Thursday, October 1, 2009

Disaster

In Manila, either we were directly affected by the floods brought on by typhoon Ondoy, or it hit too close. For those of us who were fortunate to be on higher ground, there were friends or family that were not as fortunate.

Force majeure, or superior or irresistible force.

But there may have been part of it that would have been avoidable, or mitigated. And responses that would have been more prompt, or appropriate, or effective. Looking forward it cannot be business as usual. Similar events are bound to affect us all.

The analyses coming out in the aftermath are all instructive. Climate change is one context. The other is how urban development proceeded. Quoting from a news item with architect Felino Palafox Jr. as source:

"The Metro Manila Transport, Land Use and Development Planning Project (Metroplan), which was finalized by Hong Kong-based consulting firm Freeman Fox and Associates, has been used as a blueprint by urban planning developers and various government agencies and urban planners. Unfortunately, he said corruption and lack of planning has led to the shelving of some of the plan's recommendations.

"You see the irony here. National government agencies are aware that there is a flooding level of so many meters, then another national government agency would approve subdivision plans for only nine-meter high houses. There are about 32 signatures to obtain just to do a development project. It's like an obstacle course," he said in an ANC interview last Tuesday."

We can expect the private sector to avoid internalizing the costs of its negative externalities, to maximize profits. Private developers will narrow or block waterways, cut down trees, flatten hills, and fill valleys. And we will buy what they construct. As the incentive of private interests push to overbuild and destroy nature, we look to government to look after the public interest.

Unfortunately, in government private interests also rule. Every government project is a personal opportunity; the public good is secondary. To this misfortune, the response of our economists for the last two decades has been to demonize and tear down government; to let the market rule. Alas, this strategy has only suppressed the drive for institutional reform and made many of us passive citizens.

We need to reclaim government.


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