Corruption: The Philippines’ Unbeatable Foe

Why is the Philippines poor? This is a question I often find myself thinking about. Our country is endowed with more than 7,000 islands with rich natural resources. During the 1950’s – 1960’s the country’s gross domestic product (GDP) was among the highest in South East Asia. It was even higher than that of China and Thailand. So logically it is hard to see why the Philippines had been left behind by its neighbors in terms of economic progress. A study conducted by the Asian Development Bank (ADB) in 2007, however states that in the last 50 years, the Philippines’ economic growth has slowed down compared to its neighbors.

According to “The 2009 Index of Economic Freedom” the Philippines ranks 104th freest among 170 countries. Our low ranking is perceived to be primarily a result of our long-standing problem of corruption. As of 2008 based on Transparency International’s Corruption Perception Index (CPI) our country is placed 141st among 180 countries. In a scale of 1 to 10, 10 being “highly clean” and 0 as “highly corrupt”, the Philippines “Confidence Rating” score ranged from 2.1-2.5.

To fully comprehend the value and the implication of the figures above, it is imperative that we understand what corruption means and how it is relevant to every Filipino’s life. Corruption is detrimental to every citizen’s survival. However it is also Filipino culture that tolerates and permits corruption to prevail. It is important that the Filipino people will know the vitality of putting an end to the ‘cancer’ which is crippling the society and gnawing at the people’s basic needs for survival. This then will determine the course of action that needs to be taken towards alleviating the country’s economy and thus improve the people’s lives.

This paper identifies the major forms of corruption plaguing the Philippine society and its effect on the Filipinos’ life. This paper also attempts to understand why corruption seems to be incurable despite many internationally aided programs.

Political Corruption is commonly defined as “the abuse of public office for personal enrichment” (Nye, J. ). The most common forms of corruption that are prevalent in the Philippines are:

Lagay System --- “grease money” is given to the person in charge / official of a government office/agency for obtaining something they need/want expediently.

Extortion --- Almost everybody in government offices from government employees, to high-ranking government officials are reputed for collecting extra money just so they will process the documents the people need.

Collecting ‘tong’ --- ‘tong’ is the substantial amount of money given to the government particularly to the law enforcers so they will ‘look the other way’ from your illegal activities.

Rigged bidding --- ‘staged bidding’; a secret deal was made between the dealer and the Bids and Awards official prior to the bidding to ensure that the favored bidder gets the deal.

Ghost employees--- including names of bogus people in the roster of employees of a government office for the purpose of getting more wage budget for a particular office.

Overpricing --- The price for the transaction or procurement of an important document is charged more than its original value to include the ‘grease money’.

Nepotism, Favoritism, Cronyism ---- Government officials often hire their relatives or close friends as government employees regardless of their qualifications or know-how of the jobs they’re assigned to.


Corruption hampers the development of a country. It strips the people of basic commodities including health care, education and even safety. Corruption hinders the Philippines from having access to free medicines and supplies. According to a study by Transparency International, for every 10 percent increase in corruption, immunization rate drops to 20 percent. It deprives the children from having quality education that can give the country hope for a better future. An investigation conducted by the Philippine Center for Investigative Journalism (PCIJ) in 2009 found that corruption in all levels in the educational system is widespread; starting from the central office of the Department of Education to the public schools in remote islands. It can also compromise the safety of the public. According to the United Nations Development Programme’s (UNDP’s) country director Renaud Meyer, corruption "is a primary obstacle in the effective delivery of public services and fulfillment of basic rights." European Union ambassador to the Philippines, Alistair MacDonald said “"Freedom from the disastrous effects of corruption is as much a human right as is the freedom from fear or the freedom from hunger…"

A study conducted by the Asian Institute of Management- Hills Governance Center (AIM-HGC) establishes the point that corruption is wrong and that it hinders the economic development of a country. According to the Social Weather Station “corruption hurts national development”. It discourages investments from coming in. The study also discusses the reasons why corruption continues to flourish in Philippine society. The Philippines lacks implementation of programs that promote transparency which could lessen the temptation for corruption of power and resources by high-ranking officials. It is hard to combat corruption if the society tolerates such wrongdoing and if officials who succumb to corruption are never held accountable. The study also notes that “countries that succeed in controlling corruption have higher level of human development”.

Another study which recognizes the vitality of combating corruption is a study conducted by Vinay Bhargava, country director of The World Bank in 1999 entitled Combating Corruption in the Philippines. This study was initiated by the Estrada administration in 1999. Like AIM-HGC’s study, it recognizes the fact that corruption hinders foreign and even local investments which quells any chance for economic growth. This study also ascertained that corruption is not limited to the public sector. Because of the participation of private sectors, they should just as likely be trained/educated for combating corruption.

This study proposes 9 strategies for fighting corruption. “The 9 Key Elements” are:
 reducing opportunities for corruption by policy reforms and deregulation
 reforming campaign finance
 increasing public oversight
 reforming budget processes
 improving meritocracy in the civil service
 targeting selected departments and agencies
 enhancing sanctions for corruption
 developing partnerships with the private sector
 supporting judicial reform

According to the study made by the Philippine Center on Transnational Crime (PCTC), about 30% of the national budget reportedly goes to graft and corruption. This study names the specific types of corruption prevalent in the Philippines. It also names the efforts that government took to control graft and corruption. It also gives a list of the factors which hinders the implementation of the anti-corruption measures. The Filipino culture is greatly to be blamed. Particularly the culture of gift-giving which is a form of bribery or ‘lagay.’ Having close family ties is also a culprit. Prioritizing family members despite qualifications leads to Nepotism. The ‘kumpadre system’ and paying ‘utang na loob’ encourages Cronyism. Another significant obstacle is the lack of funding from the government to implement the anti-corruption programs. Transparency in government transactions and consistent monitoring on projects are key factors in fighting corruption.