Huwebes, Disyembre 1, 2011

economic issues in Philippines

                                             GAMBLING IN THE PHILPPINES


There had been many arguments whether or not gambling in the Philippines should be legalized. Proponents of gambling see its economic benefits such as increase in the rates of productivity, money supply, income, and employment. However, since the Philippines is a Christian nation, conservatives have always opposed gambling because of moral and religious grounds. But can we really put the issue of morality in the picture? I don’t think so. Lottery is a form of gambling. But how come the Philippine government is encouraging such “immoral” activity? Gambling is gambling. And there is no difference between the forms of gambling even if others seem less evil. That is why economic benefits to the country and to the individual should be weighed in rather than issues on morality. Let’s be practical, the Philippines is a dying country. And I see no monetary and fiscal policies not even a Cha-Cha would solve the problem. Legalizing gambling could be our one last hope. Let me present my arguments.First, if gambling would be legalized in the Philippines, there would be less crime. Some argue that legalizing gambling would lead to an increase in crime rates. This mistaken analogy shows how pessimistic people are. Seeing the brighter side shows a different effect. Why are crime rates high in the Philippines? This is simply 

because many of the people living in our country have low standards of living and are unable to sustain their everyday needs. And as a result, having no other alternative to finance their livelihood, they engage in robbery, kidnapping, drug trafficking, prostitution, and other sorts of crime. But if gambling would be legalized, then these crimes could be substituted to gambling, providing the criminals an alternative for financing livelihood. This substitution effect would help lessen crime rates. Let’s take this example. Why is it that whenever Manny Pacquiao fights, crime rates in the Philippines decrease? At the very day of the Pacquiao-Morales II fight last January, Metro Manila was completely crime-free (“Pacquiao KOs”). You may think that these criminals spent the day off to support their fellow Filipino. But if we analyze it using the substitution effect, we see a different scenario. Some of them may have actually substituted their heinous acts to gambling. Many of those kidnappers, drug lords, and those corrupted government officials were actually betting huge stakes whenever guys like Pacquiao are on play. They perceive that the demand for gambling is high and therefore they would gain more than usual if they would gamble. And because of this substitution effect, crime rates decrease. And one more thing, illegal gambling would no longer be a crime if it would be legalized.



My second reason tackles another problem of our country─ unemployment. People wouldn’t commit crimes if they’re employed, right? If gambling would be legalized, there would be temporary source of money for those unemployed to finance their search for jobs. This concerns a lot of people. As of July 2006, approximately 2.98 million people in the Philippines are unemployed. Of those unemployed, 49.7% did not look for work because of getting tired of finding a job and of not being able to afford it (“Labor”). Looking for a job also entails money. Unemployed people in provinces usually aren’t able to go to the cities to look for jobs because of high costs of transportation, etc. and they aren’t even sure if they are going to be employed. If no one in the family is earning money, what would happen? If the father and mother are unemployed, who would step in? The children?








My third reason invites the children to the money-earning population. If gambling would be legalized, the range of money-earning individuals would widen. The working age population is restricted only to those who are of age 15 and above. Meaning, only those 15 years old and above could participate in the labor force. But once gambling is legalized, who says an 8-year old child can’t gamble? An 8-year old could even be as productive as or even more productive than his/her parents. This means that every Filipino family would have more incomes because their children can now earn money at a very young age. Similarly, not only those who are college graduates can gain huge returns from gambling because gambling does not require any educational attainments or any exceptional skills. An uneducated child, through gambling, could even earn bigger amounts than a Summa Cum Laude from UP Diliman.

Speaking of earning more money, the Philippines would be earning more foreign currencies if gambling would be legalized. The Philippines could become a tourist destination for gamblers abroad. John Mangun, director of portfolio management at I.B. Gimenez Securities Inc. says, “The future of this country [Philippines] is in tourism” (“In Philippines”). Imagine if gambling would be legalized and the Philippines would build huge gambling arenas for jueteng and masiao. Many foreigners would visit our country to gamble. Many foreigners would invest here for gambling operations. The supply of money in the Philippines would increase because of tourists and foreign investors. This means that our country would be earning more foreign currencies like dollars, yen, pound, etc. Our country has been demanding more of foreign goods and services than foreign countries demanding ours. But if gambling would be legalized, foreign countries would demand gambling here in the Philippines and as a result, exports would increase. Analysts say that the Philippines has a potential of becoming another Macau where many foreigners, particularly from the west, visit the place to gamble (“In Philippines”). From 2000 to 2004, the number of Asians in the United States increased by 17 percent. Foxwoods, the biggest casino in the world based on gambling floor space, estimates that at least one-third of its 40,000 customers per day are Asians (“Casinos winning”).This shows that the demand for gambling overseas is high and the Philippines would be gaining more returns from foreigners if gambling would be legalized. 





The fifth, and perhaps the most profitable reason why gambling in the Philippines should be legalized, is its impact on tax revenues. The Philippines’ spending desires rely greatly on tax revenues that the government gets from the Filipinos and foreign investors. It is said that to improve the economy of a country, taxes should not be raised but instead, encourage productive businesses to generate more tax revenues (Ehrlich, “Gambling”). But isn’t gambling a productive business? We have learned that it attracts foreign investors, lessens crime rates and unemployment. This means that if gambling would be legalized, there would be more productive businesses which the government can tax. Las Vegas has enormous amounts of tax revenues generated by casinos. Though the Philippine government operates casinos under PAGCOR, just imagine how big the numbers would be if jueteng would be legalized. The Philippines would earn billions of pesos and other foreign currencies for tax returns if gambling would be legalized.

Next argument─ if gambling would be legalized in the Philippines, more funds would be raised for health programs, medical assistance and services, charities, and other social welfare programs. The Philippine Charity Sweepstakes Office conducts sweepstakes and lotteries to provide funds for its programs. The agency gets its operating expenses from the sales of sweepstakes and lottery tickets, and other similar activities. PCSO registered gross earnings of approximately 15 billion pesos last year (“The Philippine”). Imagine if illegal gambling such as jueteng would be legalized. More charities would be supported financially. 
My seventh argument─ Gambling seems to attract Filipinos, especially the youth. That is why it would be easy for us to adapt gambling if it would be legalized. As early as 9, we see children betting over dueling spiders or playing trumpo and tumba-lata. Students are often caught in school gambling as in playing cards. In the community, boys play basketball with bets. Same is true with computer gaming. Some of the parents even advise their kids to buy lottery tickets instead of wasting their allowances. Ever since, Filipinos have engaged in cockfighting. Sabong would not be sabong if there were no heavy bets at stake. Tong-its and Pusoy-dos are played with bets. And Mahjong would always be a Filipino favorite. Gambling has long been part of our Filipino culture. How could we not legalize something that has already been a social norm since the time of Juan Tamad? For in fact, PNP does not even have enough policemen to arrest all those who engage in illegal gambling. If that would be the case, then they would be arresting about half of the Filipino population, of course including themselves.
And one more thing─ If gambling would be legalized in the Philippines, everybody would be happy─ ERAP, Loi, Jinggoy, and the rest of the Ejercito’s, would be happy; his rival Chavit Singzon too would be happy; our Madam President and the First Gentleman would be smiling; Lucio Tan would be joyful; even Mang Ambo and Juan dela Cruz too would be happy. Everybody would applaud the legislature for having legalized gambling. But Cardinal Rosales? I don’t know. “A number of moralists condemn lotteries and refuse to see anything noble in the passion of the ordinary gambler. They judge gambling as some atheists judge religion…” (“The Best Gambling”). Pretty true isn’t it?







For me what is written on top is true because I myself have seen how gambling is operated here in our country