ArTiCLe oN PhiLiPpiNe EliTeS

Oligarchs this term usually refers to members in society that usually belong to powerful groups; these are usually families that own large corporations and have great influence over the state and the economy. In the present there are several known families in the Philippines that may be described as oligarchs, these are the Ayalas, Sorianos, Aboitis, Sy, and Lucio Tan, these families are well known for their large corporations and enterprises , and these families have in ways influence the politics and economy of the Philippines. Although there have been many changes made in the state, and a difference between what the prominent families participate in today from what prominent families participated in the past, especially during the dreaded administration of President Marcos. During Marcos‘s administration, because of the corruption caused by Marcos and his cronies, the power of oligarchs were at its highest during this time, and these caused great economic turmoil.

Power for the chosen Few.

Oligarchs though have been present even before the administration of Marcos; it all began in the past, first with the Spaniards as they established weak central state and mostly relied on ecclesiastical personnel for expanding, a weak central state was then further enforced during the American Colonization; the American colonizers instead reinforced decentralization, creating representative institutions, rather than forming a central bureaucracy. The power was given to the few representative institutions which after created their own local political boss to consolidate their hold on the national state, when American authorities turned over most of its component positions to the natives, this created “a solid, visible ‘national oligarchy.’” The oligarchs from then on took advantage on their hold on the state and absorbed opportunities given by the Americans. Another cause to oligarchy dominance over the Philippine state is the state apparatus, the way power was ran in the Philippine state, since it was a patrimonial oligarchic state, evidently because oligarchs had more power over officeholders unlike other patrimonial states, and from this point on oligarchs gained influence both in politics and economy for their own interests which Hutchcroft states as “booty Capitalism”.
Marcos, cronies and oligarchy

During the Martial Law of Marcos’s Administration, the state apparatus took a turn for the worst after being continually abused by oligarchs; it was now being abused by the president and his cronies. During, 1960-1970, numerous banks were already owned by family conglomerates, during the time central bank was presiding over family-based banking, and most were suffering instability due to inappropriate management and abuse from the family owners. Economy was failing due to the abusive actions of the oligarchs to significant economic sectors and their mismanagement of commercial banks; now the state was under dictatorship and those that benefited during this time where only the family conglomerates close to Marcos. Marcos and his cronies simply had free reign to plunder the economy as they pleased, since they had more centralized control over the state apparatus and longer office tenure, and the state apparatus had little power to prevent these events of corruption.

During martial law Marcos did use his power to help himself halting some oligarchs from abusing the economy though this were oligarchs that were a treat to his regime; this eventually led to family conglomerates or oligarchs supporting Marcos’s administration becoming cronies themselves, the Tans is one of the examples of cronies that rose to power during martial law. Lucio Tan by 1980, thanks to extensive support from the palace in gaining tax, customs, financing, and regulatory favors, his Fortune Tobacco Co. Became the best in Philippines. Eventually multiple economic sectors were headed by Marcos’s family and his cronies, were they continued to abuse their power and continued activities for self interest, as numerous family-based banks all commercial were continually failing, regardless of external support from foreign loans and other banks; although were evasive enough to avoid reforms aiming to close banks, to reduce the failure of banks and reduce financial issues. In the end the state couldn’t do anything about the instability commercial banks, and the graft and corruption caused by Marcos’s cronies; this was only addressed later after the end of martial law and Marcos’s administration, when Cory came into presidency to undo the injustice of Marcos and his cronies, and to strengthen the state apparatus. Although there have been politicians that still abuse and plunder the country, especially during Gloria’s Administration.

Currently though in the administration of Noynoy Aquino corruption has been lessened to an extent, as he follows the legacy of his parents Ninoy and Cory Aquino. Family Conglomerates now in the Philippines abide to a strong state apparatus that protects the economy, and now only a few family-based banks exist which are BPI by Ayala and BDO by Sy. The richest families in the Philippines also now refrain from participating in politics and are more business oriented, the richest people now in the Philippines concentrate on infrastructure like Henry Sy and Ayala. these are now the main directions these family conglomerates are preceding in society. Building infrastructures is one of the most evident directions that rich people like Sy and Ayala are going about, if one would travel around the Philippines they would be sure to encounter SM mall or Ayala mall in the area; furthermore they also contribute in development as they build developed residential areas which have the proper facilities and services, which benefits them and the country as these resident areas are also build near their other infrastructures like a mall, and helps the country build developed communities that would help the economy. This corporation also follow a CSR corporate social responsibility, they help and contribute to society, some help and provide funds for scholarship of students, protection of environment, and development of communities.

In conclusion it is apparent there has been a big change; oligarchs or family conglomerates from the past to now in the present have changed their attitudes in society, instead of graft and corruption for self interest they now help in infrastructure and development to help society while getting some profit as well. What we should understand though is that this change was made by these family conglomerates because of society; in the beginning the state was still young and weak it had no power, and it allowed businessmen the opportunity to abuse the economy; but as the state apparatus strengthened itself from experience like the banking crisis and martial law, the state apparatus now has less leeway for businessmen to plunder the economy, especially because the Filipino people have shown their anger toward graft and corruption through edsa 1 and 2. So this is power in our country and how it developed along the years.