Like democracy, to traverse the path from poverty to prosperity is hard work. It demands foresight and dynamism. Not “pwede na ‘yan.” Moreover, in the 21st century, it likewise mandates skills that conventional wisdom had assigned to information technology, not to Juan de la Cruz. Take big data and analytics. Because the challenge of prosperity comes with massive information to process that requires analytics.
These skills aren’t instinctive. That is why democracy is self-government and representative government all at once. Sadly, populism undermines this very principle that makes democracy works. For example, the creation of LGUs, contrary to popular belief, did not raise the quality and effectiveness of local governance and worse undercut economies of scale, a classic example of the crab mentality.
Did we take the wrong turn at every fork in the road? Consider these events over several decades: we gave Marcos carte blanche to create the New Society by catering to our paternalistic instincts as “road, rice, and school” via massive foreign borrowings while simultaneously building his personal wealth that triggered a balance of payment crisis and for the IMF to step in, including begging Lee Kuan Yew for foreign exchange to cover foreign debts that were due; the comprehensive agrarian reform program did not arrest persistent poverty and instead saw agriculture in a downward spiral; we celebrated the OFW phenomenon, then the BPO industry and more recently POGO, instead of the pursuit of industrialization that is at the heart of why we’re the regional laggard; we kicked out the US military while former Soviet satellite states did the exact opposite; we applauded EJK, supposedly the answer to the drug problem, and threw prescience out the window.
Until we acknowledge our shortcomings, we shall remain a third-world, underdeveloped, impoverished nation. There is no free lunch.
Let’s look at two crucial building blocks of prosperity, infrastructure development, and industrialization. That we lag in both contributed to the perfect storm we face.
Is Mayor Isko the answer?
Try foresight and dynamism. Consider: “JICA proposed a (1) restudy of the gateway airport options for Metro Manila, (2) the feasibility of a Mega-Manila subway system, (3) a reform of the road-based public transport system, (4) secondary mass transport system lines and (5) a redevelopment of the congested Manila North Harbor.” [“JICA: 5 ways to decongest Metro Manila roads,” Mike Frialde, The Philippine Star, 8th Jul 2016]
Recall how long it took Greece to put up a modern airport and the Athens Metro. While Mahathir embarked on Build-Build-Build four decades ago.
JICA, which has been supporting the Philippines for over 60 years, showed us what foresight and dynamism entail.
Let’s get back to the Manila mayor because we must give credit where credit is due.
Indeed, we must thank Mayor Isko for what he has done: “Manila Mayor Isko Moreno launched massive cleanup operations in his first month on the job, organizing informal hawkers that used to crowd the streets and public places and ordering a more efficient garbage collection system, among other efforts.
“Clearing up Manila was among his central campaign promises.” [“Mayor Isko Moreno's reasons for a major Manila makeover,” interaksyon.com, 25th Jul 2019]
Still, there is the imperative of putting up the building blocks of an ecosystem, and the proposal of JICA is a great example.
What about industrialization? Recall Arangkada. Shouldn’t we in the chattering classes be talking more about it?
“The good news is that we have an astute Secretary of Trade and Industry who is aware of the problem. Last year, Secretary Mon Lopez crafted a plan to accelerate exports of both goods and services to minimize the trade deficit. The program, dubbed the Philippine Export Development Plan 2018-2022, was completed last June. President Duterte ratified it.
“At the heart of the plan is to accelerate exports to between $122 billion and $130 billion by 2022 on the back of three action points.
“The first is to improve the overall climate for export industries. It will be done by removing regulatory impediments for exporters, by raising productivity and competitiveness, by improving benchmarks of quality for export goods, by improving access to export finance, and, by enhancing exporter's innovative capacities.
“The second is by exploiting opportunities from trade agreements. The Philippines enjoys preferential export access and special tariff terms with certain countries under trade agreements in which we are a signatory. The Department of Trade and Industry (DTI) recognizes that the country has not maximized its preferential export rights to many markets; thus, Secretary Lopez' plan lays out the ways and means to do so.
“The third is to develop a new set of export winners. Products identified as having good export potentials are electronics, processed food, fresh vegetables, and beverages. Surprisingly, footwear, textiles, yarns, fabrics, and garments were products that waned in the 1990s but are now showing signs of a comeback.” [Export or fall deeper into debt, Andrew J. Masigan, Numbers Don't Lie, BusinessWorld, 8th Sep 2019]
Let’s pause and figure this out. To succeed and be export winners can’t be a quick fix. Consider: For the longest time, the OFW phenomenon and the BPO industry have driven our income stream.
Pleasingly, we now recognize that we must add electronics, processed food, fresh vegetables, and beverages; and exploit the resurgence of footwear, textiles, yarns, fabrics, and garments.
However, to be an industrialized economy is not a walk in the park.
Similarly, while the agenda of the new Agriculture secretary is spot on, moving from subsistence farming to agribusiness best exemplified by Nestlé is hard work. We must establish Nestlé as the benchmark, and that includes picking their brain because we don’t have a competitive advantage in this enterprise. Recall that in the 21st century, industrialization is the ante, the price of entry. There is still the hurdles of innovation and global competitiveness.
Moreover, we must learn from the Danes how to pull the farmers together in a cooperative to seek the community and the common good, i.e., their pig industry is world-class, a significant contributor to their export initiative and economy; while the Swedes can show us how to succeed in tree farming in contrast to how we denuded our forests.
As far as infrastructure development is concerned, beyond JICA, we can learn from our neighbors, like the Malaysians, for example, while Greece can teach us why infrastructure development and tourism alone won't suffice. We must industrialize.
In other words, while we want to celebrate that finally, we will have a modern airport in Bulacan on top of Build-Build-Build as well as the Philippine Export Development Plan 2018-2022, what ails this country will not go away this year, not next year, nor the year after.
The bottom line: Neither infrastructure development nor industrialization is a quick fix – both demand foresight and dynamism. Sadly, neither is our bag of tricks. See above re we took the wrong turn at every fork in the road.
Consider 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.
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]
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