Consider our three weaknesses as an enterprise ... or economy or nation as highlighted by Fitch: (a) lower per capita income and (b) weaker governance and (c) business environment indicators ... compared to our peers.
But why are we like an immovable object? The economist John Kenneth Galbraith comes to mind: "People of privilege will always risk their complete destruction rather than surrender any material part of their advantage. Intellectual myopia, often called stupidity, is no doubt a reason. But the privileged also feel that their privileges, however egregious they may seem to others, are a solemn, basic, God-given right. The sensitivity of the poor to injustice is a trivial thing compared with that of the rich. "
Of course we're not alone. The Great Recession (2008-2010) was brought about by American greed, more precisely, bankers and Wall Street, ie, that includes half of the population that are invested in the market. In both cases, the writer counts himself and family in.
What to do? Let's take our low per capita income and talk about rice being in the news lately.
"Rice is the last frontier of the Philippines' agricultural protection strategy relative to international trade. In spite of the country's accession to the World Trade Organization (WTO) in 1995, rice remains in its list of highly sensitive commodities, which exempted it from the removal of quantitative restrictions (QR). The use of QR on rice has been extended twice: the first until 2005 and the second until 2015. The Philippines further obtained a waiver on its commitment to eliminate QR until June 2017.
"Unfortunately, two decades after the country joined the WTO, the competitiveness of the Philippine rice industry is still in question. To be competitive, farmers and processors must be able to produce rice with the same or superior quality at costs than those of international competitors.
"Competitiveness is affected by technological capacity, market conditions, and existing domestic and trade policies of participating countries in the world market, as well as by natural endowments.
"If QR were eliminated and if prices in 2015 were used, Philippine rice (ie, regular milled ordinary white rice) at the domestic wholesale market would be more expensive than rice with similar quality (ie, ordinary white rice with 25% broken grains) coming from major exporters such as Vietnam, Thailand, and India.
"Even with 35% tariff rate, imported rice from Vietnam, the least expensive among the three, is about 21% cheaper than the domestic rice.
"Therefore, rice yield must be enhanced, and production cost needs to be reduced for Filipino farmers (at least those in irrigated areas) to be competitive.
"The Philippines can not be competitive by enhancing the rice production system alone. Parallel efforts should be made to improve its marketing system to be able to compete globally. To do this, milling efficiency should be improved ... farmers should be encouraged to plant fewer varieties ... Mechanizing the drying of paddy can also minimize the high percentage of broken rice and improve the overall quality of milled rice.
"Improving the transportation infrastructure and facilities, including the handling systems, can further reduce marketing cost." [Competitiveness of Philippine Rice in Asia; 2016; Philippine Rice Research Institute and International Rice Research Institute. 172 p.]
In other words, we are dead in the water. Not even a tariff imposition can save us. And why our farmers can not make both ends meet, reflective of our low per capita income.
What are we missing? We have to move beyond linear thinking and into lateral thinking to appreciate the imperative of creating an ecosystem and make major undertakings sustainable. But it needs forward-thinking and foresight; and for us to be outward- not inward-looking.
To be outward-looking means we would: (a) have leveraged the expertise of the IRRI, for example, to lift us up from the abyss; and / or (b) shamelessly stolen the best practice models of our neighbors, eg, consolidated as opposed to fragmented farms.
It is - surprise, surprise - a manifestation of our parochial and insular instincts. As in: ownership (aka land reform that we crow as as a demonstration of our Christian faith) is the be-all and end-all that we can not wrap our head around economies of scale as in cooperatives, for example.
More to the point, to be forward-thinking and to demonstrate foresight means we would establish a north star [as in: "Begin with the end in mind," from the 7 habits of highly effective people] to guide us in our pursuit of major undertakings like: (a) the Regional Investment and Infrastructure Coordinating Hub (RICH) of Central Luzon; or (b) defining where we must be in energy beyond "Energy Outlook: Supplying Rising Demand at Lower Cost;" or (c) beyond the empowerment of micro, small and medium-sized enterprises (MSMEs)
If we have established a north star, the question we would be answering will instead be: (a) Given Central Luzon - from Hacienda Luisita down to Calabarzon - accounts for two-thirds of the PH economy, what ecosystem must we create to sustain growth and development in the region and beyond? An ecosystem equates to a virtuous circle which in the 21st century is founded on innovation and global competitiveness.
And if we drill down to what it entails, it means an infrastructure development plan that will support specific sectors of the seven industry winners (defined by the JFC) and make PH competitive within the region and beyond; and (b) a critical piece to that is an energy development plan; and (c) a network of MSMEs that will feed into the requisite demands of innovation and global competitiveness.
One more time with feeling: "Unfortunately, two decades after the country joined the WTO, the competitiveness of the Philippine rice industry is still in question." In other words, we better fix the rice industry sooner than later and gain experience in how to : (a) demonstrate forward-thinking and foresight and (b) be outward-not inward-looking.
Otherwise we will always fall into the trap of pure insanity! Because we can not overcome unfailing mediocrity if we keep to our fixed mindset.
Mediocrity? "As Justice Leonen wryly concluded, 'The prosecution could have done better in this case. Sadly, it failed. '
"Did she not brag to media that they own everything in the Philippines? Who bungled her case? Who was the negligent prosecutor? Why did Frank Chavez stop attending the hearings?
"... Del Rosario and Chavez ... should have simply taken the depositions of the Swiss officials who issued or certified them, given that the duo frequented Switzerland precisely to find the evidence to fortify their cause. One thing is knowing a fact, quite another to prove it in court using the stringent rules of evidence. "[Why did SC acquit Imelda (?), Artemio V. Panganiban , WITH DUE RESPECT, Philippine Daily Inquirer, 30th Sep 2018]
Another evidence of weak governance? " In an in-your-face attempt to promote a favorable view of the martial law regime of Ferdinand Marcos, and to justify his own presidential ambition, the dictator's son and namesake Ferdinand 'Bongbong' Marcos Jr. has turned to the 94-year-old Juan Ponce Enrile for assistance. Agreeing to sit down with Marcos Jr. for an unusual interview ...
"His biggest problem remains his credibility - the same issue that dogged him when he turned against Marcos in 1986 ... With the passage of more than four decades, many of his contemporaries who might convincingly contradict his recollection of events have passed on.
"The nation's mood about strongmen also appears to have changed considerably ... More than any other previous president, Rodrigo Duterte has shown that Filipinos love leaders who talk tough, who curse in public, and who can intimidate their enemies by the sheer force of their personalities . 'Mood is not the opium of the people,' writes the sociologist Heinz Bude. 'Moods form a reality of their own and can not be understood solely as the reaction to biographical circumstances and systemic conditions .... [S] hifts in public mood are responsible for political shifts. '"[ An interview in quest of an audience, Randy David , PUBLIC LIVES, Philippine Daily Inquirer , 23rd Sep 2018]
And what did Rizal say? But before that, let's address the weakness of our business environment. For example, why can not we attract foreign direct investments like our neighbors do? This is where Juan de la Cruz is in bed with oligarchy and why we take it for granted that we can not open the economy.
"It is time to change our mindsets on foreign investors. We have discouraged them for decades because our rent-seeking elite did not want any competition. Our economic development suffered as a result ... We need more investors making bets on our economy's ability to grow. We should know by now we can not do it alone. Filipino First is the single biggest reason why we trail our ASEAN neighbors. Even communist Vietnam welcomes foreign investors. "[Attracting investors, Boo Chanco , DEMAND AND SUPPLY , The Philippine Star, 3rd Oct 2018]
"The argument against dynasties is that they deprive people who are more qualified from holding office ... This is a cycle. The poor support the dynasties because they need to. They can not expect help from candidates who have no funds ... This is where the problem begins. There are those who spread money around during the campaign - and try to recover it through corrupt practices while I office ... This is Philippine politics, like it or not. "[Why dynasties thrive, Emil Jurado, To The Point, manilastandard.net , 3rd Oct 2018]
And why the constant reminder from the blog: " 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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