Saturday, December 23, 2017

More of the same except for EJKs …

It can’t be how we expect to move forward as a nation? Until we redraw our playing field – and reframe our thinking model – we can only expect more of the same. Einstein calls it insanity, which we in the chattering classes never fail to quote. Yet we continue with our merry ways – que sera, sera.

Of course, manufacturing is growing. In an economic briefing the writer attended a couple of years ago, he expressed disagreement. Our view of the uptick is no different from the short-term thinking of Wall Street. Again, OFW remittances and the BPO industry, mainly, are driving our consumption economy. And given our population of over a hundred million, there is a local market for manufacturing.

But that is not what will eradicate poverty. Even at 7% GDP growth, it will take us a generation to lift Juan de la Cruz up. That is classic logical, linear and incremental thinking. Not the way the Asian Tigers journeyed from poverty to prosperity.

Consider: We’re an OFW economy instead of an industrialized economy. And it explains much of our underdevelopment – and why poverty persists in PH. And where our logical yet linear and incremental thinking all along assumed the war on poverty is the answer.

Unfortunately, MSMEs geared as livelihood undertakings – and that we like to headline – aren’t the answer either. The American model is different in a major way. And that is, it had moved the industrial revolution – started by the UK – up the next level. And their MSMEs found a home in this much broader industrialized base. And as important, Uncle Sam – like our Chinoys – is more entrepreneurial than Juan de la Cruz. And that is, he is truly self-reliant.

We’re into subsistence farming – institutionalized by land reform – instead of large-scale agribusiness geared to produce and market a product portfolio that will win in the global market. It explains why our neighbors run rings around us – in agriculture exports.

And we assume that federalism is the silver bullet when, more likely than not, it will institutionalize “crab mentality” – and undermine the common good. While insurgents believe that communism will be our saving grace. As some would know, ex-socialists that were under Soviet rule, have found a mentor in the writer. Because firsthand experience told them otherwise.

What we need is to step up to the plate and dismantle political patronage and dynasties and oligarchy. Why? Ours is a culture of impunity brought about by our deference to hierarchy while expecting paternalism in return. Indeed, a vicious circle.

Of course, we’ve done loads to support our OFWs, our commitment to the poor hasn’t ceased – we even want to protect them from the drug menace that we vote with both hands to support EJKs [see below re civilization] – and beyond the “party-list” system and the LGUs, we want more direct participation by Juan de le Cruz in government.

And there is where the problem lies. “Crab mentality” not the common good is the creed. And unsurprisingly, self and family rules over community. There is a word for it, civilization – or development, evolution, progress, refinement, sophistication, advancement … of people, society, nation, culture, polity.

And it explains why we’re the regional laggard. Leadership is subsumed in the vicious circle of “Pinoy kasi.” We proudly embrace our “culture” and instincts: We are parochial and insular. We defer to hierarchy and expect paternalism in return. We value and rely on political patronage and dynasties and oligarchy.

The bottom line: We are a disaster waiting to happen. In fact, disaster has defined us (a) over the last 70 years or (b) for over a hundred years, according to Rizal. Take your pick.

“If democracy again dies in the Philippines, critics will likely blame the ignorant masses for failing either to elect leaders of proven competence and unquestioned integrity or to hold them accountable when they betray public trust. But the leadership elite—in politics and the professions, in the church and civil society, in the bureaucracy and business—will bear the heavier burden for its death.” [Development, democracy, dictatorship and RevGov, Edilberto C. de Jesus, BUSINESS MATTERS, Philippine Daily Inquirer, 2nd Dec 2017; de Jesus is professor emeritus at the Asian Institute of Management]

Because we in the elite class believe we are superior given where we sit in PH hierarchy? Whatever happened to Hitler’s superior race? Or what happened to aristocracy? See above re civilization. As the blog has argued, organisms that fail to adapt go extinct. And being the regional laggard, we are too close [to extinction] for comfort?

To be sure, the world has been going through a rough patch yet history tells us mankind is indeed adaptable. Not surprising if we go by the theology of creation.

Sadly, Juan de la Cruz hasn’t moved beyond underdevelopment and understandably to be forward-looking and forward-thinking isn’t his instinct. “Crab mentality” is nourished by our state of underdevelopment, i.e., we perceive our plight as destiny, a state of helplessness.

But let’s test that. Where are we on the openness of the economy? On innovation and competitiveness? And on community and the common good? They are all man-made. They are available to all nations, rich and poor alike. Consider: All nations started out poor.

Why are the Asian Tigers head and shoulders above us in innovation and competitiveness? Because they are more open economies, FDIs and technologies are pouring like rain. Sadly, given our state of underdevelopment, we turn inward not outward. For example, instead of netting out (i.e., net worth) the assets minus liabilities of our neighbors, we like to focus on their weaknesses. That China does not give up land to attract FDIs; that the Asian Tigers, including China, are not true democracies like ours.

On the other hand, we focus on our strengths not our “net worth.” We also do it when we speak of the West. They’re a bunch of hypocrites – forgetting that Lee, Mahathir and Deng were in bed with them while we’re left holding the bag. There is a word for it, naiveté. What we fail to realize is pointing a finger at another is pointing two at us. It is called underdevelopment. We all went through adolescence and we know what that means. It is why Trump is called narcissistic by majority of Americans.

As the blog has repeatedly said, until we truly open the economy, we can kiss FDIs goodbye. Until we toss our deference to hierarchy while expecting paternalism in return, until we discard our value of and reliance on political patronage and dynasties and oligarchy, we can kiss good governance goodbye.

And until we grow up we can kiss innovation and competitiveness goodbye as well.

Innovation and competitiveness is beyond consumerism that we like to blame for the problems of the world. Adam and Eve realized that they had to employ their God-given gifts if they were to survive outside Eden. And as they moved forward in civilization they realized there is more to life than survival.

The bottom line: We must wake up to the reality that our “culture” and instincts won’t advance civilization. Or to even move the nation forward. Development is beyond the war on poverty and the war on drugs. These distractions will sink us deeper into the abyss.

And precisely why we must pay heed and embrace the latest UN SDGs (sustainable development goals): (1) rapid infrastructure development; (2) industrialization; and (3) innovation and competitiveness.

It will not be a cakewalk given our inability to embrace change and reform. It will take some doing yet we must redraw our playing field – beyond our borders – and reframe our thinking model – beyond “Pinoy abilidad” and logical, linear and incremental thinking. Or simply, outside the box.

And that is the wish of the writer and his family, who joins him in wishing everyone a Blessed Christmas and a Prosperous New Year.


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]

1 comment:

  1. I've an opportunity to work with Western expats. And they extol the talents, adaptability, communication skills, creativity of Filipinos. We are even seen as the best travelled people this part of the world. I don't know how that last line helps.

    Alas, despite all that glitters - talent, tall buildings, cars, 'condos', houses, fancy restaurants, clothes - we remain poor.

    I liken the Philippines to a human body that is afflicted with a terrible disease. Any will do. And that there is no relief in sight for him. It is getting worse, it seems. He is unable to pull himself out of bed and just keeps looking at himself - on the bed.

    It is a real pity that we have been left behind by Thailand, Malaysia. Vietnam, soon, perhaps. If you mention Singapore - they are eons away from us.

    Can this sick man still muster the strength to pull himself up and find ways to get better? Surely, it will require more than just talk and a promise to oneself. He might be surprised to see that answers can be found around him.

    Great insights, Mr. Encarnacion, by the way.

    ReplyDelete