Wednesday, July 31, 2019

“Pinoy kasi” is to conform

It comes from our instincts, to seek harmony, for example. Psychology confirms that culture can shape the way people think. This finding has gained traction over the past two decades and is a departure from the previously held judgment that basic cognitive processes are universal.

Settlers coming from another region within the same country can be different from locals, especially when their purpose is to seek fortune. They develop the frontier spirit of individualism, a subculture if you will. [https://www.apa.org/monitor/feb06/connection].

Does this also explain why Chinoys dominate the Philippine economy? While they have embraced Pinoy culture, given their ethnicity, they have a lesser tendency to conform with the rest of us to a tee.

Consider: “Conformity is the tendency to align our attitudes, beliefs, and behaviors with those around us. It’s a powerful force that can take the form of overt social pressure or subtler, unconscious influence. [We] like to think of ourselves as individuals, the fact is that we’re driven to fit in and that usually means going with the flow.” [https://www.psychologytoday.com/us/basics/groupthink]

Let’s then ask ourselves: Why is ours a culture of impunity? As the blog maintains, it comes from our instincts to wit: 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.

Unsurprisingly, we applaud EJKs in the name of the war on drugs despite the condemnation by the community of nations. Worse, we can’t offer a prognosis, i.e., will we eliminate the drug problem by this path we took? In other words, because of the pressure to conform, we suffer from groupthink.

“Groupthink occurs when a group of well-intentioned people makes irrational or non-optimal decisions that are spurred by the urge to conform or the discouragement of dissent. This problematic or premature consensus may be fueled by an agenda or simply because group members value harmony and coherence above rational thinking.

“In a groupthink situation, group members refrain from expressing doubts and judgments or disagreeing with the consensus. In the interest of making a decision that furthers their group cause, members may ignore any ethical or moral consequences. 

“Risky or disastrous military maneuvers, such as the escalation of the Vietnam War or the invasion of Iraq, are commonly cited as instances of groupthink. But while it is often invoked at the level of geopolitics, groupthink can also refer to subtle processes of social or ideological conformity.” [https://www.psychologytoday.com/us/basics/groupthink]

Consider: Why can’t we traverse the road from poverty to prosperity? The American Psychological Association confirms that recent research suggests that Westerners and East Asians see the world differently.

“The researchers have found increasing evidence that East Asians, whose more collectivist culture promotes group harmony and contextual understanding of situations, think more holistically. They pay attention to all the elements of a scene, to context and the relationships between items. Western culture, in contrast, emphasizes personal autonomy and formal logic, and so Westerners are more analytic and pay attention to particular objects and categories.”

What’s the bottom line? Our neighbors awed the rest of the world and earned the recognition as Asian Tigers, because of the economic miracles they demonstrated.

In the meantime, they left us in the dust as the regional laggard because our instincts spell conformity. “Pinoy kasi” is to conform.

Why can’t we decide to learn from our neighbors instead of reinventing the wheel? “Beg for Western money and technology,” the mantra Deng heard from Lee and Mahathir and China did and so did Vietnam. The outcome? They were able to jumpstart industrialization that brought them well on their way to prosperity.

Here’s what Psychology says about decision-making: “We make some choices quickly and automatically, relying on mental shortcuts our brains have developed over the years to guide us in the best course of action. [When] making a decision, we form opinions and choose actions via mental processes which are influenced by biases, reason, emotions, and memories.

“Decision-making usually involves a mixture of intuition and rational thinking; critical factors including personal biases and blind spots are often unconscious, which makes decision-making hard to fully operationalize, or get a handle on.

“A heuristic is a mental shortcut that allows an individual to make a decision, pass judgment, or solve a problem quickly and with the least amount of mental effort.”

Let’s pause and reflect on how our instincts have influenced not only our “kuro-kuro” but also strong held beliefs, and consequential decisions we’ve made as a people and nation. For example, why can’t we demonstrate and proactively seek FDIs? We wrote the Constitution not to attract FDI, a confirmation of our parochial and insular bias that we rationalize as the expression of patriotism and nationalism.

Enter: leadership. We need guidance that can lead us to overcome groupthink.

Consider: “How could I have been so stupid?” President John F. Kennedy asked that after the Bay of Pigs fiasco. He called it a “colossal mistake.” It left him feeling depressed, guilty, bitter, and in tears. One historian later called the Bay of Pigs, “one of those rare events in history — a perfect failure.”

“What happened? In 1961, CIA and military leaders wanted to use Cuban exiles to overthrow Fidel Castro. After lengthy consideration among his top advisors, Kennedy approved a covert invasion. Advance press reports alerted Castro to the threat. Over 1,400 invaders at the Bahía de Cochinos (Bay of Pigs) were vastly outnumbered. Lacking air support, necessary ammunition and an escape route, nearly 1,200 surrendered. Others died.

“Declassified CIA documents help illuminate the invasion’s flaws. Top CIA leaders blamed Kennedy for not authorizing vital air strikes. Other CIA analysts fault the wishful thinking that the invasion would stimulate an uprising among Cuba’s populace and military. Planners assumed the invaders could simply fade into the mountains for guerilla operations. Trouble was, eighty miles of swampland separated the bay from the mountains. The list goes on.

“Yale social psychologist Irving Janis felt that Kennedy’s top advisors were unwilling to challenge bad ideas because it might disturb perceived or desired group concurrence. Presidential advisor Arthur Schlesinger, for instance, presented serious objections to the invasion in a memorandum to the president, but suppressed his doubts at the team meetings. Attorney General Robert Kennedy privately admonished Schlesinger to support the president’s decision to invade. At one crucial meeting, JFK called on each member for his vote for or against the invasion. Each member, that is, except Schlesinger — whom he knew to have serious concerns. Many members assumed other members agreed with the invasion plan.

“Schlesinger later lamented, ‘In the months after the Bay of Pigs I bitterly reproached myself for having kept so silent during those crucial discussions in the cabinet room.’ He continued, ‘I can only explain my failure to do more than raise a few timid questions by reporting that one’s impulse to blow the whistle on this nonsense was simply undone by the circumstances of the discussion.’

“Have you ever kept silent when you felt you should speak up? President Kennedy later revised his group decision-making process to encourage dissent and debate. The change helped avert a nuclear catastrophe.

“Stung by the Bay of Pigs debacle, President Kennedy determined to ask hard questions during future crises. A good opportunity came eighteen months later.

“In October 1962, aerial photographs showed Soviet missile sites in Cuba. The missile program, if allowed to continue, could reach most of the United States with nuclear warheads. Kennedy's first inclination was an airstrike to take out the missiles. His top advisors debated alternatives from bombing and invasion to blockade and negotiation.

“Kennedy's decision-making process — though imperfect — had evolved significantly. He challenged military leaders who pressured him to bomb and invade. He heard the CIA's case for airstrikes and Stevenson's counsel for negotiation. Advocates for different views developed their arguments in committees then met back together. Robert Kennedy later wrote, ‘The fact that we were able to talk, debate, argue, disagree, and then debate some more was essential in choosing our ultimate course.’ Many groupthink mistakes of the Bay of Pigs, in which bad ideas went unchallenged, had been avoided.” [https://probe.org/jfk-and-groupthink-lessons-in-decision-making/]

Note all it took is eighteen months for Kennedy to revisit his decision-making process. On the other hand, over a hundred years ago, Rizal already admonished us re our love for tyranny. “Pinoy kasi” is to conform.

Look around us. Do we see anything on the horizon that says "Pinoy kasi" has the propensity to overcome groupthink?

Gising bayan!


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]

Thursday, July 25, 2019

Shortsightedness

“Killing people in the name of the war on drugs – forget about whether it’s a crime – is shortsightedness. What experiential or body of knowledge can we cite to make this the mantra of a nation of over a hundred million supposedly God-loving people?

“The bottom line: We need the Chief Executive to demonstrate leadership in the pursuit of an industrial economy, not in killing people in the name of the war on drugs. If we want to lift Juan de la Cruz from poverty, we must recognize that industrialization is ground zero.

“Then the Chief Executive must lead the nation to acquire the knack for innovation and global competitiveness rapidly. Industry per se is just a platform. We are eons behind, way beyond the 20-year lag we acknowledge in infrastructure. 

“With due respect, leadership cannot delegate the challenge to traverse the road from poverty to prosperity to the economic managers. To delegate accountability is abdication.

“We can't move the needle forward until we shift paradigms and doggedly pursue an industrial economy, and we can start with agribusiness. Moreover, to jumpstart industry, we can’t keep talking about FDIs. We must demonstrate and proactively seek them. 

“None of this is earthshaking or rocket science. Our neighbors have done it; if we can only overcome Pinoy parochialism and insularity. No man is an island.”

That's from a recent posting; the operative word being “shortsighted.”

Here’s Google with its synonyms: Unable to see things clearly unless they are relatively close to the eyes; nearsighted; myopic; lacking imagination or foresight. Expedient, shortsighted solutions to a problem. Narrow-minded, improvident, unadventurous, small-minded, short-term, insular, parochial, provincial. What about the antonyms? Far-sighted, imaginative.

Consider: “There has been much talk about helping small businesses become the backbone of a prosperous economy even in previous administrations, yet micro-entrepreneurs still struggle to survive. There is a law—Republic Act No. 9501, or the Magna Carta for micro, small and medium enterprises (MSMEs), signed on May 23, 2008—that should guide the government in growing this sector, but its implementation leaves much to be desired.

“The MSMEs’ predicament should prompt the government to require banks to recognize the key role MSMEs play in the Philippine economy, and to allocate more of their money to help these MSMEs prosper. Perhaps it can use its regulatory powers if moral suasion fails. There are other problems that MSMEs face, including red tape in dealing with permits from local government units. However, the most pressing need remains the lack of access to bank financing that is being filled by usurious lenders. It’s about time this problem was addressed squarely and firmly.” [Micro entrepreneurs’ real problem, EDITORIAL, Philippine Daily Inquirer, 23rd Jul 2019]

Note we have this 11-year old law to help small businesses. It won't be a surprise if we have been talking about access to bank financing for even longer than that. It sounds logical, especially if we read the rest of the above Editorial: “The World Bank earlier noted that 81.2 percent of Philippine businesses relied on internal funds to finance expansion or keep themselves afloat and that only 0.1 percent of them could access bank financing, which is a key ingredient of growth.”

What if we toss our insular and parochial view and look at Malaysia, for instance?

“Mahathir came to power in 1981 and was the first non-aristocratic leader of Malaysia.

“He is credited with replacing colonial subservience with national pride and raising a country from the Third World to developed world status at an astounding pace.

“Mahathir also ambitiously pursued economic reforms, such as orienting the economy toward the production of export goods, promoting joint ventures with Asian firms, and privatizing many state industries.

“Mahathir bin Mohamad was the leading force in making Malaysia into a major industrial power. He is credited with turning Kuala Lumpur into a modern city with (for a while) the world’s tallest building and high-tech industrial areas but criticized for ignoring the villages and provinces. Even, his home province of Kedah seems undeveloped and stuck in a time warp.

“Mahathir developed the ‘Malaysia Can’ slogan in 1993 and developed the Vision 2020 program in which he planned to make Malaysia a fully developed country with 70 million people (compared to 20 million in 1998) by the year 2020.

“Mahathir put much money into expansive infrastructure projects … and high-tech development even when Malaysia was suffering an economic crisis. Mahathir once called himself a ‘cyber addict.' He was one of the first world leaders to have his blog and website and said he wanted to create a paperless government in Malaysia.

“Vision 2020. The aim [is] to turn Malaysia into a fully industrialized country and to quadruple per capita income by the year 2020. It will require the country to continue ascending the technological ‘ladder' from low- to high-tech types of industrial production, with a corresponding increase in the intensity of capital investment and higher retention of value-added (i.e., the value added to raw materials in the production process) by Malaysian producers.

“One of Dr Mahathir's ambitions was to make Malaysia into an Asian Silicon Valley. Foreign companies were invited to invest in a ‘Multimedia Super Corridor' between the new international airport and the twin Petronas Towers, which rise like gigantic pewter cocktail shakers in the center of Kuala Lumpur. An international committee of experts, including Bill Gates, advised Dr. Mahathir that, if he wished to attract foreign investment, censoring the Internet would be unwise.

“Mahathir sought to shake the colonial past, to remake his county and people much as he has transformed the natural landscape of Malaysia. Omar bin Sidek, a 91-year-old with a wispy white beard, remembers the long years when his town of Dengkil in Selangor state was a modest jungle outpost amid vast oil palm plantations, long a mainstay of the Malaysian economy. 'Ooh, I'm speechless to describe the change,' said Omar, squinting to recall life before Mahathir's major public works came to this area 25 miles south of Kuala Lumpur, the capital.

“While the export of raw material remained a vital part of the Malaysian economy, manufacturing became more of a focus under Mahathir. Essential manufactured goods have included rubber gloves, catheters, rubber-threads, room air conditioners, semiconductors, and audio-visual equipment.

“By the 1990s Malaysia had become the world's largest exporter of semiconductors, an industry that dates to the mid-1970s when many U.S. and Japanese companies set up factories in Malaysia. At that time, there was also a trend to produce more assembled products like cameras and VCRs from semiconductors in Malaysia.

“Malaysia's rapid development has been attributed to the transparency of government policies, its educated and skilled workforce, well-developed infrastructure, excellent communications facilities, and efficient bureaucracy.

“High tech industries developed in Malaysia in the 1990s and 2000s included advanced electronics, scientific instruments, biotechnology, automated manufacturing systems, electro-optics and non-linear optics, advanced composite materials, optoelectronics, software engineering, alternative energy sources, and aerospace.

“Malaysia in the 1990s was reminiscent of South Korea in the 1980s and Japan in the 1960s and 1970s, when people are intoxicated with their new affluence and happy to leave their poverty behind them.

“Over these three decades, Malaysia accomplished a transition from a primary product-dependent economy to one in which manufacturing industry had emerged as the leading growth sector. Rubber and tin, which accounted for 54.3 percent of Malaysian export value in 1970, declined sharply in relative terms to a mere 4.9 percent in 1990.” [http://factsanddetails.com/southeast-asia/Malaysia/sub5_4a/entry-3627.html]

Are we or aren’t we shortsighted aka insular, parochial, provincial? See above re Google.

Do we want to cry just reading how a neighbor demonstrated what leadership is and what it takes to be far-sighted and imaginative?

On the other hand, we aren't looking at MSMEs any different from subsistence farming, i.e., as livelihood undertakings.  Ditto for the OFW phenomenon. Industrialize. Industrialize. Industrialize. 

Of course, we can’t do it on our own. Not even with our Forbes billionaires and oligarchy. Beg for Western money and technology, so counseled Lee and Mahathir to Deng. Even Vietnam heeded it, but not Juan de la Cruz. Adapt or perish. 

It is worth repeating, to jumpstart industry, we can’t keep talking about FDIs. We must demonstrate and actively seek them.

We must look beyond the here and now, including what leadership is and isn’t. 

We have a humongous challenge; our shortsightedness comes from our instincts of parochialism and insularity. 

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]

Monday, July 22, 2019

Adapt or perish II

“To him, the Philippines should not be in the middle of the pack of emerging countries but should lead it. He aches for the country to take its place among the exclusive group of progressive nations. This ache is where his drive stems from.

“I got to understand where the [Transportation] Secretary's impatience stems from. Many times, during our conversation, he stressed how the Philippines is 20 years behind in infrastructure. The bottlenecks in airports, seaports and roads are the reason why the economy has not been able to operate on all cylinders. The economy's growth, albeit high at six percent, is unable to grow faster without overheating due to the infrastructure gap. Mobility and connectivity are the triggers that will unlock the true potentials of the nation, he said.” [Arthur Tugade: The understated statesman, Andrew J. MasiganTHE CORNER ORACLE, The Philippine Star, 17th Jul 2019]

Beyond infrastructure, what else? “[Out] of the blue, the Chief Executive admitted that Philippine agriculture ‘is the weakest link,’ which seems to have been stalling the country’s desired economic growth. Now, the truth is out.
‘But this time, I’ll concentrate on agriculture. The weakest link [is] agriculture. I must do something about it. [But] let me come out with some better ideas for this year,’ the President promised.

“Although he did not go into details yet, the President apparently alluded to a slew of economic reform bills, which he asked the 17th Congress to pass into law. These included Free Irrigation to Small Farmers Act of 2018; several laws establishing multi-species marine hatchery in various provinces in the Philippines; and RA 11203 or the Rice Tariffication Act that lifted the rice import restrictions but subject to payment of tariff. 

“Prior to the passage of RA 11203, the country went through a period of rice crisis last year when there was a shortage of supply of government-subsidized Filipino staple food sold to the local markets by the National Food Authority (NFA).

“After the rice crisis, President Duterte often scoffed at Piñol’s boast that the Philippines will soon be self-sufficient in rice production.” [‘Weakest link’ of the Philippines economy, Marichu A. VillanuevaCOMMONSENSE, The Philippine Star, 17th Jul 2019]

So where is the economy? “The Duterte administration’s macroeconomic performance in the last three years is not sterling. [But] at least we are still growing at a high rate above 5%.

“The Philippines is the only economy with consistently declining GDP growth rate. Others have up-down or down-up trends. The Philippines has the highest inflation rate in the region, 2018 and 2019 Year to date (January to May/June).

“The Philippines and Indonesia have high, decline then increase interest rates. Vietnam has the highest but with slight decline trend. The Philippines and Indonesia have the worst current account/GDP ratio. Difference is that Indonesia has been in negative territory for several years now, Philippines only in 2018.” [SONA economic numbers, Bienvenido S. Oplas, Jr., BusinessWorld, 18th Jul 2019]

We Pinoys are the eternal optimists and like to see the glass half-full not half-empty. Thankfully, we have a cabinet member who acknowledges that we are 20 years behind in infrastructure and a president that accepts that agriculture is the weakest link.

Also, “The government still has a long way to go in curbing corruption within the Bureau of Customs (BOC), Finance Secretary Carlos Dominguez III admitted [as] he emphasized the need to automate customs processes to address the issue.

“[Dominguez] noted that the BOC has been performing well in meeting its revenue targets this year but admitted that the agency still has much to do to address corruption.” [‘BOC has long way to go vs corruption,’ Mary Grace Padin, The Philippine Star, 17th Jul 2019]

To recap, we have our shortcomings in several areas: infrastructure, agriculture, macroeconomics, and corruption, for example. Moreover, as the world watches, in human rights too.

“Thoroughly obscured by the rage and bile the Duterte administration has directed at the United Nations Human Rights Council (UNHRC) for its vote on a resolution urging an investigation into the human rights situation in the Philippines is the ironic fact that, just nine months ago, the country actually lobbied to retain its seat in the council—by vowing to champion human rights.

“That the Duterte administration has no qualms summarily repudiating that promise is evident not only in the dire human rights situation in the Philippines, but also in the actions it seems all too willing to take on behalf of countries it considers its friends—China, for instance. Still at the UNHRC, the Philippines recently joined a group of 37 countries that signed and submitted to the council a most remarkable document: a letter praising China’s ‘remarkable human rights record.’” [Axis of Shame, EDITORIAL, Philippine Daily Inquirer, 19th Jul 2019]

Before we get too far, let's get back to the title of this posting, “Adapt or perish.”

Consider our shortcomings: infrastructure, agriculture, macroeconomics, corruption, human rights. To those familiar with the blog, it speaks to our instincts time and again. Consider too the admonition of 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.”

If we examine each of these shortcomings, we will stumble into our instincts, to wit: 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.

So, one can appreciate the frustrations of the transportation secretary, instead of leading, we are the regional laggard.

Adapt or perish is what we must recognize. In other words, we can’t simply brush aside our culture of impunity. To add insult to injury, we chose to align with the Axis of shame. We in the elite class have a lot do with this. See no evil. Hear no evil. Speak no evil. 

Understandably, we don't have the foresight of Rizal, because vision is a rare commodity. However, shouldn't we at least try to adapt – and overcome parochialism and insularity – lest we perish? Alternatively, haven't we figured out how much they have brought us down the abyss?

We have long resorted to “Pinoy abilidad” to justify our inability to step up to the plate of reality. The evidence? Our FDI is on the rise. Can it come from the mindset of a loser given how our neighbors have left us in the dust? In the private sector, a sales or marketing manager who makes such a claim re rising receipts amid competitive realities won't be there for the next budget year.

Killing people in the name of the war on drugs – forget about whether it’s a crime – is shortsightedness. What experiential or body of knowledge can we cite to make this the mantra of a nation of over a hundred million supposedly God-loving people?

What about agriculture? Is the slew of economic reform bills the answer? It is the 21st century, and we're still into subsistence farming. Adapt or perish.

We can't move the needle forward until we shift paradigms and doggedly pursue an industrial economy, and we can start with agribusiness. Moreover, to jumpstart industry, we can’t keep talking about FDIs. We must demonstrate and proactively seek them. 

The old paradigm of doing roadshows to peddle Philippine products is just that, old, tired, and toothless. 

We must acknowledge that we need foreign investment, technology, and know-how, ultimately, and totally so that we don't fall into the trap of shortsightedness and “Pinoy abilidad.” 

The bottom line: We need the Chief Executive to demonstrate leadership in the pursuit of an industrial economy, not in killing people in the name of the war on drugs. If we want to lift Juan de la Cruz from poverty, we must recognize that industrialization is ground zero.

Then the Chief Executive must lead the nation to acquire the knack for innovation and global competitiveness rapidly. Industry per se is just a platform. We are eons behind, way beyond the 20-year lag we acknowledge in infrastructure. 

With due respect, leadership cannot delegate the challenge to traverse the road from poverty to prosperity to the economic managers. To delegate accountability is abdication.

None of this is earthshaking or rocket science. Our neighbors have done it; if we can only overcome Pinoy parochialism and insularity. No man is an island.

Then there is corruption. What else is new? Consider: parochialism and insularity, given our “caste system,” nourish hierarchy and paternalism, that then feed patronage and oligarchy to complete the vicious circle we call a culture of impunity.

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]

Sunday, July 14, 2019

Habits are hard to break

So why there is Alcoholic Anonymous, where they admit to being powerless over alcohol, that their lives have become unmanageable.

Powerless? Unmanageable life? Are we talking about Juan de la Cruz?

“That the Speakership is for sale is alarming. [The] House is tasked to pass legislation that affects the entire country. It is the prime mover of public policy. [The] choice of Speaker is not being made from the standpoint of upholding shared principles and values, not on whether the candidate is perceived as being honest and trustworthy and a good leader, not for demonstrating that he cares for the national agenda and the Filipino people.

“This is exactly the kind of perverted patronage relationship between the President and Congress that subverts the separation of powers, the checks and balances provided by our Constitution, which is supposed to counter government abuses.

“Indeed, we are doomed to get the government we deserve, that is, until we learn to vote wisely. But when will we ever learn?” [Transactional,BusinessMirror Editorial, 9th Jul 2019]

What is most worrisome is that most of the agenda are populist, in other words, using scarce tax revenues with questionable long-term returns.

“Where is the development agenda to solve rural poverty? Where is the policy to attract investments in the countryside, to raise productivity and diversify the rural economy?

“Will the song-and-dance numbers contribute to President Duterte’s target to reduce rural poverty to 20 percent in 2022 from 30 percent in 2015? Rural poverty in Asean today is already 10 percent or less. We are losing the race.

“Does President Duterte realize the magnitude of the 17 million rural poor? In solving the rural poverty, do we have to reinvent the wheel, or learn from the lessons of our Asean neighbors?

“The usual politicians’ solutions—build farm-to-market roads, invest in postharvest facilities, and build more irrigation—are motherhood statements. Investments are not flowing into the countryside due to the agrarian reform’s limitations on land ownership of five hectares and land lease restrictions by the Department of Agrarian Reform. No investments, no jobs and no income.” [Senatorial candidates: Where is the poverty-reduction agenda (?), Rolando T. Dy, Mapping The Future, inquirer.net, 6th May 2019]

“What we have is an economy running on all cylinders except the one fired by agriculture. The agricultural sector is the lone drag to our otherwise hardy economic story. It has failed to expand at pace with the rate of population growth. As I always say, there is a limit to how often one can use the El Niño phenomenon as an excuse. No surprise, the agriculture secretary’s resignation was readily accepted. The job is too big for him.” [The State of the Nation, at its best and worst, Andrew J. Masigan, Numbers Don’t Lie, BusinessMirror, 7th Jul 2019]

Is agriculture the culprit, or is it a microcosm of the economy?

“Mahathir [stressed] the importance of industrializing. Industrialization became necessary because agriculture could not create enough jobs for the growing population. Jobless people threaten the stability of the country and undermine the very effort to create the jobs that they need.”

Translation: Agriculture must develop from subsistence farming or livelihood-focused to a national industrial enterprise – or from "farming" to consumer-packaged goods – that is technology-based, geared for scale, and global competition. 

Moreover, it must reflect a keen understanding of dynamic human needs, which explains why R&D and innovation won't ever cease. In other words, to be mired in the status quo is not of this world. Humans mirror the dynamism of the universe they live in; otherwise, they will be like a fish out of water.

Recall the blog has discussed the pig industry of Denmark, a globally competitive industry that is both "technology- and scale-driven" and founded on their cooperative ethos, not individual subsistence farming. We have Nestle to learn from too if we are prepared to shift paradigms.

The Philippine economy cannot sustain its momentum despite the rosy picture we like to paint if we keep to its two legs, i.e., OFW remittances and the BPO industry. It reveals a lack of dynamism and foresight. An industrial economy is a requisite platform to compete in the 21st century, where innovation and global competitiveness are "the price of entry."

Habits are hard to break. Does it explain why we can't seem to get a good handle on industrialization? For example, we cannot pretend that we don't have a black hole that is industry. It goes back to our hierarchical instincts that we are a poor country and have no chance to industrialize.

It explains why we celebrated the OFW phenomenon and created our alternative reality that a consumption economy that is inward-focused will shield us from the vagaries of the bigger world. So, beyond our hierarchical instincts, our values of parochialism and insularity surfaced, in the guise of nationalism. If we cannot come to grips with reality, we are indeed doomed.

“Mahathir said government must welcome more foreign direct investments and help businesses. ‘At a time when newly-independent countries were nationalizing foreign-owned industries and businesses, we decided to invite foreigners, including the former colonial masters to come back and invest in industries in Malaysia.’

Embracing former colonial masters or old enemies as Vietnam has done is what it is. As the blog has repeatedly discussed, they've been there and done that. In other words, we can't be juvenile and have a chip on our shoulder when the future of this nation is at stake. For example, when did China start its adventurism within our EEZ? Wasn’t it right after we kicked out the US military? 

The writer is back in New York but was with local friends in the Burgas region, by the Black Sea, in Bulgaria. He can only shake his head every time he is in the area because of the presence of the US military. These people, once the enemy of the West, are now in bed with the Americans. 

The writer came to this country to represent US exceptionalism, to assist an emerging nation as they sought the road to democracy and the free enterprise system. We in the elite class can't care less, but Juan de la Cruz is down in the dumps. So, Vietnam, likewise wanting to be in bed with the West and heeding Mahathir and Lee, generates more than the rising Philippine FDI we like to crow about, a mere fraction of Vietnam's.

Without a robust industrial ecosystem, there is no way we can replicate the trajectory of Vietnam, poised to get ahead of Singapore at the rate they are going. On the other hand, how long ago have we given up on being Singapore? We see it solely as a destination for our OFWs or a great place to visit and marvel.

Can we pause for a moment and ask ourselves what is this paradigm we operate in and where it has brought us? Can we imagine and visualize a different one? It takes practice to be dynamic, to look forward, and to foresee. It explains why innovation has stayed at our intellectual level. Sadly, it is also why we're the regional laggard.

‘Then we thought that Government must help businesses to succeed. The Japanese were condemned for doing this. But we saw no reason why Government should not help business to make profits. Twenty-eight per cent of the profits by businesses belong to the Government anyway through the corporate tax they had to pay. Basically, the Government was working for its 28% of the profit. We were not just helping the businessmen to make profits.

“Mahathir said investments in education were made in this regard. ‘To increase the revenue of the people Government spent almost 25% of the national budget on education and training. Thus, foreign as well as local investors were assured of a supply of educated and well-trained staff.’” [Mahathir questions Filipino-style democracy, RG Cruz, ABS-CBN News, 11th Jul 2012]

The above article about Mahathir from 2012 does not speak to Malaysia's Build, Build, Build. Since the early 80's to this day or just shy of four decades, Malaysia has not ceased infrastructure building. If we care to look outward and forward and learn from others, especially our neighbors, we will gain more than blowing our own horn.

“Indeed, we are doomed to get the government we deserve, that is, until we learn to vote wisely. But when will we ever learn?”

Why can't we seem to learn? Habits are hard to break, given our instincts: We are parochial and insular. We value hierarchy and paternalism, and rely on patronage and oligarchy, that at the end of the day, ours is a culture of impunity. Moreover, they rob us of dynamism, to look forward, and foresee.

“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]