Gherald Edaño
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“How is Singapore, with little natural resources, richer than the Philippines?” I am pretty sure; this question could take longer nights than a solstice to debate over. Many could argue various points – from various types of government, class of leaders, cultural mindsets, working ethics, social engineering, or even religion could be considered for this conversation. While numerous factors contribute to this disparity, one overarching factor here is in our geopolitics.
During my tenure teaching political science, I often assigned readings such as Marcelo Giugale’s “Are Natural Resources a Curse?” and Daron Acemoglu’s “Why Nations Fail?” Two political theses that give different answers to the same question. Giugale blames the map and Acemoglu pinpoints its institutions.
A nation may boast robust institutions, yet if situated amidst conflict zones with scarce resources of brutal topography, its growth prospects can be severely hampered. Examples include South Korea, with its stable democracy juxtaposed against neighboring unstable regimes, or the beautiful tropical state of Costa Rica in South America surrounded by unstable narco-states. Conversely, a nation situated in a stable region but lacking efficient institutions may struggle to flourish, as seen in the cases of Mexico being neighbor with both the US and Canada, or even the Philippines.
The Philippines occupies a strategically pivotal position on the global map, proximate to the South China Sea trade route, which grants access to the lucrative markets of East Asia and Indochina. However, its institutions remain rent-seeking, a term Acemoglu used, referring to elites enriching themselves through legal manipulations, policy influence, monopolization of resources, and consolidation of power, rather than fostering innovation and value creation.
This rent-seeking behavior manifests across various sectors, including entertainment, where adaptations like “Marimar” or “Descendants of the Sun” overshadow original Filipino creativity. As a result, Filipinos with novel ideas get brushed aside because they present no value or may disrupt the established rent-seeking system. In a corrupt society, progress is often viewed as a threat.
Now, how is the map relevant here? Giugale claimed that countries close to agglomerates or areas where economic activities are concentrated can benefit mostly from its growth. Consider the hypothetical scenario of Singapore situated below Afghanistan; even under visionary leadership akin to Lee Kuan Yew, its growth trajectory would likely falter. Singapore’s strategic positioning at the Malacca Strait, facilitating trade between India and China, coupled with its proximity to economic powerhouses like Malaysia, Indonesia, and Thailand in addition with a functional government, propelled itself into an economic powerhouse for shipping and maritime trade.
Similarly, the Philippines, nestled within the Indo-Pacific region alongside technological leaders like Taiwan, China, and Japan, could have capitalized on its geographic advantages with a forward-thinking government. However, the allure of rent-seeking and import dependency has stifled its potential to rival Singapore’s economic prowess.
Philippines, being at the center of South China Sea could also be one of the crucial point highlighting this geographical curse could have we been better off if we are located, maybe near Australia, within Oceania’s territories, or even within the Indian Ocean. So far, China’s belligerence knows no boundaries nor borders. Even a small country like Liberia in Africa was not spared by Chinese influence. Philippines being in a different location on the map may be spared of the burden of the archipelagic defense question but not of China’s reach, but it does make a great difference thus the point of the matter lies on how Philippine institutions function in such a different hypothetical geopolitical situation.
So, to answer the question, are we cursed by the map? I think we were cursed by the government or maybe by our own people. Our own demography can also be another factor, but that would be another discussion.
As for now, the overview is – we are cursed. Perhaps, the next better question is how can we break free from it?