“It’s the politics, stupid!”

“That is Acemoglu and Robinson's simple yet compelling explanation for why so many countries fail to develop. From the absolutism of the Stuarts to the antebellum South, from Sierra Leone to Colombia, this magisterial work shows how powerful elites rig the rules to benefit themselves at the expense of the many. Charting a careful course between the pessimists and optimists, the authors demonstrate history and geography need not be destiny. But they also document how sensible economic ideas and policies often achieve little in the absence of fundamental political change." [From Dani Rodrik, Kennedy School of Government, Harvard University; in praise of Why Nations Fail: The origins of power, prosperity, and poverty; Daren Acemoglu and James A. Robinson; 2012]

“So how does James Robinson [professor, Harvard University and co-author of “Why Nations Fail”] see the Philippines? He talked of the EDSA Revolution where the Philippines became more inclusive and democratic. However, he said there is still patronage-based bureaucracy, lack of political competition with traces of dynasty control, exchange of goods for political support, etc.  Is there any evidence of the Philippines not yet truly inclusive?  He said, it is the number of OFWs still seeking better life outside the country.” [Why nations fail (?), Flor G. Tarriela, Manila Bulletin, 10th Jun 2015; Ms. Tarriela is Chairman of PNB and a FINEX Trustee. She was formerly undersecretary of Finance.] 

How should we react to the professor?

“[Secretary Cesar Purisima (Best Finance Minister)] is optimistic about the future due to good governance, which is ‘unquantifiable.’  So what is good governance? He discussed seven elements, which he says is a journey, it’s not just talk nor fiction, but a reality: Transparency. Government Responsiveness to people’s desire. Consultation, consensus-oriented and not just mandated or handed top down. Efficient and effective. Rule of Law, Accountability and Active Participation.

“Will the Philippines succeed? What are the key success factors? Secretary Purisima named people, the government, natural endowment and the economy. He said first the Philippines is blest with 100 million population, 23 median age, demographic ‘sweet spot’ and 10 million Filipinos abroad.  The government is investing in people, especially education with the Conditional Cash Transfer and K+12 programs.  The Philippines is blest with natural resources, beautiful beaches and 5th in terms of mineralization yet Philippine growth had no help from mining.  On the economy, he paid tribute to Gov. Amando ‘Say’ Tetangco Jr. (Best Central Bank Governor) as the banking system is well managed; with low NPLs, implemented Basel 3 ahead of time, strong external position and debt level.” [Tarriela, op. cit.]

On the other hand, let's ask Juan de la Cruz: “Tubig!” “Kuryente!” The blog often talks about Maslow's hierarchy of human needs, and water and electricity belong to the most basic of necessities or physiological needs in his lingo. Why can't we provide them to Juan de la Cruz? Says Robinson, “patronage-based bureaucracy, lack of political competition with traces of dynasty control, exchange of goods for political support, etc.,” undermine nirvana – as in inclusive and democratic.

Beyond Maslow, the blog argues that we are foresight-challenged. In fairness, we must ask: How? In the first place, science says that foresight is a rare commodity. Second of all, our instincts don't lend themselves to dynamism, which in this day and age – of Silicon Valley and beyond – means a growth mindset, not a fixed mindset. 

Instead of dynamism, we bask in resilience, a euphemism for the status quo. So the blog often references the story of Eden, from where Adam and Eve were banished, and connects the dots to Easter to highlight the passion, death, and resurrection of Christ. 

Because dynamism isn't a monopoly of Silicon Valley but is at the heart of the story of creation aka the law of nature and codified by natural science and brought forward by Einstein. 

If we can pause for a moment to appreciate the wonders of creation, chances are we will be inspired to learn from it and begin to look beyond the horizon instead of embracing resilience aka status quo.

For example, how was Vietnam able to think outside the box and tap Samsung to invest $17-Billion and bring technology to them and generate exports to approximate total PH exports? 

Creation is good, so said the Creator – and so is dynamism. It is well-equipped to deal with evil whether in Eden or the Last Supper. Of course, Padre Damaso is larger than the Creator. Hitler thought so that he had visions of a superior race. 

Closer to home, Bongbong and Imee are entertaining the delusion of leading the country like their father did because it represented the golden years of the Philippines? That is not what Lee Kuan Yew said, that we begged for foreign exchange otherwise we would default on obligations that were coming due. Will they go the way of Hitler and their father too?

We in the elite class better learn our lesson. Can we put together a team that can be as good as the management teams of General Electric and Procter & Gamble, for example? GE was the yardstick for succession planning in the West that they can mold CEOs like no other environment. PG invented marketing. In the public sector, the UK civil service model was the envy of the world. Why is there Brexit?

Hint: Parochialism and insularity are delusional. If Trump and company haven't heard it yet.

It took the world over a hundred years to confirm Einstein’s theory that gravity behaves the same way in a faraway galaxy as it does in our solar system. It reinforces the science that foresight is a rare commodity.

The framework is how the writer introduced innovation and global competitiveness to his Eastern European friends who were born godless under Soviet rule. Worse, time cruelly left them behind. 

The good news is their nation dates back to the time of Jesus Christ and the likes of St. John the Baptist walked their land if the archeological finds are accurate. So the story of creation is not unfamiliar to them. 

We can take the imperative of a growth mindset for granted, but until we recognize why we can't approximate “fundamental political change” referenced by Robinson, the status quo wins out. Because “powerful elites [will always] rig the rules to benefit themselves at the expense of the many.”

The status quo is preserved in a hierarchical structure especially when human-made disasters like clockwork confront a nation like the Philippines. It comes with such grand labels as CSR (Corporate Social Responsibility) for example. Worse, it is reinforced by our instincts, to wit: We are parochial and insular. We value hierarchy and paternalism, rely on patronage and oligarchy. They make for a perfect storm – as in a vicious circle.

Who needs to develop foresight and innovation and global competitiveness when powerful elites have the market to themselves? On the other hand, as Vietnam has demonstrated, foreign investment and technology by the likes of a Samsung, for example, can equal the total exports of the Philippines. In fairness, non-business folks or non-economists will not readily appreciate the multiplier effect, especially of technology-based exports, which explains why Vietnam's poverty rate is very much less than ours.  

Moreover, Vietnam is communist yet is more open than we are. How do we expect a Samsung to pour $17-Billion and bring technology to us given our parochial and insular instincts? We need everyone in the Sy family to invest their assets in PHL if we are to be competitive against Vietnam. However, can they? Alternatively, will they?

Failing that, we can ask the next four Pinoy Forbes billionaires to invest their assets in PHL. However, can they? Alternatively, will they? Moreover, what technology can they offer that will bring us incremental exports equal to today's total PH exports?

Still, given we're incurable optimists, as the respected secretary, we are optimistic about the future. Because the Philippines is the model of good governance?

Over the last ten years, the blog has argued the counterpoint. No force appears able to upend our bias for the status quo. It is beyond “It's the politics, stupid” – as in a vicious circle.

Consider what other thinkers say about “Why nations fail.”

“The book reviews how some good regimes got launched and then had a virtuous spiral, while bad regimes remain in a vicious spiral. This is important analysis not to be missed.” [Peter Diamond, Nobel laureate in economics, 2010]

“Countries rise when they put in place the right pro-growth political institutions and they fail—often spectacularly—when those institutions ossify or fail to adapt. Powerful people always and everywhere seek to grab complete control over government, undermining broader social progress for their own greed. Keep those people in check with effective democracy or watch your nation fail.” [Simon Johnson, coauthor of 13 Bankers and professor at MIT Sloan]

Everyone is now waiting for the coming elections to right the ship that is the Philippines. As Robinson infers, “exchange of goods for political support” is the rule rather than the exception in PH.

Alternatively, we like to reference the emergence of right-wing nationalism. It is laughable especially when it is happening in the US and the UK. The West, specifically the financial community, brought about the 2008/9 Great Recession. The fallout and the contagion from the subprime mortgage fiasco via the Ponzi scheme these folks called derivatives can be placed foursquare on their laps.

Moreover, we in the Philippines were not part of this scenario because we had right-wing populism and the one-percent phenomenon in the heart of our instincts long before they became buzzwords.

We call it responsiveness to people's desire yet Robinson describes it as patronage-based bureaucracy. In case we have forgotten, recall land reform and the party-list system in particular and crab mentality in general. Well-intentioned but undermines community and the common good, as in we're foresight-challenged.

Likewise, it goes for legislative efforts including fiscal and monetary policies that we can't pull together to create an ecosystem that is a virtuous circle. They are the opposite side of the same coin, the other being our above instincts. 

The evidence? Our failure to pursue rapid infrastructure development and rapid industrialization make us ill-equipped for the 21st century, as in innovation-driven and globally competitive.

Why are we underdeveloped? Why do nations fail?

Gising bayan!

“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]

Diamond in the rough

It should remind us of Botswana and the DRC (Democratic Republic of Congo), after Russia, the number two and three biggest diamond producers; otherwise, they will mirror Chow Tai Fook (China) or Zale or Kay (which are Signet brands) and Tiffany (both from the US), the three largest diamond retailers.

Nations - especially those endowed with God-given gifts - that can not get from point A (eg, extraction) to point B (eg, high value-added) will not be unlike a diamond in the rough.

Botswana is a small country of a little over 2 million with a GDP per capita (PPP) of $ 17,000, and a poverty rate of 19.3%. The DRC is much larger with over 85 million people, a GDP per capita of $ 800, and staggering poverty of 63%.

The Philippines? We're over 100 million strong, with a GDP per capita at a fraction of Botswana's, $ 8,400, and embarrassing poverty of 21.6%.

We are in this league and not with the Asian Tigers. Unsurprisingly, our instincts of denial are through the roof. What to do? To be in denial is akin to an adolescent and why Trump is labeled narcissistic. Of course, he is over the top, and he lies matter-of-factly, beyond denies.

How come we can not get from point A to point B? Recall a very fresh white elephant we call PITX. It was meant to relieve EDSA of provincial buses - to decongest this ring road of Metro Manila. However, just like the infamy that is NAIA, we chose to live with another failure.

Do we wonder that our playing field keeps shrinking? In other words, if we are to raise ourselves to be competitive against our neighbors, we can not afford a shrinking playing field. Ditto for FDIs. There are six ways to Sunday, not one.  

The blog has discussed that we are foresight-challenged. Experience can teach us foresight despite vision being a rare commodity according to science. We are proud of our "values" as ideologues are. Of course, even the Vatican - polarized like America - is not immune from the folly that today we have two popes. See below re the coming of Christ.

If it is not apparent yet, every post concludes with a series of quotes and one of them is:  " 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]

It takes foresight to discern. How come we are so proud of the beauty of our country yet never got around to match the success of our neighbors in tourism? Does it also explain why we're generations behind in infrastructure development and industrialization? That is why innovation and global competition are way beyond us.

To innovate is to create beyond employing techniques. For example, big data and analytics are beyond analysis per the treatise of McKinsey, the consultancy, One must first have a good handle of the outcome sought, and it demands foresight.

As the blog has argued, parochialism and insularity rob us of the ability to look outward and forward. See above re our shrinking playing field. These values ​​are so ingrained because we see them as supreme. If we turn them on their heads, they come with something so Pinoy that is, our crab mentality. If we can not have it, no one can.

So to prioritize is alien to us. Enter hierarchy and patronage to dispense populism and why paternalism is our definition of wellbeing.

On the other hand, the blog has discussed Sweden's forest industry and the Danish pig industry. Both founded on community and the common good, that is, the cooperative ethos. Both are world-class and sustainable.

The bottom line: If we can not move beyond parochialism and insularity, indeed we shall forever and a day cry out that we are small fry. We are a small fry because we refuse to grow up - as in denial is akin to adolescence. 

Poverty dates back to the story of Eden. It's a profound lesson, that is, to lose everything and even to become refugees with no one to house them taught Adam and Eve that indeed the Creator made something good. 

To reinforce this goodness, Christ came and battled the ideologies, including the scribes, as well as the "imperial Roman oppression and Jewish collaboration." [Rohr, op. cit.] Which today Christians celebrate as his passion, death, and resurrection. He went against conventional wisdom and proclaimed, "he who is last shall be first." That humanity must embrace, beyond the poor, foreigners and refugees. The Statue of Liberty is a constant reminder. One wonders why they put up a replica in Tokyo.

As a development worker in Eastern Europe, the writer would not miss retelling the story of creation to introduce innovation and global competitiveness. See above re to innovate is to create.

"We are poor Bulgarians." Yes, the writer's Eastern European friends come to mind. He is flying to Sofia later tonight, and 16 years ago poverty was the excuse for every business initiative that was on the table. "We can only sell a (consumer) packaged-good for (the equivalent of) 50-euro cents because that is how the consumer grew up under communist rule." Take it or leave it. Aha! In other words, even when they are not fit for human consumption people still pay 50-euro cents.

They had to learn Maslow's hierarchy of human needs - that people are not robots. They did, and today they have seven brands that are multi-million dollar brands that deliver 107% of profits. How did they get there? In one word, innovation - or creation - based on respect for human needs. 

Think of Adam and Eve, banished from Eden, and so their physiological needs surfaced. Moreover, we now know that human necessities are not frozen; otherwise, we would be living in caves if not trees, will not have the iPhone today, and  the writer can not fly to Sofia on a Dreamliner, thanks to Boeing.

By design, the writer's Eastern European friends have an equal number of brands they developed later that are still to reach critical mass levels. It is called investment. In other words, foresight. It gives them the ability to go full circle and connect the dots. Are they done? Not by a long shot. For example, they are partnering with Amazon to sell the company's latest innovation in baby care. Recall the controversy around talc. Human needs make innovation dynamic not static.

Compare that to 42 industry road maps we are so proud to pursue in the Philippines. We do not have a single road map implemented. It is not surprising. To connect the dots for one industry is an enormous challenge, what more of 42?

Another evidence of how we are foresight-challenged and why development escapes us? Beyond the jeepney is the tricycle. Now we have the e-trike, and we're proud of it. Is it a diamond in the rough or classic "pwede na 'yan"?

What foresight and development demand is an efficient public transportation system which presupposes a virtuous circle. It includes rapid infrastructure development and rapid industrialization that will bring about innovation and global competitiveness. Please think of the Asian Tigers and how they traversed the road from poverty to prosperity. 

Let's get back to the writer's friends. They focused on one brand that today still accounts for a third of the revenues and 60% of the profits. It funds every up-and-coming investment; that they have seven state-of-the-art manufacturing facilities with the largest ones moving to robotics to respond to the growing demands from many parts of the world.

What is an economy? It is the aggregate of the goods and services it produces. So, if we are to win with 42 industries, we better come down to earth and learn foresight so that we can prioritize and connect the dots.

Where do politics and the war on drugs belong? What about dole outs from local lords and their cohort at the national level? Think Mahathir. He chose community and the common good instead of prioritizing the development of his hometown. He wanted rapid infrastructure development and rapid industrialization and begged for Western money and technology.

Today, Malaysia is not like Botswana or the DRC or the Philippines. Are we a diamond in the rough?

Happy Easter!

"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]

Are we a nation in denial?

That's lifted from "Desert the island mentality" by   Anthony Giddens , The Guardian, 14th Oct 2007. [From Encyclopedia Britannica: Anthony Giddens - British political adviser and educator. Trained as a sociologist and social theorist; director of the  London School of Economics and Political Science , 1997-2003, later professor emeritus. An influential adviser to British Prime Minister  Tony Blair , he had a concept of a " third way " -a political program not limited by the traditional left-right political dichotomy-which was seen as underpinning Blair's  Labor  government. In 2004 Giddens became a member of the  House of Lords and received a life peerage as Baron Giddens of Southgate in the London Borough of  Enfield . He has written numerous books.]

"At the moment, it seems to me, we are a nation in denial - in denial about our limited capacity to influence world events on our own, and in denial about our dependence upon our European neighbors.

"Rather than making vain attempts to pin down the idea of ​​Britishness, we should focus firmly on what kind of Britain we want.

"A solidarity society needs an over-arching definition of purpose. There is no reason why patriotism should be a monopoly of the right ... "Britain for British workers" - that's the slogan of the British National party in this country. Identical phrases pepper the speeches of far-right leaders such as Jean-Marie Le Pen and Joerg Heider. The narrow nationalism of Thatcher and Tebbit is exactly the kind from which we on the left should be trying to break away, as well as from the 'island mentality' on which it is based.

"We should focus firmly on what kind of Britain we want. It is important to redefine our national sense of purpose, but as an overall project of structural change. We should look to the future rather than the past, and we should focus upon institutions rather than only attitudes and symbols.

"At the same time we need close scrutiny of Britain's role in the wider world. Our identity as a nation does not just depend upon what we say, but upon what we do; and not only on how we perceive ourselves, but upon how others perceive us. Image-building alone has little effect, as the advocates of Cool Britannia found. National identity has to be forged in the context of geopolitical realities. Even if Britain does have the world's fifth largest economy, we are a nation of 60 million people in a world of 6 billion, and where some of the major forces affecting our lives can not be controlled even by the largest of states acting alone. "

The writer is in New York as he writes, and it's been over a month since he returned from the family's annual homecoming to the Philippines. So Baron Giddens' "island mentality" came reminiscent of the time he was in corporate America. Because then after sitting at the head office for over a month following visits to overseas locations, he would sense what corporate types call "New York-centric" aka island mentality.

In other words, the business is not in the corporate headquarters. It is out in the over 200 countries. That when the enterprise can not respond to the consumers in these different markets, it is bound to fail. Because the competition never sleeps. They are as committed to these consumers. Moreover, what is today's excellence is tomorrow's commonplace.

The writer officially retired 16 years ago and to be a volunteer development worker in Eastern Europe is a refreshing way to overcome the island mentality for one based in New York. It may be where Wall Street is and where Broadway is, and where art and culture are synonymous. However, it is still not the center of the universe. It even produced the embarrassment we call Donald Trump, that has resurrected the "Ugly American" or gringo to the Latinos. So why New Yorkers will not ever vote for the guy.

Let's get back to the Philippines. Because of the embarrassment associated with being the region's economic laggard, we would want to toot our horn time and again. It protects and preserves our self-esteem. Still, we can not be in denial. Otherwise, we succumb to inaction, to the status quo. Does it come down to island mentality?

For example, " We should focus firmly on what kind of Britain we want. It is important to redefine our national sense of purpose, but as an overall project of structural change. We should look to the future rather than the past, and we should focus upon institutions rather than only attitudes and symbols. "

Consider how NEDA captured the vision of Juan de la Cruz:  "In 2040, all Filipinos will enjoy a stable and comfortable lifestyle, secure in the knowledge that we have enough for our daily needs and unexpected expenses, that we can plan and prepare for our own and our children's futures. Our families live together in a place of our own, yet we have the freedom to go where we desire, protected and enabled by a clean, efficient, and fair government. "

On the other hand, let's dissect the challenge posed to Britain. (A) To redefine a national sense of purpose and look to the future rather than the past would come from foresight, (B) an overall project of structural change demands a "growth mindset" not a "fixed mindset," and (C) to focus upon institutions presupposes a sense of community and the common good.

Consider:  "We need close scrutiny of Britain's role in the wider world. Our identity as a nation does not just depend upon what we say, but upon what we do; and not only on how we perceive ourselves, but upon how others perceive us. Image-building alone has little effect. "

Does an island mentality explain why we are hard put to step up to the plate? Going by the ten years of the blog's existence, being on the outside looking in, our instincts of denial are palpable. In other words, if the writer had stayed put in the Philippines, he probably would not have the perspective he has developed over the decades.

The evidence? First, it was the Asian Tigers that left us in the dust. Then, like clockwork, every other nation in the region is doing the same thing. What to do? Build, Build, Build? Train 1 and Train 2? Imposing a tariff on imported rice? Competition Commission?

In short, more fiscal and monetary interventions? They are textbook prescriptions which we have adhered to for decades. Think of all the supposed reforms behind the slew of legislation that made us wonder if we must now reduce the number of our laws and statutes. The acid test is: How do we pull all these interventions together to attain an ecosystem that is a virtuous circle?

Our inexperience in development puts us between a rock and a hard place. That is why massive undertakings benefit from the market test concept for example. The key is to learn how to put a virtuous circle in place and why to have several balls up in the air is a guaranteed failure. Take two examples, the 42 industry road maps we keep working on and tourism. To prioritize is fundamental and it dates back to the story of creation.

That one bright idea does not a creation make. "Let there be light," was one great idea yet the ecosystem did not come about until the sixth day. So there is the adage, "There are six ways to Sunday." It is a grand lesson in lateral thinking and scenario planning. Sadly, because of the crab mentality, we never developed the instincts of innovation aka creation.

Recall in the case of Malaysia, Mahathir saw no compelling reason to prioritize the development of his hometown. He knew his priorities. Which in our value system is suspect and why between the local government reforms - beyond land reform - and the party-list system, we institutionalized parochialism and insularity and perpetuated political patronage and enshrined local lords that at the end of the day ours is a culture of impunity. The evidence?

You can name them. Beyond Ampatuan, for example, there are Duterte, Binay, and Marcos among countless. How many times did we replicate corruption that is the Bureau of Customs because local lords succeeded through legislation to create their local Customs branch?

Let's get back to the 42 industry road maps and tourism. Beyond the imperative to prioritize is the reality of Pareto. Forty-two industries can not deliver equal economic impact; otherwise, the Soviet empire will still be around. What to do? The writer was chatting with someone from the public sector and gave the following examples: Out of the 42 industries, take 20% or the eight that will provide the most significant economic impact. Then out of the 8 prioritize the 20% or the two that will deliver the quickest wins because winning will give us the confidence to move forward instead of being sucked by the status quo.

The key is to create an ecosystem that is a virtuous circle rapidly so that we gain the experience and learn the lessons of development - and innovation, global competitiveness and beyond.

If in tourism the best islands draw the biggest foreign tourists - especially the big spenders - then figure out the six ways to get to that virtuous circle. It means not an airport here and there but a total system - as in an ecosystem that will make these islands indeed attract these tourists. It demands to connect the dots for them - from the time they land at NAIA, go full circle until they are ready to depart sated because of a beautiful Philippine experience. 

Why NAIA? Because closing our eyes on NAIA while promoting Cebu, for example, is classic denial. We can not ever create a virtuous circle if we entertain denial. Moreover, Cebu is not the model of a virtuous circle. It is a microcosm of our deficiencies in tourism like our gated communities, where one's favorite is a diamond in the rough. 

So we need to overcome our inward-looking bias and look outward and benchmark. Why is St. Barth in the French Caribbean the playground of the rich and famous? 

Let's get back to New York. It needs to look outward and benchmark too, to Singapore and Dubai for example. So Hudson Yards came about. 

What are we missing? See above re "Desert the island mentality." Recall how the Asian Tigers shocked the world by demonstrating how to traverse the road from poverty to prosperity rapidly. Moreover, the world always goes with the winners. 

Unsurprisingly, foreign investment continues to seek them. Not to be left behind, every other nation in the region followed suit. So the Asian century is now upon us.

Are we a nation in denial?

"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]