Habit. Paradigm. Mindset.

We can add static thinking, as opposed to dynamic thinking, also perceptive judgment to explain why habits, paradigms, and mindsets are hard to break. Take Juan de la Cruz and why the Philippines remains underdeveloped and the regional laggard.

Throw in sovereignty and colonialism too. Because “sovereignty” is a given, we must reject colonialism. It is one or the other, as in dualism. Then consider: At the other end of the spectrum or continuum is relativism. A continuum connotes dynamic thinking, not static thinking – as in inside the box thinking.

The bottom-line? To be able to sift through these instincts presupposes one’s perceptive judgment is informed by experience, in development, for instance. In the absence of experience, what do we do?

“How does a nation deal with crisis? Why do some nations recover from the trauma and other nations are unable to cope?

“Over the years, crisis therapists have learned why people do (or don’t) navigate crisis successfully. For example: they acknowledge they have a problem and take responsibility for dealing with it; they separate core values that won’t change from bad habits that need to change; they seek help from those who have dealt with similar difficulties. But it isn’t strange at all; it’s revealing.

“[Nations are like] individuals in confronting crisis. [The] first step in resolving a crisis, for a nation or an individual, is the acknowledgment that a crisis exists. Denial is a frequent excuse. Nations and individuals accept national and individual responsibility to take action to solve problems, or else deny responsibility by self-pity, blaming others and assuming the role of victim.” [Nations in crisis, Elfren S. Cruz, BREAKTHROUGH, The Philippine Star, 23rd May 2019]

The characteristics of self-pity, blaming others, and victimhood had been well-articulated in the West as an excuse, especially in America given decades of prosperity that defined it as a middle-class nation. Then came the 2008 Great Recession. People pinned it on Wall Street for its role in the financial crisis. Fittingly, the Occupy Wall Street protest movement was born: To raise the issues of social and economic inequality, greed, corruption, and the undue influence of corporations – particularly the financial services sector – on government. [Wikipedia]

Let’s get back to the Philippines. We haven’t established ourselves as a middle-class nation. Granted we are a very young country. On the other hand, the Asian Tigers, and even China were able to leapfrog development. Sovereignty and colonialism, for example, never figured in their respective journeys – from poverty to prosperity.

“Seek help from those who have dealt with similar difficulties. [It] isn't strange at all; it's revealing.” [Cruz, op. cit.] Over the lifetime of the blog, it has discussed the Asian Tigers countless times and how Lee and Mahathir shared their collective development experience with Deng: Beg for Western money and technology.

Which of our neighbors lost sovereignty or subjected to colonial rule while begging for Western money and technology? See above re denial. Then consider: We are parochial and insular. We value hierarchy and paternalism, rely on political patronage and oligarchy, that at the end of the day, ours is a culture of impunity.

Have we unwittingly embraced a culture of impunity given our concerns re sovereignty and colonialism? See above re perceptive judgment – i.e., an experience-based capacity to navigate the continuum across the extremes of dualism and relativism.

If we try to trace where the Asian Tigers and China were in the continuum as they traversed the journey from poverty to prosperity, most likely they were farther away from dualism than we are. China demonstrated it by pursuing capitalism without giving up communism, for example.

In other words, they were not ideologues.

Then consider: “Fascist leaders were the 20th-century manifestations of what classical Greeks called ‘demagogues.’ [As] Plato observed, demagogues are the product of a process of ‘political decay,’ specifically when an oligarchy corrupts the best values of a city-state and besmirches the aspirations of a democratic polity.

“[Today’s] strongmen populists are waging a war against no less than the Enlightenment values. This new breed of demagogues [is] contemptuous of liberal democratic ideals and practices, while enthusiastically espousing the use of force to resolve deep-seated social conflicts. At the most fundamental level, they skillfully and unabashedly tap into the darkest instincts of the electorate. [Alt-populists: How to beat demagogues, Richard Heydarian, HORIZONS, Philippine Daily Inquirer, 28th May 2019]

Are our aspirations indeed besmirched that foresight to us equates to the war on poverty instead of the pursuit of development, i.e., to traverse the road from poverty to prosperity?

How do we move from static thinking to dynamic thinking? For instance, we view China as an economic and military power that must be our friends. Nothing wrong with that, but why haven't we considered learning from them? See above, i.e., seek help from those who have dealt with similar difficulties. It comes down to the same old paradigm, which explains why we have not learned from the Asian Tigers. In contrast, the Vietnamese are going by their playbook.

If dynamic thinking is outside our instincts, how can we keep up with technology, for example? “Technology is changing the way people live in our world today whether we are ready for change or not. Countries resistant to change or simply not ready for change, will find it very difficult to compete against nimbler economic and political rivals.” [Keeping up with technology, Boo Chanco, DEMAND AND SUPPLY, The Philippine Star, 27th May 2019]

What have we created for ourselves? Is the following the answer? “A chance to boost inclusive lending after banks reserve cut,” EDITORIAL, The Manila Times, 25th May 2019.

“MSMEs make up 99 percent of all business establishments in the country. The agriculture sector comprises more than 30 percent of the country’s total workforce. That combined P210 billion in newly available loanable funds would generate several times that level in agricultural and small business productivity, new jobs and personal incomes, and increased business and consumer spending if that amount was applied correctly to these areas.

“To ensure that it is, the BSP should perhaps consider more aggressive tactics to ensure banks’ compliance with the lending mandates, which, after all, are not mere banking regulations but spelled out in law.

“For example, instead of levying fixed penalties on banks that miss the targets, the central bank could adjust the RRR on an individual basis, increasing an erring bank’s RRR by an amount equal to its deviation from the mandated lending percentage. Other means to encourage banks to comply with the standards may also be available.

“In this way, the BSP can better support the strategy of the country’s economic policymakers and help to achieve financial inclusion in a substantial way.”

As the blog has discussed often, interventions like this from the Central Bank as well as other monetary and fiscal policies will not make a dent because we are still operating within a very limited pie.

Specifically, PH GDP per capita at $8,400 pales in comparison to these neighbors: Indonesia = $12,400; Malaysia = $29,100; Thailand = $17,900. 

We are ahead of Vietnam’s $6,900, yet their poverty rate is much lower than ours: 8% vs. 21.6%. Why? Because of the more significant multiplier effect of exports, where they lead us by a mile: $214.1-B vs. $48.2-B. Vietnam’s exports engine is on a tear. 

Bloomberg reports (28th May) that its economy is poised to be bigger than Singapore. Consider how we have long conceded that we can’t be a Singapore. In the meantime, (a) US orders from Vietnam surged 40% in the first quarter; (b) global investors have been lining up to be a part of the Vietnam narrative; (c) strong FDI from China and Hong Kong in the first four months of this year may well mark the beginning of a new trend.

Still, it does not mean Singapore is giving ground. From Bloomberg (28th May) as well, “Singapore dethrones US to top World Competitiveness Rankings.”

Do we appreciate the extent of our handicap? Consider too the Ps210 billion in newly available loanable funds from the banks’ reserve cut, for example, and hold them up against the FDIs (foreign direct investments) held by these countries: Indonesia = $251.5-B; Malaysia = $139.5-B; Thailand = $227.8-B; Vietnam = $129.5-B. What about PH? $78.79-B. Gising bayan!

Likewise, the blog has repeatedly discussed the efforts of these neighbors in pursuit of rapid industrialization, including Vietnam, and why they can deal with poverty beyond our penchant for rhetoric and wishful thinking.

Let’s hear from our economic managers: “THE government needs to spend P1 trillion on infrastructure if it is to meet a growth target of 6% in 2019, Finance Secretary Carlos G. Dominguez III said, as he detailed ‘catch-up' measures to facilitate spending delayed by the stalled 2019 budget." [₱1 trillion in public works needed to hit GDP goal, Charmaine A. Tadalan, BusinessWorld, 27th May 2019]

Granted this is all we can aspire for in 2019, we need to hear from our economic managers how we are going to traverse the road from poverty to prosperity. Indeed, we are playing catch-up, but it is not limited to 2019. We are playing catch-up big time. See above re GDP, exports, poverty, and FDIs.

Habit. Paradigm. Mindset. Static thinking. Dynamic thinking. Sovereignty. Colonialism.

To be able to sift through these instincts presupposes one's perceptive judgment is informed by experience, in development, for instance. In its absence, what do we do?

“Seek help from those who have dealt with similar difficulties. But it isn’t strange at all; it’s revealing.” [Cruz, 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]

“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]