Saturday, March 15, 2008

Information as Social Capital

I have a friend who bitches and moans about the artificiality of postmodern life. He says he wants to go back to the Amazon and be jungle ranger again. I have absolutely no problem with living in the 21st century. When else can a tech illiterate such as myself find Yuga's estimates about the NBN-ZTE deal? He reckons its a worthwhile project and would have indeed covered the whole country. In Abe's opinion those who wanted to stick their greedy little hands in the this sweet deal of a honeypot had this strategy in mind:
For huge projects like this, the “payouts” are drawn from wholesale discounts. So, instead of say a 30% discount to nab the deal, they’ll charge in full and re-allocate the 30% corporate discount to the pockets of those who will guarantee the approval of the project. Incidentally, a 30% discount amounts to $100M so it’s not a bad deal after all, if that were the case. That way, the Bill of Quantities will still pass thru rigid scrutiny.

Read also:
Politics in the Age of Information

2 comments:

Jon Limjap said...

Heh, what else would you get from governments... governments all over the world demonized profit on paper. Thus, they allow room for corruption.

Consider that, say, Department X has a budget of PHP 50 Million for one whole year, but the procurements management and cost cutting at Department X was so good that he reduced expenditures to PHP 40 Million. What happens next year? Does Department X get rewarded? NO! Their budget gets slashed by 10 Million and now have a budget of PHP 40 Million for the whole year.

So what would the guys who do the procurements and cost-cutting do? They pocket the 10 Million. Afterwards they are called corrupt.

sparks said...

governments all over the world demonized profit on paper

I don't think government is in place to demonise anything. Governments are not businesses. They're not meant to make profit.

Unless they operate state-owned enterprises, in which case they need to generate profit. It is understood that since they raise capital through public funds, and operate on public funds, that profits go back to government to be re-invested in the SOE.

Now China is one giant State-owned enterprise.