We can't undo our sins of omission and commission overnight

“[We] wasted decades falsely believing that indefinitely shielding our domestic producers from foreign competition would strengthen ours. For rice and sugar, our longest holdouts, we not only imposed high import tariffs but also went to the extent of exercising outright government control over all importation.

“We now know from hindsight that our traditional conservatism on trade policy took a toll on our longer-term welfare and economic performance, especially our ability to create ample jobs for our rapidly growing labor force.

“The legacy of that conservatism haunts us to this date, as we continue to have the highest national unemployment rate among our comparable neighbors, even as millions of Filipinos have found work overseas.

“I was a direct participant back in 1991 in the negotiations for the ASEAN Free Trade Agreement, as part of our government panel of senior economic officials led by then Trade Undersecretary Lilia Bautista. ASEAN still had only six members, and the Philippines, together with Indonesia, were the spoilers pulling everybody else back and prolonging negotiations.

“Our official stance, determined by the prevailing domestic political sentiment then, was to resist lowering our trade walls at the pace our more aggressive neighbors Thailand, Singapore, Malaysia, and Brunei wanted. As a way forward, they invented the ‘Asean minus X’ formula: Those members who wished to adopt coordinated reforms to open their markets could forge right ahead without the others if they so choose.” [When infants won't grow up, Cielito F. Habito, NO FREE LUNCH, Philippine Daily Inquirer, 6th Dec 2019]

In other words, we can’t undo our sins of omission and commission overnight. Yet, we like to throw quick fixes with abandon. The sad reality holds whether it is poverty or Edsa or water or electricity or our dismal record in education, among others.

The evidence? Did we not elect Duterte because he was to fix the drug problem and corruption and Metro Manila traffic in six months? We like to quote Einstein, yet we succumb to insanity time and again.

As the blog has repeatedly discussed, it takes leadership, foresight, and values to pursue development and nation-building. Sadly, we fall flat in every respect. For example, leadership to us equates to emergency powers, aka quick fixes, and worse, tyranny. Or at best, it is falling into the trap of political patronage and oligarchy. It explains how juvenile we are when it comes to democracy, i.e., it is a government of the people, by the people, for the people.

Think Marcos and today, Duterte. On the other hand, think Lee, Mahathir, and Deng. What did they have beyond being strong men?

Try foresight? See above re “when infants won’t grow.” Still, it is beyond shielding our domestic producers. It is about benchmarking against what our neighbors have done so we can learn from their successes. 

For example, after the Asian Tigers, today we are witness to how Vietnam employs the same playbook, i.e., beyond rapidly making agriculture productive and competitive, it is about aggressively pushing industrialization and the pursuit of technology, innovation, and global competitiveness via foreign direct investment.

And try values? Consider: We are parochial and insular. We value hierarchy and paternalism and political patronage and oligarchy that ours is a culture of impunity.

In other words, because we speak from both sides of the mouth, FDI has chosen Vietnam after China, and not the Philippines. And the more the years pile on, the deeper we are digging our own grave. 

Gising bayan!

But let’s get back to “foresight.” The posting will continue to quote Ciel Habito, but from a different article, “Why poverty has declined, Cielito F. Habito,” NO FREE LUNCH, Philippine Daily Inquirer, 10th Dec 2019.

“[The] impressive drop in poverty finds a ready explanation in the other economic data we've seen over recent years. Foremost is the relatively rapid growth since 2010 in our manufacturing sector, the source of the best quality wage and salary jobs in our economy, especially for lower-skilled workers. 

“This manufacturing surge came about since Asean import tariffs went down to zero in 2010, and the rise of regional cross-border value chains spurred higher manufacturing activity in electronics, chemicals, and other export manufactures. The unemployment rate is now under 5 percent, while the 13-percent underemployment is also way below the 18-20 percent we persistently had for many years.

“Wage and salary jobs now make up two-thirds of the employment in the economy, while unpaid family workers and those who are individually self-employed (like vendors, pedicabs drivers, among others) have been accounting for falling shares of total jobs.

“These trends are further supported by consistent double-digit growth rates since 2010 in overall investment in the economy, especially private domestic investments that create more jobs and livelihoods for Filipinos. Conditional cash transfers, while long term in intended benefit through their effect on the education of children in poor families have also made a significant dent on poverty even in short to medium term, especially now after ten years of implementation.

“For sure, many boats have not been lifted by the rising tide of the Philippine economy. But signs are clear: we lifted many more in recent years than in the past.”

With due respect to Ciel, this is classic, “The glass is half-full,” and the blog consistently argues against it.

Foresight. Foresight. Foresight.

We can’t develop foresight if we continue to justify our predicament.

Benchmark. Benchmark. Benchmark.

Beyond leadership, foresight, and values as discussed above, it is not instinctive for us to benchmark. That comes from our inward-looking bias.

In other words, the Asian Tigers and, more recently Vietnam, did not become the envy of the world by focusing on poverty. They knew that it is the effect of underdevelopment.

After Deng had heard from Lee and Mahathir, Deng then pronounced, “If we are to lift our people from poverty, we need Western money and technology.” It was precisely the message he got from the two.

It is forward-looking and forward-thinking. And Juan de la Cruz can’t seem to figure it out. Consider our values one more time: We are parochial and insular. We value hierarchy and paternalism and rely on political patronage and oligarchy that ours is a culture of impunity.

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]