State of denial

National pride is human nature. Sadly, in the case of Juan de la Cruz, it will continue to sink us to the abyss.

We must look in the mirror, or we won’t develop into a proactive and responsive organism – and instead remain the regional laggard, if not risk extinction.

Let’s start with our tax base. In other words, while we are focused on tax reforms, which is a step in the right direction, we cannot take the tax base for granted. Revenues are the lifeblood of an enterprise, be it public or private. If that does not come out of our lips instinctively, it is high time it does.

Industrialize. Industrialize. Industrialize.

In the meantime, the size of the GDP makes us gloat. While it is not to sneeze about, it has become a rich source for harmful elements to indulge in graft and corruption. Moreover, it makes Juan de la Cruz demand his share in one form or another, i.e., if not dole-outs, badly needed social programs.

Sadly, on a per capita basis, notwithstanding the size of the GDP, it is not enough an engine to rapidly drive economic development.

Worse, because we have not demonstrated foresight, we can’t figure out the road we must traverse from poverty to prosperity. 

Recall that the three drivers of PH national income are: (1) OFW remittances, (2) BPO industry, and (3) the Top 8 listed companies that made it to the Forbes list.

Where do we stand with national income? We are the regional laggard with a per capita income of an underdeveloped economy. Even more fundamental, we can’t provide essential services like water, electricity, public transportation, and then some.

In other words, we are relying on a tax base that is the size of a small pie. Moreover, given that we are a consumption economy, we find ourselves skewed to taxing consumption like the sin tax. 

On the other hand, let’s look at Vietnam. Why?

They are poised to overtake us in per capita income while already ahead of us in reducing poverty, at less than 10% against our over 20%. Even more mindboggling, Vietnam is tracking to be wealthier than Singapore.

Here lies our blind spot. Vietnam liberalized its economy and attracted investments that are leaving China. It is not rocket science. All Vietnam is doing is follow the playbook of the Asian Tigers: beg for Western money and technology. While we still go by the old Western model of a free market per se. 

That is being kind because ours is a protectionist economy given our subservience to vested interests, i.e., political patronage and oligarchy. See below our instincts.

Vietnam’s exports are now over four times ours. It is likewise essential to note that one Korean enterprise, Samsung, generates more revenues than the eight most significant companies in the Philippines, combined.

There is a missing link in our taxation drive, i.e., our tax base, aka national income.

That is why the blog often references the definition of creativity courtesy of Steve Jobs. It is merely to connect the dots.

As the blog has argued, our instincts brought about the above blind spots: 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.

Even geniuses – like Einstein and Edison, or even Steve Jobs – have their blind spots. “Despite their incontestable intelligence, [they] held seriously misguided beliefs about significant aspects of life.

“[High] IQ alone is not predictive of wise decision making and overall life success. Brainpower may often contribute to severe reasoning mistakes.

“So how can you avoid foolish mistakes fueled by your intelligence? Open-mindedness, continuous self-questioning, and a willingness to change one’s mind (all of which happen to be principles of the yogic understanding of wisdom) are key factors for making wiser choices.” [“Are You Too Smart to Think Wisely? Brainpower can contribute to surprising reasoning mistakes”; Eva M. Krockow, Ph.D., Psychology Today, 6th Mar 2019]

As a development worker in Eastern Europe, the writer has had the benefit of overseeing a “laboratory” over the last 16 years that confirms the limits of intelligence. That wise choice is a product of thinking discipline: Never stop at the Monday version; brainstorm until you get to the Saturday version. The outcome? They have turned into giant killers. They give Western global behemoths a run for their money.

“Mirror, mirror on the wall, who is the fairest of them all?”

Sadly, because of national pride, we like to deflect our shortcomings and rationalize our failings. In fairness, such juvenile pursuits are consistent with our level of development.

We can fault every other nation or whatever isms we like to criticize. Yet, we are the regional laggard because we are on the road to a failed state, not 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]