Riding a tiger

There are several ways to express the above title: (a) The chickens are coming home to roost; (b) We reap what we sow; (c) Garbage in, garbage out; (d) “Isang kahig isang tuka” (live from hand to mouth).

Consider: “Help the farmers now,” Boo Chanco, DEMAND AND SUPPLY, The Philippine Star, 23rd Aug 2019. “The immediate needs of farmers must be addressed. Promising long-term competitiveness for our farmers is fine but as someone puts it so well, in the long term we are all dead. We need a sense of urgency.”

Then consider: “Powell Highlights Fed’s Limits. Trump Labels Him an ‘Enemy,’” Jeanna Smialek, The New York Times, 23rd Aug 2019.

“Jerome H. Powell, the Federal Reserve chair, kept future interest rate cuts squarely on the table on Friday but suggested that the central bank was limited in its ability to counteract President Trump’s trade policies, which are stoking uncertainty and posing risks to the economic outlook.

“While monetary policy is a powerful tool that works to support consumer spending, business investment, and public confidence, it cannot provide a settled rule book for international trade.

“Trade policy uncertainty seems to be playing a role in the global slowdown and in weak manufacturing and capital spending in the United States [and] there were no recent precedents to guide any policy response to the current situation.”

In other words, garbage in, garbage out. It applies even to “the most technologically powerful economy in the world, with a per capita GDP of $59,500 (2017). [Its GDP in 2018 is $20.89 trillion.]” [https://www.cia.gov/library/publications/the-world-factbook/geos/us.html]

Of course, we must walk and chew gum at the same time. For example, whatever we decide to cover the revenues of our farmers for their losses from rice, we must step up to the plate and commit to making PH agriculture competitive.

We reap what we sow. “In 1995, the WTO allowed the Philippines to impose a 10-year quota system for rice importation. The QR was extended in 2004 and, again, in 2014.” [https://business.inquirer.net/232995/ph-compensate-extension-qr-rice-imports-says-neda-chief]

The world will not wait for us even if we like to shoot ourselves in the foot time and again.

We needed the sense of urgency way back in 1995. But not only. Consider the period 1965 to 1986. Yes, Marcos was the president. Moreover, when did we start to celebrate the OFW phenomenon and kicked the can (of industrialization)?

“Jose de Venecia pioneered overseas contract work for Filipinos where he was one of the first Philippine prime contractors in the Middle East and North Africa in the mid-1970s. He hired 51,000 Filipinos for his companies and engaged in port operations in Saudi Arabia, agriculture in Africa, and mass housing and oil exploration in the United Arab Emirates. His Middle East initiative was followed and later led to the employment of millions of Filipinos.” [Wikipedia]

Marcos was president when Mahathir was first appointed prime minister (1981-2003.) In other words, we needed a sense of urgency even before 1995. Why? Because Mahathir was already in hot pursuit of turning Malaysia into a first-world nation, begging for Western money and technology. To realize his vision of creating the local version of Silicon Valley, he invited Bill Gates and cohort to show them the way.

On the other hand, beyond shooting ourselves in the foot, we can only be sour grapes: “Economic team sees exporting nations faring worse than PHL in recession,” Beatrice M. Laforga, BusinessWorld, 22nd Aug 2019.

“The Philippines will be the least affected in the Association of Southeast Asian Nations (ASEAN), the leading economies of which are more export-oriented. We do not depend very much on exports as do other ASEAN countries.

“We do not depend very much on exports as do other ASEAN countries. We are not a high-flying export economy. [Do] you want to know who will be the worst-affected? South Korea, Singapore, Hong Kong, Thailand, those will be affected; they will collapse.”

For the benefit of these economic managers, here are simple descriptors of these countries: South Korea’s GDP is $1.54 trillion (with a “t”). Singapore is the 2nd most competitive nation in the world out of 140 countries ranked in 2018, while Hong Kong is 7th; Thailand is the 12th most industrious auto manufacturer in the world and the largest in Southeast Asia.

Moreover, economies go through cycles, and these countries have survived their periods and continue to be wealthier than we are.

Still, our instincts will always get the better of us: 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. They rob us of dynamism and foresight.

The bottom line: It’s about time we get real. We can keep to our parochial and insular instincts, and it will ensure that we stay the regional laggard. Competitiveness is not an option as we see today with rice.

Here’s a quote from a recent posting.

“Because Vietnam and Thailand’s rice enterprises are competitive and ours is not, we must look not for quick fixes but outward, i.e., benchmark, to figure out why this is so. [See above re Malaysia.] As necessary, we must develop dynamism and foresight and overcome parochialism and insularity.

“Knee jerks are shortsighted and not the answer to our woes. Recall we celebrated the OFW phenomenon and abandoned industrialization, the ground zero in the 21st century.

“In other words, beyond industrialization, there are still the hurdles of innovation and global competitiveness. If our perceptive judgment is off, it is from our lack of experience, but we can do something. Benchmark. Benchmark. Benchmark.

“We have so far three different layers of benchmark points: product portfolio, tree farming [talking about coconut, with the farmers in worse predicament that those into rice], farm consolidation as in cooperative.

“Sweden is a great example; they have replanted 80% of their trees with the rest left untouched; they can supply the needs of tissue-based products like napkins and toilet paper on a sustained basis well into the future.

“What about the farmers, how do we pull them together so that we generate economies of scale? Again, we need a benchmark, and Denmark’s cooperative ethos is what we must acquire.

“We must invite friends like the Swedes and the Danes, to name two, and pick their brains so that we can leapfrog our efforts in agriculture, industrialization, innovation, and global competitiveness.”

For this posting, we are adding Nestlé S.A. as the benchmark to establish the product portfolio for PH agri-based products and likewise to invite them like the Swedes and the Danes. [See above re Bill Gates]

Here is what their website says: “Nestlé S.A. is a Swiss multinational food and drink processing conglomerate corporation headquartered in Vevey, Vaud, Switzerland. It is the largest food company in the world, measured by revenues and other metrics, since 2014.

“Most people know us through our brands. Our portfolio covers almost every food and beverage category – offering products and services for all stages of life, every moment of the day, helping people care for themselves and their families.

“We develop our products based on the latest research and technology to ensure that good nutrition is as good as it tastes. We do this by striking the right balance of making a product taste good and ensuring it has the optimal amounts of micronutrients. Because if children won’t eat our products, this is a missed opportunity to positively impact their lives through good nutrition.

“Nestlé touches the lives of billions of people every day: the farmers who grow our ingredients, our consumers, and the communities where we live and work.

“Around the world, we work with over 700,000 farmers directly, and with many others through our supply chain. All these farmers and workers are crucial to our company, but it can be difficult to fully understand the complex supply chains that connect us.

“Our raw materials include coffee, cocoa, dairy, palm oil, soya, sugar, cereals, meat, poultry & eggs, fish & seafood, vegetables, spices.”

The writer has read the series of articles by Secretary Dar to share his agenda, and if there is one thing the blog wants to raise; it is that competitiveness is beyond productivity. Procter & Gamble has this jargon: “First moment of truth.”

It merely means that competitiveness is in the eye of the shopper. When she’s at her favorite grocery store or supermarket, what will a Philippine product say to her? 

She doesn’t care how productive we are. Her needs are instinctively dynamic to adapt to a world that isn’t standing still. Recall Darwin. For example, her life span is longer than that of her forebears. On the other hand, see above re our instincts and why they keep appearing in the postings.

Moreover, we don’t have the private sector experience in global competition and, sadly, also in industrialization and innovation. That is why we must pick the brains of the Swedes, the Danes, and Nestlé.

Indeed, we need a sense of urgency. But not only.

“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]

Gobbledygook

These two articles inspired the above title: (a) “The country’s stable economy,” Editorial, BusinessMirror, 16th Aug 2019; (b) ‘Crazy’ ideas to unravel traffic gridlocks, Marichu A. Villanueva, COMMONSENSE, The Philippine Star, 16th Aug 2019.

"One way to measure stable growth is called the Coefficient of Variation, which plots deviations from the average annual economic growth rate. During the period 2010 to 2018, the worst of all Emerging Market countries was Argentina, with a high factor of 3.1. The Philippines—along with Indonesia—has a better CV than all other EMs at 0.2.

“While it is important to closely monitor changes in our economic growth rate, we need to realize the Philippine economy’s stability. For years there have been concerns about the slower growth of overseas remittances and the health and future of the outsourcing business. However, through it all, economic growth has been consistent within a narrow range. That is good.”

Here’s the next one: “Traffic gridlocks in Metro Manila will turn for the worse before it gets any better. In fact, Edison ‘Bong’ Nebrija, chief traffic ‘enforcer’ of the Metropolitan Manila Development Authority (MMDA), candidly admitted there is no sugarcoating that can ease the daily traffic jams that both motorists and passengers would have to bear.

“Pointing to a recent study by the Japan International Cooperation Agency that the Philippines incurs economic losses amounting to an estimated P3.5 billion a day due to traffic congestion, [Sen. Grace] Poe called out top officials from various government agencies concerned with the worsening traffic congestion, especially along the entire stretch of the Epifanio delos Santos Avenue, or EDSA for short.

“With a total length of 23.8 kilometers, EDSA is the longest and the most congested highway in the metropolis.”

EDSA is a microcosm of our “Que sera, sera” instincts. 

Consider: Mahathir embarked on Build-Build-Build 40 years ago while we want a quick fix on EDSA. Sweden has transformed its forests into a self-sustaining enterprise while we have denuded ours. Our neighbors have attained the first-world status while we’re stuck as a third-world, poverty-stricken nation.

Quick fixes are meant to be exceptions not when there is an inherent or design flaw that they become a disaster waiting to happen. Recall the grounding of the Boeing 737 Max after two fatal crashes, which is now in its sixth month.

If EDSA is the unique challenge we face, then we can say our economy is good. It’s a tragedy we continue to rationalize our bias for the status quo. Indeed, a disaster! To imagine the imperative of designing an ecosystem is way beyond us.

Imagine telling the over 20 million Filipinos living below the poverty line and the over 10 million OFWs that the Philippines has a better Coefficient of Variation than Argentina.  

It is gobbledygook. It adds insult to injury. 

An underdeveloped economy and nation like PH must traverse the road from poverty to prosperity, not celebrate the 1-% phenomenon. 

Sadly, that’s neither here nor there given our instincts: 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. They rob us of dynamism and foresight.

Let’s pause for a moment and ask ourselves? Can we imagine the Philippines that is wealthy and developed? Have we accepted that we are destined to be weak and underdeveloped?

An economy, whether local, regional, or global, goes through a cycle. Nothing stands still. So, our perceptive judgment is suspect given our inexperience in industrialization, innovation, and global competition.

Instead of Argentina, we must talk about our neighbors, the Asian Tigers, and more recently, Vietnam. At the rate the country is going, it is poised to be even wealthier than Singapore after investments opted to leave China.

To be sure, global economic slowdowns affect economies, but wealthy economies can deal with them. Take Japan. They went through their lost decade and even lost the electronic leadership to South Korea and China, yet Japan remains a wealthy nation.

In other words, there is no sugarcoating that can ease our dilemma as the regional laggard. We must do something. We must act.

We cannot recycle that old lame excuse that because global trade has slowed down that global competition is outmoded. Aren’t we protecting our rice farmers to this day by imposing tariffs on Vietnamese and Thailand rice? Is that a classic quick fix that turned into a disaster for the farmers no different from land reform?

Because Vietnam and Thailand’s rice enterprises are competitive and ours is not, we must look not for quick fixes but outward, i.e., benchmark, to figure out why this is so. As necessary, we must develop dynamism and foresight and overcome parochialism and insularity.

Knee jerks are shortsighted and not the answer to our woes. Recall we celebrated the OFW phenomenon and abandoned industrialization, the ground zero in the 21st century.

In other words, beyond industrialization, there are still the hurdles of innovation and global competitiveness. If our perceptive judgment is off, it is from our lack of experience, but we can do something. Benchmark. Benchmark. Benchmark.

Consider: Why do we struggle to get started in industrialization? We don’t even talk much about Arangkada anymore. We’re again hopeful that with the new Agriculture secretary, we can restart this on-again, off-again cycle.

“Industrialization of agriculture is key.” That’s the second of the eight paradigms that make up the new thinking in agriculture. Question: How differently will we approach this paradigm compared to Arangkada? Industrialization is not a can to kick down the road.

Here’s a quote from a recent posting:

“If we are to reinvent agriculture, we must get a good handle and establish the core portfolio of PH agri-based products.

“Let’s start with revenues. Must we more than double Philippine export receipts to appreciably raise our income per capita? Let’s then identify the benchmark country that generates this desired national income. What is the composition of their exports, including agri-based products?

“How can we mirror their agribusiness revenues? If coconut is our biggest gun, then we must set our sights to make the Philippines the number one coconut producer. It must include major income generators, both consumer (e.g., coconut water) and industrial products. The key is to move coconut up the value chain. [Political patronage and oligarchy stunted the development of this industry, yet no one paid the price except Juan de la Cruz.]

“Which countries and enterprises must we establish as benchmarks for us to mirror our portfolio of coconut-based products; and as important so that we don't reinvent the wheel but build on their knowledge-base and best practices? Innovation comes from being outward- not inward-looking. [See below re “Pinoy abilidad”.]

“Since the source for the initiative are the coconut trees, which country must be our benchmark so that we can replicate their success stories in tree farming? 

“Sweden is a great example; they have replanted 80% of their trees with the rest left untouched; they can supply the needs of tissue-based products like napkins and toilet paper on a sustained basis well into the future.

“What about the farmers, how do we pull them together so that we generate economies of scale? Again, we need a benchmark, and Denmark’s cooperative ethos is what we must acquire.

“We have so far three different layers of benchmark points: product portfolio, tree farming, farm consolidation as in cooperative. 

“We must invite friends like the Swedes and the Danes, to name two, and pick their brains so that we can leapfrog our efforts in agriculture, industrialization, innovation, and global competitiveness.

“What about benchmarking, is it second nature to us or does ‘Pinoy abilidad’ get in the way? Sadly, we have yet to accept and recognize that it has not served us well.

“Those involved in statistics or big data and analytics know that in a universe, there will always be groups better than us and worse than us. If we are to learn dynamism and foresight, we will not accept ‘Pinoy abilidad’ as the equivalent of excellence.

“No different from our culture of impunity, ‘Pinoy abilidad’ is a product of our instincts. It explains why we’re the regional laggard. We can’t succumb to insanity by doing the same thing repeatedly.”

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]

Robbed of dynamism and foresight

It will take a generation even with a 7% annual GDP growth rate for us to see the end of the tunnel. It’s not new news. It’s old news. The international institutions pronounced it several years ago. It is not rocket science. We can do the arithmetic ourselves.

If we fail to internalize our reality – that our instincts have robbed us of dynamism and foresight – we shall remain the regional laggard.

How do we dig ourselves out of this hole? Evasiveness, as in euphemisms, is not optimism. Recall Juan Tamad. Has Juan de la Cruz fallen into the trap of life imitating art? Dynamism and foresight demand a great deal. If we are not up to the task, how do we expect to move beyond an underdeveloped country? There is no free lunch.

We can talk about all the positives of PH – from the sweet spot we’re in given our young population to an English-speaking nation to Build-Build-Build, among others – however, unless we build an economic platform beyond the OFW phenomenon and the BPO industry, we are, as an economist raised, like a 4-cylinder car in a race against the much bigger driving machines of our neighbors.

Malaysia has been on Build-Build-Build going four decades now, but not only, they also created the local version of Silicon Valley. We can go country by country, big and small, and we can only weep because they have all left us in the dust.

Before we get too far, let’s bring back the title of the posting, “Robbed of dynamism and foresight.”

Here’s an interesting article especially for us Pinoys: “What Makes an American?,” Jason DeParle, The New York Times, 9th Aug 2019. “I took reassurance this past week in a Texas immigration story that suggests America’s powers of assimilation remain formidable.”

“Two academic camps have shaped debate about the children of immigrants. Both see the majority succeeding — advancing in school, securing jobs and integrating. Intermarriage is high, and English is near universal.

“[One camp] found that children of immigrants not only outperformed children of natives (of similar races) but did so despite having parents with less income and education. How could that be? [They] argue that children of immigrants often enjoy a ‘second-generation advantage’ over native peers.

“Two parts of the argument are familiar — immigrants, self-selected for ambition, pass along their drive, and the intensity of ethnic networks provides support that natives lack. But the researchers also argue that children of immigrants benefit intellectually from living at a cultural crossroads. (They note it took a Russian-born Jew, Irving Berlin, to write ‘White Christmas.’) Children of immigrants, they wrote, often ‘combine the best of both worlds’ — their parents’ and their peers’ — or innovate in ways that ‘can be highly conducive to success.’

“In the Villanueva family, each theory offers a guide to a different daughter. (A son, Dominique, was too young to share his thoughts in equal depth.) Kristine’s experience provided a small reminder that Americanization isn’t always beneficial: She assimilated energetically, but to the distractions of middle school. Lara blended her Filipino and American selves in ways that supplied an edge. She was second-generation advantage personified.

“While Kristine experienced migration as division (English vs. Tagalog, her mother vs. her aunt), Lara found it addition — Rosa Parks’ protests plus her politeness, parents beside her and grandparents on Skype.

“Lara’s Filipino traits included her manners, her long dinnertime prayers and an immigrant’s belief in opportunity. They also included the benefits of a two-parent family, which social science finds considerable.

“From the United States, Lara got a reduced sense of class and gender constraints; a school full of books; and a classroom with just 24 students, instead of 70 in the Philippines. Above all, she got a license to ask questions.

“Nothing about the Philippines had encouraged her to probe. On the contrary, a classroom so crowded had little time for raised hands, and children were taught to respect their elders, not interrogate them. American teachers loved questions.”

What this Filipino-American youngster must have shared with the author would fall into what the blog raises time and again as our instincts: 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. They rob us of dynamism and foresight.

We take these instincts for granted yet to a young person exposed to another culture they are explicit and evident.

Hierarchy bestows rank and privilege in many shapes and forms that translate to subservience. Why is our national agenda confined to jobs and livelihoods?

Look who is talking, we in the elite class? What’s wrong with compassion?

No one dares to probe: Where is the dynamism? Where is the foresight? In other words, why disturb the applecart when we can preserve rank and privilege? Also, neuroscience says the chamber of the brain that triggers pleasure, including sexual, is the same one that makes us want to give alms. Consider: Americans gave a total of US$410 billion to charity in 2017. That is far more than the GDP of the Philippines, $313.6 billion.

Industrialization. Innovation. Global competitiveness. These, beyond jobs and livelihoods, must be the focus of our national agenda. Because in the 21st century, they are the key to traverse the road from poverty to prosperity. 

Recall how Mahathir did it. But not only. He and Lee shared the mantra with Deng, and later even Vietnam followed suit: Beg for Western money and technology.

Are we finally getting it? “We now have a true and seasoned agricultural expert at the helm of the Department of Agriculture (DA) in the person of Dr. William Dar, whose reputation precedes him. This brings forth hope that true change is coming in the sector that has been the biggest drag on the Philippine economy for far too long.

“Secretary Dar espouses ‘new thinking’ in his approach to managing Philippine agriculture, organized around eight ‘paradigms’: (1) modernization of agriculture; (2) industrialization of agriculture; (3) promotion of exports; (4) farm consolidation; (5) roadmap development; (6) infrastructure development; (7) higher budget and investments for agriculture; and (8) legislative support.” [Dar’s paradigm shifts, Cielito F Habito, NO FREE LUNCH, Philippine Daily Inquirer, 9th Aug 2019]

Recall Habit no. 2 of Stephen Covey’s 7 Habits of Highly Effective People, “Begin with the end in mind.” The above paradigms are spot on, yet we must ensure the rest of us buy into the game plan, i.e., we can relate to the sense of purpose.

For example, why are we monitoring PH competitiveness rankings? Because no one will want Philippine products and services if they are not competitive.

Agri-based products are not exempt from the imperative of global competitiveness. In the private sector, globally successful enterprises are driven to attain competitive advantage.

That is why the blog had repeatedly raised the decade when investors abandoned Procter & Gamble because they lost their competitive edge. Today, they have an activist investor that successfully forced himself into the board to ensure they don’t succumb to complacency: Today’s excellence is tomorrow's commonplace. Proctor & Gamble is a Philippine icon which is not a surprise given they invented marketing or brand management.

Is there a moral to the story?

In our case, if we are to reinvent agriculture, we must get a good handle and establish the core portfolio of PH agri-based products. The operative word is core. It borrows from Pareto’s 80-20 rule. The 20 percent that will generate the most significant revenues and margins must make up the core of the portfolio.

Once we know what they are, we can work backward and figure out how we will get there. It is not linear but lateral thinking, i.e., there is dynamism and foresight. Begin with the end in mind and establish a sense of purpose for Juan de la Cruz to buy-in.

We can then work on and flesh-up the above eight paradigms.

Let’s start with revenues. Must we more than double Philippine export receipts to appreciably raise our income per capita? Let’s then identify the benchmark country that generates this desired national income. What is the composition of their exports, including agri-based products?

How can we mirror their agribusiness revenues? If coconut is our biggest gun, then we must set our sights to make the Philippines the number one coconut producer. It must include major income generators, both consumer (e.g., coconut water) and industrial products. The key is to move coconut up the value chain. [Political patronage and oligarchy stunted the development of this industry, yet no one paid the price except Juan de la Cruz.]

Which countries and enterprises must we establish as benchmarks for us to mirror our portfolio of coconut-based products; and as important so that we don't reinvent the wheel but build on their knowledge-base and best practices? Innovation comes from being outward- not inward-looking. [See below re “Pinoy abilidad”.]

Since the source for the initiative are the coconut trees, which country must be our benchmark so that we can replicate their success stories in tree farming? 

Sweden is a great example; they have replanted 80% of their trees with the rest left untouched; they can supply the needs of tissue-based products like napkins and toilet paper on a sustained basis well into the future.

We are the opposite. As though there’s no tomorrow, we’ve denuded our forests yet witnessed how people and things suffer from floods and climate-related phenomenon. Why? Dynamism and foresight are not second nature to us.

What about the farmers, how do we pull them together so that we generate economies of scale? Again, we need a benchmark, and Denmark’s cooperative ethos is what we must acquire.

We have so far three different layers of benchmark points: product portfolio, tree farming, farm consolidation as in cooperative. 

We must invite friends like the Swedes and the Danes, to name two, and pick their brains so that we can leapfrog our efforts in agriculture, industrialization, innovation, and global competitiveness.

The writer’s private sector background offers a different approach to how we’ve pursued agriculture. Which brings Lee Kuan Yew to mind, he led and managed Singapore like an enterprise, like a company. 

We too acknowledge the model such that we point to the best practices of MNCs when we are looking at reforms in the public sector.

For example, in the private sector, R&D does not own innovation. Conversely, economic development and nation-building are beyond Economics. Many postings ago, the blog discussed that with the writer’s Eastern European friends R&D, Marketing, and Sales all report to the same business unit manager.

It goes beyond the formal structure. It’s a culture and instinct likewise. At Silicon Valley, it’s been translated into a course, Design Thinking, by Stanford University. Management gurus gave it a new label, Agile Project Management, an innovation beyond cross-functional management.

What about benchmarking, is it second nature to us or does “Pinoy abilidad” get in the way? Sadly, we have yet to accept and recognize that it has not served us well.

Those involved in statistics or big data and analytics know that in a universe, there will always be groups better than us and worse than us. If we are to learn dynamism and foresight, we will not accept “Pinoy abilidad” as the equivalent of excellence.

No different from our culture of impunity, “Pinoy abilidad” is a product of our instincts. It explains why we’re the regional laggard. We can’t succumb to insanity by doing the same thing repeatedly.

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]