Industrial policy versus the 3 Gs
Industrialization needs educated citizens, which is precisely why the patrons of the three Gs never wanted it.
A couple of years ago, before a year-end interview with a major business program, I made an off-the-record remark: The only industries that are growing in the Philippines are the three Gs — Government, Gaming and Glam.
Government, for the plunder of the budget. Gaming, whether online or junket casinos, which preys on the poor and reinforces organized crime. Glam, meaning show business and the business of vanity. Good thing the hosts were gracious enough not to ask about it on the air.
This is not an exaggeration. While our neighbors race to build infrastructure and power plants, our politicians are busy carving up the government budget and handing out online gaming franchises to their networks. A drive down our major highways shows huge billboards hawking online games and campaign ads during elections. Government has been largely captured by feudal forces, and instead of being a catalyst for growth, it has become a siphon.
Gaming does not create wealth; it transfers it from the desperate to the shady. Glam does not manufacture; it distracts and distorts, but at least it provides some entertainment for the populace. Although the dark forces have recognized the power of show business and have masterfully exploited its electoral value.
On paper, the Philippines passed no less than 10 laws supporting industrial policy, with the latest being Republic Act 12066, the CREATE MORE law, in 2024. What’s lacking is the consistent fulfillment of the law’s obligations, showing sustained results in domestic industrial capability, productivity, supply chain development and quality employment.
Start with affordable, reliable power. Strengthen steel production and expand what we can make locally. Deepen shipbuilding, mineral processing and resilient agriculture. Tax incentives help, but they cannot substitute for workable logistics, skilled people and predictable administration.