Sunday, October 29, 2017

Why Juan de la Cruz is foresight-challenged

Time and again, the blog has raised the question, “How could Lee, Mahathir and Deng beg for Western money and technology while we’re still – well into the 21st century – figuring out how to raise FDIs?” Is it because (a) we don’t recognize that the West had a head start in moving civilization forward; (b) we don’t want to be beholden to them; (c) we see their hypocrisy; or (d) all the above?

But we don’t mind being beholden to China and Russia because hypocrisy is not them? And hypocrisy is not us either?

Or are we simply parochial and insular – which we confuse with sovereignty and nationalism – and explains the absence of dynamism in Juan de la Cruz?

Do we realize that Lee, Mahathir and Deng learned from each other because they were outward-looking? While we are inward-looking and defer to hierarchy because we value paternalism … and political patronage and dynasties … and oligarchy? And our being the regional laggard and … the protracted war against poverty be damned?

Can we trace our static – as opposed to dynamic – nature to our brand of Christianity? “It has always seemed completely strange to me that there should be any resistance whatsoever to evolution in Christian theology or practice. Christians should have been the first in line to recognize and cooperate with such a dynamic notion of God.

“It’s hard to imagine why so many still have a very static notion of God with Christianity’s rich wisdom: Trinity; the Indwelling Holy Spirit; Incarnation; salvation; the development of consciousness as seen in Judeo-Christian Scriptures, history, and individual lives.

“We largely surrendered to a notion of time with the human story ending in Armageddon and Apocalypse, which is complete heresy.

“If our God is both incarnate and implanted, both Christ and Holy Spirit, then an unfolding inner dynamism in all creation is not only certain, but also moving in a positive direction, with a divine goal that is always set before us.” [Evolution, Faith and Science, Richard Rohr’s Daily Meditation, 25th Oct 2017]

But we’re happy where we are? Except that we’re doing a disservice to our God-given endowments? “We Aren’t Built to Live in the Moment,” Martin E. P. Seligman and John Tierney, The New York Times, 19th May 2017.

“What best distinguishes our species is an ability that scientists are just beginning to appreciate: We contemplate the future. Our singular foresight created civilization and sustains society. It usually lifts our spirits, but it’s also the source of most depression and anxiety, whether we’re evaluating our own lives or worrying about the nation. Other animals have springtime rituals for educating the young, but only we subject them to ‘commencement’ speeches grandly informing them that today is the first day of the rest of their lives.

“A more apt name for our species would be Homo prospectusbecause we thrive by considering our prospects. The power of prospection is what makes us wise. Considering the future, consciously and unconsciously, is a central function of our large brain, as psychologists and neuroscientists have discovered — rather belatedly, because for the past century most researchers have assumed that we’re prisoners of the past and the present.”

Thankfully we are getting a timely reminder: “Special EU envoy Angara: No need to take offense at rights report,” Gaea Katreena Cabico,philstar.com, 26th Oct 2017.

“The government should consider the latest annual European Union Report on human rights as an ‘eye opener’ and not criticism, special envoy to the EU Edgardo Angara said.

“Angara, a former senator, said President Rodrigo Duterte should not be offended by the EU Report on Human Rights and Democracy in the World.

‘To us, it’s an eye opener. It’s an impetus for us to look at it and do something,’ Angara said … He pointed out that the country is not being singled out by the bloc’s report since EU’s human rights monitor group also looks into other countries.

“They’re not saying: ‘You should not fight the drug lords or peddlers.’ They’re saying: ‘But please tell your policemen not to shoot them, not to kill them. They should catch them, prosecute and rehabilitate …’”

Shoot them … kill them? Do we realize how uncivilized that is? See above re the West had a head start in moving civilization forward. And we wonder why ours is a culture of impunity and not the rule of law? 

Then think why we have been left behind in: (a) infrastructure development; (b) in industrialization; and (c) in innovation and competitiveness. Instead of stepping up to the plate, we accepted OFW remittances and more recently the BPO industry as the path to progress, growth and development – aka “pwede na ‘yan.”

Where we have been left behind – surprise, surprise – are the requisite development levers espoused by the new UN SDGs (Sustainable Development Goals).

Yet instead of taking stock of what we did – and failed to do – we are injecting form of government, for example, in our hypothesis [yes, it’s what it is, not a fail-safe solution] reminiscent of what we did with land reform. That it was the be-all and end-all.

Why and how did we get it wrong? As we now know from the Malaysian experience, agriculture development demands economies of scale – not fragmented, small-scale farming. And it brings about sustainable outcomes. And so decades later while we’re still debating rural poverty, the Malaysians have long eradicated it.

On the other hand, we don’t address community and the common good – which is what economies of scale yield via the pooling of small-scale farms into a critical mass. And because of “crab mentality” – which is focused on me and myself – we cannot imagine and visualize community and the common good.

In short, we constantly fall into the trap of shortsightedness … that feeds our lack of foresight like a vicious circle.

And how are we getting it wrong when we impute the form of government in our failure in development? Consider: Will federalism remake Juan de la Cruz, that he will no longer be parochial and insular, no longer defer to hierarchy and expect paternalism in return, no longer value and rely on political patronage and dynasties and oligarchy?

As the German ambassador explained, the rule of law – which has characterized their public sector – is what makes their federal system strong. That until we embrace good governance, no form of government will work … and save us.

In case we have forgotten, a democracy is a government of the people, by the people and for the people. And why the blog has repeatedly discussed Juan de la Cruz. 

The bottom line: Given dynamism isn’t us, should we be surprised Juan de la Cruz is foresight-challenged?

“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]

Now I know why Paul dared to speak of ‘the curse of the law’ (Galatians 3:13). Law reigns and discernment is unnecessary, which means there is little growth or change in such people. When you do not grow, you remain an infant.” [Faith and Science, Open to Change, Richard Rohr’s Daily Meditation, 23rd Oct 2017]

“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]

Wednesday, October 25, 2017

Is Juan de la Cruz digging his grave deeper?

Because in our heart of hearts we believe we are “Seraphim, the highest order or choir of angels … who are attendants or guardians before God's throne … one of them touched Isaiah's lips with a live coal from the altar, cleansing him from sin”? [catholic.org]

And it explains why we aren’t predisposed to reforms? And it starts from the top? “’A fish rots from the head down’ means that leadership is the root cause of an organization's failure and demise. This is true whether that organization is a country, a company, or a sales force. How could it be otherwise?” [thesalesblog.com]

I do not doubt Mr. Duterte’s capacity to install himself as the nation’s ruler in a revolutionary government.” [The romanticism of a ‘revolutionary’ government, Randy David, Public Lives, Philippine Daily Inquirer, 22nd Oct 2017]

It isn’t a president’s most responsible statement. DU30 won 38 percent of all the votes in the last election and is now in charge of our constitutional government.” [Threatening a civil war, Francisco Tatad, The Manila Times, 18th Oct 2017]

Hindi nag-iisa si Du30? And Cayetano is one of them? “Alan has the right ingredients to be a respectable, awe-inspiring statesman. But these things—educational attainment, intelligence, eloquence, and even bearing—all come to waste when the person’s moral compass is askew.

“He defended the Philippine National Police’s ruthlessly unjust antidrug operations, maintaining that all their targets were— “YES!”—involved in drugs, and that for pointing a gun at the police during their arrest, they had their deaths coming. Really, seeing him dodge the rebuttals of the host [in a TV interview], he was also being heartless and insensitive toward the kin of those suspects who have been gunned down.

“Now strangely devoted to Marcos-loving President Duterte, this present-day Alan is hard to reconcile with the Alan we all saw at last year’s vice-presidential debate, where he really went after Bongbong Marcos on live television, lambasting him and his family (deservedly so) for the many human rights abuses during his late father Ferdinand Marcos’ dictatorship, among other sins.” [Alan breaks my heart, ELLEN P. ABESAMIS, Letters to the Editor, Philippine Daily Inquirer, 21st Oct 2017]

In the meantime, “[W]e … appear to be stuck in place, held back by deep divisions and endless political bickering, and seemingly condemned to watching our neighbors pass us by, one by one.” [Falling behind, again (?), Cielito F. Habito, No Free Lunch, Philippine Daily Inquirer, 10th Oct 2017]

Is PH a ship adrift? “Main business chamber identifies issues holding back progress,” Victor V. Saulon, BusinessWorld, 20th Oct 2017. “THE PHILIPPINE CHAMBER of Commerce and Industry (PCCI) has identified issues encompassing a number of sectors including agriculture, energy and power that it wants the government to resolve through a list of initiatives that range from investment promotion to the passage of key legislative measures.”

And to add insult to injury, “PHL’s natural resources near brink of depletion,” Jonathan L. Mayuga, The Broader Look, BusinessMirror, 18th Oct 2017. “The Philippines is the richest in the world in terms of biodiversity on a per unit basis. Yet poor appreciation of biodiversity, lack of investment, is resulting in a natural-resources depletion that leads to biodiversity loss faster than the discovery of their potential contribution to the economy.”

But let’s get back to Du30. “First, he has threatened to cut diplomatic ties with Europe and give the European diplomats in the country 24 hours to pack up and leave.

“Just when and how did Europe become our enemy? As a Filipino, I would like to know; I am sure the Europeans, who must have thought they had a stable working relationship with the Philippines all these years, would also like to know.

“If Europe had become our enemy, shouldn’t DU30 order his diplomats and all Filipinos living and working there to come home, and his minions in Congress to declare war? Wouldn’t this be a wonderful way of putting to use the firearms shipment we have just received and will probably be receiving still from China?

“Second, DU30 has threatened to install a revolutionary government if he sees the ‘Yellows,’ the ‘Reds,’ or any other group ‘destabilizing’ his dysfunctional government … DU30 tends to regard mere ‘dissent’ as ‘dissidence’ and therefore ‘destabilizing.’ His attack dogs tend to denounce honest and constructive criticism as ‘detraction,’ which, correctly understood, means exposing somebody’s private fault for no legitimate and sufficient public motive.” [Tatad, op. cit.]

How deep down the abyss are we? “Today, 30 years after the promulgation of the 1987 Constitution, a number of our people who thirst for comprehensive change are again drawn to the romanticism of revolutionary rule — this time for the purpose of putting an end to the political order established at Edsa.

“It’s not going to be easy, and I doubt if the majority of our people will allow it. It will usher in another period of instability from which we may not recover for a long time. Ironically, the one state institution that perhaps separates us today from the imposition of dictatorial rule is the Philippine military. Martial law nearly destroyed the professionalism of the armed forces.

“The Edsa uprising and the failed coup attempts that followed turned brother officers against each other, narrowly avoiding a slaughter in their ranks. It is a lesson they will not forget — that partisan politics is not a game in which the man in uniform must ever get involved.” [David, op. cit.]

What are we up to?

If the administration is a management team, have we heard of IBM and P&G? These two once venerated enterprises would prove themselves excellent organizations yet had to fall from their thrones. We have long fallen from ours yet we behave as though we are Seraphim?

Until we acknowledge and recognize and understand and accept that we have lots to learn from others, we would always invoke sovereignty and nationalism. Sadly, it is misplaced. And it brings France’s Marcon to mind. Nationalism is war; 80 years ago, we saw that in Europe, he says.

The writer is in his client’s office in Sofia as he writes. And he can only recall that he has been amid regional cum global challenges and initiatives. And surprisingly, we are among those that have not truly learned – from AEC to NAFTA to EU to globalization. And so recently we invited Mahathir to once again speak to us.

But we never truly want to learn from others. On the other hand, the writer’s Eastern European friends can’t seem to curb their desire to learn from others including competition – that they are a greater and greater threat to their bigger Western competition.

To kick-off the planning and budget process for 2018, the writer challenged them to consider four growth hypotheses: (a) grow at a minimum 11% or (b) 14% or at a mind-boggling (c) 20% or (d) 27%. As he explained, your task over the next 4 weeks is to experiment and come up with the most optimum scenario. There are 6 ways to Sunday, so you have a couple more to explore. Remember the story of creation. The first supposedly great idea will be the Monday version. You need to come up with the Saturday version.

In the case of PH, we are good at embracing our ideas even when they have not worked, for decades. Take land reform or the war on poverty or the war on drugs. We have another bright idea, federalism. Yet each one was just the Monday version – aka as flavor-of-the-month if not populism. And worse, a continuing demonstration of our lack of foresight.

For example, how could Lee, Mahathir and Deng embrace a common idea, i.e., to beg for Western money and technology? They’re ahead in moving civilization forward. That is why. Of course, the West isn’t perfect but look at Singapore, Malaysia and China. In the meantime, the world must evolve to the next level of development. It cannot standstill which we Pinoys have yet to internalize. It is called dynamic as opposed to static. Because perfection is not of this world; impermanence is what it is about. And why we believe in the afterlife.

But we know better because we’re Seraphim? Consider: “God comes into the world in always-surprising ways so that sincere seeker will always find … Most scientists are willing to move forward with some degree of not-knowing; in fact, this is what calls them forward and motivates them. As new discoveries are affirmed, they remain open to new evidence that would tweak or even change the previous ‘belief.’ Many religious folks insist upon complete ‘knowing’ at the very beginning and then being certain every step of the way, which actually keeps them more ‘rational’ and controlling than most scientists. This is the dead end of most fundamentalist religion, and why it cannot deal with thorny issues in any creative or compassionate way. Now I know why Paul dared to speak of ‘the curse of the law’ (Galatians 3:13). Law reigns and discernment is unnecessary, which means there is little growth or change in such people. When you do not grow, you remain an infant.” [Faith and Science, Open to Change, Richard Rohr’s Daily Meditation, 23rd Oct 2017]

“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]

Monday, October 23, 2017

A vicious circle ... and a broken record

“If the Philippines wants to eradicate poverty, it must post a GDP growth of at least 6 percent every year until 2040.” [PHL needs above 6% GDP growth up to 2040 to end poverty–expert, Cai Ordinario, BusinessMirror, 18th Oct 2017]

We aren’t hearing this for the first time, are we? If it sounds like a broken record it is because we’re caught in a vicious circle. And the prescriptions too are not new. But where are we really? “The Philippines has already improved its GDP growth to an average of 6.2 percent between 2010 and 2015. In 2016 GDP grew by 6.9 percent, and in the first semester of 2017, it expanded by 6.4 percent … The challenge for us is really sustaining this particular growth.” [Ordinario, op. cit.]

Left unsaid is for decades and more recently, PH GDP growth has been driven by OFW remittances and the BPO industry. In the meantime, “WHAT a huge disappointment the Duterte administration has evolved into after so much hope and hype were generated from the election … [N]ot much actual progress towards a unified vision with game plan … has been achieved. The drug war has been discredited with outlandish claims of police ‘fighting back’ and investigating vigilante killings that some count as high as 7,000 dead in total … Incredulous statements defending the administration’s performance to date weaken the credibility of the government. You cannot govern effectively for long when credibility is diminished.” [Disappointment and reset, Philip Camara, The Manila Times, 19th Oct 2017]

What vision and what game plan? “We really have to curb down our population growth and poverty will be eradicated in the next quarter of a century. There are hurdles to sustaining that particular growth … Growing the economy … requires making food cheap and accessible for all, as well as boosting the country’s trade and investment growth.

“[F]or one, rice remains expensive, not only for consumers, but also for farmers themselves … The poorest farmers … also suffer from expensive rice since they are consumers themselves … Data showed that this is largely due to high trade costs.

“The Philippines … spends about P36.25 billion a year for poor farmers, who are also penalized by high rice prices. Industry and manufacturing are not really kicking because wage costs can be high when food costs are high; so we really need to do something about agriculture.

“Improve the productivity in agriculture to bring down food costs in order to put pressure and encourage investments in industry and manufacturing … The main hurdle in improving agriculture productivity is agrarian reform, which is one restriction in land ownership in the Philippines.

“If these hurdles in the economy will be addressed and growth will be sustained … foreign direct investments will post a 10-percent growth annually from the current rate of 4.64 percent, while labor productivity will improve 3.71 percent, from the current 0.32 percent.” [Ordinario, op. cit.]

Really? What about other hurdles? “AI poses a major threat particularly to the business process outsourcing (BPO) sector, one of the major pillars of the Philippine economy which employs more than one million Filipinos.

“The government and even the private sector should retrain the work force to address the increased need for advanced technical skills and determine sectors that will help absorb the labor pool that will be displaced …

“The Kinder to Grade 12 program, which added two years to the 10-year basic education curriculum, is a bold solution to address the demands of tomorrow’s jobs, as it incorporates more high-value skills like critical thinking, problem solving, and creativity … Change is that fast so we have to teach them to adjust. By the time they graduate, nothing is useful anymore especially with the advent of artificial intelligence …

“If the world becomes much more protectionist, much more nationalistic, you would see some of those investment flows being curtailed … Likewise … the infrastructure program is ‘one of the best ways’ to attract foreign investment and the government should ‘restart’ the public-private partnership program instead of solely depending on official development assistance ...” [Education overhaul seen critical in responding to threat from AI, automation, Krista A. M. Montealegre, BusinessWorld, 19th Oct 2017]

We seem to have all the answers yet why are we the regional laggard?

“Dr. Mahathir was the Prime Minister of Malaysia from 1981 to 2003, a period spanning five terms.  He has the record of the longest serving Prime Minister of Malaysia.  During his term, Malaysia experienced rapid growth and poverty was practically eradicated.

“[H]e was the keynote speaker at the culmination of Finex Week with the theme: ‘Breaking Barriers to Competitiveness in the ASEAN Financial Sector.’ Dr. Mahathir’s first point was that when countries that are less developed trade with more developed countries, they are trading with a handicap.

“Ways must be found to compensate for the handicap or else the less developed country will not fully benefit from the trade relationship. The alignment of less developed countries as a trading bloc like the way that ASEAN developed was one way to make up for the handicap of the members for being less developed countries.

“Dr. Mahathir also shared his experiences in taxation and economic development. He said that the right rate of taxation must be determined and adapted to the specific circumstance … He gave a specific example of how his government brought down drastically the taxes on luxury goods.  As a result, tourists from around the region came to shop and this created jobs and income.

“Income tax collections on the businesses and individuals participating in this industry ultimately ended up being much greater than the revenues lost by bringing down the tax rates on luxury goods.

“Dr. Mahathir was well known for being a strong proponent of investments in infrastructure … He talked about the highway that his government had built from Singapore to Thailand a distance of over one thousand miles.

“He said that while he let the private sector build and operate the highway, he realized that if they charged toll rates that were too high, many people may not be able to afford to use it and the positive impact on the economy would not be as desired.  So he arranged for the government to grant low interest financing for the project proponents of the highway so that the toll rates would be lower.

“The highway turned out to be a big success with businesses going up and thriving along the highway and property prices going up along the areas where the highway passed.

“Dr. Mahathir believed in technology and industrialization.  He said that he pushed the Proton car project as a Malaysian car not so much to compete with the car manufacturers of the advanced countries but more to develop the industrial base of Malaysia.” [Dr. Mahathir’s thoughts on competitiveness in the ASEAN region, Valentin A. Araneta, Manila Bulletin, 18th Oct 2017]

That’s what leadership is about. And Mahathir is not speaking for the first time. When Deng Xiaoping sought his views as well as that of Lee Kuan Yew, both said “Beg for Western money and technology.” And Mahathir said the same thing to us.

But are we prepared to listen? Not if we examine how we have mismanaged PH for decades. And that is because we’ve been caught in a vicious circle of our own making. But which we have yet to acknowledge and recognize: That Juan de la Cruz is parochial and insular ... defers to hierarchy and expects paternalism in return ... values and relies on political patronage and dynasties ... and oligarchy.

And why reforms, education for instance, aren’t our cup of tea. The latest findings in education reform call for a growth mindset not a fixed mindset. And beyond teacher-directed learning is learning through discovery, that is, by developing one’s own hypothesis and experiment. How will that find a home in the inward-looking, fixed and closed mind of Juan de la Cruz? And we wonder why innovation and competitiveness is alien to us? And why even teeny tiny Brunei is more competitive than PH?

Such insularity – aka false sovereignty and nationalism – happens even in the private sector. We would want to believe that Procter & Gamble, for instance, is a progressive enterprise yet here is how an analyst describes the global behemoth: “Procter & Gamble Won The Battle But Lost The War,” Josh Arnold, Seeking Alpha, 11th Oct 2017.

“Without Trian, an equity fund, PG will remain bloated and overvalued … The problem is that while the stock has continued its move up, the rest of the market has left it behind.

“PG needs someone else to come in and show it the error of its ways … [I]t has little willingness to change.

“[I]t has grown fat and happy over the past several years. Trian, no doubt, would have come in with some fresh ideas, including the reorganization it pitched ...

“Trian would have been able to help PG and give it the kick in the pants … But for now, all the evidence supports PG just carrying on as it has for years and that just isn't good enough.” Sound like PH?

“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]