The magic of people power in the Philippines
From BPO to Duterte, a data-driven approach
Starbucks is way nicer here than in the US. It’s seen as an acceptable — even classy — first-date spot. I think it basically just comes down to you can make a lot more money selling $3 coffee in the Philippines than in the US because your costs are so much lower. But my girlfriend and I got to talking: why is Starbucks able to charge so much here when so many other things are so relatively cheap? More generally, what things are typically cheaper (or of similar price) in the Philippines than the US, and why? Being scientists, we wanted to be rigorous and fact-based, so let’s start with our “data”:
The first trend that jumps out to me is that labor-intensive products (Ubers, haircuts) are much cheaper than their US equivalents but those that require hard infrastructure/raw materials (Internet, electricity) are of comparable cost. It’s also notable that premium brands (Starbucks, Nike) are able to retain their pricing power, and this makes these products even more exclusive here.
But, more than anything, the data screams to me what I’ve been experienced firsthand in the month I’ve lived here — the driving force behind the Philippine economy is people power. I am reminded of Duke Leto Atreides in Frank Herbert’s Dune commenting upon the indigenous Fremen and the unique geopolitical situation he found on Arrakis, the new, arid planet he had recently been put in charge of:
“Our supremacy on Caladan,” the Duke said, “depended on sea and air power. Here, we must develop something I choose to call desert power.”
Leto would later tragically be assassinated by the Harkonnens, but his son Paul would remember well this lesson and later avenge his father’s death by channeling the Fremen’s desert power in the form of their extreme resourcefulness, guerilla warfare tactics, and, of course, the spice melange.
Similarly, in the Philippines, I would argue the prime economic, political, and social form of power is people power. The abundance of people is of course also the cause of Manila’s enormous traffic problem and urban poverty issues, but, also its greatest opportunity. For me personally, it has been one of the most enjoyable and perspective-altering experiences of living in the Philippines — there are people everywhere filling the gaps where in the US, the problem would be solved in a more technological or energy-intensive way, and this constant social interaction to deal with the necessities of daily life inherently fosters deep social cohesion.
A few examples of people power in action:
- One of the Philippines’s fastest growing industries is business process outsourcing (BPO), i.e. call centers. There are legions of young, friendly, educated and native English-speaking people here willing to live nocturnally to answer your calls to customer service for only $400/month. So for Heaven’s sake, be nice to them!
- Manila’s tap water is not potable and it would be far too expensive to treat as in the West. So there are numerous neighborhood water delivery services where you can get a large jug of clean water delivered to your door usually within an hour for less than a dollar.
- There isn’t much of a social security system here, so rather than expect old people to take care of themselves with a small monthly check or based on past savings, most lolas and lolos live with their extended family helping taking care of their apos (grandchildren).
- Most restaurants or shops are available by text to have one of their employees deliver food or even a single product to your door. Delivery services like DoorDash or Instacart that have complex algorithms to optimize their delivery team’s routes hardly seem necessary.
As a consequence to the importance and regularity of such human interactions, there is very little social discomfort here with providing service (different than serving) to one another. When you are a guest in someone’s house, you are treated like a king, and asked if you have the slightest discomfort. It’s not disrespectful or awkward to tip someone a small amount for good service rendered. In a society steeped in courtesy for the elderly especially, the Tagalog word you use to address someone who drives your Uber, or delivers your food, or cleans your home is the same as “older brother” (kuya) or “older sister” (ate).
And that’s magical. That’s the magic glue that makes it possible for 10+ million people to live together in Manila in relative social harmony, despite huge gaps in wealth and life experience. No one is too important or unimportant to practice basic decency with, for all of our fates are tied together floating on these 7000 small islands in the middle of the vast western Pacific. [2]
The newly elected President Duterte is another good example of people power in a non-economic space. [1] In the US, presidents get “100 days” of de facto popular mandate in which they are able to significantly guide government policy because the election results are so fresh that a new President is temporarily treated as some sort of sacred lovechild of democracy. In the Philippines, Duterte was enacting change before he was even formally inaugurated, as thousands of drug pushers surrendered themselves rather than potentially “disappear” in his anti-drug crusade. Or check out what he did in his first 10 days, including ousting five police generals — 3 of them serving in active duty — for ties to drugs:
I’ve been warning everybody. Do not destroy my country because I will kill you. Do not destroy the youth of my country because I will kill you. […] Many have died and many more will die. And don’t get involved, even if you are officials, because you will put yourself in the line of fire.
Forget the bully pulpit or soft power, these are the words of a man with true, unbridled populist power that he is not afraid to use. Note that the Philippines government was modeled after the US’s system of checks and balances so I don’t think you can argue this is structural, and Duterte’s words are backed with Executive Orders and real arrests/killings, so I don’t think you can say it’s rhetoric either. To me, it is the focused energy of a man backed by a huge popular mandate in a country driven by the people.
Perhaps I just haven’t experienced a US President elected with such a clear and true mandate, but to me, Duterte’s power reflects a Filipino society that understands in a classically Asian way that social harmony relies on submitting your own preferences to the will of others, especially if they outnumber you. And in such a society, people power can trump all others.
—
[1] A separate post could (and perhaps should) be dedicated to why Duterte is not the “Trump of the East” as John Oliver comedically yet falsely presented a few months ago. In its simplest form, I will merely say that Duterte was an incredibly popular and effective mayor of the Philippines’s 2nd/3rd largest city for ~20 years where he combated intrenched drug-related crime and corruption; whereas, Donald Trump is a chronically bankrupt, pathologically narcissistic businessman turned race-baiting politician. Yes, Duterte and Trump are both bombastic, but one man has a track record of efficiency and accomplishment to back up his words.
[2] I actually think there’s something unique about island cultures that does create deep social cohesion. It’s probably even more sociologically noticeable among smaller islands, but also consider Japan or the UK which have some of the deepest national pride and specialized social hierarchies among most developed countries.
