How do you transition from communism to capitalism?

What about “THE Philippines must transition to an industrial economy to improve its exports? The Philippine Institute for Development Studies (PIDS) said [export] performance has barely improved between 1995 and 2014, citing a study published in November 2018.” [Philippine exports’ value-added content stagnant since 1995 — PIDS, Jenina P. Ibañez, BusinessWorld, 17th Nov 2019]

“The problem with the Philippine case is that we seem to have skipped a step. We moved from agriculture to services without even industrializing. [Although] the country’s agriculture employment share was still high at 26% in 2016, its contribution to the country’s gross domestic product is declining due to the issue of productivity.

“From 2005 to 2014, a large portion of the country's export portfolio [belonged] to integrated circuits, whose sophistication content is shallow compared to the average in the world market.

“The study found that the agriculture sector can move to produce more sophisticated goods such as woven twill and prime cuts of pork and poultry.

“[Although] production issues are plaguing the agriculture sector, we can build on the production structures of cereals, fruit mixtures, glycerol, and oils for us to produce agro-processed goods.

“[The] government can guide the shift towards industrialization, including strengthening industrial policy, as well as promoting competition, innovation, and science and technology research. [And] upgrade production capabilities by attracting investment from industrialized Asian neighbors, strengthening the link between industry and the academic community, encouraging manufacturing process innovation, and the financial sector is part of the various stages of production.”

Sadly, that is easier said than done. Consider: “Thomas Kuhn, the American physicist, and philosopher, stresses that paradigms are difficult to change. A paradigm shift is a fundamental change in the basic concepts and experimental practices of a scientific discipline.

“Kuhn contrasts paradigm shifts, which characterize a scientific revolution, to the activity of normal science, which he describes as scientific work done within a prevailing framework, or paradigm. Paradigm shifts arise when the dominant paradigm under which normal science operates is rendered incompatible with new phenomena, facilitating the adoption of a new theory or paradigm.” [Wikipedia]

Indeed, paradigm shifts are a challenge – especially for Juan de la Cruz – given our parochial and insular bias. Unsurprisingly, Rizal pointed out our instincts over a century ago. 

How do you transition from communism to capitalism? It is a question the writer has kept in his mind over the16 years he has been a development worker in Eastern Europe. Similarly, we Pinoys must ask: How will the Philippines transition to an industrial economy?

Many postings ago, the blog spoke to “Force-field analysis.” “It is a development in social science that provides a framework for looking at the factors (forces) that influence a situation, originally social situations. It looks at forces that are either driving movement toward a goal (helping forces) or blocking movement toward a goal (hindering forces). The principle, developed by Kurt Lewin, is a significant contribution to the fields of social science, psychology, social psychology, community psychology, communication, organizational development, process management, and change management.” [Wikipedia]

In other words, the fact that Rizal hasn’t influenced us and instead kept to our instincts will explain why we’re on the road to a failed nation, not prosperity. 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.

How do we overcome these restraining or hindering forces as postulated by Levin? There is no free lunch. “[Despite] the 77-year prison sentence imposed on her, and the order for her immediate arrest, Imelda remains free. A police general demurred from ordering her arrest after the verdict was handed down, and she has since filed an appeal, which under the glacial pace of our justice system, could take more years or decades to resolve. Imelda, true to her appellation, continues to flit from one social event to another, as free as she wants, or as free as a 90-year-old can muster her energies.

“Meanwhile, young Filipinos are left with yet more dubious lessons from the unending lucky breaks of Revilla, Marcos, and their ilk. Crime does not pay. Evil isn't  punished.  Stealing isn't a crime. Who will buy these tarnished truisms? Not the youth of the Philippines.” [Tarnished truisms, EDITORIAL, Philippine Daily Inquirer, 16th Nov 2019]

In earlier postings, the blog spoke to “Leadership, foresight, and values.” In other words, every time there is a presidential election, we all assume that we will elect someone that has the leadership, foresight, and values that can figure out the road from poverty to prosperity.

While we appear to be in the business of poverty, i.e., we all throw in our two cents to overcome poverty, including quick fixes, we fail to distinguish and build on and address the driving and hindering forces articulated by Lewin.

Paradigms are challenging to change. With due respect to PIDS, a study and a seminar will not suffice. That is why the blog often speaks to the writer’s efforts in Eastern Europe. It is not easy to transition from communism to capitalism.

Still, we can leverage the driving forces. For example, the blog has pointed out the story of Eden as well as the Stone Age, among others. Because of the ever-changing wants of man, it is in his nature to innovate. Why we Pinoys haven’t transitioned to an industrial economy like the rest of our neighbors is something we must ponder.

In the meantime, we like to articulate our efforts to overcome poverty. Not a surprise, especially coming from us in the elite class because we instinctively want to keep to the status quo. Because it’s the right thing to do, and it feels good as well as confirmed by neuroscience. Yet, foresight demands more. If those dots don’t connect, it only proves that paradigms are difficult to change.

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]