SWIMMING AGAINST THE CURRENT By DR. JESUS ESTANISLAO Francis Estrada is eloquent about the accomplishments that the free market has delivered. He is equally clear about many of the problems it has brought in its wake. He says: “While the free market has undoubtedly lifted the standard of living of countless millions, it:

• “Did so (in a number of instances), by exploiting workers (industrial and rural). Witness the Dickensian sweatshops that characterized early industrialization in the UK, the oppressive mining operations of multinational and colonial corporations in many “undeveloped” countries or colonies, the large plantations in the US and elsewhere, manned by slaves or poorly paid rural peasants.
• “Did not address the problem of inequity; in fact, in many instances, it sharpened income disparities.
• “Did not, until very much later, acknowledge the “animal spirits” (greed, selfishness, corruption) that unregulated markets unleashed to the detriment of a vulnerable and unsuspecting tax-paying public.
• “Created the foundation of an individually centered, materialistic, consumption-based, “throw-away” ethic, all too often at the expense of family and community.
• “Promoted the view that one is alone and that society had no obligation to contribute to and assist any of its members. He could and should, regardless of circumstance, therefore depend exclusively on himself, and possibly on like-mindedindividuals, in living circumstances similar to his.
• “Planted the seeds of sectarianism, exclusivity and homogeneity (rather than inclusion), and conflict among economic classes, ethnic and religious groups and citizens, in general.”

Note: That is quite a list of woes that the free market may have also delivered along with its more positive accomplishments. In other words, the free market has not come with unmixed blessings. It has its ugly side as well. Francis Estrada continues: “Hindsight now suggests that, as a result of a globalization whose implications were not fully understood or provided for in both developing and developed economies, (the free market has brought with it enormous challenges).  In the former (i.e., developing economies), you had---in many cases---excessively rapid, uncontrolled urbanization, industrial pollution, huge pressure on infrastructure, inflation, and the neglect of the agricultural sector.” “In the latter (i.e., developed economies): against the benefit of substantially increased profitability and cost competitiveness of the corporate sector, you had massive job losses that accompanied a ‘hallowing out’ of much of the lower level industrial sector (initially), deteriorating balance of payments and capital accounts.  What is clear is that the benefits of increased corporate profitability did not trickle down, nor did it create the investment and new jobs it was expected to.” Given all of the above, it is clear that as we think of Dream Philippines in the decades ahead, we should aim to deploy the best elements of the free market that brings in material and other related benefits to millions of people. At the same time, however, we have to put in the necessary mechanisms to minimize, if not totally eliminate, the list of woes that can befall upon society, even as an economy we move forward under a free enterprise regime.