How political dynasties hurt the local economy

January 29, 2026 | 3:43pm

MANILA, Philippines — Political dynasties hurt the economy.

This is a sentiment commonly shared across academia, with several studies further backing it. Now, no less than the country’s chief economist has plainly said it: a political dynasty hinders economic growth.

Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan on Thursday, January 29, helped deliver a brutal report: the Philippine economy has reached a record low following a massive corruption scandal that damaged consumer and business trust.

Part of the solution that the government is pushing is the enactment of an Anti-Political Dynasty measure. The DEPDev has already labeled it as priority legislation.

But how exactly does a political dynasty hurt the local economy? Balisacan zeroed in on “fat dynasties,” which are political families that have members elected to multiple positions at the same time.

This is different from thin dynasties, which have one member serving in the same position, one at a time.

“When there's so much political dynasty at the local level, that inhibits local economic performance. Because that dynasty also controls the local economic activity. So there's less competition in those areas,” Balisacan said.

These political dynasties prevent competition from entering areas, limiting further growth.

In areas ruled by political dynasties, there is high inequality, Balisacan said.

“In societies where you have fat dynasties, inequality is so high. And so there's not just inequality of income, but inequality of opportunities. And so when you have inequality of opportunities that, of course, constrain inclusive development and will constrain faster economic transformation eventually,” Balisacan said.

Several studies have already been published backing Balisacan’s statements. A 2016 study from Ateneo de Manila University found that in areas outside Luzon, there is strong evidence suggesting that political dynasties exacerbate poverty.

Several versions of an Anti-Political Dynasty bill have already been filed in Congress, some of them by members of political families themselves.

House Majority Leader Sandro Marcos, the son of President Ferdinand Marcos Jr., filed a version of the measure alongside House Speaker Bojie Dy. However, critics have called the measure misleading, as it still allows political families to occupy government positions at different levels.

Any Anti-Political Dynasty measure faces an uphill battle, as most of Congress is occupied by political families. The Senate alone already has four sets of siblings.