Tuesday, September 16, 2025

From crony capitalism to the pork barrel cartel

September will always be a month when we remember a very dark period of our history. Sadly, our trip down memory lane is also a painful reality check for us. Decades after deposing a dictator, we find ourselves still gripped by the same evils haunting the country under that brutal regime. Even the names and faces of the villains remain largely the same. The only difference is, today, millions more Filipinos bear the yoke of inequality and despair. And recent political events are reminding us again of this noose around our collective necks.

When President Ferdinand Marcos, Sr. declared Martial Law, he not only concentrated political authority in his hands, but he also reshaped the economic order. His authoritarian rule was propped up by a network of cronies—business allies and political loyalists—who enriched themselves under his patronage. These individuals were entrusted with monopolies, state concessions, and unhindered access to capital.  The Marcos Sr. dictatorship cultivated what came to be known as “crony capitalism”.

Crony capitalism had long-term effects on the national economy. It destroyed fair competition by killing small and medium enterprises, which could not compete with crony-controlled conglomerates. This then fostered inefficiency, stunted innovation, and concentrated capital. It also distorted fiscal priorities. Billions in foreign loans were secured not to strengthen national infrastructure but to fund white-elephant projects that just fattened the wallets of cronies.

Pertinently, both the Philippines and South Korea were under brutal authoritarian regimes that fostered crony capitalism. Filipinos ousted the dictator Marcos, Sr. via people power in February 1986, which was the watershed event that inspired South Koreans to remove their own despotic leader. But when South Korea transitioned to democratic rule in 1987, it was already fully prepared to host the Summer Olympic Games in 1988. Whereas when Marcos, Sr. and his cronies were deposed, the Philippines was left bankrupt and deep in debt. Cronyism is vile, but cronies in the Philippines are utterly despicable.

Lamentably, crony capitalism was not destroyed by the 1986 People Power revolution. Indeed, every president since then has endeavoured to nurture their own cohort of cronies. This abominable political disease continues to wreak havoc today in the form of the pork barrel cartel. The crooks worm their way in the system by buying political influence. Their operatives embedded in the bureaucracy would then help them manipulate the internal process of the relevant agencies. And when the budget reaches Congress, lawmakers make sure the money to be stolen is “inserted” in the budget.

It will not be easy for President Ferdinand Marcos, Jr., to just disassociate himself from the pork barrel cartel. Most of its members are overtly loyal to him politically. The House Speaker is his first cousin, which could only mean that he would have been keenly aware of the illegal scheme happening in the budget process. As he would be as regards shenanigans within executive departments being the sole wielder of executive power. It is safe to say that everyone in government today knows of this reprehensible criminal conspiracy.

While technically, the Philippines is not under an authoritarian regime, cronyism carries on practically unabated.  It seems the usual protest rallies, even a massive one, are ineffective against the pork barrel cartel. Simply banking on models of good governance also falls short in getting rid of the rotten core in the government. Time to accept that the heels win when the people are content just waiting for heroes to save the day. The battle cry of yore, “Tama na! Sobra na! Palitan na!”, must still be completed, specifically the last one.  

Nearly 80 percent of lawmakers in the Philippines belong to fat political dynasties. For instance, the House Speaker, his wife and son, and his nephew—who happens to be the President’s son—are all incumbents. “Dynasty on steroids” is how an Australian journalist described these political clans. Congress, both the Senate and the House of Representatives, cannot realistically be characterized as a “House of the People” when it is dominated by just a few families. But it forms the backbone of the pork barrel cartel.

Ultimately, dismantling crony networks will not be accomplished in one go. Indeed, resolving our systemic problems can only be done in phases. But commencing this task requires first mastering the power of the electorate. Filipinos cannot be blind to the obvious: corruption is perpetuated by the very people we elect to office. The political zarzuela on display now must not be allowed to obfuscate the fact that only voters can stop the Kamag-anak conglomerate from ruining the country while the rest of us suffer.

Michael Henry Ll. Yusingco, LL.M
Michael Henry Ll. Yusingco, LL.M
Michael Henry Yusingco is a constitutionalist, policy analyst and law lecturer. He is Senior Research Fellow of the Ateneo Policy Center of the Ateneo School of Government. He lives in Macleod, Victoria.

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