Posted tagged ‘development sociology’


November 8, 2015


Erle Frayne D. Argonza

It’s late afternoon as I write this piece, and it’s the longest day in the northern hemisphere too (summer solstice). I will devote this piece to the matter of large university classes that are the mode of instruction in many academic institutions across the globe.

Large classes are a thing of the past. The large class modality was referred to as ‘Great Man pedagogy’ in Europe, and was critically challenged by the youth and professors during the stormy youth heydays of the 1960s and ‘70s.

The human psyche is rapidly evolving towards greater individuation. As we humans become more individuated, the educational instruction fit for us is one that should account for and enable our individuality, even up to the point of providing ample space for eccentricity in each one.

In the olden days, when the Herd Mind or folk mind was the characteristic psyche of the people, the modality of instructions was one that would fit them well. Large classes evoked the ‘Herd instinct’ (Nietszchean label for the same), and unconsciously provided a semblance of community for peoples of those ancient times who were cut off from family & village to study in the university.

The coming of the Industrial Age, right after the conclusion of the 30 Years War (1618-48), ushered the ‘assembly line’ of mass production of articles of manufactures. The ‘assembly line’ method found its concomitant equivalent in the Great Man pedagogy which churned out collegiate graduates like commodities for sale in a rapidly expanding labor market.

Up until the late 19th century, during the Victorian Era that is the nadir of the modern age, Great Man pedagogy was a largely unquestioned modality of instruction. As the crisis of the early 20th century set in, the same pedagogy found perfect compatibility with the nascent totalitarian ideologies and systems of that era (fascism, Nazism, communism).

Indubitably, the success of ‘assembly line’ classes was effective only insofar as the psyche remained as more folk-mind or herd-oriented. As the psyche mutates to more individuated type, it will militate against anything that brings it back to the Herd: subject to manipulation and shaping by authoritarian if not sociopathic interest groups and persons.

Sure enough, as the youth rebellion of the 60s set in, the students of the Sorbonne in Paris burst out in revolt against the Great Man pedagogy circa 1968. Other universities quickly caught up the fiery flames of the revolt and followed suit in a tempo of upheavals that were largely unplanned and spontaneous.

Accustomed to bureaucratism and pork barrel largesse that went with mainstream political power, the French Communist Party was caught flat-footed by that revolt. Tailing behind the event that indicated its being mired in intellectual bankruptcy and betrayed its archaic mindset, the communists lose relevance almost overnight.

Had the communists grasped that event quickly and seized the opportunity by siding with the anti-large class youth, the sociopolitical landscape of France and Europe could have changed forever. A social revolution of a new kind, bred by a fusion of working class militancy and youth revulsion against archaic pedagogy and culture, could have been registered in the annals of history as worth our positive valuation.

It is shocking to find out that the large class modality is still around with us today. It is anathema to the goal of human liberation, even as it could be a launching ground to breed new ‘boot camp’ babies for certain interest groups of a fascistic/authoritarian nature.

The Industrial Age had now passed away, and the Post-Industrial/Postmodern Age has brought along with it an erasure (sous rapture) of the dividing line between Reason and Madness. Fascism is resurgent worldwide, and before we’d notice it a global state would be in the offing that is orchestrated by an ideological force of global Bonaparte.

If the large class modality is re-introduced in any university whatsoever, it should only be on an interim phase. It is a regressive move, and running counter to the gamut of psychical individuation, it will erode in time and be abolished across the globe.

Should there be a youth revolt against this antiquated pedagogy in my own home country, I will be glad to make my presence in the barricades to be set up.


August 27, 2015



Erle Frayne D. Argonza


Good evening! Magandang gabi!

The dark clouds of the electoral contests are now getting clearer in the Philippines. With our polls settled and our elected leaders about to begin their mandates, I’d now depart from election-related advocacies and move back to the international-global arenas.

I have written quite enormously about international political economy and subsidiary themes for over two (2) decades. Even my blogging has been consumed with peregrinations on the international arena. So let me go back to this arena, even as I now clarify that I am a strong advocate of One ASEAN.

As I’ve elucidated in my past writings (see 2007-08 articles), I perceive the ASEAN as the larger polity to which my own country will return in the future.

The Philippines, Indonesia, Brunei, Malaysia, Singapore, the whole of island Southeast particularly, were largely creations of Western powers. They used to be part of the Majapahit Empire, the world’s wealthiest region before Western colonization fragmented it.

Being a strong believer in ASEAN unity, I am willing to shed off my hard-line Filipino nationalism and don the cloak of pan-ASEAN patriotism. Majapahit was the original nation to me and to those who resonate with the same worldview, and eager am I to see my country return to the Empire.

The Empire no longer bears that name today. Rather, it goes by the name of ASEAN, short for Association of Southeast Asian Nations. But it bears the same geo-political and geo-economic contours of the Empire before it fragmented.

A benevolent Empire it was, as it used the fiat of trade cooperation to get membership into the polity. That is, to be able to become a part of the Empire, concur trade with its nexus and prinzeps. This was a much different track from the typical military occupation used by other regional and world powers to expand their territorial confines.

If we reflect back on what our state players are doing here today, where they’re concurring agreements and treaties using the most civil means conceivable to get to a higher level of unity, the same means actually revives the consensus methods used by our peoples in antiquity. Today, no matter how diverse our political, economic, and cultural systems are, we are talking to each other here, which is reflective of a ‘dialogues of civilizations’ approach.

From state-to-state and civil society-to-civil society talks, let us move on to direct people-to-people talks in the region. People-to-people interactions precede people-to-people cooperations. I strongly contend that people-to-people cooperation should eventually be the base for state-to-state and civil society-to-civil society cooperation and no less.

State-to-state talks are quite slow in results, even if market players joined state actors to buttress the former stakeholders’ positions. In some areas of talks, such as those involving territories, snags are observed.

People-to-people interactions and cooperation will do much to accelerate state-to-state talks that get snagged for one reason or another. The same cooperation can also accelerate the building of a pan-ASEAN identity which should precede any writing of a general treaty that will unify the region at least economically.

People-to-people interactions have already been taking place in the region for almost 2000 years in fact. Western colonization may have diminished the scales of interactions for a long while, but that era of imperialism is much behind us now.

As states, market players, and civil society players are preparing for larger talks ahead, let us noble peoples of the region go ahead and expand the levels of talks to build greater mutual confidence, appreciation of each other’s cultures, and trust. Along the way, we have fellow Asians and global citizens who will support our efforts as true friends.

In any way we can, let us get to know each other better. Let’s set aside utilitarian gains (e.g. get to know Asean pals who can become network marketing partners) and interact based on a true call of our hearts, of our souls.

That way, we contribute to building our preparedness for the grand future coming. We just can’t be caught flat-footed, not knowing what’s going on in our larger backyard because we allowed state players to monopolize the talks.

Fellow ASEANians, let’s get ready!

[Writ – Philippines, 11 May 2010. E. Argonza is adept at international political economy. He was a graduate student of former ASEAN Deputy Secretary General Wilfrido Villacorta, PhD. He has published various articles on the subject, as well as a book on global trade regime.]

NEO-NATIONALISM’S PREMISES & CONTENTIONS / Reform the international financial system

May 5, 2015

NEO-NATIONALISM’S PREMISES & CONTENTIONS / Reform the international financial system


Erle Frayne D. Argonza


The global financial system is indubitably a homestead of predatory financiers. Usury and global speculation, the masterpieces of financiers, are the enemies of nations. Usury in international finance is at an all-time high, raising questions about the legality and moral propriety of   current lending practices. Incidentally, the said financiers are the ones who exercise the clout within the International Monetary Fund and the World Bank, whose chiefs have always been CEOs from the bank headquarters of the financiers. The said banks have always acted out as the marketing agents of financial cartels, even as many nations that have followed the austere ‘structural adjustments’ imposed by them have been reduced to paupers.


It is high time for ‘white knights’ to appear in global finance, lending money accordingly for developmental and investment purposes at very low interest rates (lower than 1.5% annually) and at very long-term payments (25-50 years). Such institutions are now beginning to appear, but creditors remain cautious about their moves. Such institutions are autonomous from the power orbits of the Western financial cartels, are well niched in Asia (e.g. China), and appear to be creditor-friendly.

The reform though should go beyond the ‘white knight’ route. We must actively participate in Asia’s establishment of its own monetary fund and a single-currency regime, and take a leading role if opportunities allow. It may prove beneficial yet to re-institute a regime of gold reserve standard, which should back up the Asian currency. This same monetary fund will then serve as the regional ‘white knight’ that will provide credit to nations in need in the region and continent. The actions will also accelerate the economic cum political integration of the ASEAN and the economic integration for the entire East Asia, steps that will further stabilize the national economies and continuously sustain their respective growth. Meanwhile, a regional currency can stabilize soon enough upon its launching, that it would be a difficult job for criminal financiers to manipulate it, such as the success of the ‘Euro’ now exhibits to the globe.


Still another key intervention measure is the control of predatory speculation through a ‘Tobin tax’ on cross-border currency and related purchases (J. Tobin’s proposal in the early 70s). A tax of 0.75% alone on the current cross-border exchanges, which amounts to $300 Trillions annually, would generate $2.25 Trillions. The said money will then be used to fund the operations of international organizations such as the United Nations, UNDP and authentic international NGOs for social development purposes. The money can also be used by ‘white knight’ financing institutions of international scale. This set of actions will then induce reforms in the other institutions, with chain reaction effects leading to declining speculation in the long run, as the oligarchic bankers/financiers adjust their rates to more competitive rates in the face of challenges coming from global ‘white knights’.

[From: Erle Frayne D. Argonza, “New Nationalism: Grandeur and Glory at Work!”. August 2004. For the Office of External Affairs – Political Cabinet Cluster, Office of the President, Malacaňan Palace.]

NEO-NATIONALISM’S PREMISES & CONTENTIONS / Strengthen national banking and the monetary system

April 25, 2015

NEO-NATIONALISM’S PREMISES & CONTENTIONS / Strengthen national banking and the monetary system


Erle Frayne D. Argonza



Economic stability at all levels demands the strengthening of a national banking system, and concomitantly the strengthening of monetary system with sovereignty-backed parameters and rules. First and foremost of monetary missions is the re-assertion of the powers of the Constitution of the Republic over the Bangko Sentral ng Pilipinas. Needless to say, the country today faces a weak national bank, and necessarily a weak monetary system engendered by it. Sovereignty questions impede the effective operations of national banking in the country, as indicated by the excessive meddling of the International Monetary Fund, acting as agent of the global financial cartels, in the Bangko Sentral’s operations. The first step should be a thorough investigation by the Congress of the Republic to determine precisely who owns and controls the Bangko Sentral, and conduct related oversight functions to assess the entire consolidated assets of the said bank inclusive of unaccounted precious metals.

Should there be a need to institute maximum monetary controls, the national bank should be mandated by the Congress precisely to exercise such controls through a regime of currency controls, where found warranted. In no way should our national currency be subjected to attacks by predatory financier speculators, as what the latter have been doing from the mid-1997 onwards. Money is the lifeblood of the economy, and rendering our money under a regime of free exchange rates and free trade leaves us extremely vulnerable to the machinations of such greedy forces, further weakening our national economy. Monetary controls are the best antidotes to the ailment of a weak currency. Were it possible to revive a system of gold reserve standard, then let such a strategy be studied and enforced, to ensure stability in monetary concerns and the currency markets.

The interest rate controls should likewise continue, but the state must see to it that the rate regimes are within the bounds of sovereignty parameters, representing thereof the national interest and the subsidiary interests of the various social sectors. And, should conditions warrant, our national bank should be among the key initiators for constituting new supra-national institutions, such as an Asian Monetary Fund, thus signaling our participation in reforming the entire financial & monetary system (see below). Our involvement in an Asian Monetary Fund could be a fitful strategy to finally exit from the International Monetary Fund, further strengthening our national banking and monetary system.


[From: Erle Frayne D. Argonza, “New Nationalism: Grandeur and Glory at Work!”. August 2004. For the Office of External Affairs – Political Cabinet Cluster, Office of the President, Malacaňan Palace.]

NEO-NATIONALISM’S PREMISES & CONTENTIONS / Concur co-stewardships with communities affected by extractive industries

April 15, 2015

NEO-NATIONALISM’S PREMISES & CONTENTIONS / Concur co-stewardships with communities affected by extractive industries


Erle Frayne D. Argonza

Our mining sector had been in the doldrums for quite some time now. The production levels of both (a) base metals and (b) precious metals have surely been at lackluster levels. Meantime, logging has been totally banned to arrest further deforestration and its accompanying desertification and soil erosion. It is only in the energy sector where extraction has been impressively high, and the sector is appreciably a very dynamic one even in terms of R&D considerations. We are now at the crossroads concerning such sectors as mining and forest resources, where a revivified extraction is in the pipelines but couldn’t move because of constitutional and/or statutory constraints.

Note that most of the country’s natural resources for extraction are habituated by (a) tribal peoples and (b) migratory slash & burn peasants. Such populations have long ‘guarded’ the resource-rich habitats. It would surely be a faulty policy to drive them away—hidden under the euphemism of ‘relocation’—in order to give way to a mining concessionaire. Likewise would it be unsound to merely integrate some of their members as wage laborers for the extraction operations. Such actions, derived from regarding the people as ‘high disutility’ entities, are plain reactionary, even as they push the populations to the limits, leading to the folks to constitute hostile millennial movements and rebel separatists. The moves are reactionary as they contribute to the weakening of the nation, to the fragmentation of the national community.

The most pro-active path to address the concerned issue is to design and concur stewardship arrangements with the said populations. Three things are addressed by the stewardship: (1) the people will stay in the area, with better housing and amenities, who in turn will monitor and safeguard the entire operational sites; (2) where necessary, the same folks will be employed in the operations and administrative jobs where applicable, on a first priority basis; and, (3) the people will be co-owners of the firm, with equity/stock participation derived through a calibration of their productivity potency, historical role in stewardship of the area, and other variables. It is argued that this stewardship path is the win/win formula for the state, investors (market), and the communities concerned (‘social capital’/civil society). Consequently, the contribution to the GDP through resource extraction jumps up to a historic high level.


[From: Erle Frayne D. Argonza, “New Nationalism: Grandeur and Glory at Work!”. August 2004. For the Office of External Affairs – Political Cabinet Cluster, Office of the President, Malacaňan Palace.]

NEO-NATIONALISM’S PREMISES & CONTENTIONS / Continue to stimulate growth through the ‘physical economy’

March 4, 2015

NEO-NATIONALISM’S PREMISES & CONTENTIONS / Continue to stimulate growth through the ‘physical economy’


Erle Frayne D. Argonza

This writer strongly argues that the greatest driver of the economy must be the ‘physical economy’. By ‘physical economy’ we refer to the combination of (a) agriculture, (b) manufacturing, (c) infrastructure, (d) transport and (e) science & technology (S&T) whose results further induce ‘production possibilities’ in the sectors a-d. An economy that is prematurely driven by the service sector, growing at the expense of the physical economy, will create imbalances in the long run, failing in the end to meet the needs of the population. A premature service-driven economy would be subject to manipulations by predatory financiers, who would do everything to destroy the national currencies and consequently the physical economy of the nation as well. An economy driven by derivatives and every kind of speculative pursuit is a ‘virtual economy’ such as what has dominated the USA since the era of Reaganomics.

I would hazard the thesis that our national economy moved to a service-driven phase prematurely. Look at all the fiasco after our ‘physical economy’ had rapidly declined in GDP contributions since the early 1990s, as the service economy advanced in its stead! Relatedly, the over-hyped Ramos-era ‘Philippines 2000’ economy was largely a ‘bubble economy’ driven by speculation and portfolio capital, and was more in kinship with the ‘virtual economy’ than any other one. We have not fully recovered from the bursting of that bubble, even as we are now threatened with another bursting of sorts—of the debt bubble, leading to fiscal crisis.

It pays to learn our lessons well from out of the immediate past experiences. And the clear message sent forth is: get back to the physical economy and re-stimulate the concerned sectors, while simultaneously perfect those services where we have proved to be competitive, e.g. pre-need sector, retail, restaurant/f&b. We should also strive to learn some key lessons from other countries’ positive experiences such as China’s, whose economy continues to grow enormously, and grow precisely because it is the physical economy that primarily drives it up and lead it—at an enormously rapid rate—towards development maturity, permitting China to outpace the USA’s economy on or before 2014 (using GDP Purchasing Power Parity indexing).

[From: Erle Frayne D. Argonza, “New Nationalism: Grandeur and Glory at Work!”. August 2004. For the Office of External Affairs – Political Cabinet Cluster, Office of the President, Malacaňan Palace.]

NEO-NATIONALISM’S PREMISES & CONTENTIONS / Evolve from ‘capitalist markets’ to ‘social markets’

February 25, 2015

NEO-NATIONALISM’S PREMISES & CONTENTIONS / Evolve from ‘capitalist markets’ to ‘social markets’


Erle Frayne D. Argonza



The ‘capitalist market’ (or simply ‘market’) is the haven of financial predators and market sharks, while the absence of market is the homestead of the rent-seeker and exclusively-privileged partocrat (single party bureaucrat). As the cases of the ‘mixed economies’ and that of China’s have demonstrated, the market impeccably performs a   pivotal role in stimulating growth & development, and should not be wished away too soon. Rather, we should evolve a market that is not a ‘pure market’ in the classical sense.

As experiences world-wide have transparently indicated, leaving everything to the market redounds to: (a) diminished welfare, as indicated by low wages, low accessibility to social services, high unemployment, and massive exploitation of labor; (b) ecological disaster, indicated by environmental degradation, depleted natural resource base, destruction of indigenous communities and their natural habitats; (c) speculation in the capital and realty markets, leading to further instabilities and proneness to shocks, both internal and external; and, (d) lackluster product innovation due to low value given to S&T development, in societies where there is a lack of entrepreneurs, such as the Philippine case demonstrates.

The balance lies in developing a ‘social market’, where concern for private initiatives as well as for welfare are harmonized and balanced, while at the same time controlling speculation and optimizing conditions that induce innovations. Within the context of a social market, there should increasingly evolve ‘social enterprises’ or collectively-owned enterprises: cooperatives, people’s corporations, grammin, and other related types that are rising though still at an experimental phase. While private enterprises should continue to prevail, large-scale enterprises should begin to innovate on new physical asset-ownership schemes that would eventually see a large portion of the assets co-owned by ordinary folks and corporate employees. In the long run, the ‘social market’ will be a terrain where both wealth gaining and welfare providing functions will be fused exquisitely, signifying the end of state-induced welfare and the return of welfare functions to communities.

[From: Erle Frayne D. Argonza, “New Nationalism: Grandeur and Glory at Work!”. August 2004. For the Office of External Affairs – Political Cabinet Cluster, Office of the President, Malacaňan Palace.]

NEO-NATIONALISM’S PREMISES & CONTENTIONS / People are the most important assets, revise accounting systems!

February 17, 2015

NEO-NATIONALISM’S PREMISES & CONTENTIONS / People are the most important assets, revise accounting systems!


Erle Frayne D. Argonza



The prevailing mindset perceives assets in terms of physical assets (estates, chattel, monies). Ownership is then defined in terms of right to control and dispose of such assets. Wealth is computed in terms of the values, calibrated through price, created through the utilization of the physical assets. For a while, the classicists introduced the notion of ‘labor theory’ of value, premised upon the value-producing powers of labor. But the efforts of the classicists failed to get translated into acceptable accounting systems, as such systems have always been based on physical assets and prices.

Look at what is happening among various agencies, especially business firms: there is a lot of ‘pirating’ of people going on among them! Likewise are there efforts to retrieve those same people ‘pirated’ by competing agencies. The same event holds true for the state and NGO sectors: ‘piracy’ on grand scales! This phenomenon is a clear manifestation that people, not physical assets, are the most important of all in an organization. When an agency loses good personnel, the effect is instantly debilitating, a debilitation that can be offset only through the timely arrival of replacements who are as good as the ones who left. The converse is also true: when an agency needs people to shore up its output levels, ‘pirate’ high-achievers from other agencies most especially those who have “made a name” in the sector concerned. The piracy of people in the entertainment world is even more instructive in indicating to us the central import of people, not physicals, as value producers. We need not belabor the point that the ‘piracy’ strategy comes often in the form of higher pay scales and incentives.

That is why it pays so much to manage people well, and to design new organizational principles that would bring out the maximum potencies of people most specially the highly talented ones. Bureaucracies have become outdated dinosaurs, as ‘flat organizations’ have become the wave of the present: the new organizations make plenty of room for self-initiatives, resourcefulness and innovativeness by good staff. Bureaucracies, which follow from only two principles—vertical (hierarchy) and horizontal—can stifle innovativeness, as experiences have shown. The ‘task master’ mindset and ‘boss mentality’, as well as the excessive stress on routinary processes, have turned off many achiever personnel most specially the highly talented ones whose nature of work is ‘symbolic/analytic’ (to use Reich’s term). Today, new principles are emerging that are leading to a massive ‘re-engineering of the organization’, such as Total Quality Management or TQM, web organizational structure, team work principles and ‘human resource empowerment’.

Yet inspite of such revolutionary changes and explosion of amazingly appropriate principles about organizations and human resources, no changes are happening in the accounting systems that can correspondingly reproduce the organizational principles taking place. The only appreciable concept is that of GDP Purchasing Power Parity or PPP, which computes total income on the basis of purchasing power of local consumers relative to those of the world’s strongest economy. Using the GDP-PPP, the Philippines’ GDP stood at $379 Billions as of the end of 2003, with GDP-PPP per capita at around $4,600 more or less. (See The World Factbook, 2004, for such index reports.) But this indexing does not in any way address the accounting question raised here.

Should the notion of ‘human capital’ become popular, the accounting system should consequently follow. The notions of ownership would then change, indicating the revolutionary implications of the paradigm shift. Those pretending ‘radicals’ of the day, many of whom are steeped in 19th century socialist thought, tend to view the asset realm from the focal lenses of antiquated Victorian-era ownership concepts, and are no less conservative than the oligarchs they sordidly hate. They offer no radical solutions beyond changing (antiquated) asset ownership, strategies that eventually stifle innovativeness and human expression, as criminal Stalinist regimes have shown. New Nationalism must take on the challenge of presenting a far more revolutionary concept that can, in the end, contribute to evolving a strong base of ‘human capital’, ‘social capital’ and ‘strong nation’.

[From: Erle Frayne D. Argonza, “New Nationalism: Grandeur and Glory at Work!”. August 2004. For the Office of External Affairs – Political Cabinet Cluster, Office of the President, Malacaňan Palace.]

NEO-NATIONALISM’S PREMISES & CONTENTIONS / Promote synergy with civil society in the development path

February 5, 2015


NEO-NATIONALISM’S PREMISES & CONTENTIONS / Promote synergy with civil society in the development path


Erle Frayne D. Argonza

In the old formulations, development was an exclusive endeavor of state and market players. That is, the directions of development were largely the handiworks of political, bureaucratic and corporate elites. There should be an admission that this structural formulation was a factor in generating the crisis-level ailments of mass poverty, large-scale unemployment, low wages, sluggish growth and dependence. So why retain a formula that had failed us miserably?

The current context, where a dynamic and colossal civil society operates, points to the ever-growing recognition of the potent role of civil society in co-determining the compass of development. At the grassroots level, development efforts will be accelerated to a great extent by involving civil society formations acting as ‘social capital’ base, as studies have positively demonstrated (citations from Peter Evans’ works on ‘state-society synergy’). Insulating the state from grassroots folks, as the same studies have shown, have produced dismal if not tragic effects, e.g. India’s non-involvement of ‘social capital’ in the erection and maintenance of irrigation facilities resulted to program failure in the end.

Building and maintaining ecologically sound, clean cities can likewise be effected through the tri-partnership of state, civil society and market, as demonstrated by the Puerto Princesa case. Under the stewardship of the dynamic city mayor (Mr. Hagedorn), the tri-partnership was galvanized. Businesses have since been conscious of operating on clean technologies and environmental responsibilities, city streets sustain hygienic images, traffic is well managed as motorists exude discipline, and civil society groups constantly monitor the initiatives that saw their hands dipped into their (initiatives) making. All we need to do is replicate this same Puerto Princesan trilateral partnering at all level and in all communities to ensure better results for our development efforts.

The ‘state-society synergy’ in our country had just recently been appreciated and grasped by many state players. Being at its ‘take-off’ phase, it is understandable that synergy is only a lip-service among many state players, notably the local officials. State players still regard civil society groups with ambivalence, while civil society groups are suspicious of state players whose sincerity can only be as low as their Machiavellian propensities would dictate. Such local state players desire to subordinate civil society groups, and many politicians have constituted ‘government-initiated NGOs’ or GRINGOS as cases of non-authentic subordinated groups. On the other hand, local-level volunteer groups can at best perceive domestic politicians as ‘Santa Claus’ providers, and utilize them largely as gift-giving patrons. Strengthening state-society synergy has a long way to yet, but it is not exactly starting at ground zero in this country. It is, by and large, a core variable in developing citizenry and constituencies, and must be advanced beyond its current take-off phase.



[From: Erle Frayne D. Argonza, “New Nationalism: Grandeur and Glory at Work!”. August 2004. For the Office of External Affairs – Political Cabinet Cluster, Office of the President, Malacaňan Palace.]


NEO-NATIONALISM’S PREMISES & CONTENTIONS / Shift intervention from the ‘provider state’ to the ‘enabler state’

January 28, 2015


NEO-NATIONALISM’S PREMISES & CONTENTIONS / Shift intervention from the ‘provider state’ to the ‘enabler state’

Erle Frayne D. Argonza

The failure of neo-liberal policy regimes does not mean that the state should go back to a full interventionist role, performing a guardian regulator and ‘provider’ for all sorts of services. The problem with the excessive ‘provider’ role is that it had (a) bred rent-seeking on a massive scale among market players, (b) reinforced dependence among grassroots folks who have since been always expecting for a ‘Santa Claus state’ to provide abundant candies, (c) produced new forms of rent-seeking, with civil society groups serving as the beneficiaries, and (d) further reinforced graft practices in both the public and private sectors. Thus, the ‘provider state’ further reinforced the patron-client relations in the various spheres of life (‘feudalism’ is the term used by Maoists for clientelism), consequently dragging all of our development efforts into a turtle-paced sojourn.

In the new intervention mode, the state, armed with a leaner organization and trimmed down budgetary purse, performs a superb catalytic role. It engages various stakeholders in the growth & development efforts, challenges them to directly embark on development pursuits, and demonstrates unto them how welfare can be accessed to through alternative means other than through the state’s baskets. As the state continuously engages the stakeholders through dialogue and cooperation, institutions will also become strengthened along the way. The state will gain its esteem as an ‘activist state’, while at the same time receive acclaim as a truly ‘modernizing state’ as it propels society gradually away from clientelism towards a context marked by rule-based (modern) institutions, citizenry and dynamic/autonomous constituencies.

However, within a transition period from ‘maximum provider’ to ‘maximum enabler,’ the state should continue to perform a provider role in such areas as education, health and such other human development concerns that are, in the main, crucial to building national wealth. Combining state regulations and at the same time giving ‘fiscal autonomy’ in tertiary education and vocational-technical level would remain to be a fitful strategy of ‘minimal enabler’. A similar strategy will have to be applied to some other economic sectors to be able to advance gender equity, by recognizing rights of marginalized gender to education, employment, representation in managerial positions and other related concerns.

[From: Erle Frayne D. Argonza, “New Nationalism: Grandeur and Glory at Work!”. August 2004. For the Office of External Affairs – Political Cabinet Cluster, Office of the President, Malacaňan Palace.]


January 20, 2015



Erle Frayne D. Argonza



“Spend for your needs but save as much as you can!” would be an apt idiom that could encapsulate the need to build up national savings within the context of an increasingly consumer-driven economy. It is argued that moderate consumption would be a most fitting behavior in today’s context, while under-consumption and over-consumption are out as they could burn us all out in the process. Consumption saved the day for us in the aftermath of the Asian crisis in 1997, so there is no reason to be morally repulsive about consumerism—provided that it should be a moderated consumerism. Low consumerism brings us back to export-driven strategies, our aggregated wealth production subjected to the vagaries of external markets that are beyond our control; high consumerism, contributing further to high debt levels, as the credit card culture entice people to acquire more articles of consumption through debts, perennially driving our economy to ‘bubble bursts’.

The emerging situation should have taught our market players the appropriate lessons at this time. The era of omnipresent and omnipotent markets—for goods of relatively ageless utility, stored in large inventories—is now a foregone era. What we have now is fragmented markets (chaos economics explains this well; see Tom Peters’ works), so the adjustment would be in the form of market niches. Market players should veer away from storing large inventories of a broad array of products, as obsolescence and changing consumer taste undermine the profit-gaining side of such a practice. Rather, they should be sensitive to emerging demands, and customize services and/or tangible goods based on such demands. We Filipinos particularly change taste so often, “madaling magsawa” as we say it in the vernacular. Which means that fixed products, based on fixed ideas, are simply out of context and out-of-date, and must be reformulated towards more flexible product mixes matrixed with constantly emerging ideas.

On a macro-scale, there is the continuing need to ensure ‘food security’ and its expression in other sectors as well. We should continue to be sensitive to the needs of the larger economy, such as the need for capital goods. We should design ‘vital & strategic commodity security’ frameworks and policies through a combination of domestic production of such goods as well as importation strategies. The continuing absence of strategic industries such as integrated steel could prove degenerative for development efforts such as it has done to our country, while completely shutting us off the international markets for some other goods could likewise be deleterious in the long run since domestic producers would be exercising rent-seeking, pricing articles way beyond five hundred percent (500%) of their opportunity costs as amply demonstrated by industrial chemicals (before the country began importing from China). As current experiments in grain & livestock management show, with appreciable success, the strategy should be to combine domestically produced goods with imported articles, the proper mix of which should be the subject of continuing eco-scanning and constant studies. In the end, all of our individual, community and national needs will be met, building stability and security amid a ‘chaotic’ or turbulent global condition.

[From: Erle Frayne D. Argonza, “New Nationalism: Grandeur and Glory at Work!”. August 2004. For the Office of External Affairs – Political Cabinet Cluster, Office of the President, Malacaňan Palace.]

NEO-NATIONALISM’S PREMISES & CONTENTIONS / Make room for value-based & integrated frameworks

January 12, 2015

NEO-NATIONALISM’S PREMISES & CONTENTIONS / Make room for value-based & integrated frameworks


Erle Frayne D. Argonza



Not only should we look up to the West for paradigms with which to construct frameworks and models of growth & development. We should also welcome the initiatives of our emerging thinkers and practitioner-gurus to integrate the Eastern paradigms in their conceptualizations, system designs and related matters. These efforts will fortify our understanding of economics, Philippine-style, in as much as we are a people forged in the cultural smelters of both Eastern and Western civilizations.

Among civil society groups, the modeling of entrepreneurship and social enterprises based on integrated East-West paradigms have been demonstrated with success and clarity. We should welcome such perspectives, and do our share of the task to transport such frameworks from the margins to the mainstream of national consciousness. The resultant frameworks are often value-based in form, though they do not necessarily shun scientistic/empiricist treatment of economic problems. The common theme among such frameworks is synergy: an interconnection among various ‘social enterprises’ and NGOs reaching a far broader scale, resulting to a broad   movement. This I am well aware of, having immersed myself in civil society for a long time in the past.

[From: Erle Frayne D. Argonza, “New Nationalism: Grandeur and Glory at Work!”. August 2004. For the Office of External Affairs – Political Cabinet Cluster, Office of the President, Malacaňan Palace.]

NEO-NATIONALISM’S PREMISES & CONTENTIONS/ Strong nation can thrive & grow amid globalization

January 5, 2015

NEO-NATIONALISM’S PREMISES & CONTENTIONS/ Strong nation can thrive & grow amid globalization


Erle Frayne D. Argonza

The nation can continue to exist, even become strengthened, while it sails deep into the middle of the ocean of globalization. The two are not necessarily contradictory. Nationhood can continuously be pursued, patriotism can move ahead while paddling astride the powerful waves of globalization. For as earlier stated, globalization holds the promise of growth through the vast opportunities it has opened. Nations must strive to concur cooperation with other nations to extend the scope and limits of the opportunities, while at the same time build internal opportunities to further optimize inducements for investments.

Just recently, our entrepreneurs and professionals made waves through the international awards they respectively received, such as Tan Caktiong (top entrepreneur) and F. Palafox (the only ASEAN architect to make it to the world’s Top 200 architects), signifying the high level of competitiveness our compatriots are capable of achieving. Such sterling achievements surely inspire us to continue to strengthen nationhood and to forge new areas of cooperation and growth-inducing endeavors. While forces exist that work to tear the nation asunder, forces are likewise growing that lead to the nation’s strengthening. We should all work hard to make sure that the latter forces prevail, while neutralizing and diminishing the potencies of those forces that destroy nationhood.

[From: Erle Frayne D. Argonza, “New Nationalism: Grandeur and Glory at Work!”. August 2004. For the Office of External Affairs – Political Cabinet Cluster, Office of the President, Malacaňan Palace.]


December 18, 2014


Erle Frayne D. Argonza

Across the continents, where markets have predominance in the economic sphere, there has always been the antipodal tendentialities of laissez faire and dirigisme. The bone of contention has been the state’s role in the economy. These tendentialities have surely represented two (2) hard-line oppositional streams.

Mercantilism, the progenitor of dirigism, contended that regulation should govern production, distribution, consumption and exchange. The (interventionist) state should be at the center of regulation, with the central goal of all economic pursuits being the accumulation of the wealth for King. Old Nationalism had held on to this contention, with the revision that wealth should be accumulated for the nation as a whole and no longer merely for the King, wealth that is correspondingly allocated to the folks in the form of wages and welfare (this ‘wealth for nation’ line is admittedly a concession to the Smithian physiocracy, a competitor discourse). Only the state, not the market, can best perform redistributive responsibilities for welfare, jobs and wages. Necessarily, development should be undertaken with strong state regulations in the four intervention areas mentioned. The Keynesian revolution revived the dirigist contention, using a demand-side premise, and held sway across the globe for around half a century since its inception.

Laissez faire, whose earliest articulators were the physiocrats, opposed dirigist doctrines with extreme zeal. Accordingly, the state should only intervene in matters of defense, justice and public works, and should keep its hands off the market. Accumulating wealth is a matter of private sector concern (industrialists and landlords), while free trade must be the condition of international exchange and distribution. Even matters of welfare must be left to market mechanisms to provide. Development efforts, i.e. the ones undertaken by ‘3rd world’ economies, must follow the laissez faire path. The logic behind the contention is that the market will produce the entrepreneurs who will be enticed to embark on bold ventures should they be left on their own to take off ‘infantile enterprises’.

The problem arises when, due to the predominance of non-market mechanisms, such as clientelist relations and redistribution-based exchange systems (haciendas, latifundia), development could hardly take off at all. In cases where entrepreneurs are of residual numbers, such as the one demonstrated by Philippine experience, laissez faire strategies would prove pathetic in results. This entrepreneurial scarcity had justified the adoption of dirigist policy frameworks, the principle ones being those that guided the ‘import substitution industrialization’ of 1947-1968. Various 3rd world states have sponsored the dirigist path, employing diverse models (socialist, mixed market-socialist), with fairly good results for many of them. The articulators of such states have argued that no country had ever prospered thru the laissez faire route, and that laissez faire can only work out when development had reached a highly mature level when consumerism propels growth, and where economic fundamentals are very strong and stable.

Many developing economies actually encountered tremendous snags as their states chiefly sponsored development efforts. Rent-seekers of every kind appeared on the scene, serving as barriers to the effective entry of possible investors from among potential competitors. In the Philippine case, asset reform in the agrarian sector had been a perennial failure, thus further complicating the already complex maize of structural problems. What happened, according to the defenders of laissez faire doctrines, was that dirigisme made the ensconced patrimonial groups become further entrenched, thus leading to a vicious cycle of slow growth, high poverty, high unemployment, and relative stagnation.

Such a situation served as the impetus for embracing neo-liberal reforms over the last twenty-five (25) years by the developing economies, the Philippines included. Laissez faire returned with a vengeance, popularizing free trade in the international sphere, and structural adjustments in the domestic sphere and public sector, to note: liberalization, deregulation, privatization, liberalized currency markets/devaluation, down-sizing, minimal/residual fiscal stimulus & budgets for social services, tax reforms and decentralization. Such a policy regime of ‘structural adjustments’ were instrumental in integrating national markets into a globalized one where there is freer flow of tradable goods, investments, information and labor. Not only that, the antipathy of foundational physiocracy towards manufacturing (biased for agriculture) returned, as cheap imports (owing to liberalized trade) destroyed established industries leading to ‘de-industrialization’.

Where are we twenty-five (25) years after instituting market reforms under the aegis of ‘structural adjustments’ (note: we began through the ‘structural adjustment loans’ of the World Bank, c. 1979)? National income continues to grow at dismally low rates, poverty had increased during the latter phase of the reforms (decreased only recently), unemployment remains high amid positive growth, and our developmental stage continues to be stuck up in the ‘growth stage’ (failed to reach ‘maturity’). Globalization, with its attendant ‘structural adjustment’ policies, has weakened nations, even caused fragmentation in others, a fact that had likewise been replicated in the Philippines with its separatist movements. Free trade had destroyed domestic industries (the USA case was hit so hard by this one), as some had to fold up (Marikina shoes exemplifies the Philippine case) and transfer elsewhere (Procter & Gamble-Philippine is an example). With weak or nil ‘safety nets’, chances are that many producers (e.g. fruits, vegetables) will lose against cheaply-priced imports. One thing is clear for the case of many developing economies, including the Philippines: market reforms failed miserably to get them to development maturity, even as it set back the development path of others.

So if both dirigisme and laissez faire have been failing in making life better for the nation and the majority of the people, what discourse than can work out to salve the ailments of most developing states? Expectedly, a ‘renaissance of nation-states’ has become the wave of the present, with many of its articulators defending a return to dirigisme in its old form—in its highly protectionist form. I used to be among such articulators, even as I now argue that Old Nationalism can have deleterious results when pushed to the extremes. We can’t wish globalization away, it is here to stay and galvanize some more, even as it challenges us all to path-find the opportunities that it can offer while neutralizing the threats that could result from it. In other words, re-echoing Herr Reich’s and Mdm Arroyo’s elucidations on the subject, I am now wont to advocate for a New Nationalism or neo-nationalism, a discourse that advances beyond the narrow confines of extremist dirigisme and laissez faire.

Let me move next to the key premises and contentions of ‘new nationalism’-Philippine style.

[From: Erle Frayne D. Argonza, “New Nationalism: Grandeur and Glory at Work!”. August 2004. For the Office of External Affairs – Political Cabinet Cluster, Office of the President, Malacaňan Palace.]


October 2, 2014

Erle Frayne D. Argonza

Hail Bonaparte! Hail Empire! Hail new capitalism! Hail oligarchic Gods of Olympus! – Tomorrow’s slogans

Bonaparte is back today, I see him alive again. I don’t mean the personal Napoleon Bonaparte of yesteryears, I mean the state system built by Him the Emperor par excellence. Bonapartism is the hyper-convergence of all totalitarian systems of the past to the present. Old state ideologies are dying, some are already dead in fact (Old Bonapartism, Bolshevism), but a hyper-convergence of the totalitarianisms is happening….That convergence will congeal in New Bonapartism, the state ideology of the era lasting from World War III through those centuries of ‘technotronic’ capitalism of the morrows.

Let me clarify that ‘state ideology’, or the doctrine of state that will justify its essential governance, structures & rules, nay its philosophy, is distinct from mass ideology. The mass ideologies forthcoming may vary from one country to another, such as China’s seeming Marxist-welfare statist fusion, and the rising environmentalism that could be tomorrow’s most popular.

Mass ideologies can be allowed to germinate and take hold among the masses, provided that they support the state formation in a ‘social contract’ of corporatism. In the future population of cyborg Manchurian Candidates, mass ideology will be irrelevant and unnecessary, as behavior will be pre-planned and/or pre-programmed, and re-programmable.

What I am referring to at this juncture is STATE IDEOLOGY or philosophy. As you can see above, this New Bonapartist ideology may not have a foreign policy facet in it, since ‘foreign’ and ‘domestic/national’ has already been broken by globalization. The future state will be a GLOBAL STATE, remember, so the term ‘foreign’ is of noxious impertinence for a globalized or borderless state.

‘Foreign’ could mean, later, those states of intelligences from planets across the Milky Way and elsewhere, but let me not touch on that. I’d focus on the continental and global states, such as the EU, forthcoming North American Union, perhaps an Asia-Pacific Union too, and the Planetary Union or whatever.

Let me go through the essentials of Bonapartism, culling the premises from the pass but re-constructing it for the emerging context. Take note of the following briefer:

• Centralized, Authoritarian Governance: The former Soviet Union, Nazi Germany, Phallangist Spain, and today’s China provided the models for this one. Napoleon Bonaparte only partly succeeded in experimenting on this one, and then he was overthrown. The New Bonapartist state will be sustained, like China’s, and will last for nigh 200-300 years perhaps as far as visible future is concerned. State Terror will be official ‘stick’ mechanism.

• Strong Central Institutions: Centralized authority doesn’t mean strong institutions. This is where China is weak. The Emperor Bonaparte of tomorrow will ensure that institutions will be (a) centralized and (b) strong. The link between the Continental and Platenary states will be a continuous one. Likewise will the thread of governance between the Planetary state and the local region- and city-states, the building blocks of ‘technotronic’ capitalist society.

• Strong Central Financial Institutions: How could one maintain an Empire without strong global bank, strong global currency, strong securitization system (gold standard will return)? Bonaparte knew well the importance of strong national banking for sustaining his Empire and wars. The Emperor Bonaparte of tomorrow will just need to replace ‘national’ with ‘global’ and the formula is complete. Yes, the gold standard is forecast to return, and is bound to back up the financial-monetary operations of the global state. Yes too, a global currency will be instituted, and will be strong as it is backed up by ‘global gold’ or precious metals/crystals and global reserves instruments.

• Strong Global Army/Police: As instruments of state terror, a (a) global army and (b) global police will be instituted. No such army nor police exists today, and necessity dictates that they will arise tomorrow. The individuals and units of these ‘stick’ institutions will be loyal only to the global state. Beyond the 2050s, cyborgs and robots will constitute the main forces of these enforcement ‘sticks’.

• ‘Bombard the Old World’ of Nations: Bonaparte’s favorite cliché is coming back. Napoleon’s old world was the kingdom, the nascent world was the nation. Today’s ‘old world’ is the nation-state, and the nations will be literally bombarded. In a sweeping World War III scenario, as much as 90% of the nations of today (of which there are 200+) will be dismantled. Those that will resist will face the wrath of the global state before 2050. Most likely, no more nation will exist beyond 2050. The new world of region-states and city-states will be in place. This new world will be the New Feudalism, as discussed earlier.

I guess I need to end there. Just five (5) features, remember. It is so easy to note them. They were Bonaparte’s formula for governance in the past, and they will be the standard formulas for the future ‘technotronic’ capitalist state. In previous articles, I already discoursed that capitalism cannot be revived without totalitarian tyranny, so I didn’t expound on that facet here. Let me now close the article at thus juncture.

Hail Bonaparte! Hail Empire! – tomorrow’s slogans

[Philippines, 23 August 2008]