Tuesday, September 30, 2008

Politics

At a time when most people view politicians with disdain, Aristotle's argument that a man who has achieved the highest good is identical with the man who has participated fully in the life of the polis, which includes ruling and being ruled in turn, sounds rather strange. For him, politics is so essential to man that he considers a man outside the political community as either a beast or a god.

As a political science graduate of the national university, Aristotle's views give me hope that there is redemption for politics. Not only can public service be a force for good, it is actually the highest good. I continue to believe that I, and people of my generation, have a duty to enter politics and reform society. Politics is simply too important to be left in the hands of corrupt and incompetent politicians. As yet, however, I do not know how to translate this sense of duty into action.

As Aristotle's teacher said, there will be no justice in this polity until philosophers become kings.

Sunday, September 14, 2008

Reinventing Government and My Brief Stint as a Functionary

Osborne and Gaebler wrote this book nearly two decades ago yet its ideas have yet to have a toehold in the Philippines. Some of its ideas, like school vouchers, have been implemented in developed countries and have yielded success. Here, however, bureaucratic sclerosis is still the norm.

For six months, I worked for the government as a defense analyst and there I saw firsthand how taxpayers' money was being wasted. I worked for an office that employed more than fifty people, but spent most of its time providing poorly researched advice to the chief of staff and to other government offices. Officers went on an annual junket to the US ostensibly to discuss the mutual defense treaty, but I heard more about stories of late night drinking. Taxpayers paid for a monthly team-building/drinking session and for two lechons to celebrate the promotion of the big boss. Communication was so inefficient they had to be cleared by five layers before they reached my supervisor's desk, and my own response had to go through the same number of layers before it reached its destination. Worse, instead of email, it had to be hard copy documents with a disposition form on top, and they were hand-carried by enlisted men who either slept or surfed for porn when they had no messenger duties. I myself was guilty of wasting the very taxes I paid by coming in late most of the time and suffering no consequences at all.

I am fortunate to have found a better job after a few months, but I saw how corruption, mediocrity and a sense of entitlement slowly afflict the soul even of the most idealistic of college graduates.

The Impossible Dream

Don Quixote is an absolutely delightful read. It is, on the surface, hilarious, yet, at the same time, sorrowful. It is hard not to laugh at the absurdity of Don Quixote's adventures, or the witty, proverb-laden language of Sancho; yet, it is also hard not be sad at Don Quixote's nobility and Sancho's good nature being subjected to tricks and pranks by those who are sane, and should know better.

Don Quixote, when he dispenses advice during moments of lucidity, and Sancho, when he handed down judgments during his brief stint as governor, were both wise and worthy of respect, not ridicule. They demonstrated that, despite the outward madness and folly, each had a soul worthy of any of the gallant knight-errants that Cervantes so brilliantly parodied.

Don Quixote, to the point of literal madness, showed the value of an unswerving commitment to an ideal, displaying fortitude and grit in the face of physical and emotional pain. Sancho, at the risk of being branded an even greater fool, showed the value of loyalty, and, despite his ambition, appreciation of the simple things that make a man truly happy. Both of them, one by finding gentleness in the other's foolishness, and, the other, by finding nobility in the other's madness, demonstrated the true nature of friendship.

This work is a true classic, the measure of all novels that succeeded it and Cervantes, without a doubt, is a genius.

Economics of Money, Banking and Finance and the Great Recession

Mishkin's text on money, banking and finance has illuminated my understanding of the financial world. The relevance of learning about monetary economics cannot be understated because we are now one year into the credit crunch with no end yet in sight, and, personally, because I have just began investing in equities, reasoning that we are likely to have hit the bottom, or, if not, that I have a long time horizon anyway. Furthermore, the efficient markets theory has further discouraged me from pursuing technical analysis more seriously than simply checking for support and resistance levels.

Inflation has truly affected the economy, including my family. Philippine economic growth has slowed down, and there are fears that we are only about to enter a global recession. I am still able to save and invest a substantial amount every month, but it is hard not to feel the effect of rising costs on my discretionary spending. I am lucky to be working for IBM, which continues to grow despite the general downturn in the US because of its global presence. The rising dollar, however, makes it likely that growth this quarter will be dampened. Overall, however, I still see a lot of growth, and I remain optimistic about the future. I just hope the economy recovers soon.