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Rewards
By Michael Alan Hamlin
October 28, 2003

As the movie Titanic comes to a close, Kate Winslet's character tells the crew of a research ship exploring the ill-fated luxury liner's remains that her drowned lover, played by the boyish Leonardo DiCaprio, saved her "in every possible way." He saved her from an impending and loveless marriage, from a domineering mother seeking to perpetuate the family's lofty status through her marriage to a boorish but rich playboy, and from the freezing death the lover himself suffered so that Winslet's self-absorbed character could live.

Immediately following the whirlwind visit of U.S. president George W. Bush to Manila last week, Philippine president Gloria Macapagal-Arroyo seemed to be saying pretty much the same thing: George saved me in every possible way. First, the administration announced the "virtual endorsement" by Bush of his "friend," who has a "strong agenda" to run on for president next year.

Second, Bush made significant aid commitments in the area of military modernization, the strengthening of the rule of law and law enforcement agencies, and improved education in the country's poorest regions, especially Mindanao. Third, Bush named the Philippines - just prior to his arrival - a major non-Nato Ally, a move also intended to strengthen military aid, and a public relations feather in Ms. Arroyo's cap. Although her detractors ridicule the president for her close alliance with the U.S., there's much to be said in favor of a close relationship with the world's only superpower.

In return for Bush's support, Ms. Arroyo promised continued support for the fight against terrorism, pledged US$1 million in aid to Iraq, and endorsed six-party talks in Beijing to resolve the North Korean nuclear arms issue. Debate on the substance of the pledges made by both presidents has been uneven, but there is a palpable sense of cynicism, and not just by local pundits.

On the day of Bush's visit, author and commentator Brett M. Decker wrote in The New York Times, "There's only one problem with this alliance: American aid hasn't improved the Philippine military so far, and in many ways it has benefited the Islamic militants it seeks to combat." Decker went on to argue that corruption within and politicizing of the military account for many of the Philippines' problems.

"The military has instigated coups in every administration except one since 1965." Rather than increased military aid, Decker argued that, "withholding support from the Philippine brass sends the message that Washington - the nation's most important ally - expects the military to keep its hands off the civilian institutions of government." That the military should behave is a message that will resonate with most Filipinos.

Peter Drucker once wrote to the effect that doing the same thing over and over and expecting a different result is highly irrational. Certainly, we have seen the effects of military aid to the Philippines over and over. As Decker wrote, the effects have included the sale of arms to enemies of the state, notably the Abu Sayyaf, whose elimination was the principal motive behind US$350 in military aid previously promised to the Philippines. What, one supposes, will make things different this time?

What has been effective, by contrast, is U.S. aid intended to improve transportation and basic services infrastructure and education, particularly when these improvements are delivered directly by the U.S. While much attention with respect to the U.S.-Philippines alliance has been focused on efforts to eradicate the Abu Sayyaf, by far the most appreciated benefits in the minds of many Filipinos in Mindanao have been the provision of farm-to-market roads, reliable water supplies, and rudimentary but hygiene enhancing sewage systems. These are benefits provided by the U.S. Army Corp of Engineers.

Ms. Arroyo and her handlers are hopeful that the visit by Bush will save her politically in what promises to be a tough re-election fight. If the benefits are to be limited to military aid administered by the Philippine military, however, there is going to be little, if any, political benefit. Most Filipinos are left decidedly unimpressed by the notion that the Philippine military will receive more helicopters and M16s from the U.S. Like Drucker, they're smart enough to realize that this kind of aid has never had an impact on the quality of their lives.
And it never will, either.

(Michael Alan Hamlin is the managing director of consultancy TeamAsia and the author of three books on Asian economies and companies. His latest book is Marketing Asian Places, of which he is a co-author (Wiley, 2001). Write him at mahamlin@teamasia.com.).

Copyright © 2003 Michael Alan Hamlin. All Rights Reserved.

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