Sunday, July 4, 2010

Focusing on key economic drivers

It appears we’re coming around in our priority initiatives. A private group is talking about their vision to cover our power requirements nationally. Another entity is cited for the excellence of their business model re water – that hopefully can be replicated nationwide? And a columnist explains how to focus our efforts and resources to become self-sufficient in rice. Power, water and rice are fundamental needs that we ought to be addressing – focusing like a laser!

On the other hand, it appears we continue to struggle with major infrastructure initiatives. For example, motorists are reported unprepared to pay for higher toll fees. (But then again, transparency is imperative for credibility!) And the airport was temporarily out of commission because of an equipment malfunction. Like it or not, they reflect on us? Winners think differently? Winners train and train hard and go through pain – no pain, no gain? We like slapping band-aid on our hurts hoping it would drive the disease away? And so compromises become the norm, like subsidies – thus getting deeper into the 21st century we’re still at square-one: addressing power, water and rice?

The Soviet Empire learned their lesson the hard way – unable to provide subsidized bread, part of the promise of the system. Yet, driving through the wheat farms of Ukraine – and they go as far and wide as those in the State of Washington, for example – one wonders how they could have blown it big? The answer simply is: subsidies don’t work because they’re unsustainable! They couldn’t recreate Eden – nor could we?

The tourism industry, a strategic industry, is being proactive urging the new administration to appoint a strong leader. And they are asking the government to work for the upgrade of our airport’s international rating – which is undermining the industry thus our economy. The reality is we need more than a rating upgrade if we expect to achieve the lofty goals the industry laid out. For example, what are the vital few (20%) tourism-related infrastructure projects that must be done sooner than later that will deliver the bulk (80%) of the industry’s goals soonest?

Aren’t we amazed that infrastructure project bids are reported to fail time and again? We have to clean up our act if we are to successfully pursue priority infrastructure projects that will impact economic activity – and thus our wealth and well-being. It is criminal to undermine economic development projects and 92 million Filipinos should not tolerate it. There are suggestions that we again take the path of least resistance – that we can’t fix corruption so let’s settle for smaller (thus sub-optimized) projects? Aren’t we a proud Christian nation?

That’s déjà vu – decades ago we thought we were unprepared for industrialization so we settled for OFWs? OFW remittances are a major component of our economic activity but the greater multiplier effect of industrialization is what we’re missing, and why we’re underdeveloped: our retail and service industries are active thus our local economy is decent; but our exports are meager – because our products are uncompetitive? And that’s a gaping hole we need to cover! Focus and aggressive action is what we need, beyond compassion – i.e., massive poverty comes with a GDP per person of $3,300 (PPP) like ours, a mere 10% of those of developed economies. The salami is pretty thin, and we keep slicing it – that’s what’s surprising, not the poverty?

Thus we must demand leadership, transparency and competence. For example, the ongoing row at Subic is a classic example of failed leadership? Another déjà vu – from the airport we bring failed leadership to the harbor? And failed leadership can be attributed to lack of transparency? We can assume that our engineers and project managers are competent – or why OFWs are in great demand?

If we are to be a developed economy, we better commit ourselves to better management of infrastructure projects – if we have to put a nun or a team of nuns in every project? The global economic cycle can work in our favor this time, and we better not blow it?

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