nothing lasts forever

i have time and again, encountered another article that espouses the common observation that no similar wealth is passed on to the third generation. what they commonly presupposes is that the 1st generation starts everything and builds the empire; the 2nd generation would of course continue building it further and being born to riches, would want power as well; and the third generation, experiencing no hardwork and responsibilities for the immense wealth and power surrounding them, would either be inclined to philantrophy or worse, and usually, squander all the riches and collapse the empire to the ground.

examples would be the Kennedys and Rockefellers of the west. chinese families have been the ones illustrated in the article here. i would have mentioned filipino families but they have mostly used up their affluence into politics. i remember my father mentioning the Laurels and Rectos of batangas as illustrative of these cases.

what i am not getting, and the constant reproach i would address my father too with his tracts of land, is that no one person can hold on to a bit of earth for 100 years. it is too selfish and too presumptuous on anybody to claim that since this piece of land has been given by our ancestors, only our bloodline has the right to keep it.

i am of course not egging all of us to sell short our lands in a moment's notice. it is that we should view such privilege and blessing as that of a steward. we make most of what there is to make such properties productive. if we are able to make our lives self-sustaining by such, it is good. if we are able to help other people become self-sustaining, it is much better.

why keep something to yourself for the rest of this earth's lifetime?


A Tradition Haunting the Third Generation Chinese


Take a stroll along Dasmariñas and Juan Luna Streets with your grandfather and he will be pointing to you the familiar landmarks. “That is the Uy Chaco Building and we had just passed the old Yutivo Building”. You will hear him reminisce about the great Chinese businessmen of the yesteryears.

The Mabasa, UyChaco, Roxas-Chua, Uy Su Bin, Uytivo, Chualimco and many more names sound puzzling and unfamiliar to you. To answer your question: “Where are their successors?” invariably the reply is “Chinese business does not pass the third generation.”

Simply put, it is said that the great wealth of Chinese businessmen do not pass on to their third generation or grandchildren. In their places, we now see the new waves of Lucio Tan, George Ty, Tony Tancaktiong, Henry Sy and John Gokongwei, among others. Is there any truth in the saying?

The old Chinese refers to the children of the rich as “the second generation princes.” Included in this leisure class was my uncle on my mother’s side. Being the sole male heir in the family, he was spoiled by everyone. After my grandfather died, he skipped his gambling debtors and escaped to China. For 40 years, he continued living lavishly by selling his father’s huge landholdings. My mother can spend hours and hours telling me stories about this leisure class squandering their fathers’ fortune on gambling, opium, and women.

But the blame is not entirely on these “poor” descendants. The old patriarchs were staunch supporters (and eager practitioners) of polygamy. Although during their younger days their strong personalities control their many wives, bickering and quarreling among the different families gradually weakened the business structure. Finally, the squabbling for inheritances ended in court suits that benefited their lawyers and business competitors. I should know because my grandfather had seven wives.
Some self-proclaimed Freudian experts claimed that this curse was due to the children’s repressed feeling of hatred against the strict and autocratic rule of the patriarch. Holding the purse string enabled the “old man” to dictate on the lives of his children and arranged-marriage was the rule – some say even to this day. Others were tired of living under the shadows of their successful forebears. Subconsciously, they seek revenge by destroying what their fathers had built.

Undoubtedly, wealth brings a luxurious but soft lifestyle to the next generation. Wealth also brings prestige and power that often gave undeserving privileges to the children. Why would a teacher discipline or flunk the children of a school’s board of trustees? Sparing the rod, many grew up thinking that they are always right and lord over their subordinates and employees.

To insure the survival of his business to the third and even later generations, an old man carefully planned with his lawyers the succession structures of his group of companies. He hired the best consultants to protect his business empire against third party’s intrusion particularly his children’s in-laws. But few years after his death, the business started to deteriorate rapidly. Behind his back and colluding with outsiders, his sons were siphoning funds from the companies.

On a more rational analysis, social, technological and economic changes were the other factors responsible in leveling the playing field of wealth distribution. As timber resources depleted, lumber magnate gave way to plywood and then to plastic manufacturer. Population growth inhibited massive sugar exports and shopping malls changed the old retailing structure. The shift in commercial centre from Binondo and Divisoria to Makati and other suburbs also shifted the fortune of many.

A single generation spans a 20-30 years period thus two generations spread over 50 to 60 years. In half a century many changes occurred. Even the fortune of a country like Japan had undergone drastic changes from pre-war, WWII and to post-war periods. Inevitably, family fortunes follow this natural course too.

Jollibee burgers took over Mamonluk’s mami; SM mega mall replaces Berg’s and many other retailers; Asian brewery threatens San Miguel; Cebu Pacific challenges Philippine Air Line; and so on. Progress cannot be stopped and innovation knows no master. Who knows? With hard work and an entrepreneurial spirit, you may be the next Lucio Tan.