Friday, January 11, 2019

New Year’s resolutions are meant to be broken

But there's an abundance of reminders that one comes across as we get back to our daily routine. To wit:

"Jesus' first public word,  metanoeite,  referred to  a primal change of mind, worldview, or way of processing and perceiving -and only by corollary about a specific change in behavior. This common misunderstanding puts the cart before the horse; we think we can change a few externals while our underlying worldview often remains narcissistic and self-referential. "[Richard Rohr's Daily Meditation, 5th Jan 2019]

"[A] shared dream calls for positive and substantive transformation to be delivered by everyone-individuals as the ultimate governance assets; families and teams as the ultimate performance delivery units; and multi-sector groups anchored in civil society and the academe as the ultimate development and transformation agents.

"This is a tall order that demands the en masse mobilization of many live forces to be able to work properly. Indeed, it counts on the good will of many Filipinos, and for now it seems it will take a miracle for us to be able to face and take on the practical issues surrounding public governance. But this is what the Dream Philippines is about: the who, the how, and the what. "[An open letter about our Dream Philippines,  Dr. Jesus P. Estanislao ,  inquirer.net , 5th Jun 2017]

"More than Charter change, what we need is character change. Good people change others, better people change the system, the best ones change themselves. This I paraphrase from Leo Tolstoy's 'everyone thinks of changing the system but no one thinks of changing himself.' And Alexander Pope wrote, 'for forms of government let fools contest, whate'er is best administered is best.' "[Not Charter, but character, change;  RENE SAGUISAG , The Manila Times, 4th Jan 2019]

Do Tolstoy and Pope answer this challenge? "If we do not see a revolution in capitalism, then the world will be increasingly dominated by populism and socialism." [Failure of billionaire philanthropy,  Elfren S. Cruz , BREAKTHROUGH, The Philippine Star, 6th Jan 2019]

Over the holidays chatting with Pinoy friends, one who is ten thousand miles away like the writer gets a grasp of the gut level issue re PH underdevelopment.

That at the end of the day, we are not predisposed to change. Pinoy kasi! Why? Look at the latest rating of President Duterte, did the A and B classes drive it up, not lower? Because people still are able to go about their business. Even the biggest enterprises are pleased and raking it in.

In the meantime, recall what economist Ciel Habito laments: "The sad reality is that it's clearly something we're doing domestically that is leading us to perform so differently, and so badly, compared to our neighbors, and we only have ourselves to blame for our unique (and alarming) performance. "[Our yawning trade gap,  Cielito F. Habito , NO FREE LUNCH, Philippine Daily Inquirer, 18th Dec 2018]

Consider: Electronics related products are our biggest exports at roughly 45%. And Ayala's IMI is in the business. News report: Ayala chip-maker IMI's net income up 21% as revenues breach $ 1B in 2017.

But what is IMI's business? " Integrated Micro-electronics, Inc. (abbreviated as IMI,  PSEIMI ) provides electronics manufacturing services (EMS) and power semiconductor assembly and test services (SATS) with manufacturing facilities in  Asia ,  Europe , and  North America . Its headquarters is located in  Biñan ,  Laguna ,  Philippines . "[Wikipedia]

It is assembly and services. In other words, it is an intermediate-product or a third-party provider not an end-user industry. And this business model has become our DNA, eg, garments, export processing, BPO, etc. And why PH industrialization is half-baked, resulting in our stagnant export initiatives. 

Consider our exports vs. Vietnam's. Most current: PH =  US $ 48.2-B; Vietnam = $ 214.1-B. Ten years ago: PH = $ 49.32-B; Vietnam = $ 48.07-B.

Then consider (a) what and (b) how long it will take to overcome this 10-year gap and revenue gap in exports; and (c) Vietnam's lead in FDIs: $ 129.5-B against our $ 78.79-B.

In the meantime, a swallow does not make a summer and why foresight is a constant theme of the blog. Four years ago the writer raised the challenge at both the Ateneo and UP economic briefings that the uptick in manufacturing was not to crow about. 

Because until we make the requisite structural fix - ie, infrastructure development, industrialization, FDIs and good governance, among others - and gear up PH economy to be innovation-driven and globally competitive ... we will continue to perform badly in the global arena.

And these are our five top companies that can drive exports: San Miguel (industrial conglomerates), PLDT (telecommunications services), Ayala (industrial conglomerates), Aboitiz Equity Ventures (industrial conglomerates), Alliance Global Group (industrial conglomerates).

Four are conglomerates and one is engaged in services. They are reflective of 20th century enterprises - think of GE, once the paragon of American industrial power, recently booted out of the Dow Index - and can not be characterized as leaders in innovation and global competition.

Of course given our restrictive economy, these enterprises are raking it in. Which explains our bias to preserve the status quo. In the first place, to shift paradigms is not a cakewalk that in turn undermines forward-thinking. And ... why be outward-looking when it's a struggle?

The bottom line: Who will reject the spoils courtesy of a third-world, underdeveloped and poverty-gripped nation - and where rank has its privileges with no command responsibility to boot? In other words, our worldview aka parochial and insular will explain our inability to shift paradigms and why we are stuck in our fixed mindset. If we are forward-thinking and outward-looking, we would learn from the South Koreans who beat the Japanese in their own game. So that instead of Sony or Toshiba, the world is today talking LG if not Samsung.  

Several years ago a senator pointed at oligarchy's influence and why we keep to our restrictive economy. Should we hear from him again?

On our export radar screen there are lesser known smaller enterprises that can be nurtured. But then again, these entities must recognize that the global arena demands lots of foresight and big dreams: Acbel Polytech Philippines (electric static converters, primary batteries); Calfurn Mfg. Philippines (bamboo / wood furniture, kitchenware, tableware); Yuenthai Philippines (shirts, blouses); Pacific Paint Boysen Philippines (polymers, oils); Aruze GA Philippines Branch (machine tools, printers, copiers, operated games).

What to do? Let's get back to Dream Philippines and Dr. Estanislao: "We are the who, being called to change our mindset about who should take the lead in the governance of our public affairs. For too long and on the part of too many, we have assumed that it should rest only on the shoulders of our President and, to some extent, on the shoulders of our other elected and appointed public officials. But governance only from the top down has never been all that effective, especially in our country. The challenge, and the revolutionary way, is to complement it from the bottom up.

"As responsible citizens, we must demand leadership that will realize our Dream Philippines in the long term. Elected and appointed officials come and go. They are subject to the term limits imposed by law. We therefore need civil society organizations, think tanks, universities, and other citizen groups to take up the cudgels for articulating, monitoring, and assessing a long-term strategy for public governance. "

And let's recall a recent posting in the blog: In the 21st century beyond (a) structural interventions there is the imperative of (b) innovation and global competition. Simply put, we are two generations behind and why we can not seem to see beyond the horizon ... and may have fallen into the Dunning-Kruger effect Paul Krugman speaks to ... and why we can not figure out how deep down the abyss we are. 

Putting our best foot forward as in Pinoy optimism, if it is not obvious yet, is in reality a manifestation of denial. That before Juan de la Cruz can right the ship we call the Philippines, he must first right himself. And why we can not shed our fixed mindset and develop a growth mindset. Which in turn explains our inability to develop our sense of foresight. 

Consider: Then we could not be a Singapore. Or even a Thailand. Today we can not even be a Vietnam. Let's just take our eye away from the ball and talk isms. [If NAIA can embarrass us, should not this embarrass us many times over?]

Why? Here's something from the work of Dr. Carol Dweck, Stanford University, so that we can compare and contrast the perspectives of the growth mindset versus the fixed mindset: "Growth mindset: Failure is an opportunity to grow; I can learn to do anything I want; Challenges help me to grow; My effort and attitude determine my abilities; Feedback is constructive; I am inspired by the success of others; I like to try new things.

"Fixed mindset: Failure is the limit of my abilities; I'm either good at it or not; My abilities are unchanging; I can either do it, or I can not; I do not like to be challenged; My potential is predetermined; When I'm frustrated, I give up; Feedback and criticism are personal; I stick to what I know. "

What to do? "This I paraphrase from Leo Tolstoy's 'everyone thinks of changing the system but no one thinks of changing himself.' And Alexander Pope wrote, 'for forms of government let fools contest, whate'er is best administered is best.' "[Saguisag, op. cit.]

"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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