Critical thinking is beyond linear and logical

That is why one plus one is beyond two; it is three to critical, lateral, and creative thinkers. It explains why despite our claim to creativity as in the jeepney – and proud of “Pinoy abilidad” – we are the regional laggard.

Add to that our instincts, and they illuminate why FDI and technology don’t find a home in the Philippines, crucial to innovation and global competitiveness: 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.

Should we take a pause and then ask: Have our neighbors, if not the world, left us behind? How come they figured out that FDI and technology will propel them forward, from the third world to the first world?

We rail against our culture of impunity yet rely on political patronage and oligarchy – as in we are sleeping with the enemy? We continue to pay lip service to liberalize the economy.

Consider: First, where the Asian Tigers and then China. Now its Vietnam’s turn: “Note Samsung’s revenue of $58bn, almost a quarter of Vietnam’s total exports of $214bn, against the combined sales, $43.1bn, of the 8 Philippine-listed companies that made it to the Forbes list (the sales figure per the latest list is lower, $34.8bn.) Samsung has invested a cumulative $17bn in the country.”

Then consider: JICA has been supporting the Philippines for 60 years and the USAID for 50. Yet, despite outside help, we are unable to move forward as a nation. [Disclosure: USAID arranged the writer’s presence in Eastern Europe, but their support lasted only a few years and ended in 2008. As some would know, the company he has guided for 16 years and counting has long left their micro-enterprise status and set their sight to the Forbes list. The big difference with our major enterprises is that their platform is innovation and global competitiveness, not rent-seeking.]

The assistance to the Philippines came to mind because of (a) “The crisis in our streets,” Randy David, PUBLIC LIVES, Philippine Daily Inquirer, 13th Oct 2019, and (b) “The Liveable Cities Challenge,” Guillermo M. Luz, BUSINESS MATTERS, Philippine Daily Inquirer, 19th Oct 2019.

“[A] crisis indicates an acute functional disorder in a system, a breaking point, or a difficult or dangerous situation demanding close attention.

“We should be careful not to think that every crisis demands the unilateral use of emergency powers.

“Much of this nihilism, writes the literary critic Michiko Kakutani, mirrors a ‘growing loss of faith in institutions and a loss of respect for both the rule of law and everyday norms and traditions. It’s a symptom of our loss of civility, our growing inability to have respectful debates with people who have opinions different from our own, and our growing unwillingness to give others the benefit of the doubt, room for an honest mistake, the courtesy of a hearing.’ We can’t hope to reverse this civic decline by hiring a despot to discipline us.” [David, op. cit.]

“The Duterte government has an excellent reason to ask for the reinstitution of the death penalty. But given the many deaths by impunity in this drug war, the death penalty may not be necessary – if the drug lords, above all, are meted the penalty that they deserve. I do not see this coming, however – not until the entire government itself, particularly the justice system, is rendered incorruptible, and justice finally prevails.” [Why the drug war failed, F. Sionil Jose, HINDSIGHT, The Philippine Star, 21st Oct 2019]

Let’s then get to “The Liveable Cities Challenge. The Liveable Cities project reinforces that trend to improve cities by concentrating initially on better plans and projects across four fronts: Mobility, Resilience, GovTech, and Basic Services. These four aspects and challenges are common to virtually all cities in the country.

“Part of our strategy in this project is to get cities to be as data-driven as possible. Data and analysis are essential ingredients of both policymaking and planning at the city and national levels.

“[In] partnership with the United States Agency for International Development (USAID) and the League of Cities of the Philippines and a host of other partners, we held the ‘Sustainable Cities Summit: Building Liveable Cities’ and launched the Liveable Cities Dashboard and Challenge. As the world continues to urbanize rapidly, there is increasing pressure on mayors to plan their cities better to take advantage of the gains of urbanization, while at the same time addressing or avoiding the pitfalls and challenges associated with ‘big city’ development.

“[Cities] are the economic engines of countries. They are hubs for employment, businesses, creativity, productivity, and economic growth. But they are also faced with multiple challenges, from traffic and congestion to environmental and sanitation issues, pollution, crime, and poverty. Well-planned and well-managed cities will resolve these challenges.” [Luz, op. cit.]

In other words, we are embarking on something that makes sense and most welcome. With due respect, haven’t we heard all this before? “The World Bank-funded Metro Manila Transport, Land Use, and Development Planning Project (or the MMetroplan) was published in 1976.

“Metro Manila: What went wrong? [ARCHITECT FELINO A. PALAFOX, JR., The Manila Times, 10th Oct 2019.] MANILA has the third-lowest quality of life among 56 cities. Is this even surprising? Deutsche Bank (DB) recently released its eighth annual survey of living standards and global prices in more than 50 cities around the world. Manila’s score was deficient — only surpassing Beijing, China, and Lagos, Nigeria.”

Consider: “America's Poorest States in 2019,” Adam Barone, Investopedia, 5th May 2019. “Wealthy states, such as Maryland, Connecticut, and New Jersey, tend to have high educational attainment among citizens and are near major economic hubs, such as New York City and Boston.

“Poorer states almost invariably have a less-educated populace and offer less in the way of economic opportunity.”

What insight must we draw? What we call reforms don’t measure when benchmarked against regional peers.

Recall a recent posting on the blog: “[Given] Vietnam’s exports are over four times PH’s they will take in more tax revenues, i.e., 24.8%. Except for Vietnam and Indonesia – which is at 13%, but the poverty rate is less than half ours – PH taxes/other revenues as a percentage of GDP are within the 15%-16% range, comparable to Malaysia and Thailand’s.

“Lower rates will benefit our largest enterprises but will not generate FDI to the level of Vietnam, for example. 

“Vietnam [is] liberalizing its economy to welcome foreign industry. In 2015 the government opened 50 sectors to foreign competition and slashed regulation in hundreds more. ‘Vietnam’s enthusiasm for free-trade deals has made it especially alluring to foreign investors,’ not taxes per se.” 

Sadly, ours is a protectionist economy, which explains why we can’t attract foreign investment and technology as our neighbors do. Yet, we must industrialize to create better quality employment, raise tax revenues, and overcome poverty.

Critical thinking is beyond linear and logical.

“With critical thinking ranking among the most in-demand skills for job candidates, you would think that educational institutions would prepare candidates well to be exceptional thinkers, and employers would be adept at developing such skills in existing employees. Unfortunately, both are mostly untrue.

“To demystify what critical thinking is and how to develop it, our team turned to three research-backed models: The Halpern Critical Thinking Assessment, Pearson’s RED Critical Thinking Model, and Bloom’s Taxonomy.

“Using these models, we developed the Critical Thinking Roadmap, a framework that breaks critical thinking down into four measurable phases: (1) the ability to execute, (2) synthesize, (3) recommend, and (4) generate.

“Execute. Converting instructions into action requires several of the skills Halpern describes as critical thinking: verbal reasoning, decision-making, and problem-solving.

“Synthesize. Sort through a range of information and figure out what is essential. Synthesis is a skill that, like any other, grows with practice.

“Recommend. Move from identifying what is vital to what is a must.

“Generate. Able to create something out of nothing” – as in one plus one is three. [A Short Guide to Building Your Team’s Critical Thinking Skills, Matt Plummer, Harvard Business Review, 11th Oct 2019]

In other words, critical thinking is not instinctive to most people. For example, Steve Jobs defined creativity as connecting the dots. It sounds simple, yet Jobs is considered a genius, in the company of Einstein, Beethoven, Rembrandt, among others.

Here’s another quote from a recent posting: “Europe still looks like a series of mid-sized economies patched together, not a single rival to China and America. It risks becoming a business backwater.

“The single market matters – look at the mess Britain finds itself. A policy initially devised to break down trade barriers has not adapted fast enough.

“Europe’s banks have retrenched to their home markets, and its firms have shifted their energies to expanding outside the EU.

“A decade ago, ten of the world’s 40 largest listed firms, by market value, were based in the EU; now only two are – in 32nd and 36th place. Few of the world’s leading startups are European.” [Europe single market at risk, The Economist, 12th Sep 2019]

Should we toss our instincts [see above] and take the lead so that Juan de la Cruz can then traverse the road from poverty to prosperity?

Gising bayan!

“Why independence, if the slaves of today will be the tyrants of tomorrow? Moreover, 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]

Of Plans and road maps

“The World Bank-funded Metro Manila Transport, Land Use, and Development Planning Project (or the MMetroplan) was published in 1976.

“Metro Manila: What went wrong? [ARCHITECT FELINO A. PALAFOX, JR., The Manila Times, 10th Oct 2019.] MANILA has the third-lowest quality of life among 56 cities. Is this even surprising? Deutsche Bank (DB) recently released its eighth annual survey of living standards and global prices in more than 50 cities around the world. Manila’s score was deficient — only surpassing Beijing, China, and Lagos, Nigeria.

“There are 4.5 million homeless Filipinos. [21.6 percent] of Filipinos live below the national poverty line. Aside from subsequent disease outbreaks, our country has the third-highest number of deaths because of air pollution.

“The Japan International Cooperation Agency reported that we have been losing P3.5 billion per day because of the crippling traffic in Metro Manila. In the same DB survey, the Philippines ranked eighth from the lowest in public transport. Even if three of our major railways are working, people still find it extremely hard to commute. How much more if all three bogged down, as happened last week? As expected, thousands were affected by the malfunctions.”

In other words, we can’t execute even high-profile projects. Here’s a couple more plans that give us hope:

“THE Philippine Council of Management (Philcoman), one of the oldest federations of professionals dedicated to the development of management and improvement of management practices in all aspects of Philippine society, has endorsed the country’s P130-trillion road map target of the construction industry.” [Cecilio Arillo, DATABASE, BusinessMirror, 10th Oct 2019.]

“Sec. Puyat convinced the World Bank and the ADB to provide $400-million assistance in two separate loan packages to enhance tourism infrastructure.      

“Under the program, Bohol, Siargao, Siquijor, Davao City, and Samal Island were identified as the key targeted destinations.” [Doing our homework first, Boo Chanco, DEMAND AND SUPPLY, The Philippine Star, 7th Oct 2019]

If we can’t turn plans into reality, what about research? “Sen. Cynthia Villar minced no words castigating the Department of Agriculture (DA) last week during a hearing on the proposed budget of the department. The chair of the Senate committee on agriculture, food, and agrarian reform was particularly bothered by what she felt was the excessive attention being paid by the DA to research, specifically the P150 million — or 12.5 percent — of its P1.2-billion proposed budget for the National Corn Program.” [What research can do, EDITORIAL, Philippine Daily Inquirer, 13th Oct 2019]

We do make plans and research. What about creativity?

“HARVARD University has many prominent professors specializing in innovation and creativity. In my search for experts in these areas, Dr. Shelley Carson of the psychology department emerged as a renowned lecturer and practitioner who authored the book, Your Creative Brain — Seven Steps to Maximize Imagination, Productivity, and Innovation in Your Life.” [Enhancing creativity, ROSARIO CALDERON, The Manila Times, 10th Oct 2019]

Where must we look for creativity?

“[People] are often too hidebound by social convention to state their views. How many companies have plowed ahead with expensive projects that were favored by the chief executive, even when other managers have had doubts?

“People from different backgrounds approach problems from different angles—that much should be blindingly obvious.

“In the modern world, with all its complexity, co-operation is essential if breakthroughs will occur. In science and engineering, teams rather than individuals write 90% of papers. Analysis of American patent filings since 1975 showed teams dominate in every one of the 36 defined categories.

“The ability to speak up within an organization, without fear of sanction, is known as ‘psychological safety.’

“[A] study of teams at Google found that self-reported psychological safety was by far the most crucial factor behind successful teamwork at the technology giant.

“Another advantage of diversity is that outsiders can spot profitable opportunities that insiders may miss. Immigrants account for 13% of the American population, but 27.5% of those who start a new business. By their nature, migrants have more get-up-and-go than the average person—otherwise, they wouldn’t move. Some may start businesses because existing ones won’t hire foreigners.” [In praise of dissenters: It pays companies to encourage a variety of opinions, The Economist, 10th Oct 2019]

Here’s how three world-renowned individuals respond to dissent: 

Jeff Bezos: “People who are right a lot, listen a lot, change their mind a lot.”

Ray Dalio (founder of world’s largest hedge fund): “The biggest tragedy is when people think the right decisions are in their heads; they mistake their opinions as right and are attached to them.”

Steve Jobs (as revealed by Tim Cook): “He would flip on something so fast; you forget that he has taken a 180-degree polar-opposite position.”

Let’s get back to the Philippines: “Forgetting its Christian template of forgiveness, the Philippine institutional Church, the Archdiocese of Manila, reacted swiftly and forcefully by filing a suit invoking an article of law against disturbing or insulting religious feeling.

“Then began Carlos Celdran’s Calvary, arrested, tried, and convicted. He sued for pardon and apologized. This time he needed to be humble and ask for forgiveness. He knew it and did it. The Archdiocese claimed it had forgiven, but the suit went on to the Supreme Court, which affirmed his jail sentence.

“It was the ultimate hypocrisy that upon his death, the Archdiocese felt compelled to issue a statement that it had nothing to do with the case filed in court. It claimed it was not them but Catholic lawyers who pursued the case because of the infraction against religious sensibilities.” [Carlos Celdran, MA. ISABEL ONGPIN, The Manila Times, 11th Oct 2019]

Recall the recurring themes of the blog: 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.

In a recent posting, because of their inward-looking bias, the blog challenged the conclusion that tax reforms are the answer to our being the regional laggard, including fund infrastructure development. Indeed, the PH corporate tax rate is higher compared to Malaysia, Thailand, Indonesia, and Vietnam. 

While we want to bring the tax rate down from 30% to 20% to be competitive and eliminate ineffective incentives, other dimensions make our tax revenues pale in comparison.

For example, given Vietnam’s exports are over four times PH’s, they will take in more tax revenues, i.e., 24.8%. Except for Vietnam and Indonesia – which is at 13% but the poverty rate is less than half ours – PH taxes/other revenues as a percentage of GDP are within the 15%-16% range, comparable to Malaysia and Thailand’s.

Lower rates will benefit our largest enterprises but will not generate FDI to the level of Vietnam, for example. “Vietnam’s enthusiasm for free-trade deals has made it especially alluring to foreign investors,” not taxes per se. 

In other words, a larger pie, aka GDP driven by investment especially FDI that comes with technology and an industrial economy will raise the tax base as well as generate higher quality employment even better than OFW remittances, the BPO industry, and tourism – i.e., they are the low-hanging fruit.

It is not rocket science, but we must first (a) toss our blinders and (b) benchmark rigorously. Denial can only ensure the continuity of our mediocre performance. See the above recurring themes of the blog.

Moreover, “We should be careful not to think that every crisis demands the unilateral use of emergency powers.

“Much of this nihilism, writes the literary critic Michiko Kakutani, mirrors a ‘growing loss of faith in institutions and a loss of respect for both the rule of law and everyday norms and traditions; a symptom of our loss of civility, our growing inability to have respectful debates with people who have opinions different from our own; and our growing unwillingness to give others the benefit of the doubt, room for an honest mistake, the courtesy of a hearing.’ We can’t hope to reverse this civic decline by hiring a despot to discipline us.” [The crisis in our streets, Randy David, PUBLIC LIVES, Philippine Daily Inquirer, 13th Oct 2019]

Are we a disaster that has already happened as in a failed state?

Gising bayan!

“Why independence, if the slaves of today will be the tyrants of tomorrow? Moreover, that they will be such is not to be doubted, for he who submits to tyranny loves it.” [We are ruled by Rizal’s ‘tyrants of tomorrow,’ Editorial, The Manila Times, 29th Dec 2015]

“Now I know why Paul dared to speak of ‘the curse of the law’ (Galatians 3:13). Law reigns and discernment is unnecessary, which means there is little growth or change in such people. When you do not grow, you remain an infant.” [Faith and Science, Open to Change, Richard Rohr’s Daily Meditation, 23rd Oct 2017]

“As a major component for the education and reorientation of our people, mainstream media – their reporters, writers, photographers, columnists, and editors – have an obligation to this country . . .” [Era of documented irrelevance: Mainstream media, critics and protesters, Homobono A. Adaza, The Manila Times, 25th Nov 2015]

“National prosperity is created, not inherited. It does not grow out of a country's natural endowments, its labor pool, its interest rates, or its currency’s value, as classical economics insists. [A] nation’s competitiveness depends on the capacity of its industry to innovate and upgrade.” [The Competitive Advantage of Nations, Michael E. Porter, Harvard Business Review, March–April 1990]

“You have to have a dream, whether big or small. Then plan, focus, work hard, and be very determined to achieve your goals.” [Henry Sy Sr., Chairman Emeritus and Founder, SM Group (1924 - 2019)]

“Learning and innovation go hand in hand. The arrogance of success is to think that what you did yesterday will be sufficient for tomorrow.” [William Pollard, 1911-1989, physicist-priest, Manhattan Project]

“Development [is informed by a people’s] worldview, cognitive capacity, values, moral development, self-identity, spirituality, and leadership . . .” [Frederic Laloux, Reinventing organizations, Nelson Parker, 2014]

Are we finally on the road to nirvana?

"Congratulations are due to House Speaker Alan Peter Cayetano and Ways and Means Chair Joey Salceda on the swift passage of the Corporate Income Tax and Incentive Rationalization Act and Passive Income and Financial Intermediary Taxation Act in the House of Representatives. Memorably tagged CITIRA and PIFITA by Congressman Joey, they are now in the Senate Ways and Means Committee chaired by lawyer and economist Senator Pia Cayetano.

“All these reforms are necessary if the Philippines is to move forward to a future with no extreme poverty by 2040. Together, we stand ready to support these reforms in any way we can. We urge both houses of Congress to recognize the great merits of the Comprehensive Tax Reform Program and pass the remaining packages at the soonest possible time.” [“Citira, Pifita: Now na!,” Romeo L. Bernardo, Introspective, BusinessWorld, 6th Oct 2019]

Are we finally on the road to nirvana, that is, from poverty to prosperity?

Benchmark. Benchmark. Benchmark.

"Last year, the Chinese government organized a boycott of South Korean firms and products to punish the South Korean government for deploying an American missile-defense system. Although the system was intended to protect against an attack from North Korea, China complained it could be used to undermine China's defenses too. The boycott, although now over, alarmed South Korean investors.

"Vietnam, in contrast, is liberalizing its economy to welcome foreign industry. In 2015 the government opened 50 sectors to foreign competition and slashed regulation in hundreds more. It sold a majority stake in the largest state-owned brewer, Sabeco, to an international firm last year. Vietnam's enthusiasm for free-trade deals has made it especially alluring to foreign investors.

“Vietnam received FDI worth 8% of GDP last year—more than double the rate that went to comparable economies in the region. Foreign-owned firms now account for nearly 20% of the country’s output. They have grown more than twice as fast as state-owned enterprises over the past decade, despite the country’s nominally communist government.

"Other countries in the region tend to export raw materials or components to China, where they assemble them into other products. Vietnam exports mainly finished goods.

“[Samsung Vietnam] churns out more mobile phones than any other facility in the world. It and Samsung Electronics’ other factories in Vietnam produce almost a third of the firm’s global output. The company has invested a cumulative $17bn in the country.

“But Samsung is as important to Vietnam as Vietnam is to it. Its local subsidiary’s $58bn in revenue last year made it the biggest company in Vietnam, pipping PetroVietnam, the state oil company. It employs more than 100,000 people. It has helped to make Vietnam the second-biggest exporter of smartphones in the world, after China. Samsung alone accounted for almost a quarter of Vietnam’s total exports of $214bn last year.” [“Why Samsung of South Korea is the biggest firm in Vietnam: It makes most of its smartphones there,” The Economist, 12th Apr 2018]

Note Samsung’s revenue of $58bn, almost a quarter of Vietnam’s total exports of $214bn, against the combined sales, $43.1bn, of the 8 Philippine-listed companies that made it to the Forbes list: SM Investments Corporation; BDO Unibank Incorporated; JG Summit Holdings Incorporated; Ayala Corporation; Top Frontier Investment Holdings Incorporated; Metropolitan Bank & Trust Company (Metrobank); Aboitiz Equity Ventures; Manila Electric Company (Meralco). [“8 Philippine companies among world's largest listed firms,” Sofia Tomacruz, Rappler.com, 25th May 2017]

It should not surprise us given OFW remittances plus the BPO industry drive the Philippine economy.

Industrialize. Industrialize. Industrialize.

Let’s get back to Citira and Pitifa: “Urgency is genuinely called for since this congress has less than a year before election fever grips the nation, and everything is pushed back for at least three more years. Also, the country, especially the poorest citizens, cannot wait. Philippine poverty incidence stands at over 21% vs. 11% for Indonesia, 9% for Thailand, 7% for Vietnam.

"Moreover, the world doesn't know standstill. It is especially relevant for CITIRA, which will affect the behavior of investors, the job creators. In the ASEAN, our corporate income taxes (CIT) rates stand out, i.e.,  uncompetitive, at a high 30%, even as our ASEAN peers, which now average 22%, are moving swiftly to lower them further."

Question: How will these reforms stand against what Vietnam has done and achieved? No doubt, Citira will benefit the eight largest Philippine-listed companies and would most likely invest more, which will make them even more significant than they are today.

It’s worth repeating that, “Vietnam, in contrast, is liberalizing its economy to welcome foreign industry. In 2015 the government opened 50 industries to foreign competition and slashed regulation in hundreds more. It sold a majority stake in the biggest state-owned brewer, Sabeco, to a foreign firm last year. Vietnam’s enthusiasm for free-trade deals has made it especially alluring to foreign investors.”

Are we neither here nor there? 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.

Unsurprisingly, “Manila worst-ranked regional city in ‘smart’ list, Vince Angelo C. Ferreras, BusinessWorld, 3rd Oct 2019. “[The] top five concerns of Metro Manila respondents were access to basic amenities, corruption, road congestion, air pollution, and security.”

Moreover, the “Water supply crisis needs long-term solution,” Marit Stinus-Cabugon, The Manila Times, 7th Oct 2019. “The World Health Organization (WHO) and the United Nations Children’s Fund had earlier identified ‘poor sanitation and hygiene conditions’ as one of three factors that made the Philippines a candidate for the resurgence of poliovirus.”

Surprise, surprise: Which of our biggest companies get chunks of their bounties from infrastructure projects?

“Will the Philippines be able to capture a hefty share of investments leaving China? To be sure, the Philippine level of FDIs, despite the rise, is still low in comparison to our counterparts in the region.

“But it is not fiscal incentives that will mainly attract new investors. The World Economic Forum’s Global Competitiveness Report 2017-2018 says that the main concerns of businessmen in the Philippines are the inefficient bureaucracy (20% of respondents), inadequate infrastructure (18%), corruption (14%), tax regulation (11%), tax rates (9%) and political instability (8%).

"[Fiscal] incentives cannot be the main instrument for FDI promotion. [At] the same time, the government must support winning sectors, which it is doing through its investment priority plan, through various means, including the prudent use of fiscal incentives.

"Fiscal incentives still play a role, albeit they have to be rationalized to curb abuses and reduce tax leakage. Such fiscal incentives address market failure and must align with the government's investment priority plan or its industrial or technology policy. The menu of incentives must be responsive to the specific needs of the sector or the firm. Ergo: incentives are not mainly about tax incentives.

"Tax incentives must be performance-based, time-bound, and transparent. The government can steer incentives towards addressing job creation and technological innovation (e.g., tax-deductibility on additional labor costs, human development costs, and research and development costs)." [Do fiscal incentives predict foreign direct investments (?), Filomeno S. Sta. Ana III, Yellow Pad, BusinessWorld, 6th Oct 2019]

In other words, how different are we approaching the challenge of nation-building today from how we did it in the past, recognizing that despite these efforts, we remain the regional laggard?

Industrialize. Industrialize. Industrialize.

The bottom line: To keep to our inward focus, our efforts in nation-building will always yield sub-optimized outcomes.

Worse, we can only fortify the 1-% phenomenon, as in the 8 Philippine-listed companies that made it to the Forbes list and undermine our goal to move forward to a future with no extreme poverty. See above re Vietnam’s enthusiasm for free-trade deals has made it especially alluring to foreign investors.

Gising bayan!

“Why independence, if the slaves of today will be the tyrants of tomorrow? Moreover, 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]