Tuesday, June 15, 2010

Dynamism can’t exist inside a bunker

Dick Cheney never understood why despite an unpopular president he rated even worse!

Cheney was a smart upstart and labeled a whiz kid when he got to Washington the first time. And thus he was ushered into the corridors of power. Unfortunately, as we had heard often during the waning days of Marcos, ‘power corrupts and absolute power corrupts absolutely’. It didn’t help Cheney any that he was an ideologue, and had no qualms getting inside a bunker – and inside a bunker he went and unsurprisingly found it to his liking?

Dick Cheney came to mind when the writer was reading about Boracay. He was not surprised that San Miguel who’d be developing the airport . . . was offered (to own?) the next island to preempt competition – so that no one could build another airport! Translation: there goes innovation out the window – or why we’re stuck with the jeepney? But innovation is not on our radar screen? (It probably doesn’t make financial sense to put up another airport, but that’s not the point – let the investor beware!)

Did our subjugation over centuries give us a distorted vision of winning? And it is best described as crony capitalism or monopoly – the absence or lack of competition? In the 21st century it doesn’t work? For instance, the US has realized that being the sole superpower does not guarantee winning. Winning is earned by continuous renewal; and competition provides the hurdle vital to innovation and progress, i.e., the ‘natural order’. Or why Eden had to be shut down? (Einstein was so taken by the natural order . . . and thus concluded that there’s a Maker!)

We unwittingly accept this vision – because it is the model we ourselves aspire for? Probably not to the extent of oligarchy but at least we could: build a house in a gated community, send our children to exclusive schools, join a country club, and buy a condo in Tagaytay (Baguio is so yesterday)? And send our kids to holiday at Disney if not in Anaheim or Orlando at least in Hong Kong? And when they’re a little older they’d want to go shopping in Rome or Paris or London, but finally we would put our foot down, ‘no, Singapore is good enough, and we’re going with you’?

And who cares if the infrastructure from out homes to the airport and the airport itself are third-world? When they get to Hong Kong they’re like Cinderella, transported in 21st century – or dreamlike – fashion. And so the ‘escape’ relegates the need to upgrade our infrastructure to the bottom of our consciousness? And as adults we become: (a) resigned – because we see no way out or (b) callous to our being economic laggards – because of our access to developed economies, that puts us head and shoulders above Juan de la Cruz in the hierarchy that we cherish in the first place or (c) nonchalant or (d) all of the above?

In the meantime, it’s fun to be working in a monopoly, directly or indirectly – or when there’s no major competition to deal with – because our future is assured. Or we hope so – that no 21st century technology comes around to make the business passé? And that’s precisely why monopoly is a false sense of security?

So we don’t really like foreign investors to disturb the apple cart – and, regrettably, see no need to seek technology to elevate the nation to developed-country status? But if a Filipino who understands our game runs the show for their foreign owner, that’s fine – because they will not disturb the ‘Filipino law of natural order’?

And so we can count with our fingers those who run and control the economy – i.e., we unwittingly condone the elimination of competition? For instance, it was reported that San Miguel shareholders approved their expansion plan; but they should be talking likewise about investing in technology for the future? Nestlé, for example, spends twice the industry norm in R&D – over 2% of revenues – to fortify their future. Should our major firms adopt the same forward-looking strategy to raise their competitiveness and thus respect the natural order?

If we want the succeeding generations to lead a dynamic and modern economy, we better tell them not to thrive inside a bunker?

2 comments:

  1. I don't understand what you mean with 'San Miguel was offered (to own?) the next island to preempt competition'. Can you elaborate on this?

    Are you aware of this very recent article: http://www.manilastandardtoday.com/insideOpinion.htm?f=2010/june/9/emiljurado.isx&d=2010/june/9

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  2. Here's one of several articles that reported on this.
    San Miguel President and CEO Ramon S. Ang, speaking to reporters following a stockholders’ meeting, highlighted the diversification push in announcing that the firm was buying land on an island across the tourist haven of Boracay to quell competition for a newly acquired airport project . . .
    http://www.thenewstoday.info/2010/06/02/shareholders.ok.san.miguel.diversification.plans.html.

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