Thursday, August 30, 2018

“Isang kahig, isang tuka”

Translation: “one scratch, one peck; a poor, hand-to-mouth existence.” [https://www.tagaloglang.com/kahig/]

What about a “shortsighted and dysfunctional” PH to describe the moral of these two articles? (1) ‘Too many’ populist moves, former state economic planner warns, Elijah J. C. Tubayan, BusinessWorld, 27th Aug 2018; (2) Metro traffic authorities must produce efficient results,EditorialThe Manila Times, 27th Aug 2018.

“We have too many of those populist but economy- and business-unfriendly policies,” Ateneo de Manila University professor Cielito F. Habito said during the Ateneo Economic Briefing 2018. 

‘Why do you have to give free tuition to everybody when we already have a good law in place that says give free scholarships to promising, needy students? But then again they wanted to have a popular-looking law that everyone gets free college education …

‘That is a tremendous price tag that is impacting government finances … Mr. Habito also cited RA 10969, or the Free Irrigation Service Act, which exempts farmers with up to eight hectares from paying irrigation service fees.

“The Development Budget Coordination Committee late last year also flagged fiscal risks posed by the increase in salaries of soldiers and policemen, as well as in Social Security System pension payouts by P1,000 across the board that has cut the fund’s actuarial life by 14-17 years.”

That is probably meant as a very limited enumeration of the social programs that we take as positives because of the war on poverty – that makes us even proud given our Christian heritage. 

Isang kahig, isang tuka. Why? Because we see poverty as destiny that “development” is not in our psyche? Unsurprisingly, ours is a short-sighted and dysfunctional system? Pero hindi ma-gets ni Juan de la Cruz?

The reality is, as the blog has discussed before, foresight is a scarce commodity [which is a recent finding in the social science; yet confirms that visionary leaders are few and far between] and why the world is witness to Brexit and MAGA, for example.

In other words, Bongbong Marcos or Macagapagal-Arroyo or before her Estrada or even Duterte (father or daughter) can’t claim visionary leadership. Why? We all grew up sheltered. See below re our culture. It explains why we haven’t demonstrated the leadership qualities like those of Lee or Mahathir or Deng.

The challenge the blog continues to pose is why have our neighbors defied the conventional wisdom? If we still believe we are smarter than them we better wake up. To think logical and linear does not equate to the ability our neighbors demonstrated. We still believe monetary and fiscal interventions are all we need? And, of course, the war on drunks in tandem with the war on drugs? We need greater imagination than all of them combined.

Nor is it as easy as saying that all we need is to take out the restrictive economic provisions in the Constitution or move from a unitary to a federal system. How come? We can’t execute otherwise we would not be the regional laggard. We have been reduced to “puro daldal, satsat, sitsit.”

In a recent posting the blog commented on the challenges raised by two of our respected economists: (1) our inability to appreciably raise exports; and (2) failure in governance. But these are not brand new like Metro Manila traffic – which incidentally also exists in Cebu.

While we are delighted about the big pluses of the new Mactan airport and the new resorts in Cebu, a bit of a pause will tell us that Cebu suffers from third-world infrastructure like Metro Manila. And so we believe upgrading NAIA on top of Clark will be manna from heaven? What about connecting the dots? Luzon – from Hacienda Luisita down to Calabarzon – accounts for two-thirds of the economy. And needs the bulk of the infrastructure efforts we can muster, including two airports.

In other words, if Cebu, Davao and Cagayan de Oro each needs an airport, Luzon needs two. But beyond that, we need an industry master plan to exploit the scale of its economy. We have to move beyond OFW remittances and the BPO industry. Think Arangkada. Is Arangkada still talked about? Ningas kugon?

Of course upgrading NAIA is infinitely better than turning it into another mall. Who ever thought that badly needs a hole in the head? Talk about Metro Manila traffic. Or is this an influence of the success of our retailers – given our consumption economy? But we need more than consumption, we need investment in world-class industry if we are to become an export powerhouse.

In other words, there is a reason why we are the regional laggard. It is beyond our shortcomings in exports and good governance and Metro traffic and NAIA and Clark and free tuition and exemption from irrigation fees, etc., etc.

Let’s start with foresight. While it is a scarce commodity, are we in fact undermining it because of our instincts? Yes, to assume poverty is destiny is an example. Think Tatang Sy. Or think development; it is an exercise in learning foresight. Which is why our parents sent us to school and why we do the same for our children.

It is the law of nature. Why is it so insurmountable to Juan de la Cruz? And it boils down to our “culture” or way of life: “We are parochial and insular. We value hierarchy and the paternalism it brings. And we rely on political patronage and oligarchy given the spoils they bestow. That when all is said and done, we bite the bullet – aka a culture of impunity.”

Gising bayan!

“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]

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