One recalls that FDR assumed the presidency of the United States amidst an ongoing depression, which had been ushered in by turmoil in the stock market and stockbrokers jumping off the buildings along Wall Street. Widespread layoffs in the manufacturing sector and abandonment of unprofitable farms led to queues in front of charities distributing bread and soup.

While the present global food and financial markets crises do not yet approximate the conditions of the United States in the early 30’s, it is worth reviewing the FDR approach. A country like the Philippines could learn valuable lessons from that experience.

Mr. Donald Richberg, the Executive Director of the National Emergency Council created by FDR to oversee the New Deal, said that the objective in the early stages of the various emergency measures were to "increase employment and increase mass purchasing power". He postulated that, "economic advance comes from increasing the productivity of labor and increasing thereby the volume and quality of goods that each worker can produce and exchange". To him, "cheap labor produces and consumes less and (the nation) fails to achieve prosperity".

The New Deal raised wages while reducing working hours. The Philippine regional wage boards that grudgingly approve miniscule wage increases, citing the peril to the competitiveness of Philippine business, should follow this example. They should realize that increasing wages could lead to greater productivity and increased competitiveness. It is not the labor cost that makes Philippine industry uncompetitive. It is corruption that increases the burden on the taxpayers; decreases substantially the resources for social and hard infrastructure and creates an environment unfriendly to business enterprises. A government that is unable to stop smuggling; unwilling to replace incompetent but loyal public officials; and focused on micro-managing rather than the broad and bold policies and programs will lead a country down the abyss of national poverty.

Since "no conscientious employer could maintain decent wages and hours and sell his goods in a depressed market at prices fixed by employers who paid starvation wages and maintained sweatshop conditions" as expressed by Mr. Richberg, the Department of Labor should focus on ensuring that all firms in the country, large and small comply with labor standards. The Bureau of Internal Revenue should prosecute firms that do not pay the right taxes. The Department of Trade and Industry should close down businesses engaged in trade practices of deception and fraud. Small enterprises should be protected from the abuses of economic power by large business financially able to carry on price wars or otherwise to bankrupt the "little fellas". It is not fair to enterprises which religiously pay the right taxes and adhere to high ethical standards in the conduct of their business that others are allowed to do otherwise. This leads to unfair competition within and across Philippine industries.

One of the outstanding characteristics of the New Deal was the number and ability of the young men whom FDR’s courage, enthusiasm and youthfulness of mind attracted to Washington. Since the New Deal dealt with a crisis for the hopes of the younger generation, it was only natural that young men should have accepted the call to defend it. Another aspect was that FDR’s Cabinet "contains specifically, almost no professional politicians. But it is not the professional politicians alone who are absent from the present administration, the professionals of the world of Big Business are also lacking".

"The real life organism beats through such new and abnormal growths as the Public Works Administration, the National Recovery Administration, the Agricultural Adjustment Administration, etc. While the human components of classical administration are Secretaries, Undersecretaries, Atty. Generals, Commissioners and the like, those of the Roosevelt Administration are economists, social workers, professors, businessmen, a few politicians and a great many lawyers", as reported in Fortune.

The Fortune article further states, "It is not only that Mr. Roosevelt’s treasury is run by a gentleman farmer with editorial experience. Nor that a hardboiled practical businessman performs delicate economic experiments upon the capitalist system. Nor that a farm economist runs the monetary policy. The amateurishness goes much deeper. It gives its peculiar tone and character to the entire administration. It accounts for the extraordinary fervor and idealism and honesty and devotion of the members of the government."

As President Arroyo is poised to revamp her Cabinet, these are worth considering. A renewed focus on the needs of the labor, business and farm sectors as well as an earnest effort to reach out to the idealistic and honest young professionals could lead the Philippines to Our New Deal. If these are not done today, then we may have to wait for another FDR with deep ethical moorings, an inclusive management style and a caring, sharing, daring leadership for the Philippines to arrest its plunge down the depths of moral and economic deprivation.

Business Bits. We congratulate Col.(Ret.) Vic S. Santos, Jr. a Vanguard for Almanac ng ROTC-NSTP, which is an excellent reference material not only for college students but also those who believe in a citizenry prepared to defend Our Motherland.