jr.—widely known as “Bongbong”—is poised to win a landslide victory at the polls on May 9. His father, Ferdinand Marcos Sr., who ruled as a dictator for 14 years under martial law, was known for his big infrastructure projects but also for his enormous corruption. (The World Bank estimates he stole between $5 billion and $10 billion over the course of his rule.) Marcos Jr., in turn, has been accused of graft and convicted of tax evasion.  

So what accounts for Marcos Jr.’s popularity in spite of his legacy of malfeasance? Like voters everywhere, Filipinos say they don’t support corruption. In fact, 86 percent of Filipinos surveyed in 2020 by Transparency International called corruption in government a big problem. One famous scandal involved members of congress funneling money to phony nongovernmental organizations in exchange for kickbacks in what is known widely as the pork barrel scam and which came to light in July of 2013. Janet Lim-Napoles, a businesswoman and the convicted ringleader of the scheme, claimed Marcos Jr. was involved, although he denied any knowledge and said his signature on forms releasing money to fake NGOs was forged.  

In a political system dominated by powerful families, corrupt politicians can still succeed. Dynasties are so influential that they have largely replaced political parties as the bedrock of Philippine politics. Politicians commonly jump from one party to another, making party labels meaningless. In a country where parties come and go overnight, voters look to families to evaluate candidates.

The history of the Philippine elite—and why voters continue to uphold their power—has colonial roots. 

Over the past four years, I have examined the impact of political dynasties on election outcomes in the Philippines and analyzed the results of 10 election cycles since 1992 involving 500,000 candidates. The results may help explain the Marcos family’s political staying power. Despite being chased out of the country when Marcos Sr. fell from power in 1986, the family bounced back to political prominence in only a few years: Marcos Jr. became a governor in 1998 and a senator in 2010. Imee Marcos later took on his former role as governor and is currently a senator, having been succeeded as governor by her own son Matthew Manotoc in 2019.      

My research shows that, when given a choice, Philippine voters are less likely to vote for corrupt politicians. After accounting for a candidate previously holding office—since incumbents are more likely to be reelected and more likely to face corruption charges—candidates indicted for corruption are 5 percent to 7 percent less likely to be elected. This is similar to how voters react to corruption in other countries. In Brazil, which also suffers from substantial corruption, researchers Claudio Ferraz and Frederico Finan showed that in the 2004 election, when there was evidence that a mayor had engaged in corruption on one occasion, that mayor was 4.6 percent less likely to be reelected.

A supporter holds pictures of the late dictator Ferdinand Marcos Sr. and his wife Imelda Marcos as Ferdinand “Bongbong” Marcos Jr. and Sara Duterte-Carpio take part in an election rally in Caloocan, Philippines, on Feb. 19. Ezra Acayan/Getty Images

But Philippine voters don’t punish politicians from large political dynasties even when they’ve been indicted for corruption. Ronald Mendoza and researchers at the Ateneo School of Government calculated that, as of 2019, 80 percent of governors, 67 percent of members of the House of Representatives, and 53 percent of mayors had at least one relative in office. These rich and powerful family networks can protect politicians from real accountability and keep reform at bay.  

The history of the Philippine elite—and why voters continue to uphold their power—has colonial roots. When the United States seized control of the Philippines in 1898, it pledged to give land to the poor. The opposite happened. The United States spent $7 million—almost as much as it paid for Alaska in the 1860s—to buy land from Catholic friars who had run much of the country. But the land was sold at prices well above what the poor could afford. The United States also instituted a system of land titles. This could have helped protect poor farmers from being dispossessed, but the land titles were so expensive and complicated to acquire that only the well-off got titles. The rich were able to buy up more land, while the poor were left without titles or access to the best land. My research shows that areas in the Philippines with more land inequality and where more of these titles were issued by 1918 have a higher concentration of dynasties today.  

The United States created a system where only property owners could vote, limiting the franchise to 1 percent of the population in the 1907 legislative elections. Wealthy landowners appointed allies to run the civil service and passed laws to cement their power. For example, in 1912, the Philippine Assembly made it a crime to break a labor contract, which effectively forced sharecroppers to stay on large plantations. Don Joaquín Ortega was appointed the first governor of La Union in 1901, and 120 years later his descendants are still governors.  

Voters turn to political dynasties for a variety of reasons. Familiarity certainly helps. Families are also known for delivering pork barrel projects and even direct payouts before elections. Vote buying in the form of gifts or cash is common in the Philippines. Some dynasties have also used force to turn out votes of limited competition. In return, the ruling families tend to commission populist projects. Jinggoy Estrada, son of former President Joseph Estrada, helped build day care centers when he was mayor of San Juan. He also was twice indicted for corruption but never convicted.  

The youthfulness of the Philippine population helps obscure the truth of the Marcos dictatorship. About 70 percent are under 40 years old, compared to 51 percent in the United States. Marcos Sr. was forced out of office 36 years ago, which is well before much of the electorate was even born. Few have a recollection of martial law.  

Deeply entrenched political dynasties have hollowed out the political process, making elections not about parties or ideas but about family names.

Over the intervening years, the Marcos clan has spruced up its image: Marcos Jr. appeared as a child in a movie glorifying his father. His older sister ran a children’s TV show when Marcos Sr. was in power. Marcos Sr. projected an air of power and pride that older voters remember. In addition, current Philippine President Rodrigo Duterte gave the clan a boost in 2016 when he had Marcos Sr. reburied in the “Cemetery of Heroes” in Manila.  

Marcos Jr.’s campaign also appeals to nostalgia among voters who lived during the era when Marcos Sr. built new rail lines, cultural centers, hospitals, and other infrastructure projects, as well as among younger voters who have been sold on this sanitized image of the Marcos era. Some recall the martial law period as one of peace (although not for the 34,000 political dissenters whom Amnesty International estimates were tortured by the government). The Philippine economy grew rapidly during much of the Marcos period, though it ended in a steep downturn in GDP and a huge increase in government debt.  

The other major candidates running against Marcos Jr. don’t come from such important families with such deep political connections. Marcos Jr. has avoided saying much about his opponents who have attacked him and his revisionist Marcos history. This has made the campaign all about him and left his opponents looking small. Marcos Jr. has also played up his alliance with the Duterte family, as the outgoing president remains widely popular despite the brutal violence of his anti-drug campaign. Duterte’s daughter Sara Duterte-Carpio is running for vice president, further cementing a Duterte-Marcos alliance.  

Across generations, the deeply entrenched political dynasties of the Philippines have hollowed out the political process, making elections not about parties or ideas but about family names. Powerful families date back to the Spanish period and have cemented their hold on power. While voters categorically oppose corruption, they continue to support families who deliver pork spending but do little for the long-term health of the country. Marcos Jr. has traded on carefully curated nostalgia about his father’s reign to propel himself to the presidency.

Daniel Bruno Davis is a Ph.D. graduate from the University of Virginia, where he studied Philippine politics and corruption. Twitter:  @Daniel_B_Davis

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Invisible no more: Shedding light on police violence and corruption in the Philippines

The Philippines was romanticized and dubbed the “ Pearl of the Orient Seas ” by national hero and writer José Rizal due to the country’s elegant organic beauty. However, the pearl’s beauty has been tainted by increasing police brutality, accelerated in recent years.

After becoming the 16th President of the Philippines in 2016, Rodrigo Duterte was quick and adamant about carrying out a “ war on drugs ” campaign. Duterte implemented extreme measures targeting criminals and non-compliant citizens from impoverished communities to restore peace and order in the country.

In his first press conference after being elected as president, Duterte pledged to end crime, corruption, and the illegal drug trade within three to six months of being elected. However, Duterte implemented this pledge through the promotion of a new measure: “shoot-to-kill” orders.

“What I will do is urge Congress to restore [the] death penalty by hanging,” Duterte said in his first press conference. “If you resist, show violent resistance, my order to police [will be] to shoot to kill. Shoot to kill for organized crime. You heard that? Shoot to kill for every organized crime.”

Unfortunately, Duterte’s strategies to combat the issues faced by Filipinos have conditioned and emboldened the police, creating a sense of invincibility. The implications of Duterte’s extreme strategies include the manslaughter of innocent citizens and the manifestation of police corruption in the country. However, as a new president leads the country, the future of the Philippines’ criminal justice system seems committed to less violent means.

‘Shoot-To-Kill’

Duterte’s shoot-to-kill orders evolved dangerously, putting more innocent Filipino lives at risk and perpetuating the human rights crisis in the country. The global COVID-19 pandemic was not a barrier to Duterte’s anti-crime operations.

Amidst the pandemic, the government implemented an “ Enhanced Community Quarantine ” (ECQ) for the country’s capital, Manila, as well as the entire island of Luzon in an effort to mitigate the spread of the virus. During the lockdown, Filipinos were confined in their homes, transportation was suspended, food and health services were regulated, and uniformed personnel patrolled the streets to enforce strict quarantine measures.

During the ECQ, the government did not fulfill its promises as residents did not receive relief support. On April 1, 2020, frustration from community members erupted into political demonstrations in the streets of San Roque, Quezon City. Advocates and protestors asked for answers from the government in regard to their promised supplies and food aid.

Duterte’s response? “ Shoot them dead .”

In a televised address on the same day as the protests, Duterte ordered the police and military to shoot troublemakers if they felt their lives were in danger. “My orders are to the police and military, also village officials, that if there is trouble or the situation arises that people fight and your lives are on the line, shoot them dead,” Duterte said.

According to the World Population Review’s most recent annual data, the Philippines is the country with the world’s highest number of police killings, with over 6,000 between 2016 and 2021.

As of February 2022, based on the Philippine Drug Enforcement Agency’s (PDEA) Real Numbers PH data , since Duterte took office in 2016, the government implemented 229,868 operations against illegal drugs, which resulted in the arrest of a total of 331,694 suspects. Beyond this, according to the PDEA, the total number of killings during anti-drug operations reached 6,235.

In November 2021, the Armed Conflict Location and Event Data Project published a comprehensive database of the Philippines revealing that since 2016, at least 7,742 civilians have been killed in anti-drug raids, which is approximately 25 percent higher than the figure issued by the government.

As described by Eliza Romero, a coordinator for the Malaya Movement , a US-based alliance that advocates for human rights, freedom, and democracy in the Philippines, Duterte’s fierce rhetoric has given an invitation to vigilante and extrajudicial violence among the community.

“The shoot-to-kill order will just encourage more extrajudicial killings and vigilantism,” Romero said in an interview with Foreign Policy. “It will give private citizens and barangay [village] captains impunity to commit more human rights violations with the protection of the law while normalizing carnage.”

why is corruption in the philippines persistent essay

Behind every number is a real person—whose story has been invisible and whose life has been reduced by police officers who one day decided to target an innocent victim; a brother or sister; a son or daughter; a husband or wife; a father or mother.

Karla A., daughter of Renato A. who was killed in December 2016, recounts her experiences after losing her father at the age of 10, stating in an interview with the Human Rights Watch (HRW), “I was there when it happened when my papa was shot. I saw everything, how my papa was shot. … Our happy family is gone. We don’t have anyone to call father now. We want to be with him, but we can’t anymore.”

Emboldening the Police

Duterte’s enforcement measures to achieve public order put innocent citizens in a battle they have already lost. What is worse is that Duterte not only normalized but justified the killing of innocent citizens. Duterte assured the police impunity , stating that he would not only protect them from human rights abuses but ultimately pardon them if ever they are convicted for carrying out his anti-drug campaigns. This leads to the intensification of corruption within police departments in the country.

Duterte’s shoot-to-kill orders have not shown mercy to victims as he has always been in favor of the police. He never failed to show support for the police in carrying out his campaigns in his public and televised addresses. For instance, Duterte gave orders to Bureau of Customs Commissioner Rey Leonardo Guerrero stating that “Drugs are still flowing in. I'd like you to kill there [in communities]… anyway, I'll back you up and you won't get jailed. If it's drugs, you shoot and kill. That’s the arrangement,” Duterte said .

Duterte’s vow to protect the police results in police officers feeling emboldened and invincible. Police officers who have followed Duterte’s orders are promoted through the ranks. Police officers are not held accountable for the deaths of innocent civilians; the country’s own President pardons them. On top of this, police officers are falsifying evidence to justify unlawful killings and avoid legal repercussions.

The HRW published a report titled “‘License to Kill’: Philippine Police Killings in Duterte’s ‘War on Drugs,” which analyzed a total of 24 incidents that led to 32 deaths, involving Philippine National Police (PNP) personnel between October 2016 and January 2017. The report concluded that police officers would falsely claim self-defense to justify these killings.

To further strengthen their claims, police officers would plant guns, spent ammunition, and drug packets next to the bodies of victims. In turn, the victims would seem more guilty of being part of drug-related activities. Other times, police officers would work closely with masked gunmen to carry out these extrajudicial killings. In other words, police officers have succeeded in rooting their endeavors in deceit.

Fortunately, there have been instances where some police officers were legally prosecuted in police killings. Three police officers were found guilty of murdering a 17-year-old teenager in 2017, the first conviction of officers ever since Duterte launched his war on drugs.

A Look Into the Future

The Philippines as the “Pearl of the Orient Seas” has lost its luster due to the many problems that the nation continues to face—one of the most prominent ones is Duterte’s explicit abuse of police power. Similar to how pearls lose their glow when not provided with the care it needs, the integrity of police officers has dried out and become yellowed over time due to the government’s complicity.

Time and time again, Duterte has remained an instigator in instances relating to police brutality in the country. Luckily, the Philippines can combat pearl discoloration through the implementation of robust policies that would ensure increased transparency within police departments.

Freshly elected Philippine President Ferdinand “Bongbong” Marcos Jr. makes the restoration of the yellowed pearl an achievable goal. At the 121st Police Service anniversary celebration held at Camp General Rafael T. Crame in Quezon City—the national headquarters of the PNP—Marcos Jr. brings an opportunity for redemption. Aside from calling the PNP officers “vanguards of peace,” Marcos Jr. urged them to continue serving the community with integrity in order to restore public confidence.

“The use of force must always be reasonable, justifiable, and only undertaken when necessary. Execution of authority must be fair, it must be impartial,” Marcos Jr. said . “It must be devoid of favoritism and discrimination, regardless of race, gender, social economic status, political affiliation, [and] religious belief. It is only then that you can effectively sustain with great respect and wide support the authority that you possess as uniformed servicemen of the Republic.”

Beyond this, Marcos Jr. highlighted his hope for reforming the police system under the leadership of newly installed PNP Chief Police General Rodolfo Azurin Jr. Moreover, Marcos Jr.’s aspirations to increase accountability within police departments will be complemented by Azurin Jr.’s launching of a peace and security framework titled “MKK=K” or “Malasakit + Kaayusan + Kapayapaan = Kaunlaran” which translates to policies founded on “the combination of care, order and peace shall equate to progress.”

On the other hand, it is understandable if Filipino citizens and human rights activists have lost hope for the possibility of achieving meaningful progress in reforming the broken police system. Marcos Jr. is the son of Ferdinand Marcos Sr. , an ousted dictator who infamously declared martial law in the country, and Filipinos are still navigating the trauma of the Marcos era 50 years later.

Currently, Marcos Jr. pledges to continue the campaign against illegal drugs but with an emphasis on drug prevention and rehabilitation . Under this new framework, the Department of the Interior and Local Government (DILG) implemented a program dubbed “Buhay Ingatan, Droga’y Ayawan (Value Life, Shun Drugs)” which aims to address the root of the problem by suppressing the demand for illegal drugs. According to DILG Secretary Benjamin ‘Benhur’ Abalos Jr., the initiative needs support and solidarity from all sectors of the community in order to ensure its effectiveness.

Simultaneously, Marcos Jr. has no intention to cooperate with the International Criminal Court (ICC) on their investigation of the country’s drug war killings. Based on the ICC ’s official website, their purpose “is intended to complement, not to replace, national criminal systems; it prosecutes cases only when States do not are unwilling or unable to do so genuinely.” However, Marcos Jr. stated in an interview that “The ICC, very simply, is supposed to take action when a country no longer has a functioning judiciary… That condition does not exist in the Philippines. So I do not see what role the ICC will play in the Philippines.”

Nearly five months into Marcos Jr.’s administration, the University of the Philippines’ Dahas Project revealed that 152 people have died in anti-drug police raids as of Nov. 30. The report further disclosed that the drug casualties under Marcos Jr. “[are] exceeding the 149 killings recorded during the final six months of the Duterte government. During the first half of the year under Duterte, the average daily rate was 0.8. So far under Marcos, the rate stands at one per day.”

In the Philippines, police officers have repeatedly assumed the roles of prosecutor, judge, jury, and executioner. HRW Deputy Director for Asia Phil Robertson points out shortcomings in Marcos Jr.’s campaigns describing that “Using a drug rehabilitation approach means little when police and mystery gunmen are still executing suspected drug users and dealers. Law enforcers should receive clear orders to stop the ‘drug war’ enforcement once and for all.” The only way to effectively mitigate police killings in the Philippines is by abandoning violent and punitive measures against illegal drugs.

Ultimately, despite these obstacles, the yellowed pearl can still brighten. Under new leadership for both the national government and police department, the Philippines may embark on a journey of reconstruction and rehabilitation. In this process, the hope is to finally shed light on the issue of police violence in the country, implement fruitful solutions to combat the problem and advocate for innocent victims who might have felt invisible in their battle against police brutality. Once the light has been restored, the Philippines can finally live up to its billing as the beautiful and pure “Pearl of the Orient Seas”.

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IN NUMBERS: Impact of corruption on the Philippines

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IN NUMBERS: Impact of corruption on the Philippines

MANILA, Philippines – Are you aware of how huge the  impact of corruption is on the country?

Under the  administration of former president Benigno Aquino III, the campaign on good governance was hinged on the slogan, “ Pag walang kurap, walang mahirap  (if there is no corruption, there is no poverty).”

This anti-corruption campaign was supported by several studies – including a 2013 survey conducted by the Office of the Ombudsman, which showed that poverty exists partly because of corruption .

Similarly, a  report by the World Bank in 2001 said that fighting corruption results in poverty reduction, better delivery of social services, and quality infrastructure.

Research we conducted on corruption in the Philippines and its impact on the economy, businesses, social services, citizen participation in reporting bribes, and being party to bribery yielded the following:

1. The Philippines lost  $410.5 billion between 1960 and 2011 on illicit activities

According to a 2014 report by Global Financial Integrity , the Philippines lost about $410.5 billion between 1960 and 2011 on illicit financial flow. In current exchange rates, the amount is about P19.34 trillion (without accounting for inflation).

The vast majority of money flowing illegally into and out of the Philippines over the 52-year time span was done mostly through misinvoicing of trade. The table below shows how much money the government lost between 1960 and 2011:

In effect, the P19.34 trillion lost to corruption could have been used for education, health or infrastructure. In the 2016 national budget, this amount is:

  • 154 times the budget for health (P125.4 billion)
  • 52 times the budget for social protection (P370.4 billion)
  • 39 times the budget for education (P490.6 billion)
  • 25 times the budget for infrastructure (P759.58 billion)

2. $1 of every $4 goes unreported to Customs officials

In terms of lost revenue, the Bureau of Customs tops the list.

According to  Global Financial Integrity,  money flowing illicitly into the country takes away 25% of the value of all goods as $1 in every $4 goes unreported to Customs officials.

Since 2000, illicit financial flows have cheated the government of an average of $1.46 billion in tax revenue each year or about P68.8 billion in current rates.

To put that amount into perspective, the Philippines lost $3.85 billion in tax revenues in 2011 (P166.74 billion in 2011 rates) which is about 10% of the national budget that same year.

3. The Philippines ranks 95th in the global corruption perception index

Apart from grave impact on the fiscal arena, corruption affects the business climate.

According to anti-graft watchdog Transparency International (TI), the Philippines slid in its annual corruption perception ranking. With a score of 35 out of a possible 100, the country currently  ranks 95th  among 168 countries surveyed, according to expert opinion.

In 2014, the Philippines  ranked 85th  out of 175 countries, 10 notches higher than the current rank. The country got a score of 38 out of 100.

Over the years, trust in the public sector seems to have improved based on TI’s data. According to the report , poor results are attributed to promises yet to be fulfilled and corruption efforts undermined.

There were other issues that put the government in a bad light, such as the Disbursement Acceleration Program (DAP) and the reported delay in aid to victims of Super Typhoon Yolanda (Haiyan). (READ:  What stats, surveys say about Aquino’s fight vs corruption )

4. In ASEAN, the Philippines is perceived as the 5th least corrupt nation

Compared to Southeast Asian neighbors, the Philippines currently is the 5th least corrupt nation among 10 member-states in the region.

This is particularly important as these numbers determine how attractive the country is to investors.

In 2014, the Philippines tied with Thailand as the 3rd least corrupt nation in the region. It was when the country attained its highest rank in the past decade.

Back in 2008, the Philippines used to be the 4th most corrupt nation when it experienced its lowest dip in rankings. At the time, alleged corruption during the term of former president Gloria Macapagal-Arroyo hit an all-time high. (READ:  TIMELINE: Gloria Arroyo – from plunder to acquittal )

Throughout the decade, Singapore has remained to be the perceived as corrupt-free not only within Southeast Asia, but around the world. It topped the rankings in 2010.

5.  Filipino executives still think that the Bureau of Customs is the most corrupt government agency

Likewise, corruption affects ease of doing business.

The results of the 2014/2015 Social Weather Stations  Survey of Enterprises on Corruption  showed that 32% of Filipino executives surveyed said they have personal knowledge of corrupt transactions with the government.

Among agencies, Filipino businessmen still think that the Bureau of Customs is the most corrupt. The BOC received a sincerity rating of -55 from -65 in 2013. Despite the improvement, it was the only agency with a “very bad” rating in its “sincerity” in fightiing corruption.

The SWS terminology for net sincerity ratings are the following: excellent +70 and up; very good +50 to +69; good +30 to +49; moderate +10 to +29; neutral -9 to +9; poor -29 to -10; bad -49 to -30; and very bad, -69 to -50.

6. Less Filipino businessmen engage in corrupt transactions

According to a 2014/2015 SWS poll , less Filipino executives were asked for bribes during transactions. The number fell from 50% in 2012 to 44% in 2013 and 2014/2015.

Results also showed that 28% of the respondents said most companies in their line of business gave bribes to win private sector contracts.

Chart by SWS

According to the poll, more businessmen think that the government does not punish corrupt officials. Only 11% of the respondents believe that the government often or almost always punishes corrupt officials, from 20% in 2013 and 27% in 2012.

However, 57% said that corrupt executives in their own sector of business are often punished. In the same 2014/2015 poll, of those solicited for bribes, only 13% admitted paying the bribe and reported the incident.

Overall, 64% of those surveyed were satisfied with the national government’s performance in promoting a good business climate but lower than 2013’s record of 70%.

7. One out of 20 families engages in bribery

Apart from businesses, data show that families and individuals take part in dishonest transactions as well.

In a  2013 survey , the Office of the Ombudsman found that one in every 20 Filipino families paid a bribe or grease money when transacting with a government agency.

Compared to a similar survey by the Philippine Statistics Authority in 2010, fewer families paid a bribe in 2013. The earlier survey found that two in every 20 families gave grease money.

Results showed that agencies involved in the delivery of basic social services are more vulnerable to corruption. Despite the decrease in participation in bribery, more families paid bribes when availing of social services. In 2010, the percentage of families who paid bribes was 4.1%; this increased to 4.5% by 2013.

Ironically, poor families are more likely to pay bribes just to have access to basic services, the poll revealed.

8. More Filipinos report corrupt practices to authorities

Despite the aggressive anti-corruption drive of the government, the Ombudsman found that the number of families that reported bribery incidents to public authorities is still low.

The 2013 survey said that 5.3% of the families who experienced being solicited for bribes reported the incident. This figure is almost 7 times the percentage of families in 2010.

The most cited reason for non-reporting is the amount being asked is too small to bother about. Other reasons were fear of reprisal and lack of time to report.  – with Denise Nacnac/ Rappler.com

*2016 $1 = P47.11, 2011 $1 = P43.31

Sources: Office of the Ombudsman, Transparency International, Global Financial Integrity

Denise Nacnac is a Rappler intern

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Corruption in the Philippines: Framework and context

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Challenging Corruption in Asia: Case Studies and a Framework for Action

Combating corruption in a "failed" state: the nigerian economic and financial crimes commission (efcc), state power and private profit: the political economy of corruption in southeast asia, decentralization and corruption: the bumpy road to public sector integrity in developing countries, policy reforms and institutional weaknesses: closing the gap, institutions, institutional change, and economic performance, corruption and growth, a theory of incentives in procurement and regulation., corruption and development, between miti and the market: japanese industrial policy for high technology, related papers (5), the social context of business and the tax system in nigeria : the persistence of corruption, vertical governance: brokerage, patronage and corruption in indian metropolises, demystifying the concept of state or regulatory capture from a theoretical public economics perspective., planning and the political market: public choice and the politics of government failure, what do good governments actually do: an analysis using european procurement data, trending questions (3).

Not addressed in the paper.

Corruption in the Philippines is viewed as a principal-agent problem influenced by historical and social factors, impacting relationships between public interest, politicians, and bureaucrats within the political context.

The paper explains how corruption in the Philippines has evolved from nepotism to smuggling, public-works contracts, debt-financed schemes, asset privatizations, and recently, underworld-related activities.

Challenges to the Philippine Culture of Corruption

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why is corruption in the philippines persistent essay

  • Edna Estifania A. Co  

Part of the book series: Palgrave Studies in Development ((PSD))

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Upon the suggestion of financing institutions such as the World Bank and the Asian Development Bank, corruption has taken centre stage in policy discourse, making corruption the locus of many re-engineering efforts in Philippine governance (Transparency and Accountability Network, internal documents, 2005). Although there are no systematic studies on the extent of economic losses due to corruption, the Ombudsman estimates that the Philippines has lost approximately US$48 billion during the last 20 years, while the Commission on Audit estimates a loss of $44.5 million each year and the World Bank argues that around 20 per cent of the annual budget is lost to corruption (Romero, undated article). Meanwhile, a Social Weather Stations (SWS) survey reports a popular perception of public institutions riddled with corruption, leading to low public confidence in government (SWS, 2005).

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Co, E.E.A. (2007). Challenges to the Philippine Culture of Corruption. In: Bracking, S. (eds) Corruption and Development. Palgrave Studies in Development. Palgrave Macmillan, London. https://doi.org/10.1057/9780230590625_6

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