BY:DONALD SEVILLA
WHEN BUSINESS DICTATES POLICY
When business becomes so powerful that it can dictate policy, everything it does. becomes one-sided in its favor.
The oil industry has for years been at the forefront of global trade and commerce. It has brought prosperity to nations and created wealth for people who used to be wandering nomads in the desert making them among the richest on earth.
Wars have been fought for oil and whoever controls it, wields power on the global stage.
The Middle East conflict has affected world trade and commerce and nations are scrambling to protect themselves from the fallout.
Though quite far, we are not spared from the conflict’s consequences either. Government is reeling to contain the impending price hikes that will adversely affect our fragile economy.
Yet we must also be aware of the policies that have shaped our economy from years prior.
Deregulation is the backbone of privatization which as advocates point out is good, for the less government interferes in business free trade and commerce prospers.
While true to a certain extent, it carries with it the dangers of vital industries having a stranglehold on our lives and the way we live it.
In most countries, primary industries such as power and utilities remain pretty much in a degree of government control.
Surrendering ourselves to private business makes us susceptible to the dangers of profit over service.
The oil industry players’ practice of adopting a “replacement cost pricing” strategy for its products has put consumers at a disadvantage.
Like the pass-on charges of power utilities, it shields them from the risk of losing anything as consumers bear the brunt of rising costs for inventory yet to be purchased.
Their baseline profits are always protected, shielded from the volatility of the market. Imagine if every business would adopt this policy and what will become of us?
Prices will skyrocket and because it is “deregulated” government seems helpless and we are left at the mercy of big business.
Remember that business is created largely to earn money for its investors and profit is its primarily goal. In this regard a balance must be struck between how much profit is reasonable and consumer welfare.
For a time our government privatized many state owned companies and relinquished control over vital industries. With what’s happening now, we have to reexamine our actions and review them.
Has it given us more good than bad? Have these policies given prosperity to our people?
In a country besieged by corruption at every level of governance it is but natural to suspect, somehow, somewhere a select few have benefitted to the majority’s detriment.
It’s time for our lawmakers to act and choose on which side
should they be. I rest my case.