Thursday, January 31, 2019

A salute to Messrs. de Venecia and Habito

Recent articles penned by these gentlemen will be the predicate for the following discussion on “insanity” that will dovetail an earlier posting. It will answer the question: Why do we instinctively do the same thing over and over again … and expect a different outcome?

Here’s Speaker de Venecia, “The idea that culture itself can be the main barrier to development is not new.

“Our globalizing world needs to develop a system of ideas and ideals that will make globalization work for all our peoples. Particularly the nations and states just joining the global economy need practical lessons in ‘late industrialization’ which is achieved by learning from earlier modernizers.

“In my view, the East Asian idea of the market and the state not as competing but as complementary operating systems can become the basis of a new economic model — particularly for the poor countries entering the global economy for the first time. And I believe such a model should combine the best elements of both capitalism and socialism.

“I regard capitalism’s best element to be the individual enterprise that capitalism stimulates. Self-interest generates the entrepreneurial drive that produces invention and innovation — the motive powers of industrial progress.

“Capitalism’s principal failing lies in the progressive debasement of this ‘self-interest principle.’ Competition — unrestrained — all too easily degenerates into an every-man-for-himself ethic. And, ultimately, this kind of anarchic competition produces not only tremendous disparities in wealth and power but also despoils the global environment.

“Socialism, as we know, evolved in response to the excesses of capitalism during industrialism’s early years … Today’s social democrats contend that citizens in a political democracy should have some say in its economic decision-making as well. For only when people have a say in the economic system will once-and-for-all solutions to basic social problems such as poverty, ignorance, and disease be possible.

“The sense of community that socialism teaches is also part of its attraction for everyday people.

“As for socialism’s downside, we all know from historical experience how easily Communism degenerated into totalitarianism. But even democratic socialism is susceptible to bureaucratic tyranny — to anonymous and unaccountable civil servants making decisions better left to the market.” [The role of culture in upholding peace, human values, and economic development, FORMER SPEAKER JOSE DE VENECIAManila Bulletin, 20th Jan 2019; part of speech delivered for Speaker De Venecia, Asian Cultural Council, Siem Reap, Cambodia]

To cut to the chase, recall the efforts of the JFC behind Arangkada and the seven big industry winners. It could have been a great example of the market and the state … not as competing but as complementary operating systems. We are now into two administrations since Arangkada and we’re still bogged down, unable to move forward to undo our restrictive economy. PH oligarchy indeed holds sway given their role of kingmaker. How else to explain the zarzuela re tossing the restrictive economic provisions in the Constitution?

Enter: Economist Ciel Habito: “I’m convinced that the unending quest for knowledge, wisdom and peace would best move forward if we, as in the timeless John Lennon song, imagine a world without barriers—and work in our own respective spheres toward achieving it.

“Sometimes, we economists act like we had all the answers. That’s also often true with experts from other disciplines. For economists, it’s as if everything boiled down to a cost-benefit analysis, and all concerns about human existence could be translated into measurable value reckoned in dollars and cents.

“There’s nothing like interacting closely with a diverse group of minds from a wide range of disciplinary backgrounds and realms of experience, to humble one into realizing how little he knows and understands about how the world we’re in works.

“I’m in Yangon, Myanmar, for a two-week gathering of students and experts coming from various parts of the world, as faculty member in an ‘Experimental Winter School’ leading to the establishment of a University for Life and Peace (ULP) to be located here. I’m probably learning as much from this gathering of diverse minds as the students are. Fields of expertise in the assembled faculty span neuroscience and psychology, physics, biology, economics and business, education, philosophy, theology, history and religions, and more. Even more wide-ranging are the backgrounds of the 25 students, all of them young people engaged in or having just completed postgraduate studies.

“It’s assembled for the noble, if ambitious, mission of spearheading positive change worldwide, via the establishment of the ULP as venue for the sharing and exchange of global knowledge, and harnessing it toward achieving a world free of division, deprivation and destruction.

“The new field of behavioral economics, which won the Nobel Prize for its proponent Richard Thaler, accepts that there is much more to human economic behavior than traditional economics cares to explain.” [Knowledge, wisdom and peace, Cielito F. Habito, NO FREE LUNCH, Philippine Daily Inquirer, 18th Jan 2019]

Let’s highlight a few of the above thoughts: [T]here is much more to human economic behavior than traditional economics cares to explain. Indeed, the different fields of expertise – neuroscience and psychology, physics, biology, economics and business, education, philosophy, theology, history and religions, and more – must be brought to bear in the quest for knowledge, wisdom and peace.

And that “[T]he East Asian idea of the market and the state not as competing but as complementary operating systems can become the basis of a new economic model — particularly for the poor countries entering the global economy for the first time … And … such a model should combine the best elements of both capitalism and socialism.”

And one more thing: “[F]rom historical experience [we know] how easily Communism degenerated into totalitarianism. But even democratic socialism is susceptible to bureaucratic tyranny — to anonymous and unaccountable civil servants making decisions …”

Question: Can Juan de la Cruz process these expansive perspectives? Consider what Rizal says: “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]

And 122 years after his death which we celebrated very recently, we still read: “Filipinos are ‘accepting killings as a new normal,’” Ricardo Saludo, The Manila Times, 24th Jan 2019.

And yet we never cease to proudly proclaim our Christianity and love for Jesus and Mary.

Consider: No nation – not even the US – has won the war on drugs. The exception being Portugal that treated the challenge as a medical issue rather than a criminal problem and decriminalized it. In other words, it is not a linear, one-dimensional problem that one can easily fall into the trap of delusion. As in: “I will eliminate the illicit drug trade in 3 to 6 months.” Two years and counting, where are we?

It is now acknowledged that even after the Du30 administration is over the curse will still be around. Political will or a confirmation of our “insanity”?

More evidence? Legislating MACR and lowering the age of criminality is the answer to anarchy? Say again, what is the cause of our culture of impunity? Fr. Bulatao calls it our split-level Christianity. We shelter our children – irrespective of age – on one hand, and on the other we want to treat them like we do common criminals.

Sadly, given our parochialism and insularity, we ourselves have long been sheltered. And it will not be just the writer’s generation that will pay the price, but succeeding generations too. Worse, it will reinforce our value of hierarchy and paternalism … and the respect for patronage and oligarchy … that at the end of the day ours is a culture of impunity.

It is a vicious circle that bears the fruit of tyranny. The bottom line: We have no credibility and track record in progress and development – unable to traverse the road from poverty to prosperity – and why we’re the regional laggard.

Thanks to Messrs. de Venecia and Habito, we are being presented a glimpse of the bigger world.

Consider: Our instincts smack of short-sightedness – ZTE was a fiasco; is the third telco to follow suit, to name just two? What is reality? Firstly, we have yet to recognize that a reactive posture – as in a knee jerk or a stop-gap – reveals a lack of foresight because we take it as “Pinoy abilidad.”

And absent foresight there is no way forward for good governance to take hold. Good governance does not occur by accident. It is a deliberate effort to traverse the road from poverty to prosperity. Conversely, the root of failure while clearly manifested in incompetence can be traced to corruption and a culture of impunity. Think of why PHL is behind our neighbors in infrastructure development, industrialization, innovation and global competition.

Foresight is a rare commodity and cannot be developed by a sense of resignation that has become our prism: (a) that we are destined to be a third-world, underdeveloped, poverty-gripped nation (b) which has molded our fixed mindset and (c) why Juan de la Cruz can’t imagine and visualize PHL as a developed, wealthy, first-world nation.

And so … with the passing away of Tatang Sy, the blog is lifting a quote that guided his lifework … and will henceforth be among the quotes that will conclude every posting: “You have to have a dream, whether big or small. Then plan, focus, work hard and be very determined to achieve your goals.”

Which brings us back to Ciel Habito’s acknowledgment that beyond traditional economics, we must call upon different fields of expertise in our quest for knowledge, wisdom and peace: neuroscience and psychology, physics, biology, economics and business, education, philosophy, theology, history and religions, and more.

Sadly, given our instincts of rank and privilege, we continue to demonstrate a closed mind that we can only blame for our “insanity.”

And those who read the blog will not miss that every posting concludes with the quotes below. Recall the blog has discussed the concept of perceptive judgment, i.e., there is a body of knowledge that confirms the axiom: we are a product of our experience. 

For instance, given we are two – infrastructure development and industrialization represent one and adding innovation and global competitiveness make them two – generations behind the Asian Tigers, how can we have their perspective and view of the future when the here and now appears beyond us, e.g., it’s been 4 years since we celebrated the uptick in manufacturing yet our exports versus 10 years ago have not picked up at all?

Consider: The West because of history has led the world in the journey through civilization. And yet despite the path they paved, the ones that followed like the Asian Tigers had to adapt to a rapidly evolving world. [The operative word is adapt; think Darwin.] And neither effort was a one-dimensional exercise, the common message from Messrs. de Venecia and Habito.

Those familiar with the blog through the ten years of its existence will recognize that it has had a similar message except that it sounded like it was coming out of left field. 

Consider: The writer is a witness to how the last 50 years (i.e., 30 years based overseas and 20 out of the Philippines) evolved – in tandem with his career – not from the perspective of one nation and one culture but from different and contrasting continents and cultures. 

And ... it was at a time when progressive nations demonstrated that the requisite “ecosystem” is imperative for nations to move forward, that it takes a village to attain prosperity, not barriers. But not only, he also observed how GE, a paragon of American industrial power, began its globalization efforts only to be booted out of the Dow Index decades later.

And that … finally … brings us full circle to the following concluding quotes, to wit:

“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]
“You have to have a dream, whether big or small. Then plan, focus, work hard and be very determined to achieve your goals.” [Henry Sy Sr., Chairman Emeritus and Founder, SM Group (1924 - 2019)]
“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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