Wednesday, March 29, 2017

Amateur hour at the White House . . .

“While on the campaign trail, it was easy for Mr. Trump to roundly decry the US immigration system as broken and make a general call for bans and moratoriums. As president, however, his team has had to fill in the details – and it seems they faced some difficulty translating his pre-election rhetoric into policy.

“Mr. Trump's . . . executive order reportedly was crafted without consulting legal aides and enacted over the objection of homeland security officials, who balked at including permanent US residents in the ban. This made for an awkward scene . . . at a New York courthouse, where government attorneys had to defend measures that were creating chaos at airports across the nation.

‘I think the government hasn't had a full chance to think about this,’ said federal judge Ann Donnelly, as she ruled that individuals with valid paperwork on US soil couldn’t be deported.

“In the meantime, however, this has proven to be an embarrassing episode in what looks like a not-ready-for-primetime White House.” [Trump's executive order: Amateur hour at the White House (?), Anthony Zurcher, BBC, 29th Jan 2017]

The Trump White House may be suffering through their Amateur hour [separate and apart from a long-running Republican civil war a.k.a. the inability to govern despite wresting control of DC] but that can’t be said of Vietnam. “It may be one of the smallest economies in Asia, but Vietnam is among those leading the infrastructure race. Vietnam’s public and private-sector infrastructure investment averaged 5.7 percent of GDP in recent years, the highest in Southeast Asia and compares with 6.8 percent in China. Indonesia and the Philippines spend less than 3 percent . . .” [In Asia’s infrastructure race, Vietnam is among leaders, Karl Lester M Yap and Nguyen Dieu Tu Uyen, Bloomberg News, 23rd Mar 2017]

In the meantime, “[T]he Thais are moving to further upgrade their infrastructure, already far ahead of ours as it is. Meanwhile, our own PPP program had in recent years often been said, tongue-in-cheek, to stand more appropriately for “PowerPoint presentations” rather than public-private partnerships in infrastructure development, which is what it really refers to.” [Is our press holding us back (?), Cielito F. Habito, NO FREE LUNCH, Philippine Daily Inquirer, 24th Mar 2017]

And should we still be surprised to wake up to this news? “Gov’t shifts airport strategy; to develop multiple gateways,” Imee Charlee C. Delavin, BusinessWorld, 23rd Mar 2017. “THE GOVERNMENT is now looking at a multi-airport approach to address persistent air congestion problems and the need to expand the capacity of Philippine gateways in anticipation of more arrivals in the medium to long-term.

“‘To the question of where should our next airport be located, I think the answer is, it’s no longer a dual airport but a multi-airport system,’ Transportation Undersecretary for Aviation and Airports Roberto C. Lim told reporters in a recent interview.”

Is this déjà vu? The writer went to YouTube to listen to Usec Lim speak to the AAPA in November, and indeed he was singing a different tune. Everything was rosy, it was all systems go in PH infrastructure spending including the airports. Recall the decades it took for Terminal 3 to come into being only to be outdated for this day and age.

How many years if not decades have we wasted: (a) entertaining offers for this or for that airport project; (b) figuring out our energy needs; and (c) debating the recommendations of JICA re infrastructure development?

We can’t be the next Asian Tiger ever if we don’t reinvent Juan de la Cruz. It is not the war on drugs or the war on poverty. It is about the law of nature. Individuals and organisms whether an enterprise, economy or nation grow and develop. In other words, PH must grow and develop.

For example, poverty in the rural areas is a function of subsistence farming. And we are in the 21st century where scale and specialization are imperative to be in the game. Pouring money into “farm-to-market” roads to sustain subsistence farming is to institutionalize poverty. We must instead be educating our farmers about scale and specialization. And what we all need is to learn to look outward to Vietnam, for example, not inward and be parochial and insular.

We must sit down and ask: What and who are we? Where is our sense of identity and purpose? Let’s test this on the new perspective re a multi-airport approach. Remember that creativity is simply connecting the dots. But can we connect these dots: energy . . . prioritized infrastructure development . . . rapid industrialization?

We must not sink deeper into our “Dutch Disease” and ever celebrate the 10% of GDP generated by: OFW remittances, the BPO industry and tourism. They are a given. And in the case of Palawan tourism, it must be upgraded via a toilet-facilities campaign.

Our mantra must be to aggressively drive national income. It is beyond taxation. It is to make the pie bigger as President Ramos used to say.

How? Here’s a premise to bear in mind that comes from the Ateneo Economic Briefing in 2015. The economy is still skewed to specific regions: Luzon, from Hacienda Luisita down to Metro Manila and Calabarzon account for 2/3 of the economy; but with Cebu and Davao plus Cagayan de Oro, altogether they would represent the bulk of PHL’s $300-B economy.

Given our local output is comparable to our neighbors, the gap we must cover is the export sector – the key behind the success of the Asian Tigers. But it is not enough to simply set a target of 2X current levels. On the other hand, MSMEs geared for local consumption is not the answer! They will generate livelihood enterprises but will not elevate us to Asian Tiger status – and we will still be an oligarchic economy.

Indeed, the export picture is not rosy. The top 10 PH exports account for 80% of total receipts ($56.3-B) but the net trade surplus other than (a) Electrical machinery, equipment (at $4.5-B) and (b) Wood (at $2.3-B) is less than $1-B for each sub-sector. [http://www.worldstopexports.com/philippines-top-10-exports/]

Sadly, the sound economic fundamentals our economic managers speak to is a symptom of our Dutch Disease. And it will not make us the next Singapore or Asian Tiger.

If we were an MNC or a Fortune 500 company, how do we attack these givens and rapidly raise revenues – before Wall Street hammers us for incompetent management? We must start where there is mass and weight present to jumpstart and generate power. It is the laws of physics. Sadly, contrary to “crab mentality.”

Which means, figuring out how we can exploit these vital few revenue drivers: Luzon, from Hacienda Luisita down to Metro Manila and Calabarzon account for 2/3 of the economy; but with Cebu and Davao plus Cagayan de Oro, altogether they would represent the bulk of PHL’s $300-B economy.

And what products and/or services? Beyond (1) Electrical machinery, equipment and (2) Wood are: (3) Optical, technical, medical apparatus; (4) Ships, boats, (5) Fruits, nuts; (6) Ore, slag, ash; (7) Gems, precious metals; and (8) Animals/vegetable fats, oils, waxes.

Two major exports yield negative trade surplus but can generate employment and develop our technology platform – which cannot be overemphasized – must therefore be a focused as well. They are: (a) Machinery including computers; and (b) Vehicles. And they generate substantial export receipts, $7.8-B and $1.4-B, respectively.

To support these industries, we must establish where (in the above regions, which includes the Visayas and Mindanao) they must be housed and then create an ecosystem geared for global competitiveness. We must rigorously assess if our products are indeed global winners – and then expand the portfolio to create a critical mass of competitive products. [And here we may need foreign technologies and even FDI.] And the acid test is: what human needs must they be sensitive to, the object being to raise man’s wellbeing – and make us superior to competition. It is what the value chain is about.

Then we must connect the dots of: (a) energy; (b) prioritized infrastructure development (including airports, ports, logistics, etc.); and (c) support industries. Imagine regional hubs supported by a network of auxiliary industries – including those beyond the hubs but makes sense logistics-wise to feed into the primary industry.

That is how the economy – not via political patronage and its inherent tyranny – will spread out, and encompass agribusiness . . . and more so as the economy generates greater and greater revenues from globally competitive products.

And crucial to remember is scale and specialization are imperative – not subsistence enterprises. As well as the 21st century skill sets that we must learn: 1) collaboration and teamwork, 2) creativity and imagination, 3) critical thinking, and 4) problem solving.

With due respect to Usec Lim, is it about time we Pinoys learn the above skill sets? And more to the point, the economic managers can set the example by teaming up and collaborating among themselves.

“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, March 27, 2017

Trump a ‘bulls**t artist’

That’s a direct quote from Fareed Zakaria: Trump ‘indifferent to things that are true or false, CNN, 19th Mar 2017.

But not only . . . “2 Months In, Trump May Already Own A First: Most Corrupt POTUS. Ever,” S.V. Date, Huffington Post, 20th Mar 2017.

“He has spent his whole life bulls**tting. He has succeeded by bulls**tting. He has gotten the presidency by bulls**tting. It’s very hard to tell somebody at that point that bulls**t doesn't work. Because look at the results. He sees something, he doesn't particularly care if it's true or not, he just put it out there.” [Zakaria, op. cit.]

“For two months now, Americans have not had to imagine any of this. They have been living it. As President Donald Trump enters his third month in office, he has already established at least one record, however dubious: the president most open and willing to use the prestige of the White House to enrich himself and his family.

‘He should not use his official position to promote his businesses. That doesn’t make him a good businessman. That makes him a bad president,’ said Richard Painter, the former top ethics lawyer for President George W. Bush’s White House.

“Trump’s behavior has no precedent, going back to at least the turn of the last century, ethics experts say. Even in the presidency most often associated with open corruption, it was Warren Harding’s Interior secretary, not Harding himself, who had taken bribes in the Teapot Dome oil lease scandal.

“This pay-to-play game has got to stop. He’s president of the United States. It’s corruption of government.” [Date, op. cit.]

What do we get from all that? That the West can shoot itself in the foot! Yet we are cowed – and feel inferior – we had to kick the Americans out of Clark and Subic? See how the Germans think –  because island mentality is alien to them?

Largest deployment of U.S. troops since Cold War arrives in Germany,” Eric DuVall, UPI, 7th Jan 2017. “The largest armed U.S. military brigade to be deployed to Europe since the end of the Cold War arrived Saturday at a port in northern Germany, military officials said.

“The U.S. Army's 3rd Armored Brigade Combat Team, 4th Infantry Division arrived in the port of Bremerhaven on Friday and began a days-long process of deploying heavy equipment including tanks and armored vehicles. The deployment is the culmination of a promised heavier armed troop presence in eastern Europe since the Russian annexation of Crimea in 2014.

“The move was meant to reassure nervous NATO allies the United States was prepared to respond in the event of further Russian aggression in the region.”

On the other hand, “Philippines prepares protest vs China over Panatag,” Edu Punay, The Philippine Star, 22nd Mar 2017. “Justice Secretary Vitaliano Aguirre II said the administration’s planned course of action was in accordance with Supreme Court Senior Associate Justice Antonio Carpio’s suggestion that a strong formal protest against Beijing be filed with the Permanent Court of Arbitration based in The Hague.”

Imagine how straightforward a wealthy nation like Germany deals with issues like this while we had to jump through hoops . . . and will jump through more? And, not surprisingly, we’re again in an untenable position?

In other words, we pursued freedom from the US (and the US military) in the belief that we must run the country the Filipino way – even like hell. Doesn’t Germany run their country the German way despite the presence of 34,805 US military personnel in their country?

Are we (a) self-esteem challenged or (b) do we have to overcome an inferiority complex?

Indeed, we must be friends and peers with other nations. And the more we get our act together the more and the greater the respect we get. Singapore is a teeny tiny city-state but no major nation would dare mess around with them. Love begets love. If we get the drift . . . Humanity goes with winners, not losers!

And that is why the blog brings up . . . what . . . and . . . who . . . we are. We can’t be like American kids, the ones that want independence even when they still need their parents. In other words, we must grow 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,” says Rizal.

And when we see how the West can fall flat on its face, it should in fact give us the confidence that Juan de la Cruz holds his own future, no one else. And that is why the blog raises “imagination and visualization.” We must imagine and visualize that we are the next Singapore or Asian Tiger.

We must internalize what benchmarking is and is not. It is to pick and choose best practices of others, not to make ourselves feel good by pointing at their shortcomings. Perfection is not of this world. Our accountant can tell us what net worth means. No one has only assets and no liabilities.

Is PH underdevelopment but a reflection of reality? It’s time we grow up, be better than the West and not be cowed and feel inferior. And we can start by tossing our instincts of hierarchy and paternalism – because it is why tyranny is us!

“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]

Friday, March 24, 2017

With due respect to Mr. Cusi . . .

Who will do what, when, where and how? “Cusi wants more investments in merchant power plants,” Danessa Rivera, The Philippine Star, 13th Mar 2017. “Energy Secretary Alfonso Cusi is seeking more investments in merchant power plants to further spur competition in the electricity spot market.

“Currently, 90 percent of the country’s power supply is sourced from bilateral contracts between power generators and distribution utilities. This means only 10 percent of the supply comes from the WESM.

“The DOE will undertake a study to raise WESM sourcing to 20-30 percent, Cusi said. ‘We are looking at 20 to 30 percent (from) merchant (plants). As a secretary, it’s very important for me to have the PEMC working because of the policy we are implementing.’”

Energy is ground zero if PH is to move forward as an economy, as a nation. Sadly, it is common knowledge that it takes us decades to get things done. Of course, we have a similar challenge with (a) prioritizing infrastructure development and (b) stepping up rapid industrialization starting with the JFC’s 7 industry winners, for example.

Why can’t we get anything of consequence going? The sense of identity and purpose is missing? The island mentality is overpowering? Finally, one Editorial is calling it what it is. Policing the power sector,” BusinessMirror Editorial, 20th Mar 2017. “The Philippines has one of the most expensive electricity rates in the world. The government owes taxpayers safe, reliable and affordable electricity, but its attempt to lower prices by restructuring the power sector through the Electric Power Industry Reform Act (Epira) of 2001 has not been without obstacles.”

But we’ve had this disaster for decades? And what have we been talking about? Our sound economic fundamentals?

Is it about Big Data and analytics? We’re overwhelmed by too much information that we can’t find the needle in the haystack? Is it the need to synthesize? To our writers and journalists, is it the topic sentence or crafting a headline? Or is it the Baltimore Catechism versus the Two Great Commandments? Is it Pareto’s 80-20 rule?

The blog recently talked about toilet facilities along the popular routes in Palawan. Innovation and competitiveness aren’t identified with PH? Why? We have yet to wake up to our “aha” moment that creativity is simply connecting the dots. And college dropouts can do it!

Is that the price we pay for an oligarchic economy and an elite class that is calling the shots? We like to talk about poverty yet we have accepted being the regional laggard – and, worse, that ours is a culture of impunity? We can’t have our cake and eat it too!

To develop PH needs creativity. It needs connecting the dots. And it starts with toilet facilities to elevate Palawan tourism. And it starts with energy to get PH moving forward in development. 

The anecdote goes, “Steve, you are a technology company, why are you showing me this mock iPod?” so says Bill Gates. And the response? “Music is the way to the soul, why not a thousand songs in a personal device?” And to this day Apple while threatened by Google is still the most valuable enterprise in the world. Translation: Beyond technology, innovation is being sensitive to human needs and raising man’s wellbeing; and is simply connecting the dots.

The blog talked about it before, Steve Jobs, in a Yale University course on the study of geniuses, ranks with Beethoven and Einstein.

So, to Mr. Cusi and the economic team of the Du30 Administration, how do you propose to develop the topic sentence or craft the headline for the advancement of PH? Sadly, Du30 started on the wrong foot, EJKs.

If PH was among the Asian Tigers, do you think we would have the problem of narco-politics? We may have the drug problem but will be wealthy enough to deal with it like the way the Portuguese are doing it, that is, humanely!

Or is the whole idea of being an Asian Tiger simply too much for us to imagine and visualize? If it isn’t obvious yet, the blog matter-of-factly speaks to “imagination and visualization” because they are imperative in the pursuit of innovation and global competitiveness.

“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, March 20, 2017

A sense of identity and purpose

Is that part of our make up? Let’s test it with the recent “31st EDSA Revolution Anniversary: ‘The theme for this year's celebration is, ‘A Day of Reflection,’ and that's precisely the reason why there's no pomp in this year's anniversary celebration,’ Senior Deputy Executive Secretary Menardo Guevarra said at a press briefing.

“He said people might be making comparisons between the EDSA celebrations of the Aquino and Duterte administrations. Guevarra said the government will allow protest activities as long as these follow rules. ‘This is exactly the freedom that EDSA, the EDSA Revolution wanted us to have, all right: freedom to express yourselves, freedom to rally, freedom to gather together and express your sentiments,’ he said.

“Joey Concepcion, vice chairperson of the EDSA People Power Commission, said they decided to hold a simple anniversary event on Friday instead of Saturday, February 25. Concepcion said Ramos will attend the event. But there’s no word yet about President Duterte’s attendance. Guevarra said Aquino was also sent an invite last week, but he has not yet confirmed his attendance.” [Duterte admin to hold simple People Power anniversary celebration, Karmela Tordecilla, CNN Philippines, 21st Feb 2017]

What’s the celebration about? Do we still identify with People Power? What were we supposed to have achieved with this historic event that put us on the world map? In other words, what is PH about? Can we look beyond our hometown and province or region – or our favorite political patrons or oligarchy – and identify with PH?

“PRESIDENT Rodrigo Duterte on Sunday pushed federalism anew, noting that the current system has not been beneficial for the country and the Filipino people. Duterte said that federalism was the centerpiece of his campaign and it is up to Filipinos if they will accept it or not. 

“‘A successful federalism would provide a strong president but with a parliament working independently. That will be good, it will dissipate the authority of the few holding power,’ Duterte said.” [Federal system is the best- Duterte, Jeff Antiporda, The Manila Times, 12th Mar 2017]

Are we looking at the system of government . . . but not at what and who we are? Parochial and insular; hierarchical and paternalistic; political patronage and dynasties; and oligarchic; and at the end of day, a culture of impunity?

Consider what the German Ambassador said about Federalism. “Federalism in Germany is deeply rooted historically and one of the key principles of the German Basic Law, next to and interwoven with the principles of democracy, social welfare and rule of law. In order to work, cooperation and solidarity must be carefully balanced with autonomy and democratic principles must be followed at every level.

“In order for federalism to fulfil this function of democratic control, it is crucial that democratic principles are implemented at every level. Independent institutions, an active civil society, free and critical media, the fair competition of political parties and the rule of law everywhere from the local to the national level are the indispensable pillars of a federal democratic state. Despite the variety between the states and the autonomy of each state, solidarity and cooperation among the Länder and between the Länder and the federal government is key to the functioning of German federalism.” [Close ties and the experience of federalism, Gordon Kricke, DIPLOMATIC POUCH, The Philippine Star, 16th Mar 2017]

Let’s get back to the sense of identity and purpose. “The need for purpose is one of the defining characteristics of human beings. Human beings crave purpose, and suffer serious psychological difficulties when we don’t have it. Purpose is a fundamental component of a fulfilling life.

“Why does Purpose have such a positive effect? I would suggest a number of different reasons why purpose is good for our psychologicalhealth. Firstly, it makes us less vulnerable to what I call ‘psychological discord’. This is the fundamental sense of unease we often experience whenever our attention isn’t occupied by external things, and which can manifest itself in boredom, anxiety and depression. By focusing our attention externally, and giving us a constant source of activity to channel our mental energies into, purpose means that we spend less immersed in the associational chatter of our minds – the chatter which often triggers negative thoughts and feelings. Another important factor here is that aligning ourselves to a purpose often makes us less self-centered. We feel a part of something bigger, something outside ourselves, and this makes us less focused on our own worries and anxieties. Our own problems seem less significant, and we spend less time thinking about them, and so our sense of well-being increases. 

“Purpose can also enhance our self-esteem. So long as we feel that we are successfully dealing with challenges and moving closer to our goal, our self-confidence increases. We feel a sense of competence and achievement, an enhanced ability to deal with difficulties and challenges.

“Finally, purpose is closely related to hope. Working towards a goal implies that we feel that the goal is attainable, and that our lives will change for the better once we have reached it. It implies hope – depending on our type of purpose, hope for a better life for ourselves, a fairer and more just society, liberation from suffering and oppression for others, a healthier world, and so forth. And as with purpose itself, a great deal of research has shown the positive effect of hope on well-being.

“Purpose and Evolution. Human beings are naturally dynamic. Growth is an intrinsic part of our nature. Life on earth has always been dynamic, as expressed through the process of evolution. Life has always had innate tendency to grow towards greater complexity, to become more organized, and more conscious.

“So when we feel a sense of purpose – and this is particularly the case at higher levels of purpose – we’re manifesting the creative urge of evolution, becoming its expression, which is possibly why it feels so right when we do it.” [The Power of Purpose, Steve Taylor Ph.D., Psychology Today, 21st Jul 2013]

Where is Juan de la Cruz in all this? With due respect to President Duterte, there is more to Federalism than meets the eye. More to the point, it is not the system of government that will drive our sense of identity and purpose.

And with due respect to our leaders over the last several decades, the world knows about our neighbors, the Four Asian tigers – South Korean, Taiwan, Hong Kong, Singapore. And no one points to system of government as the common denominator nor success factor. “They consistently maintained high levels of economic growth since the 1960s fueled by exports and rapid industrialization which enabled these economies to join the ranks of the world's richest nations; they share common characteristics that include a focus on exports, an educated populace and high savings rates; and are resilient enough to withstand local crises, such as the Asian financial crisis of 1997, as well as global shocks, including the credit crunch of 2008.” [Investopedia.com]

And the Four Asian Tigers surely measure up to the object of the Oxford University online course, “From Poverty to Prosperity: Understanding Economic Development.”

Here is a summary of the course syllabus: “From Anarchy to a centralized State; From centralized to Inclusive States; Economic Development needs an alignment between power and identities (e.g., the average Brit identifies with the UK yet there is the supranational union, a.k.a. the EU, to whom member states transferred some of their powers); Economic development needs polities that are centralized and inclusive; Growth through urbanization and industrialization; Economic development depends upon exploiting scale and specialization; External Influences matter for good or ill, e.g., Trade flows, Capital flows, Labor flows, and International Governance Rules.”

In other words, the journey from poverty to prosperity is a process, it is not parochial and insular, it is centralized and inclusive where power and identities are aligned, it is about urbanization and industrialization, it is exploiting economies of scale and specialization and it demands the ability to deal with external influences.

Is our island mentality getting in the way of prosperity? Is Mr. Cusi on to something? Like taking a step in the right direction? “Cusi wants more investments in merchant power plants,” Danessa Rivera, The Philippine Star, 13th Mar 2017. “Energy Secretary Alfonso Cusi is seeking more investments in merchant power plants to further spur competition in the electricity spot market.

“Currently, 90 percent of the country’s power supply is sourced from bilateral contracts between power generators and distribution utilities. This means only 10 percent of the supply comes from the WESM. The DOE will undertake a study to raise WESM sourcing to 20-30 percent, Cusi said.”

With due respect to Mr. Cusi, who will do what, when, where and how?

“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]