Sunday, September 17, 2017

70 years of underdevelopment … history

That is over two generations of “que sera, sera” and translates to a vote of confidence for the status quo. Sadly, it comes instinctively to us and why cultures pass from one generation to the next.

Even sadder, because we’re way behind the times, the challenge of innovation and competitiveness remains at the intellectual level. And has yet to come down to the heart and the gut. And why a growth mindset eludes us. Growth is about living in the real world like tots learning to crawl and then walk. And in the process tripping and falling a few times. And how unreal is it to grow up sheltered?

While a culture can be akin to a vicious circle that gives us no break – it just goes on … and on and on … It does not open itself to be challenged like an ideology. And ideologues don’t truly problem-solve. Recall the scribes and the Pharisees. And why the blog references Padre Damaso time and again.

We’re in the 21st century where innovation doesn’t reside in hierarchy nor is it confined to an expertise. And why the blog brings up Design Thinking (developed at Stanford University) which is an iteration of brainstorming – where different disciplines are pulled together to tackle problems big and small, at the micro and macro levels.

From a more pragmatic standpoint, winning is about survival. [Dr. Walter B. Cannon, Harvard University, 1915.] Think back to tribal times … And winning is a habit; conversely, without transformation, losing is a habit as well. [Charles Duhigg, Pulitzer-prize winning author.] And tribes like winning teams can beat the odds. [the Roseto phenomenon; Roseto borough, Pennsylvania.] 

How can we be enlightened? Faith, with due respect to the Church, didn’t do it. Beyond being the regional laggard and poverty-stricken, ours is a culture of impunity.

Should we be surprised that the Dalai Lama goes beyond religion and into science? Because religion cannot be a barrier in the search for truth, as he would claim.

Science presupposes knowledge which comes from education. But we lag in university rankings … And what are we doing about it if what plays out in the media represents who and what we are? The status quo is our mirror image. 

If his Holiness the Dalai Lama is out to seek the truth, how does Juan de la Cruz recognize and acknowledge its import? What if we hear from a Franciscan priest, Richard Rohr, who comes out with his daily meditation like this one on 12th Sep 2017? “Prophets, by their very nature, cannot be at the center of any social structure. Rather, they are ‘on the edge of the inside.’ They cannot be fully insiders, but they cannot throw rocks from outside either.

“They must be educated inside the system, knowing and living the rules, before they can critique what is non-essential … Jesus did this masterfully (Matthew 5:17-48). This is what Martin Luther King, Jr. taught the United States, what Gandhi taught British-occupied India, and what Nelson Mandela taught South Africa.

“Only with great respect for and understanding of the rules can a prophet know how to properly break those very same rules—for the sake of a greater purpose and value. A prophet critiques a system by quoting its own documents, constitutions, heroes, and Scriptures against its present practice. This is their secret: systems are best unlocked from inside.

“After Christianity became the established religion of the Western Empire in the fourth century, the priestly mentality pretty much took over in both East and West, and prophets almost disappeared. When the Church held so much power, prophets were too threatening to the status quo. The clergy were at the top of the hierarchy in the full company of their patrons—kings and princes—and even began to dress like them. Emperors convened and presided over the first seven Councils of the Church. What does this tell us?

“St. Francis of Assisi saw this problem in the thirteenth century and called people to live on the edge—of the Church, of economy, of patriarchy, of the ‘system’—through universal solidarity and chosen simplicity. Pope Francis is evoking the same Gospel spirit … What a surprise that the ultimate establishment figure took the name of such a radical saint. It shocked the world because we do not expect prophecy from popes.”

On the other hand, why do we have to wait for 3 young people to die before we wake up to the folly of EJK? The death of thousands is acceptable? It is naked impunity! But then again, leader-dependency and hierarchy and subservience ... all are elements of our proud culture.

And so … we accepted the war on drugs as the key to development – and the war on poverty.

But then again, because of our parochial and insular bias, we take the rest of the world for granted. From the economic miracles of the Asian Tigers … to the UN Millennial Development Goals – and its latest version, the Sustainable Development Goals. Translation: The world owes us nothing and will not wait for us to get our act together.

And do we see a ray of hope?

“While President Duterte has expressed support for removing [the] economic restrictions in the Constitution, Constitutional change may take a long time. Fortunately, there is another initiative, supported by the administration, which included it in their priority legislative agenda, and that is to amend the Public Service Act and to let Congress define what the term ‘public utilities’ is under the Constitution that is subject to the 40% ownership limit to foreigners.

“If this bill also passes the Senate and becomes law, it will be the most significant and consequential economic legislation ever in the history of the Republic. It clarifies the distinction between ‘public services’ and ‘public utilities,’ which terms are often confused and makes ‘public utilities’ only a subset of ‘public services.’ It states that only the following industries may be deemed ‘public utilities’: electrical distribution, electrical transmission, water pipeline and sewerage distribution. For an industry to be classified a ‘public utility,’ it must pass a criteria, which includes being a natural monopoly, distribution to the public of a commodity or service through a network, the commodity or service must be necessary for the life and occupation of residents, and the commodity or service must be provided to the public on demand.

“A consequence of this amendment would be to remove telecommunications and transport from the list of “public utilities,” and therefore no longer subject to the Constitutional provision restricting ownership and operation to companies or entities with a majority Philippine ownership.

“The economic benefit will be huge. It will improve competition in ownership and operation of strategic industries; facilitate technology transfer; increase efficiency, reduce costs, and improve service of telecom and transport companies. Also, it will greatly improve the foreign investment climate. This would lead to increased foreign investments that will generate jobs, promote innovation, and more importantly, finance the growing current account deficit.

“It will also promote good corporate governance since the restrictions would no longer result in ‘adverse selection,’ wherein only those foreign investors willing to skirt the law, will come. (It’s an open secret that the telco duopoly are effectively owned and controlled by foreign companies using legal legerdemain.) Furthermore, those foreign companies that were scared to tie up with local companies because of their host countries’ strict foreign anti-corrupt practices laws, will finally come.” [Dismantling the Post-EDSA order, Calixto V. Chikiamco, Introspective, BusinessWorld, 11th Sep 2017]

While the writer keeps his fingers crossed [and why he is committed to maintain the blog] that the foregoing initiative will come to life, he has lived long enough to recognize how we bungle things. 

For example, we can’t seem to connect the rule of law amongst the dots in the journey from poverty to prosperity. Absent foresight, creativity has no prayer. And consequently, innovation and competitiveness – and winning – too.

Consider the milestone-decisions we made over decades just to name a few: import-substitution; the sugar industry; the coconut industry; the garment industry; OFWs deployment; the BPO industry; the once white elephant we call NAIA 3; etc.; etc. [And there is no doubt you can make your own list. For example, kicking out the occupants of Clark and Subic yet the US military remains despite our posturing toward China and Russia.]

What is their common denominator? Beyond national defense, the absence of foresight both in infrastructure development and industry. And with industry there are two parts to it: (a) rent-seeking by oligarchy; and (b) the inability to move up the value chain for the rest of industry. [See above re learning to crawl and then walk.]

And when we superimpose tyranny, we are not only shooting ourselves in the foot. Are we digging our own grave? Ask the folks of the three-young people that had to die that finally woke us up?

“Why independence, if the slaves of today will be the tyrants of tomorrow? And that they will be such is not to be doubted, for he who submits to tyranny loves it.” [We are ruled by Rizal’s ‘tyrants of tomorrow,’ Editorial, The Manila Times, 29th Dec 2015]

“As a major component for the education and reorientation of our people, mainstream media – their reporters, writers, photographers, columnists and editors – have an obligation to this country . . .” [Era of documented irrelevance: Mainstream media, critics and protesters, Homobono A. Adaza, The Manila Times, 25th Nov 2015]

“National prosperity is created, not inherited. It does not grow out of a country’s natural endowments, its labor pool, its interest rates, or its currency’s value, as classical economics insists . . . A nation’s competitiveness depends on the capacity of its industry to innovate and upgrade.” [The Competitive Advantage of Nations, Michael E. Porter, Harvard Business Review, March–April 1990]

“Learning and innovation go hand in hand. The arrogance of success is to think that what you did yesterday will be sufficient for tomorrow.” [William Pollard, 1911-1989, physicist-priest, Manhattan Project]

“Development [is informed by a people’s] worldview, cognitive capacity, values, moral development, self-identity, spirituality, and leadership . . .” [Frederic Laloux, Reinventing organizations, Nelson Parker, 2014]

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