Thursday, January 30, 2020

Stuck in tradition

Can we develop a growth mindset and learn to forward-think? Not if we can’t recognize the extent of the damage that parochialism and insularity have brought upon Juan de la Cruz.

Let’s pause and ask: Did we foresee beyond our celebration of land reform or the OFW phenomenon, the BPO industry, and now POGO? Likewise, we applauded the resurgence of manufacturing since 2014 but ignored the efforts behind Arangkada, in both the Aquino and Duterte administrations. Note the latter is more investment-driven and with a more significant multiplier effect on employment and support industries. On the other hand, while the former showed an uptick in the global supply chain sector, the economy remains principally consumption-driven.

For reference purposes, you will note the following data points elsewhere in the posting to illustrate how forward-thinking can make us see beyond the obvious – and be liberating, the key to the pursuit of innovation and global competitiveness. But it demands moving beyond linear/logical thinking and developing lateral/creative thinking. For example, do we see how the dots connect and why every posting concludes with the same set of quotes per below? Or do we appreciate the import of the following?

(1) Online gambling revenue in Asia exceeds the $50 billion take for the region’s brick and mortar casinos; 

(2) Samsung Electronics posted $65.7 billion in sales in Vietnam; 

(3) Our top 8 listed companies in the Forbes list collectively can’t match the revenues of Samsung Vietnam – neither can Asia’s online gambling revenue;

(4) The target of Arangkada is to create $75 billion in new foreign investment, 10 million jobs, and over P1 trillion in revenue for the Philippine economy within this decade.

What is the point? If we are asking, do we distinguish between reactive and proactive? And that will explain why we keep taking the wrong turn at the fork. But not only. Why aren’t we geared to meet the 21st-century challenge of innovation and global competition? It demands to develop a growth mindset and learn to forward-think.

Those familiar with the blog will recall why it often references the writer’s presence in the most impoverished nation in Europe. In 2003, USAID assigned him a client, a micro-enterprise that hadn’t made a profit in 8 years that faced even daunting challenges as the country prepared for accession into the EU. Today Western global behemoths respect them. What is the secret? They’ve developed a growth mindset and learned to forward-think.

But what about the issue of globalization and the rise in right-wing nationalism in Europe? Will these countries not buy globally competitive products? Take Apple, Google, Microsoft, Samsung, or Toyota, to name a few. These brands are prospering even in “countries where nationalists got higher scores in European Parliament elections and opinion polls. Among them are Austria, Bulgaria, Czech Republic, Germany, Greece, Hungary, and Poland.” [BBC, 13th Nov 2019.] Beyond the above-named world-famous brands, the second biggest brand of the writer’s Eastern European friends that sell in 70 countries have these same nations among their top markets.

Recall that innovation and global competitiveness define the 21st century. The bottom line: water seeks its (own) level. Consumers prefer products and brands that are responsive innovation-wise to ever-changing human needs. Innovation is not for innovation’s sake.

Let’s get back to the Philippines. What about our leadership? Can they show us the way forward to become a developed, wealthy nation? 

Recall Lee, Mahathir, and Deng demonstrated visionary leadership that the world applauded them? Because they figured out and led their nations to traverse the road from poverty to prosperity. 

For example, instead of being consumed by a parochial, insular, and inward-looking bias, they “begged for Western money and technology.” While here we are, well into the 21st century, still mired in poverty.

Should the millennials give us hope? Not if we lag the rest of the region in education. Recall the McKinsey report on the performance of students, irrespective of socioeconomic background: Students with a “growth mindset” performed 9 to 17 percent better than those with a “fixed mindset.”

In other words, if the generation of this writer is toast, will the succeeding ones be any different? Not if Juan de la Cruz sticks with the paradigm of parochialism and insularity.

Consider: “Experts estimate online gambling revenue in Asia exceeds the $50 billion take for the region’s brick and mortar casinos.

“In the Philippines, live games stream from studios, with dozens of female dealers playing baccarat, roulette or other casino favorites at otherwise empty tables, perhaps with TV news showing in the background to prove the action is live.

“Online gambling is big business in Asia, and China wants to stop it. Cambodia seems to be playing ball with Chinese President Xi Jinping, but the Philippines, the region’s most developed cross-border gaming center, has resisted China’s call to shut it down.

“The crackdown in Cambodia is likely benefiting Philippine businesses, and it fattens Philippine state coffers. 

“The Philippines pioneered cross-border online gaming in Asia. The Cagayan Special Economic Zone, established in 1995, authorized subsidiary First Cagayan Leisure Corporation to license remote wagering operators for overseas players.

“First Cagayan expanded as fast as technology allowed, from sports betting by phone to full-fledged live-streamed casino games earlier this decade. The sparsely populated province in the northeast corner of Luzon, about 550 kilometers (330 miles) from Manila, lagged in telecommunications power for live dealer online (LDO) operations, a situation it continuously bids to address. It also lacked enough supply of competent dealers.

“So, First Cagayan licensees migrated outside the economic zone to Metro Manila, with live dealer studios and support services clustering in Makati.

“With tens of thousands of Chinese nationals working in POGOs, Manila residents have complained about rising property prices and multiplying enterprises catering to Chinese that make some Filipinos feel like outsiders in their own country.

“Security officials, meanwhile, have openly worried about potential POGO-related Chinese espionage; the Philippines and China have ongoing disputes over islands in the South China Sea and economic issues.” [“Why Duterte won’t fold on Chinese gambling,” MUHAMMAD COHEN, Asia Times, 7th Nov 2019]

Note that the crackdown of online gaming in Cambodia benefits the Philippines, and it fattens Philippine state coffers. Then consider, Cambodia is 97.9% Buddhists with a GDP per capita (PPP) of $4,000, while the Philippines is 80.6% Roman Catholic with a GDP per capita (PPP) of $8,400.

That is, Cambodia is more impoverished than the Philippines. Also, being proud Christians, the Philippines is the only nation other than the Vatican that disallows divorce; and dismisses reproductive health yet proud of the war on the drugs and extrajudicial killings. And it looks the other way given that money laundering comes with the gambling business as the world witnessed and made our banking system infamous. 

In other words, this is a stream of hot money for the Philippines, while a vehicle for capital flight from China, no wonder Xi wants to stop it. Of course, the Central Bank has all the rules to preempt wrongdoings; they can only play catch up. There is a reason why Manila residents are complaining about rising property prices. And it doesn’t end there. Fake realtors are sprouting that are adept in the workings of intermediaries and get a piece of the action. 

We aren’t a culture of impunity for nothing. We aren’t the rule of law. How do we rationalize it? If Marcos can get away with murder, why not Estrada or Arroyo or Juan de la Cruz? How else to explain why we’re a third-world country and the regional laggard to boot?

Not a surprise if we think of Rizal’s interpretation in the character of Padre Damaso. Or Fr. Jaime Bulatao’s treatise on our “split-level Christianity.”

“I hope that this recognition of Jesus’ and Paul’s emphasis on the cooperative nature of evil will increase both personal responsibility and human solidarity, instead of wasting time on feeling bad about ourselves, which helps nobody.

“Early Catholic moral theology taught that there were three prime sources of evil: the world, the flesh, and the devil.

“Yet, up to now, most Christians have placed almost all our attention on the ‘flesh’ level. We have had little education in or recognition of what Paul meant by ‘the principalities of the world’ and even less understanding of what he said by ‘the ruler who dominates the very air’ (Ephesians 6:12).” [Richard Rohr’s Daily Meditation, “Bigger Than Personal Moral Failure,” 14th Jan 2020]

Recall we’ve been talking about Vietnam, and for the right reasons: “Samsung Electronics posted 74 trillion won (US$65.7 billion) in sales in Vietnam in 2018, accounting for 28 percent of the Southeast Asian country’s gross domestic product (GDP). The sales figure in Vietnam amounted to 30 percent of the Korean tech giant’s total sales in 2018. Analysts say that these figures mean that Vietnam has solidified its position as the biggest production base of Samsung Electronics, outclassing China.” [“Samsung Electronics Accounts for 28% of Vietnam’s GDP,” Business Korea, 14th Mar 2019]

What is our response given our top 8 listed companies in the Forbes list collectively can’t match the revenues of Samsung Vietnam? See above capital flight from China.

“Rather than keep their extra funds in savings accounts with lower interest rates, it may be better for Filipinos to allocate their savings in other ways, such as by investing in various companies as a shareholder.

“One possible investment that our countrymen could make would be in a REIT, or a Real Estate Investment Trust. A REIT is a company that invests in and earns from the construction, operation, and maintenance of the real estate. It includes offices, apartment buildings, hotels, warehouses, shopping centers, and even highways—all of which can generate relatively secure income streams.

“REITs are required to distribute 90 percent of their annual income to shareholders. That makes them attractive for middle-income breadwinners and OFWs who can step in with their savings and potentially bolster their financial standing.” [“REITs: Real estate and economic development,” Sonny M. Angara, BETTER DAYS, BusinessMirror, 24th Jan 2020]

“What happened to Arangkada?” Consider: “The target is to create $75 billion in new foreign investment, 10 million jobs, and over P1 trillion in revenue for the Philippine economy within this decade.

“The original ‘Arangkada Philippines: A Business Perspective’ report published in December 2010 contained 471 policy recommendations that will accelerate the growth of seven big industry winner sectors and achieve certain targets in terms of revenues, foreign investments, and job generation.” [Significant gains in the plan to promote 7 ‘winner’ sectors, Amy R. RemoPhilippine Daily Inquirer, 24th Feb 2014]

Can we develop a growth mindset and learn to forward-think? 

Not if we can’t recognize the extent of the damage that parochialism and insularity have brought upon Juan de la Cruz. We were supposed to leave Vietnam and Cambodia in the dust – with the Asian Tigers well beyond our reach.

Vietnam’s growth mindset and forward-thinking bias are reaping the rewards in another sphere: “The energy-hungry country may need fewer coal-fired plants than it thought.

“SOLAR POWER played almost no part in Vietnam’s energy mix in 2017. To speed the technology’s adoption, the government offered that year to pay suppliers a generous $0.09 for every kilowatt-hour produced by big solar farms, but only if they started operations within the following two years. It expected to install some 850MW of capacity. Instead, by the end of 2019, the country found itself with 5 gigawatts—more than Australia, with an economy almost six times the size.

“Vietnam’s experience suggests they don’t need all the planned coal plants.” [Vietnam grapples with an unexpected surge in solar power, The Economist, 23rd Jan 2020]

And what about us? Sadly, we’re parochial and insular. We value hierarchy and paternalism and rely on political patronage and oligarchy that ours is a culture of impunity.

In other words, Vietnam will indeed leave us in the dust. At the rate they are going, they will be wealthier than Singapore per the international institutions.

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]

Friday, January 24, 2020

Break from tradition

Buckingham Palace announced that Harry and Meghan would no longer use their ‘royal highness’ titles, nor would they receive public funds for their royal duties. They also plan to pay back $2.4 million in public money that they spent renovating their home in the United Kingdom, Frogmore Cottage. 

“On Jan. 8, the couple said on Instagram that they had decided to step back from the royal Family after months of ‘reflection and internal discussion.’ They said they would split their time between the U.K. and North America.” [“Harry says he and Meghan ‘had no other option’ but to ‘step back’ from the royal family,” Tim Stelloh, NBC News, Jan. 20, 2020]

Two things came to mind after the Harry-Meghan announcement, although they may not fit “to a tee”: (a) “Fiddler on the roof,” i.e., attempts to maintain traditions, and (b) the Chinese proverb: “Wealth never survives three generations.”

The wife and her siblings are beneficiaries of such wealth, and the wife, consciously or not, will want to upend the proverb. Likewise, she already broke from tradition by moving to New York while her father refused even to get a U.S. visa. Her mother was the opposite; she loved holidays and travel, which she passed on to the wife and daughter.

If Meghan, assuming observers are correct, is the influence, could the writer be the one? He comes from a low-income family and similar though unlike Harry, had no option but to break from tradition. At 23, he accepted a job in Davao, de facto turning independent and never looked back. The daughter repeats the story in jest when chatting with cousins and friends that aren’t trust-fund babies.

That brings us to the Philippines, the nation, and the economy. “Frankly, I don't know if there's a solution to our dysfunctional, inefficient, and corrupt bureaucracy. The incentives in our political and economic systems don't point toward bureaucratic reform. What I do know is that breaking up the country's highly concentrated markets and getting more competition, especially from foreign investors; and an emphasis on export tradables (manufacturing and agriculture) will raise the demand for better governance.

“In the meantime, it’s enough to know that our bureaucracy is a binding constraint to growth.” [“Our dysfunctional bureaucracy as a binding constraint,” Calixto V. Chikiamco, Introspective, BusinessWorld, Jan. 19, 2020]

Is there a solution? Consider: We are parochial and insular. We value hierarchy and paternalism and rely on political patronage and oligarchy that ours is a culture of impunity.

Should Juan de la Cruz break from tradition? “Given the technological changes that have occurred in the last five decades, the idea of an all-around self-sufficient industrial development, as articulated by the Filipino First senators in the 1950s-1960s, may not be practical today.  However, the idea of building a strong nation with a strong industrial and agricultural base remains relevant, especially in an unpredictable VUCA world that we are living in.” [“Rebalancing development strategy: Filipino First in an uncertain and volatile world,” Rene E. Ofreneo, LABOREM EXERCENS, BusinessMirror, Jan. 16, 2020]

In other words, does Juan de la Cruz have an option given the unpredictable VUCA world – volatile, uncertain, complex, and ambiguous – of ours?

We grew up listening to the concept of the “free will.” How does that measure against the contemporary science of the “growth mindset”? For example, the blog has raised the imperative to “foresee and forward-think,” which presupposes a break from the status quo, as in “Pinoy Kasi.”

As some would know, the writer has been a volunteer development worker in Eastern Europe, a calling he stumbled upon after he retired from his old-MNC company.

Consider: After the collapse of the Soviet Union, the wife organized a trip to Eastern Europe – which she also did when China opened its borders. The family flew into Athens and then traveled through Bulgaria – where the Rila monastery stood out and the medieval town of Nessebar on the Black Sea coast as well as an ex-communist mess hall across from the Russian Church in Sofia – and up to Romania, where they watched “Carmen” in Bucharest.

That experience made the couple see Eastern Europe as an exotic destination and influenced the idea to make a return visit. But the challenge was more compelling. Here are the two most impoverished countries in Europe seeking assistance on how to transition from communism to capitalism as part of their accession into the E.U.

If the writer still needed convincing, the local representatives of USAID made the pitch: “You will be part of history, so you may want to consider the challenge seriously.”

In other words, here are a people that were leaving their past, yet it was not going to be a cakewalk: “When the USSR collapsed in 1991, institutions and economies collapsed as well in Ukraine and other Soviet republics. They were quickly taken over and plundered by kleptocrats and oligarchs building fortunes from the ruins of the former superpower.” [“Ukraine fears Trump hold on aid exposed vulnerability in war with Russia,” Mac William Bishop, Mariana Henniger, Oksana Parafeniuk; NBC News, Dec. 30, 2019]

To break from tradition – or pursue an altogether different path – means to recognize both the “helping” and “hindering” forces that will come into play and impact the undertaking. That is why the science of the “growth mindset” – or hardy mindset – must be taken to heart.

Otherwise, the “fixed mindset” is bound to take over – because to forward-think and foresee goes against linear and logical thinking, i.e., the latter is quantitative while the former is qualitative. And the chamber of the brain that does quantitative chores is more developed. Put another way, and it explains why visionaries are few and far between.

Recall the challenge to Philippine higher education discussed in an earlier posting: “A well-educated citizenry is an economic and social necessity.”

“That’s a quote from the McKinsey & Company, Social Sector Report of September 2017: “How to improve student educational outcomes: New insights from data analytics,” Mona Mourshed, Marc Krawitz, and Emma Dorn.

“Policymakers, educators, and parents all over the world want students to understand and be able to apply their knowledge of math, reading, and science. Yet improving educational outcomes has proved elusive.

“In the case of the Philippines, we leaped to K-12. But is that it? The McKinsey report presents these two findings: (1) Having the right mindsets matters much more than socioeconomic background; (2) Students who receive a blend of teacher-directed and inquiry-based instruction have the best outcomes.

“Students with a ‘growth mindset’ — those who believe they can succeed if they work hard—performed 9 to 17 percent better than those with a ‘fixed mindset’— those who believe their capabilities are static.

“There are two dominant types of teaching practices. The first is ‘teacher-directed instruction,’ in which the teacher explains and demonstrates ideas, considers questions, and leads classroom discussions. The second is ‘inquiry-based teaching,’ in which students are given a more prominent role in their learning—for example, by developing their hypotheses and experiments.”

In the meantime, should we pause and ask: What will it take for Juan de la Cruz to rapidly develop a “growth mindset” and break from “Pinoy Kasi”?

“I don't believe we will ever reform our bureaucracy unless and until we become a more outward-looking economy, i.e., the tradables of manufacturing and agriculture become significant drivers of economic growth.

“That is not the present case, where services represent the most substantial portion, and our export to GDP ratio is a mere 30% (and declining over the years), compared to other countries like Vietnam where exports are crucial and represent 100% of GDP.

“The fact of the matter is that outward-looking economies have the best and most efficient bureaucracies. Taiwan, Singapore, Japan, Hong Kong, and China are all outward-looking economies, and they rely on their competent administrations to nurture their outward-looking economies forward.

“It’s not hard to see why this is so. To conquer foreign markets and win against trading rivals, producers must have an efficient bureaucracy behind them. Samsung, Hyundai, L.G., and other South Korean companies, for example, would not be able to compete in the world market if their home bureaucracy weren’t efficient. If their government couldn’t provide proper infrastructure, for example, their export goods wouldn’t be able to move efficiently and competitively to foreign markets.

"On the other hand, here in the Philippines, the political economy favors a weak and inefficient bureaucracy. With the aristocracy in many regulated, inward-looking non-tradable industries (power, banking, ports, shipping, real estate, among others), the incentive is to 'capture the regulator' or prevent competition rather than support an efficient and impartial bureaucracy." [Chikiamco, op. cit.]

Do we stand a chance given our instincts: We are parochial and insular? We value hierarchy and paternalism and rely on political patronage and oligarchy that ours is a culture of impunity.

Let’s reprise the science of the growth mindset: We must take it to heart. Otherwise, the “fixed mindset” is bound to take over – because to forward-think and foresee goes against linear and logical thinking, i.e., the latter is quantitative while the former is qualitative. And the chamber of the brain that does quantitative chores is more developed. Put another way, and it explains why visionaries are few and far between.

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]

Monday, January 20, 2020

Excellence is a habit

Sadly, mediocrity is a habit too. And why the blog often distinguishes a vicious circle from a virtuous one. In other words, if we can’t connect the dots and mirror a sustainable ecosystem – as in how living things thrive – we are consigned to be the region’s pariah, aka the regional laggard.

There is a difference between inefficiency per se and a dysfunctional system. It explains why we take “quick fixes” for granted, especially given our hierarchical and paternalistic instincts. The master rules and the servant follow, end of the story.

Dualism isn’t how the world was founded, as in either/or, i.e., black or white. It is in living color, as the writer reminds his Eastern European friends. It comes from their unending stories from their past, the communist rule when they chose from two black and white propaganda TV channels. No wonder they found liberation when MTV arrived and saw Madonna performed in her quirky wardrobe.

“With digital technology advancing in leaps and bounds today, there is no reason why airlines can’t have better customer service. Something as necessary as communicating to the customer isn’t hard nor expensive to do.

“The situation is unacceptable. [Airlines] should be required to make it a practice to text or email their passengers of flight status or be penalized for failure to do so.

“Even if they are unable to provide certainty because they are waiting for government authorities to open the airport, they should still communicate and say so with a promise to text or email again.

“Our domestic airlines should drastically upgrade customer service by harnessing the latest technology. No justification for the information blackout I just experienced.” [“Customer service,” Boo Chanco, DEMAND AND SUPPLY, The Philippine Star, 17th Jan 2020]

“[W]hen I was eighty, Sam Vaughan, my Random House editor, sent me an article on the world’s great writers that didn’t get the Nobel, Tolstoy and Graham Greene among them. I have always admired Norman Mailer, expected him to get the Nobel, and when he died without winning it, all my hopes faded. 

“Now, being 95, I no longer dream of the Nobel, but I continue to dream, to long for the revolution that will finally bestow justice and prosperity to my unhappy country.

“But while I continue to dream, I am also constantly aware of the possibility that this dream may also fade. At a brilliant lecture recently at the Ateneo, Conchita Carpio Morales, former Ombudsman and chairman of the Akademyang Filipino, decried the rampant corruption that is corroding the very foundation of the nation. She named the Marcoses, Joseph Estrada, Gloria Macapagal Arroyo. And so, I asked her – why then are they back in power? She said, ‘that is the question I should ask the Filipino people.’

“Alas. In the end, we are our worst enemy.

“In her brilliant autobiography, Carmen Guerrero Nakpil concluded, ‘It’s all vanity.’ Sure, I wrote for I, myself and me, work is the law of life, and God knows I worked hard to please myself – yes, but also to give meaning to this mundane life. Sure, I also worked for others in the hope that our people will be free from poverty. Yet through all these years, that poverty has deepened, so has moral decay and apathy. God, we need that revolution now to end all these, and to ensure that this metastatic republic will survive and prevail.” [“Writing the revolution,” F. Sionil Jose, HINDSIGHT, The Philippine Star, 13th Jan 2020]

We are our worst enemy. And why the blog never tires of raising our instincts: We are parochial and insular. We value hierarchy and paternalism and rely on political patronage and oligarchy that ours is a culture of impunity. They make for the perfect storm that won’t leave the Philippines because we created a vicious circle. Yet, we take them as a given and thus pay the price: we are our worst enemy.

Sadly, parochialism is a blinder that keeps us from benchmarking – i.e., more nations are well ahead of us in civilization, progress, and development. What we see are the faults and inefficiencies even of the more advanced wealthy countries, and we conclude that we know better.

It reveals our perceptive judgment and our inability to distinguish inefficiency from a dysfunctional system, as in our structure does not work.

Consider: How many times have we attempted to undo the restrictive economic provisions of the Constitution? Simply put, we can’t frame the challenge into a simple proposition: “getting the best of all worlds.”

Every time there is a foreign element to the equation, there is a red flag that stops us dead in our tracks. On the other hand, Lee, Mahathir, and Deng all embraced foreign money and technology.

And in many former Soviet satellite states, they sought the US military – think Ukraine and the Baltic states, among others – while we kicked them out.

How come we understand the global supply chain – and why we are an intermediate producer of electronics components – yet can’t come to grips with the imperative of foreign money and technology – in the pursuit of progress, as in industrialization, innovation, and global competitiveness? It explains why we can’t be a final product manufacturer like Vietnam and before them, China and the Asian Tigers.

Ergo: we can’t fathom what scale is like and how to leverage it and confine ourselves to MSMEs and livelihood undertakings that won’t suffice to raise the well-being of over one hundred million Filipinos. Even worse, the combined output of our top 8 listed companies in the Forbes list pales in comparison to one enterprise, that of Samsung Vietnam.

Parochialism robs us of the sense of community and the common good, which puts our professed Christianity to the test.

“Both Jesus and Paul passed on a collective and historical understanding of the nature of sin and evil. Yet, individuals still had to resist but in which they were usually complicit. Jesus and the prophets judged the city, nation, or group of people first, then the individual. That is no longer the starting point for many people, which leaves us morally impotent. We do not reproach our towns, our religion, or our nation, though Jesus did so regularly (Matthew 11:20-24; Luke 10:10-16).

“I hope that this recognition of Jesus’ and Paul’s emphasis on the cooperative nature of evil will increase both personal responsibility and human solidarity, instead of wasting time on feeling bad about ourselves, which helps nobody.

“Early Catholic moral theology taught that there were three prime sources of evil: the world, the flesh, and the devil.

“Yet, up to now, most Christians have placed almost all our attention on the ‘flesh’ level. We have had little education in or recognition of what Paul meant by ‘the principalities of the world’ and even less understanding of what he said by ‘the ruler who dominates the very air’ (Ephesians 6:12).” [Richard Rohr’s Daily Meditation, “Bigger Than Personal Moral Failure,” 14th Jan 2020]

Parochialism undermines our ability to foresee or forward-think. That is why the knee jerk and quick fixes are our response yet will always fall short considering our challenge, that of the perfect storm. The evidence? Why did we allow infrastructure development to bring us decades back? They reveal our sins of omissions and commissions.

“Here’s another ‘massive failure,’ on a different but no less consequential front, and likewise backed by telling numbers: According to the Commission on Audit, the government’s National Greening Program (NGP) missed a whopping 88.17 percent of its target within the covered years of 2011-2019.

“The NGP, the government’s biggest reforestation project, was launched in 2011 during the Aquino administration to jump-start the country’s recovery of forestlands. By then, the Philippines had already lost 60 percent of its total forest cover, with approximately only 6.84 million hectares of the 16.90 million hectares in 1934 remaining.

“The Forest Management Bureau of the Department of Environment and Natural Resources (DENR) had previously said the country loses about 47,000 hectares a year due to deforestation.

“The culprits? Illegal logging, slash-and-burn farming, and mining.

“Enter NGP, which aimed to regain 1.50 million hectares of forest lands by planting 1.50 billion trees within six years, or from 2011 to 2016. It was later extended into a long-term program to try to recover the entire Philippine forest cover.

“The DENR was given a total budget of P47.22 billion from 2011 to 2019 to implement the program. However, after eight years of implementation, the forest cover yielded a marginal increase of only 177,441 hectares — or 88.17 percent below the target of 1.50 million hectares.

“Even more interesting said COA, most of the forest gains were attributed to ‘natural growth’ that could have been due to the government’s moratorium order on logging, and not to deliberate reforestation efforts.

“The DENR appeared to have resorted to shortcuts that only sabotaged the program. In 2016, the Philippine Institute for Development Studies already advised the national government to review the NGP, particularly regarding the mix of tree species planted, as many were not always appropriate to the site.” [“Reforestation fail,” EDITORIAL, Philippine Daily Inquirer, 9th Jan 2020]

In the meantime, Indonesia continues to follow the footsteps of our other wealthier neighbors. Consider these recent news reports: (a) “Indonesia is spending $33 billion to move its capital from a sinking city to an island where forests have been burning,” Aria Bendix, Business Insider, 27th Aug 2019; and (b) “The most beautiful Indonesian island you’ve probably never heard of,” Ron Gluckman, CNBC, 16th Jan 2020.

“From the veranda of the Ayana Komodo Resort, a long wooden pier snakes into the rough sea off Waecicu Beach. At sunset, the sky explodes with hot showers of color. It’s a perfect picture for the Instagram Age, with dozens of delicious, chocolate-chip shaped islands sprinkled across the horizon.

“It’s part of a massive infusion of infrastructure designed to distinguish Flores from Indonesia’s other 18,000 islands, including the country’s most famous Bali island. Fittingly, the ambitious plan is called “Ten New Balis.”

“Announced by the Indonesian government in 2016, the plan was met with great fanfare — and for a good reason. Bali has become a global icon, attracting 40% of Indonesia’s foreign visitors, many who venture no farther.

“Progress is visible everywhere around Labuan Bajo. What was once a small fishing village is now supercharged with boom-town zeal and non-stop construction of restaurants and hotels.”

On the other hand, this is what we showcase to the world: “Construction sector loses as much as 35% of costs to corruption — economist,” Jenina P. Ibañez, Reuters, BusinessWorld, 9th Jan 2020.

“THE CONSTRUCTION industry spends as much as 35% of its costs on paying corrupt officials, higher than its profit, according to a think tank.

“Building companies allot 15% to 35% as ‘other costs of doing business,’ economist Ronilo M. Balbieran told an industry conference, referring to corruption.

‘Ask any contractor what your net profit rate is, they will all say 8% to 10%, maximum 15%,’ Mr. Balbieran, vice-president at REID Foundation, said.

“And then they will all tell you ‘something is happening out there’ — and how much is that? 15% to 35%,” he added, alluding to corruption.”

Indeed, mediocrity, like excellence is a habit.

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]