The economic cost of morality: a jueteng case: how does legalized jueteng impact the society?
Date
2009-10
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Abstract
The operative word in describing jueteng in the Philippine Society is impunity - Everyone knows it, but no one is caught. Jueteng has been widely perceived as deeply rooted in the Filipino Culture. In fact, jueteng-related activities start from the ordinary market vendor and may end up to the president of the Philippines. Yet the numbers game of the "masses" remains to be illegal. Numerous legislators attempted to legalize the game but to no avail. So to end this much-heated debate, the topic must be tackled objectively. Hence, we ask the question, "How does legalized jueteng impact the society?"
An earlier study provides a monetary cost-benefit analysis if jueteng is legalized. Based from the lndon Study, the legalization option is the optimal solution. However, monetary benefits do not embody the whole economic cost of legalization. For this reason, the researchers looked at the benefits and costs in the following sectors: individual, enterprise, government, and society. This is done to further analyze the socioeconomic impacts and economic implications of legalization.
This study aims to determine why jueteng, although a popular game of the masses, remains an illegal form of gambling. The study discusses the socioeconomic benefits and costs of legalized jueteng, focusing on the role of morality and social cost - if earlier findings can be applied in the Philippine context - and if its impact is greater than the benefits of legalized jueteng so as to fight off the game's legalization.
Morality degradation is the strongest argument against legalization. Nevertheless, based on the researchers' analysis, even though morality is marginally degraded in legalized jueteng, the corruption resulting from illegal gambling is greatly reduced. This reduction in corruption may offset the effects of morality degradation. Therefore, legalization of jueteng, setting the monetary benefits aside, truly does make economic sense.
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Keywords
Jueteng, Informal economy, Public policy, Social impact, Legalized gambling, Gambling