Wednesday, November 14, 2018

Foresight, not charity, will overcome poverty

Are we this time on the right track? Consider: “Paradigm shift from rice self-sufficiency to raising farmers’ incomes: This issue had been the core of the debate all along. To the relief of many, the draft road map without explicitly saying so, proceeds on this premise. The first four technical objectives which address increasing yield and reducing costs will raise farmers’ incomes and enable domestic rice to be able to compete with imports.

“The plan is very much a work in progress and the purpose of the Forum precisely was to harvest comments and recommendations and buy-in to the plan by significant stakeholders.

“A detailed plan is yet to be developed so what was presented was the road map in broad strokes. Basically the draft road map was very well received.

“The fact that the plan was bold enough to express targets in absolute but doable numbers reflected well on the rigor that went into the deliberation of the drafting panel. That the plan was disaggregated into provinces to consider big differences in growing conditions was also well-received.

“Assisting rice farmers and farmworkers in low priority provinces in transition recognized the fact the farms that are unproductive for rice due to lack of reliable water supply will not be able to compete and are better off cultivating something else.

“Additionally, more forward-looking reforms in land markets, basic data gathering, new institutional arrangements and innovative business modalities applicable not just for rice but also for the entire agriculture and fisheries sector were contributed by a distinguished panel …” [First steps in building consensus for a new rice sector road map, Dr. Emil Q. Javier, Manila Bulletin, 3rd Nov 2018]

This development is indeed most welcome. And since the plan is a work in progress, the blog is once again highlighting the following, the object being, for us to develop the bias of benchmarking our efforts against global standards:

“Danish Pig Meat Industry: Denmark is among the world’s largest pig meat exporters. For more than 100 years, the production of pigs and pig meat has been a major source of income for Denmark. Approx. 90 percent of the production is exported and is thereby essential to the Danish economy and the balance of trade. The Danish pig industry is among the world leaders in areas such as breeding, quality, food safety, animal welfare and traceability. This is the reason why Denmark is among the world’s largest pig meat exporters.

“Danish pig meat producers observe high standards of animal welfare, and pig farmers constantly strive to improve the welfare of live pigs. Danish pig production is characterized by high food safety standards and good animal health. Environmentally sustainable production methods are key to Danish pig production.

“Around 5,000 pig farms in Denmark produce approx. 28 million pigs annually. Most pigs are slaughtered at the co-operative abattoirs Danish Crown and Tican. In addition, a substantial number of live piglets are exported, mainly to Germany.

“Exports of pig meat account for almost half of all agricultural exports and for more than 5 percent of Denmark’s total exports. More than 70 percent of Danish pig meat production is exported to other EU countries, and the remaining part is exported to countries outside the EU.

“Danish pig meat is exported to more than 140 countries, and the largest markets in terms of volume are Germany, UK, Poland, China, Japan, Italy, Russia and Sweden.” [https://agricultureandfood.dk/danish-agriculture-and-food/danish-pig-meat-industry]

Noteworthy from this Danish experience is the number of farms involved, 5,000, and the slaughter facility that is a cooperative. In other words, we must learn to establish a sense of purpose as in the common good in order to exploit economies of scale and be on the road to innovation and global competitiveness.

It is very easy to say we will raise farmers’ incomes but if we aren’t geared to innovation and global competitiveness the undertaking will not be sustainable.

Paradigm shifts will be a true test given our hierarchical culture – more precisely political patronage and oligarchy – that lends itself to franchises and monopolies. As in: rent seeking. Our biggest enterprises are of this mold and we must open our eyes to the stark difference versus that of the Chinoys. And we have not learned ... why they dominate PH economy.

So the third telco is from Davao? As the blog has stressed time and again, Davao is near and dear to the writer’s heart having lived and worked in Davao decades ago. But if we are to meet global standards, it cannot be overemphasized that we must embrace global standards. 

It is the multiplier effect of investment – on PH economic output in general and the people’s incomes and wellbeing in particular – that we must keep an eye on and that comes from innovation and global competitiveness. In short, foresight, not charity nor political patronage will win the day for Juan de la Cruz.

Poverty is no license to cling to crab mentality. United we stand divided we fall. And so we need to keep educating our farmers about the imperative of foresight. That there is no free lunch and why an undertaking must heed the management consultancy, McKinsey, especially as we inject forward-looking reforms, e.g., "The fundamental objective in collecting, analyzing, and deploying data is to make better decisions ... Focus on the outcomes and the business objectives."

Efforts to win in the global competitive arena are not a one-off like rent-seeking. They are a constant 24/7 enterprise and why moving from a fixed mindset to a growth mindset is an imperative. And as the blog has discussed, foresight is not a cakewalk even when we Pinoys like to claim that we are a creative bunch.

What we demonstrated all along equated to “make-do” efforts that came with the euphemism, resilience. That Juan de la Cruz is resilient. And the jeepney is Exhibit A. Exhibit B is import substitution. 

And from the writer’s Eastern European friends he heard a variation of make-do that they only learned after they opened their borders to the rest of the world. It was the realization that make-do is no match to innovation and global competitiveness and why for decades theirs was the poorest nation in Europe.

As the blog has shared, even the Japanese failed to demonstrate foresight that a Steve Jobs was the one that monetized their own technology, i.e., the tiny hard drive at the heart of the iPod.

Political patronage, rent-seeking, charity, among others, instead of foresight, innovation and global competitiveness will rule us until we truly shift paradigms. 

And charity as the antidote for poverty is a hypothesis that is yet to pass the acid test of reality. 

On the other hand, what is explicit when the writer signed up as a VE (“volunteer expert”) at the instance of USAID is that he will share his expertise with a group from the poorest nation in Europe, 15 years ago. 

Sadly, we Pinoys are fixated on charity as the answer. And the only evidence we can provide is that we’re the regional laggard and with poverty levels worse than what the world has attained.

We must move beyond populist and retail and transactional politics otherwise political patronage will continue to reign, running across both extremes – spoils to rent-seeking cronies and dole outs to Juan de la Cruz.

And foresight will remain a daunting challenge until we overcome charity … is the answer.
“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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