Monday, March 11, 2019

The existing state of affairs

True or false: We have a vested interest in maintaining the status quo?

What if instead of a true or false answer we do a multiple choice, courtesy of Google? Is it (a)  Vicious circle - a sequence of reciprocal cause and effect in which two or more elements intensify and aggravate each other, leading inexorably to a worsening of the situation; or (b)  Perfect storm -  a particularly bad or critical state of affairs, arising from a number of negative and unpredictable factors; or (c)  Have a tiger by the tail - the act of having 'embarked on a course of action that proves unexpectedly difficult but that can not easily or safely be abandoned'; or (d) Paradigm -  the institutional arrangements (model, pattern, standard, prototype, archetype, ideal, gauge, criterion, paragon, exemplar) of a particular society; or (e) All the above.

Have not we all been talking about our inability to attract foreign direct investments (FDIs)? Yet the status quo persists. Because we have a vested interest in maintaining it? In our heart of hearts this is our pot of soil and we must own it, no ifs and buts. Better Pinoy oligarchy than foreigners. As in: We prefer a government run like hell by Filipinos than a government run like heaven by foreigners.

Where are we coming from? We are consistently projecting our values, instincts and biases. And it explains why we can not see beyond the horizon ... that has robbed us of valuable insights that we must learn from our neighbors. The bottom line: Juan de la Cruz suffers from a lack of foresight?

Consider: 

(A) Do foreigners own Singapore given their FDIs are at $ 1.285-T. Yes, that is a T, for trillion. While ours are a measly $ 78.79-B. What about the rest of the region? Do foreigners own them? Here are their FDIs: Vietnam = $ 129.5-B; Malaysia = $ 139.5-B; Thailand = $ 227.8-B; Indonesia = $ 251.5-B.

(B) A couple of years after we kicked out the US military bases - because we must not be beholden to colonial powers, etc., etc. - "The Chinese began their aggressive actions in Mischief Reef - not an armed attack but it was aggression just the same. The US did not stop it. "[Lorenzana contradicts Locsin on US-Philippines treaty review,  philstar.com , 5th Mar 2019]

(C) "Since Russia's invasion of Ukraine in 2014, the United States and NATO have buttressed the alliance's defenses along potential hot spots, such as the Baltic states and Poland. Four NATO battle groups now operate in the region, and a US Army brigade is on full-time rotation ... 

"Historically the US goes into areas and uses temporary facilities that [are torn] down at the end ... Here [there is] the opportunity to provide long term support to (rotational US soldiers) as well as ensure that [US] allies have the right permanent facilities to train with. "[ https://www.stripes.com/news/us-troops-building-up-polish-romanian-bases-1.539358 ]

The moral of the story? How do we learn to look beyond the horizon? Not if we see independence as absolute. Then think Rizal: "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 here's Google elaborating on the word: Tyranny - cruel and oppressive government or rule, ie,  despotism, absolutism, absolute power, autocracy, dictatorship, undemocratic rule, reign of terror, totalitarianism, Fascism.

In other words, with tyranny justice and the rule of law are not guaranteed. Surprise, surprise: " Philippine rule of law among the weakest despite improved global ranking - report,"  Ian Nicolas Cigaral ,  philstar.com , 2nd Mar 2019.

"Effective rule of law reduces corruption, combats poverty and disease, and protects people from injustices large and small ... It is the foundation for communities of justice, opportunity, and peace-underpinning development, accountable government, and respect for fundamental rights.

"Human rights watchdogs at home and abroad say most of the fatalities in the government's anti-narcotic drive are extrajudicial killings committed by cops, accusing Duterte of inciting violence and steamrolling the rule of law."
In the meantime, we continue to hedge our relationships - are we pitting China against the US? - instead of being friends with all nations? What about China's aggressive actions in Mischief Reef? 

At the end of the day, as a people and as a nation, we must seriously learn foresight and look beyond the horizon. The reason we remain underdeveloped and the regional laggard is because we've acted like ideologues. See above re FDIs, ie, beyond independence is interdependence. [Is that a curve ball? What about unfettered capitalism? Or unrestrained independence?]

Interdependence? Recall WW I & II and how the US - through FDR - became the hegemon to pull the community of nations together and embrace peace. And decades later the Brexiteers realized breaking the community is not as easy as changing one's clothes. 

As some would know, the writer lived through AEC, NAFTA and EU - where he continues to be a participant. These communities all did their respective shares in moving civilization forward, including drastically reducing poverty. Yet the universe is a dynamic 24/7 phenomenon that perfection is not of this world. The good news is progress and technology are similarly dynamic. He can be anywhere in the world yet is able to actively perform his role as team member with his Eastern European friends. 

And there is no team member that can match his experience industry-wise. Recall they were born and raised socialists under communist rule. Still, innovation and global competitiveness can not be tyrannical nor skewed discipline-wise. Yes, that is meant to be a mirror for us Pinoys to see the folly of our hierarchical and paternalistic bent. Add ideological if you will. And why the region has left us behind. Oil and water do not mix - nor can a dynamic universe and a passive people.

And think Padre Damaso too as far as we Pinoys are concerned.

And recall the Franciscan theology the blog has raised. That the God we call God can not be a small god. That goes by either / or as in dualism. Or ideology. Think how Christ battled with the scribes and the Pharisees. 

And it applies to a people's ability to manage its affairs and solve its problems too. 

Consider: "The whole idea was part of the plan to stop the estimated 15,000 provincial buses from entering Metro Manila every day and contribute to the traffic mess ... having bus terminals ... at the entrance to Metro Manila was a solution.

"It is terrible how government works. It took them years to get a project done and when it is delivered, it becomes an expensive white elephant because other things have not been attended to. Such a criminal waste of money.

"Duterte must get truly qualified people to run his flagship projects and not just his friends. What happened to PITX should embarrass the President. It is such a horrible waste. 

"With DOTr responsible for most of the Build, Build, Build projects, expect similar incompetence that will bring President Duterte shame." [DOTr project a flop (?),  Boo Chanco , DEMAND AND SUPPLY, The Philippine Star, 17th Dec 2018]

Where is the ideology? Is it our "paki system" where whoever is in charge can not say no and instead gives a wink and a nod and undermines our ability to manage our affairs and solve problems? And it happens all the time: vested interests turn on political patronage and perpetuate our culture of impunity.

What else is new?

"Would it make the Philippines a better God-fearing country with consequential values ​​for nation-building and a better life for the now and forthcoming generations if there would be a name change?

"Name change for the Philippines, whatever the arguments are, given the enormous problems that continue to pester the Filipinos every day, is no crash project." [No crash project, Editorial, Manila Standard, 24th Feb 2019]

Do we have a vested interest in maintaining the status quo? Or is it reflective of our underdevelopment and thus our inexperience in the pursuit of growth and development? As in: poor perceptive judgment? 

Inexperience connotes an either / or perspective as in dualism; while wisdom which comes from experience translates to relativism. See above re our inexperience in development. It squares the circle.

We all went through adolescence and are intimately aware of youthful indiscretion. For example, we feel very strongly about MSMEs - because they're good livelihood undertakings, that is, they address unemployment and arrest poverty to boot.

Yet if we care to figure out how the Asian Tigers and more recently Vietnam pursued development, they aggressively drove large-scale enterprises: (a) given economies of scale; and (b) to rapidly attain an industrial economy.

And indeed because of what economists call the multiplier effect of investment, these large-scale enterprises spawned subindustries that in turn paved the way for MSMEs. Japan's automotive power, for example, gave birth to a network of parts suppliers that were initially small scale and later became big themselves. 

In the Philippines we do not have this industrial base to spawn such subindustries. [Add to that the reality, which is a function of scale, that indeed the system is ... "Stacked against small business," Cielito F. Habito, NO FREE LUNCH, Philippine Daily Inquirer, 8th Mar 2019.]

In sum, there is no free lunch: See above re Juan de la Cruz suffers from a lack of foresight. But let's pause for a moment because (a) lack of foresight explains (b) why we take time and space for granted and (c) why connecting the dots is not instinctive to us. And the resulting perfect storm is our failure to attain efficient coexistence and order. That in turn puts us in the shackles of a vicious circle.

How come? Because in both large scale (ie, PH exports are flat compared to 10 years ago; with Vietnam doing 4.5 times more) and small enterprises we generate less economic output than our neighbors ... and we are left to wonder why we are the economy laggard.

And this sad state of affairs can be dissected from another perspective: (a) lack of foresight explains (b) why Pareto, ie, the imperative to prioritize, is not instinctive to us and (c) why we consistently fall into the trap of crab mentality.

Either way we are forfeiting whatever chance we have to pursue community and the common good.

The bottom line? Juan de la Cruz is paying a hefty price, ie, how can every one of our neighbors drastically reduce poverty and we can not? 

Hint: We are two generations behind: one, in infrastructure development and industrialization; and two, in innovation and global competitiveness. And so we do not have the platform of a sustainable and competitive economy. What to do?

Consider: We are parochial and insular. We value hierarchy and paternalism. We rely on political patronage and oligarchy. That at the end of the day, ours is a culture of impunity. Translation: We have a vested interest in maintaining the status quo. 

"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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