Why are we neither here nor there? Because of our mindset and paradigm. And it will not be easy to move from a fixed mindset to a growth mindset nor to move from poverty alleviation to wealth generation.
Fifteen years ago when the writer arrived in Eastern Europe, among the first things that greeted him was the direness in their instincts. We are the poorest nation in Europe. And he introduced the concept of the GPS. That when you feel lost, you must imagine a GPS: Where are you; Where do you want to be; How do you get there.
Eight years later, they were recognized as one of the best and fastest growing companies in the EU. And since they have grown twice bigger. And more recently, Western global behemoths have been paying respects.
Which comes first the chicken or the egg? That is the problem of Juan de la Cruz, he is caught in a circular argument where there are no winners.
We cannot plan for energy development because Juan de la Cruz is too poor to pay anything more. We cannot pursue industrialization because we cannot afford to invest and compete.
What we need is poverty alleviation. Because only the Big Boys have the means to pursue wealth generation. It is classic fixed mindset.
And why the blog has discussed the coconut industry in recent postings. And also Denmark’s pig industry, a global leader, that became so because of their cooperatives – a way of life to them. As opposed to our crab mentality.
Worse is we can’t imagine obtaining technology from anywhere in the world. So we believe we must develop PH R&D. We must. But it is classic linear thinking. Even global enterprises with well-funded R&Ds develop a network of R&D partners of outsiders because of the imperative of innovation and global competitiveness. We Pinoys like to keep things within, i.e., parochial and insular.
Again, given our poor perceptive judgment, instead of keeping the PH coconut industry in the forefront of innovation and global competitiveness, we wanted the coconut levy fund to address poverty. We don’t understand that enormous wealth generation especially in the 21st century comes from innovation and global competitiveness.
And why the blog keeps plugging the writer’s Eastern European friends. They tap technology, especially state-of-the-art, from wherever. Recall they were a mere cottage industry 15 years ago operating in an old, dilapidated communist structure and utilizing manual labor. Today they are into robotics. Because they benchmark their product portfolios against the best in the world and are able to figure out which ones bring the biggest returns and largest margins.
It is how to create an ecosystem that is a virtuous circle. Did they have the resources in the beginning? They did not! That’s why the writer came as a volunteer (under the auspices of USAID) and never charged them NY levels consulting fees.
If that sounds too simple, it is. It’s called perceptive judgment, i.e., experience is the best teacher.
While we are still tied down to our “import-substitution” mentality that stunted PH growth and development. Even the once venerable AIM localized the admission exams – to make it affordable to poor, deserving Filipino students. So where are we in higher education? To meet global standards, we must embrace global standards!
And we can start with this laundry list: “The priority industries are: auto and auto parts, electronics and electrical, aerospace parts and MRO, agribusiness, chemicals, shipbuilding and repair, tool and die and iron and steel, agribusiness, IT-BPM, furniture, garments/textile/creative, materials, parts and components, construction, and transport and logistics.” [The DTI’s holistic approach to solve the trade deficit, RAMON M. LOPEZ, Secretary, Department of Trade and Industry, Manila Standard, 23rd Oct 2018]
Before talking roadmaps, the DTI must first do a global benchmarking – of the product portfolios of these industries. So that we can figure out where we must focus, i.e., those that give the biggest returns and largest margins. Because we must focus on generating enormous wealth. Not growing GDP by 7%. [Recall that the PH coconut industry changes roadmaps every time the PCA has a new leadership. It is called insanity.]
And then tap the requisite technologies from wherever. Building R&D from the ground up for these industries is a big joke. It explains why we’re the regional laggard. It is classic linear thinking.
If the DTI will push the envelope, it can then develop a rational investment cum incentive program for PH. The current incentive program is not geared to generating enormous wealth – via 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]
“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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