understanding the pork barrel (and why it should be abolished) by prof monsod

7/27/2019 Understanding the Pork Barrel (and why it should be abolished) by Prof Monsod

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Understanding the Pork Barrel*

(and why it should be abolished)

*(with apologies to Prospero Nogralesand Edcel Lagman)

Solita Collas-MonsodProfessor Emerita

School of Economics


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SolitaColas-MonsodProfessorEmeritaSchoolofEconomics

OUTLINE: Seven Questions

V. What is the basis for the connection

between the pork barrel and corruption?VI. Can the pork barrel be reformed?

VII. Assuming that it indeed can be made

corruption-free, can the pork barrel nowbe justified?


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I. What is Pork Barrel?

1.FromOxfordDic/onary:Noun,NorthAmericaninformal

used in reference to the utilization of government fundsfor projects designed to please voters or legislators andwin votes:

the lesson that power is basedon thepork barrelandpurchasedwithpatronage

2. Pork barrel is the appropriation of government spendingfor localized projects secured solely or primarily to bringmoney to a representative's district.


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More definitions

3. A government appropriation, bill, or policythat supplies funds for local improvementsdesigned to ingratiate legislators with their

constituents.

4. The act of using government funds on localprojects that are primarily used to bring moremoney to a specific representatives district.Basically, the politician tries to benefit his/herconstituents in order to maintain their supportand vote.


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Mutations of Pork Barrel in thePhilippines

1989:Mindanao Development Fund (P480 m) and VisayasDevelopment Fund (240 m)

1990: Countrywide Development Fund (P2.3 b)

2000: Priority Development Assistance Fund

2000 to 2010:to PDAF was added at some point the VILP (VariousInfrastructure including Local Projects) and theCongressional Insertions (CI).

2009: PDAF (P10 b); VILP (P23b); CI (P50 b)


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Philippine Pork Barrel

Mutations

Nota bene:

1989 Pork Barrel: P720 million

2009 Pork Barrel: P83 billion Between 1989 and 2009, consumer price index went up

about FOUR times. Pork barrelincreasedONEHUNDREDANDFIFTEENtimes.

2010present:Congressional Insertions abolished(which for 2010 amounted to P64B); VILP folded in withPDAF; more and tighter rules ;

Pork barrel back to roughly P25 billion.


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III. How is the Pork Barrel beingJustified?

1. individualmembersofCongress,farmorethan the President and their congressionalcolleagues, are likely to be knowledgeableabouttheneedsoftheirrespecAveconsAtuentsandtheprioritytobegiveneachproject.

Comment: But the local development councils, inwhichtheCongresspersonisamember,alreadyhasa

development plan and investment program, whichcontainsamasterlistofprojectsandpriori/esofthecommunity. Why subs/tute individual wisdom forcollec/ve wisdom (par/cipatory and inclusive toboot)?


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Pork Barrel Justification

BTW, Nograles and Lagman are quoting fromthe SC decision re the CDF. But the SC

decision also says: in short, the proposals

andiden:fica:onsmadebythemembersof

Congressaremerelyrecommendatory.


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Justification of Pork Barrel (contd)

2. therelaAvelysmallprojectsimplementedunderthePDF complement and link the naAonal developmentgoals to the countryside and grassroots as well as to

depressed areas which are overlooked by centralagencieswhicharepreoccupiedwithmega-projects

Comment: Itmaybe true that the centralagenciesoverlook small projects, but the provincial andmunicipalandbarangayagenciescertainlydont.The

porkbarrel ignoresthe laMer all toooen. For themost part, they are not men/oned at all by themember of Congress as having influenced hisherchoiceofprojects.


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IV. What is the real reason for

the pork barrels continued

existence?

1. It is a means by which the executive can controlthe legislature and bend it to his will (by releasing

or withholding the funds)2. It is the means by which the legislator can assure

his victory (and/or that of his family) in elections.

Comment:No/cethatthesearebenefitswhichaccruetothe so-called servantsof thepeople,not to the people themselves. In short, this isCORRUPTION (the use of entrusted power forprivategain).


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V. What is the basis for theconnection between the Pork

Barrel and Corruption?

1. In 1996 there was an expose of the corruptionsurrounding the CDF, based on the testimony of

an unidentified whistleblower. He has just recentlybeen identified (upon his death) as then MarikinaCongressman Romeo Candazo of Marikina.Candazo outlined the sharing scheme, between

congressmen and other government officials (from19% to 52%) It was this expose that a) led to theinstitution of reforms and b) the abolition of theCDF (but the PDAF took its place).


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The Pork Barrel and Corruption

2. Outrage over corruption in government in

2007 brought back the memories of the porkbarrel and corruption. This led to a stirring

defense of the pork barrel in early 2008 by

the newly elected House Speaker (Prospero

Nograles) and House AppropriationsCommittee Chair (Edsel Lagman).


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SolitaColas-Monsod

ProfessorEmeritaSchoolofEconomics

Pork Barrel and Corruption

3. 3. And now the recently released COA

Special Audit on the PDAF and the VILP for

2007-2009. Main finding:

75 % of soft pork and a little over 1% of

the hard pork were found to be

questionable improper or highlyirregular


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SolitaColas-Monsod



MassivecorrupAon

Pork Barrel Funds Appropriated, 2007-2009:

PDAF P29b; VILP P51b; Total P80b

Pork Barrel Funds Released , 2007-2009:

PDAF and other P14b;VILP P102b; Total- P116 b Pork Barrel Funds Audited by COA (2007-2009):

PDAF and other P8b; VILP -P33 b; Total P41b

Pork Barrel Funds use found to be improper or highlyirregular:

PDAF 6 b; VILP P.31b


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SolitaColas-Monsod



Irregularities, improprieties found:

a)releases for projects identified by 74 legislatorsexceeded their respective allocations

b) implementing agencies (IAs) used the funds

without due regard to existing rules and

regulations

c)infrastructure projects found deficientd)infrastructure projects built on private lots


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SolitaColas-Monsod



e) 70% of funds released improperly/illegally/irregularly went to only 19 NGO, all seemingly ofdubious origin. The other 30% went to 63 otherNGOs.

f) NGOs were chosen without public bidding only on the basis of the purported endorsement

of sponsoring legislatorsg) six NGOs were incorporated by legislators or

their relatives


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SolitaColas-Monsod



h) Beneficiaries names corresponded to list of

passers in professional board exams.

i) Other supposed beneficiaries denied having

received any help

j) Suppliers without business permits, orunknown.


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SolitaColas-MonsodProfessorEmerita

SchoolofEconomics

Famous Last Words

since the advent of the CDF in 1990 andthe institution of the PDAF in 2000 up to the

present, there has been no post-audit report bythe Commission on Audit (COA) directly

associating any Member of Congress to a

serious abuse, misuse and/or infraction in the

utilization and implementation of the much-maligned congressional funds. Nograles,

Lagman, in Understanding the Pork Barrel


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Solita

Colas-Monso

d


VI. Can the Pork Barrel be

Reformed?

The proof of the pudding is in the eating: inspite of the tightening and streamlining of the

pork barrel, the 2012 COA audit reports

show that tuloy ang ligaya.


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Solita

Colas-Monso

d


VII: Assuming that it indeed can

be made corruption-free, canthe pork barrel now be justified?

NO. IT STILL SHOULD

BE ABOLISHED.

WHY?


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Solita

Colas-Monso

d


A CORRUPTION-FREE, REFORMED

PORK BARREL SHOULD STILL BE

ABOLISHED. WHY?

BECAUSE it is institutionalized dissipation of

public resources

It embodies the divide by N syndrome,defined as the mechanical and feckless

dissipation of development funds acrosslocalities rather than their rational allocationto where these have the most impact


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Solita

Colas-Monso

d


The Effects of Divide by N:(see Philippine Human

Development Report 2012-2013)

87 airports, most of which are within a 2-hourride from one another

140 seaports, 40 of which have little traffic(another 72 were ordered in 2009, but contractwas rescinded by PNoy)

534 main and satellite campuses of stateuniversities and colleges alongside 93 LGUcolleges and universities and 1604 privateinstitutes, with faculties that are underqualifiedwith respect to graduate degrees


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Solita

Colas-Monso

d


Divide by N

Fragmentation of projects across space andtime

Bridges that lead to nowhere

Dirt roads interrupted occasionally byconcrete paving

Projects with little or no developmentsignificance (waiting sheds, entrance andexit arches, multipurpose pavements)


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Solita

Colas-Monso

d


In SUM:

Evenweretheporkbarrelprojectscompletely

untainted by corrup/on, even if it was not

ins/tu/onalized pilferage, there will s/ll bethe problem of inefficiency and waste (e.g.,

dispersion vs. integra/on, projects with very

liMledevelopmentalimpact,projectsthatareduplica/ve or decisions that are beMer done

byexis/ngagencies)


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Solita

Colas-Monso

d

ProfessorEmerita

ABOLISH THEPORK BARREL!

understanding the pork barrel (and why it should be abolished) by prof monsod

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