Small government in the Philippines

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For those of you who are advocates of small government in the Philippines, you might want to join or support this group in Metro Manila.

There are several websites - www.minimalgovernment.net and Facebook.

There is also a group of Ayn Rand supporters in the Philippines; which provides a philosophical base for capitalism, as opposed to the pragmatic or divine arguments which are more typically used as a justification for capitalism....to bad effect. The problem of course is that a bad defense is a weak argument used by critics to erect straw arguments to defeat good arguments. Not very honest of them; but entirely practical from their short-range perspective. i.e Extorting wealth is a little more practical than creating it if you do not consider the long range implications of that compromise of principle. So join this group in the Philippines.

Andrew SheldonNZ Property Guide Philippine Real Estate GuideForeclosed Japan GuideApplied Critical Thinking, Strategy, Integrity Investments SheldonThinks

Critical thinking in the Philippines

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The Philippines is for the most part a country of uneducated persons whom are exposed to a limited range of beliefs. Religion is well-entrenched, so there is little questioning of religion. That is not to say you cannot have a discussion based on reason; its just not very often that you get that far. A great many pastors have a knowledge of philosophy, but its generally only enough to rationalise their existing beliefs. Seldom does rational discussion reach a level where a person is willing to repudiate god. The reason is that most atheists think that Christians, indeed most theists, are open to a logical refutation of their values. They are seldom able to do this because their beliefs are not founded on reason, but rather intrinsicism. That is not to say they give no credence to rationality; the problem is that they give greater value to intrinsicism.

If you are interested in atheism and critical thinking, you can view the contents of my website, or you can purchase one of my books when they become available, or you can join this Philippine based group which are advancing critical thinking and atheism. I have no knowledge of this group, so I am always interested to know how you get on. The reality is that the Philippines is a mix of Asian and Western values, so the respect for logic can be a little superficial, as I found with one admirer or Ayn Rand in the Philippines. Values are deep-seated. There is a great deal of depth underpinning your values, which even philosophers struggle to grasp. This is why philosophers have failed to have much impact on people over the years. They have failed to develop a values system which has resonated with people. This is what I intend to deliver in coming years. In the meantime, if you are in the Philippines, visit this group of critical thinkers. Sadly, you will hardly learn to think critically from your parents or your educational institution, nor from the media, whom I routinely refute. If you are yet to be convinced that there is no God, I would encourage you to visit my blog on religion. In due course I will release books on such topics which will describe my values in a more coherent and comprehensive fashion. You can visit my shopping cart when the time comes.

Andrew SheldonNZ Property Guide Philippine Real Estate GuideForeclosed Japan GuideApplied Critical Thinking, Strategy, Integrity Investments SheldonThinks

Deforestation in the Philippines

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The Philippines government has halted logging in 6 provinces according to the following ABS News article. Of course given President Nonoy's track record, one does have to wonder whether these logging restrictions are less about deforestation in the Philippines, and more about extortion of money from loggers. There is a long history of such political extortion in the Philippines. There is a legitimate need though. The opportunity to 'appear' to do something about over-logging, and the fact that the President 'appears' to have acted 'decisively' might be more important important than the reality in a country where facts are inaccurate, and ignorance is ubiquitous. i.e. commonplace.

There are similar efforts by provincial and national bureaucrats to extort wealth from miners. The problem in the Philippines is that everyone has the opportunity to extort some kickback in this country. Just look at how many mining projects are behind target. Generally miners are able to commission a project ahead of schedule, particularly given the softening in global economic activity.

Andrew SheldonNZ Property Guide Philippine Real Estate GuideForeclosed Japan GuideApplied Critical Thinking, Strategy, Integrity Investments SheldonThinks

Online corruption in the Philippines by pro-Aquino lobbyists

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In recent times, the new President of the Philippines has come under attack for his poor handling of the hostage crisis. There is also suggestions of corruption, like the setting up of very generous discretionary funds. The Filipino people are among the most prolific social networkers, so it is understandable that these issues would raise some controversy online. It is also little wonder that such opposition would not go unchallenged by Aquino, or his supporters.

Consider one Facebook group 'Step Down Aquino'. The developers of this website tell me that Aquino and/or his supporters have been able to infiltrate their Facebook account and engage in all manner of identity fraud, including:

1. Posting of pornography

2. Deleting 50% of the content

3. Thinly veiled threats to delete by showing their ability to corrupt

4. Setting up similar Facebook accounts under the identity of the person, but placing 'jibbish' content to discredit any opposition to their cause.

Andrew SheldonNZ Property Guide Philippine Real Estate GuideForeclosed Japan GuideApplied Critical Thinking, Strategy, Integrity Investments SheldonThinks

The Philippines under seige

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The last two weeks has been a very interesting period in Philippine politics.

Noy Aquino is of course a so-called 'liberal progressive', who was elected to power on the basis of sentimentalism relating to his mother's recent death. His mother - Cory Aquino - was of course a lame-duck president who presided over a spate of failed military coups. She was supposed by the poor. She was eventually replaced by a former military leader Fidel Ramos, who orchestrated the BOT Law, and thus restored power to the Philippines. He was effective in timely implementation, though there is little wonder given the unfavourable terms he negotiated with foreign power companies. National Power Corp was left with onerous debts and electricity consumers were left paying expensive power...the most expensive in the world.

So there you have it, Philippine politics is divided between:

1. Liberal politicians supported by the media and the poor.

2. Conservatives, whether supported by landowners, military, who dominate power among corrupt officials.

The problem for both camps is that both sides are unthinking collectivists who are going to have little support for their policy initiatives. Noy Aquino is already off to a bad start. He is being condemned already for the following:

1. He was a lame duck senator - in 12 years he initiated 12 failed bills. He came to power on the basis that he would turn back corruption, and that he would free the poor from poverty.

2. He has struggled to establish his leadership credentials, as he has been dealing poorly with a series of 'brush fires' like the killing of 8 Chinese nationals in Manila. It was not the incident which resulted in his criticism, but the succession of follies after the incident.

The reality is that Noy Noy Aquino is not going to finish his 6-year presidential term. There are several reasons for believing this:

1. Who would want a lame duck president for 6 years - having just been elected

2. He is not popular among the military

3. He is not popular among the Conservatives, who will support the military because too many of them are corrupt to want Aquino investigating their misdeeds

4. The Thai military takeover highlights the 'practicality' of military takeovers. There was no foreign intervention. i.e. No sanctions, etc.

5. The top generals in the military are corrupt, and the same goes for the police. Expect them to be under scrutiny for the way they are appointed, i.e. Kickbacks for promotions, which was highlighted by the incompetency which resulted in this failed stand-off with the police in Manila recently.

The other alternative is of course an assasination of Noy Noy Aquino, but I think that is less likely. I would expect a takeover within a year. The implication is that we are going to see a collapse in the Philippines currency. For this reason I have some property advice - don't buy property there until the currency collapses. More details on our Property blog.

What will be the implication of a military takeover? Well the economy has been performing rather well of late for structural reasons, and increased tax receipts. I think poor 'military' administration will result in another Conservative Party supported leader, and I am guessing it will be Manny Villar. He is a very wealthy Filipino, with at least some 'roots' in poverty. I believe a good marketing campaign will see him depicted as the pin-up boy for the poor. A bit of promotion of his Eton City development might help as people drive along the Southern Tollway.

For those who want to support the resignation of Noy Noy Aquino - you will have to wish for a military takeover, his good judgement, or his assasination. Personally I prefer the military takeover because the country needs a shake-up, and as an investor, I appreciate the volatility. One day people will come to realise that democracy is nothing more than a system for legitimatising fascism. i.e. Tyranny of the minority or majority, its still tyranny. So good luck with that! Be sure to make lots of money, accumulate lots of guilt, then spend it on the poor to recoup your 'good grace'. :)

Andrew SheldonNZ Property Guide Philippine Real Estate GuideForeclosed Japan GuideApplied Critical Thinking, Strategy, Integrity Investments SheldonThinks

Taxation in the Philippines

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Have you thought about residence in the Philippines. Consider the tax benefits.

CHAPTER II - GENERAL PRINCIPLES

Section 23. General Principles of Income Taxation in the Philippines. - Except when otherwise provided in this Code:

(A) A citizen of the Philippines residing therein is taxable on all income derived from sources within and without the Philippines;

(B) A nonresident citizen is taxable only on income derived from sources within the Philippines;

(C) An individual citizen of the Philippines who is working and deriving income from abroad as an overseas contract worker is taxable only on income derived from sources within the Philippines: Provided, That a seaman who is a citizen of the Philippines and who receives compensation for services rendered abroad as a member of the complement of a vessel engaged exclusively in international trade shall be treated as an overseas contract worker;

(D) An alien individual, whether a resident or not of the Philippines, is taxable only on income derived from sources within the Philippines;

(E) A domestic corporation is taxable on all income derived from sources within and without the Philippines; and

(F) A foreign corporation, whether engaged or not in trade or business in the Philippines, is taxable only on income derived from sources within the Philippines.

Source.

Andrew SheldonNZ Property Guide Philippine Real Estate GuideForeclosed Japan GuideApplied Critical Thinking, Strategy, Integrity Investments SheldonThinks

Education - a barrier to Philippines development

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Education is a big problem and opportunity in the Philippines. The standards of education are really quite poor. There are numerous facets to this problem, and the biggest perhaps does not start with teachers but with parents. The problem for many parents is creating an environment for learning in the home. The Filipino family is so indulgent and unstructured from my experience. Parents really take no steps to extend the knowledge of their children beyond their own shortcomings. Kids simply run around the yard chaotically. There is no sense of purpose, no plan and no structure. There is also no peace in which to engage in study for those who are able to establish a sense of purpose.
The social context in which kids participate is no better. If kids talk about serious conceptual issues with their children, then they will carry these ideas into the playground. If that education is lacking from amongst the majority of kids, then they will either be alienated for such talk, or they will drift into groups whom they can more comfortably relate. If there is no such group, they are unlikely to develop those skills, unless they are lucky enough to find the company of adults who support them.
From the perspective of formal education, the big problem is the nation's teachers are not particularly well-trained, and the students lack structure and general knowledge. This is going to slow the pace of learning. More particularly it is going to kinder more conceptual development. Abstract and critical thinking skills which play a big part in developing Western education are largely absence. They are not too prevalent in Western cultures either, but in Asia, they are essentially absent.
This is precisely the reason why Asia needs to introduce Western educational standards, and yet in the Philippines the constitution prevents Western interests from participating in education; at least from an equity standpoint. This fact poses a great opportunity cost to Filipinos in several respects:
1. The best and brightest in the Philippines are being denied the opportunity to fully develop their minds. In addition they are made to feel inadequate when they achieve degrees in engineering in the Philippines, then realise their general knowledge is below some technician from a Western nation. They suffer the indignity of having to ask the technician how to do their job, even though they might be getting paid more. They get these jobs in the West only because they are very cheap labour, because there is a skills shortage, or no one will live in the conditions they are willing to tolerate.
2. There are a great many students in Asia (i.e. Not just the Philippines) who go to Western countries looking for a better quality of education. If they take these opportunities, they are less likely to go back to the Philippines.

The implication is that the Philippines is denied better educational standards which would otherwise give their people a better opportunity to earn more money and achieve higher levels of productivity. They are also being negatively impacted in terms of personal or cognitive development, such that when they step out of their 'deprived nation' they are made to feel inadequate or unprepared for their shame of not being given the best chance for success. This is an unnecessary state of affairs, and it is just one of the reasons why the Philippines Constitution needs to be repealed, and a more appropriate framework for personal development established.

Another silly provision in the constitution prevents foreigners from investing in land in the Philippines. As a result, Filipino pastures go under-utilised, development opportunities are overlooked and Filipinos who remain under-employed or unemployed grow impatient waiting for their opportunity. The Philippines as a result has high levels of alcoholism and simply low productivity since many are not raised in a culture where they have had to work.

Andrew Sheldon
NZ Property Guide
Philippine Real Estate Guide
Foreclosed Japan Guide
Applied Critical Thinking, Strategy, Integrity Investments SheldonThinks