“Integrity is something that’s not just nice to have, it’s something that we have to have…. Without integrity, the economy would not work…. That makes integrity the most valuable asset ever created.”
It’s from the book "The Economics of Integrity" by New York Times finance columnist Anna Bernasek.
On page 15, this graph comes up (red marks mine):
According to Index Mundi, the GDP per capita of the Philippines in 2008 was US $3,400. (In 2009, it was $3,300)
The Philippines ranked 141st among 180 countries in Transparency International's 2008 CPI, at an index of 2.8, making us among the most corrupt countries in the world. (In 2009, we ranked at 139th most corrupt, dropping to an index of 2.4).
That said, the Philippines falls in the bottom left corner of the chart.
The caption on the graph says:
"While a nation's integrity is not readily measured, one measure may be corruption. Using the Corruption Perception Index (CPI) calculated annually by Transparency International, it can be found that the higher the CPI for a nation, the greater the perceived integrity. A chart of the 2008 CPI for 180 countries against each one's GDP per capita reveals a strong correlation between corruption and wealth."
It struck me as the visualization of Noynoy Aquino’s campaign slogan: “Kung walang corrupt, walang mahirap.”
Anna Bernasek writes:
"Doing whatever it takes to get ahead doesn't automatically make the economic pie bigger. Too often, grabbing a larger slice of the pie for oneself comes at the expense of someone else. Investing in integrity is a way of making the pie bigger so that everyone is better off. It's a new way of thinking about the economy. By investing in our shared integrity asset, we can find a new way forward."
In her book, she writes about the system Toyota employs -- where every employee along the line has access to the pull the "something's wrong" rope, and where leaders and the rank-and-file get together frequently to discuss how to improve their production.
While the company has gone under much flak lately, it is still the most trusted car brand in the world, surpassing American giant General Motors, which was, at one point, on the brink of disaster; GM continues to teeter on the edge. Toyota is so trusted that even after product recalls, most buyers bought another Toyota after cashing in their defective cars. As Bernasek puts it: "Integrity is an investment that has economic payoffs."
Bernasek was compelled to write this book in light of the 2008 economic crisis, which began with the subprime crisis in the United States. The subprime crisis was when banking and lending institutions promised on things that they knew they would be unable to deliver, all for a quick profit.
The analyst I interviewed for my last news report (where he also discusses the connection between poverty and corruption) said that the situation reminds him of a certain politician here, who "is the kind of person who whips up dreams for the less-fortunate, hopefully in a sustainable way."
From my vantage point as a US voter, reporter, and at the same time foreigner, the sentiment of "something wrong with the system," albeit more economically than politically, was a big forward push for the winning candidacy of Barack Obama in 2008. It is the same here: something is wrong with our system, albeit more politically than economically. But corruption and poverty are closely intertwined, and poverty is economics.
The 2008 US economic crisis and our own 2004-2010 institutional crisis are parallel relative to the concerns of the respective countries. Bernasek has this to say:
"The crisis afford an opportunity too great and too rare to get stuck in old patterns, trying to turn the clock back to an imagined past when everything seemed fine. We have a unique chance to make a quantum step forward in integrity and trust, and in so doing create wealth that spreads widely across our society. That's a critical point to appreciate.... By understanding the true nature of integrity, its DNA, it's possible to guide the next evolutionary step in a positive direction."
I leave you with this, as "Pilipinas kong Mahal" blares from the radio of my neighbor, an excerpt from a review of Bernasek's book, by Dallas writer Robert Morris. I think we can all take from this, so close to or own elections and our own fight for the "Change we can believe in.”
...The potential ROI from a commitment to personal integrity will be substantial for an individual and even greater in direct proportion to the number of people who share a commitment to collective integrity.
The potential applications and benefits of the principles that Anna Bernasek affirms are unlimited.
I share her hope that our nation will adopt the economics of integrity even as I fear that the “legions of entrenched interests eager to protect their turf,” seeking its own advantage through special pleading and sophisticated public relations,” will once again prevail.
How can we expect them to demonstrate integrity when they do not possess it?
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*NB: this is not a "Why i'm voting for Noynoy Aquino" entry. I will not write one of those because to each his own...although I am happy to have enlightening discussions over coffee, as I have with friends who are and are not supporting my candidate. The integrity thing is simply a plus factor to me and this by no means is the reason why I throw my support behind him. I just found the book interesting and relevant to the situation we find ourselves in. I got my copy at Fully Booked in Rockwell.
2 comments:
One of the most visible proof of the connection between corruption and integrity is rural development, specifically basic education infrastructure.
According the the UN's latest "Education for All" report, something along the lines of 50% of our rural 4th grade classrooms do not even have blackboards. And yet, pork barrel is willfully squandered and rerouted into private pockets.
The PCIJ had a recent expose on the Ampatuans and the sources of their wealth. When considering the ARMMs social development metrics, the connection between corruption, integrity and poverty becomes strikingly evident.
The Inquirer just ran a four part series on political dynasties (pointing out, incidently and unintentionally, that many dynasties are not Spanish era, but American and post-colonial - especially post-Marcos). A number of the longer entrenched dynasties also 'rule' over some of the most socially and economically backward provinces in the country.
It may be trite to say, but with regards to national development; honesty is the best policy.
Aquino says nearly 300billion a year in our budget is siphoned off to corruption. Raising tax effort (by not allowing friends and powerful people to evade it, for instance), bring us back about 200billion each year. That's 500 billion in our national budget lost because of the lack of integrity. 500 billion of the economic pie meant for food, infrastructure, education, health, housing, development, job creation... all spent on luxuries of a certain few who really have no one but the people to owe for either putting them in power, or being lenient enough to keep them in power.
we have to attack the woes of our country at the root. everything else is a band-aid. good governance is the antibiotic.
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