Ang Kalatas July 2017 Issue | Page 5

OUR COVER STORY A MAN’S BOLD PLAN Lifting Filipinos out of poverty IT MAY sound like reaching for the stars, but one visionary believes he’s found a way to rid Filipinos of poverty. Only when you know the root cause of poverty can you devise a way to eradicate it. www.kalatas.com.au Sydney-based economist, IT specialist and politically bent Victor Esguerra is so passionate about his conviction that he’s moving back to the Philippines to make his vision work. In his bold and ambitious plan, Esguerra has put together a set of principles and objectives to achieve his end. “The objectives are simple and focused,” he said: “Eradicate poverty and bring dignity back to the people, expunge corruption at all levels, and stop pollution.” In a briefing to the Filipino press in Sydney on Friday, June 16, Esguerra said that to make his plan to end poverty in the Philippines he would form a political party and win government. “It will be a government that would fund loans to entrepreneurs, just like banks and lending institutions but at no interest,” he said. “This would help put more people into jobs and provide more purchasing power to keep businesses and industry growing.” Will he run for election? “No. Definitely no,” Esguerra says. “That is not in my plan.” Responses to a quick survey of local political pundits in the Filipino community showed overwhelming scepticism over Esguerra’s blueprint. “I like his vision, but doubt his success,” one observer said. “Winning government with a new political party is already next to impossible.” “The devil is in the detail. It won’t work, but I wish him well.” Esguerra stands his ground, however. Using his IT background, Esguerra said developed money flow diagrams that helped in the analyses of just exactly how money worked in a normal business cycle. He said he was able to work out what it was that “really caused impoverishment”, the root cause of poverty. “Only when you know the root cause of poverty can you devise a way to eradicate it,” Esguerra said. “To explain the root cause of poverty would take me at least three chapters of a book, which obviously I cannot do in this publication. “Suffice to say that it has to do with two things: Firstly, the economic system we are running (in the Philippines) today is dependent on continuous growth of GDP “Secondly, expansion of the economy (in the Philippines) is driven by the expansion of credit. The top economists in government will say that credit is good because it is the driver of the economy, according to Esguerra. “Well, actually, this is not correct,” he said. “This is where I differ from those who follow the principles of Harvard economists. “There is a way that government can expand the economy without going into debt. There is a way that the country (Philippines) can grow its economy without any foreign investments. “I have discussed this with a number of economists and although they agree with my analysis, they do not believe that we can do anything about it – because the current mainstream economic principles and economic gurus are simply too entrenched.” Esguerra says he believes that he can. He was only aged seven in the Philippines when the young Esguerra became aware about poverty in the country, and he asked his father why so many people were poor. And it became an obsession to him to find a way out of poverty for Filipinos. Esguerra’s family arrived in Australia when Victor was 10 years of age with that obsession, and it never never left him. Over he next 50 years, Esguerra earned a bachelor of science degree, a graduate diploma in computer science, a bachelors of arts degree in economic history and political sociology, and he read more than 400 books on economics and politics. All the time focusing on his obsession to find a way to rid Filipinos of poverty. At the end of this year, Esguerra packs up for his moment of truth in the land of his birth. To meet his destiny. n AK NewsMagazine, Vol 7 No 10 | JULY 2017 05