Political dynasties the real oligarchs — Ateneo dean

Political dynasties are the real oligarchs in the country, Ateneo De Manila School of Government Dean Ron Mendoza said as the government pursues a campaign against those perceived to control economic and political power.

President Rodrigo Duterte, who had repeatedly vowed to destroy oligarchs, claimed that he “dismantled the oligarchy” without declaring martial law in a speech he delivered before government troops in Jolo, Sulu in July. Duterte did not specify which family he was pertaining to but his remark came days after the House of Representatives rejected the franchise application of ABS-CBN, owned by the Lopezes.

Mendoza said that Duterte has focused on oligarchy in businesses than in politics, which he said is where the concentration of power is increasingly growing.

The Ateneo dean explained that there are more oligarchs in politics than in businesses.

“In fact, the political dynasties are the real oligarchs in the country. They are the ones that keep on expanding, the number of family members engaged are increasing, and their wealth is growing faster than the economy,” he said in a television interview.

Mendoza argued that oligarchy is not dismantled when an oligarch simply tries to take down another oligarch.

“When political dynasties become fatter, oligarchic behavior increases. This behavior means that the concentrated power is being used to acquire even more power to influence the economy or nation,” he said.

Mendoza suggested that a better way to push for an equal playing field “is not to target families and firms, or weaken the public and private institutions, but to increase competition by encouraging more players to enter.”

He argued that there would be no effective change in the system if one oligarch is merely replaced by a “baby oligarch,” who will eventually become a “full-grown oligarch.”

Mendoza cited the closure of ABS-CBN, which would affect the competition in the broadcast industry that was previously dominated by the Lopez-led network and GMA.

“The denial of ABS-CBN’s franchise did not only result in 11,000 job losses; it also affects information dissemination around the country, especially during election and typhoon seasons. There would also be changes in the consumption behavior of the people who lost their jobs and other businesses that relied on the network’s operations,” he said.

Mendoza warned that targeting large firms and their individual or family owners could affect domestic and foreign investments.

“It creates an uncertain business environment wherein refusal to align yourself with those in authority risks your company becoming a target,” he said.

“The long-term impact of a personalistic approach to certain alleged oligarchs is a complete opposite of a level playing field nurtured by strong institutions. Investors are averse to uncertainty and high regulatory risk in dealing with the government. It will emphasize the ties between business and politics in worst ways. Businesses who are simply doing what has been agreed on the contract are prone to make corrupt practices to remain favorable to those in power,” he added.