[Asia Report] The Cartel Politics of the Philippines Turned into Gambling

[Asia Economy] The drama "Casino," starring Choi Min-sik and Son Seok-gu, is gaining attention. It vividly portrays the world of Southeast Asian overseas gambling, which had only circulated as rumors in Korea, through the turbulent life story of one man. Businesspeople who frequently travel abroad cannot completely avoid stories about private and luxurious casinos known as "Junket rooms." However, once stepping into a gaming venue, controlling spending becomes difficult, and there is a high risk of illegal activities such as money laundering and tax evasion, so avoiding it is the best policy. In Asia, Macau and the Philippines are representative countries where gambling is easily enjoyed. Especially in the Philippines, not only are there many expatriates who encourage illegal activities, but numerous incidents and accidents have occurred due to corrupt officials who turn a blind eye to crimes. So why is such a negative image particularly attached to the Philippines?

A scene from the Disney+ drama 'Casino'. Photo by Disney

In July last year, Bongbong Marcos Jr. (56) took office as president, succeeding President Duterte, whose tenure was marked by various controversies and incidents. The new Bongbong Marcos attracted attention as the son of the late President Ferdinand Marcos (in office 1965?1986), widely known among Korea’s middle-aged generation, making headlines as the "return of the dictator’s son." The predecessor Duterte tried to restore order in the country by putting the "war on drugs" front and center, but the results were hardly successful.

Duterte did not quietly disappear. He proudly left his eldest daughter, Sara Duterte (45), as vice president. In fact, Duterte was the one who selected Bongbong Marcos as his running mate in the last presidential election, so it can be seen as a political deal between the two families over the presidency. Hence, the last presidential election in the Philippines is called the Marcos-Duterte alliance between the north (Luzon Island) and the south (Davao City), and this alliance involving former and current father-son and father-daughter presidents is described as a "dynastic cartel."

That’s not all. In Davao City, Duterte’s political hometown, another son, Sebastian, is active as the next mayor, and the youngest son serves as a local councilor. Bongbong Marcos’s son Sandro is also a member of the House of Representatives, and many close relatives are active in politics. In the Philippines, regional powerhouses such as Villar, Arroyo, Estrada, and Cayetano, who have served as former presidents or members of the House and Senate, are comparable to these two dynasties, with their relatives dominating politics and business, effectively dividing control of the Philippines.

The judiciary, police, and political circles in the Philippines are criticized for corruption because these "political dynasties" maintain a feudal order comparable to the powerful local clans (hojok) of the Goryeo Dynasty. Since they inherit vast lands across the provinces without inheritance tax, these forces naturally inherit political positions as well. If wealth and power can be passed down through generations, there is no reason to fear the police or judiciary. Naturally, they hold both political and economic power, leading the country’s governance in directions favorable to themselves.

The reason the Philippines, once an advanced Asian country until the 1970s, has long fallen into the middle-income trap and now lacks a clear national vision beyond tourism and overseas labor export is rooted in this. The rampant gambling industry and the many corrupt officials who only seek bribes are closely related to the presence of the nationwide dynastic cartel. Historians analyze that between the 16th and 20th centuries, the Philippines, having been colonized by Spain, the United States, and Japan, produced a small elite loyal only to the regime, and due to the island nation’s characteristics, these powers entrenched themselves in their hometowns without ever being replaced. This small privileged class has grown richer, while ordinary citizens struggle in poverty due to low wages, high prices, and poor educational environments.

The return of the Marcos family to the political center after 37 years, following their exile to Hawaii after the 1986 democratization revolution, is largely due to nostalgia for the prosperous 1970s, but the external environment has changed significantly. President Bongbong Marcos faces two major challenges. The first is to revive the Philippine economy devastated by over three years of COVID-19. The more sensitive issue is to appropriately balance the demands of the former ally, the United States, in the surrounding waters of the Philippines, including the South China Sea, which has already become China’s backyard, and to protect Philippine sovereignty. These two issues are absolutely interconnected.

Marcos has been classified as a clear "pro-American" figure even before taking office. Without America’s tolerance, he might have faced astronomical lawsuits over national asset outflows since his exile in Hawaii. As the son of a Philippine dictator, he was educated at Oxford in the UK and Wharton School in the US. He represents the Philippine political forces that advocate American interests. Unlike his predecessor Duterte, who avoided criticizing China, Marcos repeatedly asserted during the election campaign that "China will not be allowed to trample on the Philippines’ maritime rights in this region."

Moreover, it is no exaggeration to say that his father, Marcos, was the most famous pro-American politician in Asia. Throughout the 20th century, the US took special care of the Philippines, leading Asia’s modernization and making it the center of the anti-communist camp during the Vietnam War in the 1960s and 1970s. Even when Marcos was ousted by the "People Power" revolution, the US welcomed him in Hawaii. Some interpret that the US, alarmed by Duterte’s pro-China and anti-Western stance, welcomed Marcos’s election the most.

However, the harsh reality is that to revive the rapidly declining Philippine economy, attention must be paid to Chinese investment and tourism. Looking at the East Asian map, the Philippines shares the most maritime borders with China, and naturally, many Chinese visit the Philippines for travel and investment. If China were to withdraw from the Philippines, which no longer attracts Western capital, economic decline would be inevitable. Aware of this, Marcos visited the US immediately after taking office and shook hands with President Xi Jinping in China early this year. This is an attempt to resolve the political and economic problems facing the Philippines. Can the new Philippine president realistically mediate the demands of the two superpowers, the US and China? The Philippine political cartel may be conducting a complex and sensitive experiment, or perhaps a gamble.

Jung Ho-jae, Researcher at Korea University ASEAN Center

This content was produced with the assistance of AI translation services.