2014-02-21

When justice is not abstract

Coming from a country with very slow justice system, I learned quite early that poor people never gets justice as the wealthy have the money to hire prestigious lawyers (abogado de campanilla), the time to wait for the conclusion of lawsuits (usually decades), and the gall (and money as well) to hire third parties (intimidators or contract killers) to resolve disputes. The rich has the whole justice system in their hands, starting with the police all the way up to the magistrates.

All along, I thought justice had nothing to do with business. I was so wrong.

Starting up a business in Singapore, a country well regarded for its efficiency and rule of law, taught me that justice is a human construct that should pervade every aspect of society. For without a fully functioning justice and law enforcement system, anarchy reigns. If you're a businessman, that means contracts are not enforceable, property rights are unprotected, conflicts take forever to get resolved (if ever), and standards in any transactions or processes are based on the whims of those implementing.

That list of complains can actually be summarized in a word -- trust. Justice is the social construct that enables trust to grow. And without trust, social interaction of any sort, especially those that will involve exchange of valuables, is not possible.

Let me draw some examples based on our recent experience.

It takes 30 minutes to register a business in Sg (Singapore) but 2 weeks in Ph (Philippines). To get the certificate if incorporation in Ph, you have to fall in line for a day or two and hope that whoever signs the certificates are not busy lest you get told to come back the next day again. In Sg, everything happens online and we paid using credit card, all from the comfort of home.

To get permits from the other government agencies, you'll get reminder from relevant departments in Sg. In Ph, you'll only know which permit you lack at a critical moment just when you badly needed them.

It takes one dollar (32 pesos) to start a company in Sg but in Ph, you may be required to put up a capital of varying amounts (which sometimes look so arbitrary).

I can go on and on, but running a business does not end at incorporation. Actually the importance of justice and trust is even more important once business starts.

Imagine if one of your clients decide to swindle you. In the Ph, filing a case at a court takes a lot of time and money (especially when the judge and the client's lawyers are good friends). Even if you win the court case you'll have to share whatever you can claim with the police, otherwise they won't carry out the court's decision. In Sg, a business case filed in court can get resolved within a year if not sooner. And implementing court decisions is easier as well.

Back in college, discussing topics like justice and inequality, in the light of philosophy, theology, and other academic subjects, have become an intellectual exercise for me. Starting up a business in two different countries made me relearn those lessons, this time with my hands, heart, head and bank book in tow.