From the North Star to Execution

[Why is ours a damaged culture? Then consider: We are too weak to face a pandemic and the 21st century. How can we then make Juan de la Cruz thrive? Recall the story of creation.]

Put another way, how do we relate the “here and now” and the “must-do” to the “context”?

Because Juan de la Cruz is in survival mode, the knee jerk is to react, not to proact. It explains why everyone is trying to come up with a prescription. Recall the comprehensive agrarian and land reform program, the OFW phenomenon, 4Ps, war on drugs, POGO spectacle, among others. And the MSME bias and our reliance on the Big Boys.

In other words, we see our challenge in a one-dimensional, linear mode that feeds on “Pinoy abilidad,” as in a quick fix – “madali lang yan.”

Recall how Steve Jobs defined creativity: It is connecting the dots, but you can only do it going backward. For example, we will be strong to face a pandemic and the 21st century if we gear to thrive in a dynamic environment; and the story of creation is the context and the setting and the framework of that environment. That is why the blog calls “the story of the creation” the North Star.

But the distance between the “North Star” and “Execution” can be measured in eons.

That is why in an enterprise, Juan de la Cruz must be on the same page. It brings the Roosevelt fireside chats to mind, speaking to the nation that because the undertaking is daunting, it must guard against the fear of the unknown. That the only fear is fear itself.

Recall how conventional wisdom explains progress and development to Juan de la Cruz. Even in the age of COVID-19, we hear how the economy will contract. The GDP will turn south or down, not up. And we needed the stimulus relief package. To tide us over in the hope that the pandemic will be gone sooner than later.

For the last several years, we have been celebrating the nation’s GDP growth rate of 6%-7%, the international standard for a fast-growing economy. Yet, Juan de la Cruz always says that numbers don’t mean much when he is hungry. See above; the menu of prescriptions that we’ve lived through, and yet, we remain the regional laggard with the highest poverty rate among the neighbors.

We’ve added to the prescriptions too, especially because of rural poverty, i.e., irrigation, farm-to-market roads, the use of fertilizer, extension programs, and on and on.

In the meantime, because of the pressure to do more for Juan de la Cruz, we are rationalizing taxation. To direct – even raise – incentives where we get the biggest bang for the buck, but reduce them if not eliminate when they don’t.

And continually, we are especially managing liquidity, interest rates, exchange rates, and the debt ratio. As well as pursuing other interventions like K-12, healthcare, housing, and lots more.

They all come down to the need to keep to the 6%-7% GDP growth. What are we missing? That it will take a generation before we can see the light at the end of the tunnel.

Enter: the DTI and the private sector and government, again. We are lagging our neighbors export-wise, we need incremental export receipts of $100 billion. The private and foreign sectors translated that into Arangkada. While NEDA put out AmBisyon and the Senate stepped in with Tatak Pinoy.

Still, there are ways to sharpen execution. The distance between the “North Star” and “Execution” comes to eons, and so there must be no disconnect.

It is important that Juan de la Cruz appreciates the lingo of the GDP instead of dismissing the numbers as meaningless – because I continue to be hungry.

To quote from an earlier posting, “We need a thousand of our close to 800,000 MSMEs to forward-think and craft a game plan to attain a global benchmark, $100 million enterprises. And simultaneously, our large enterprises must collaborate with Arangkada, AmBisyon, and Tatak Pinoy to raise our export receipts by $100 billion.”

That equates to an incremental GDP of $200 billion and will put us ahead of Malaysia, Thailand, and Vietnam. That must be the vision for us to overcome the label of regional laggard – and why Juan de la Cruz is hurting.

The most significant challenge in a universe of 1,000 MSMEs, because of sheer numbers, is the risk of underperformance. “Gravity” will want to pull such efforts down.

In the private sector, they define forward outlooks as “stretched goals.” To pump and raise the adrenalin. Think of how a start-up operating from a garage can upend Big Blue. Today people talk of Apple, not IBM.

Note that the DTI is looking for incremental export receipts of $100 billion. There is a greater probability for large enterprises to deliver, again because of the laws of physics. That is why Arangkada described them as Big Industry Winners.

Still, as the blog has discussed, we can’t go it alone. We must tap foreign money and technology for us to get into the big league. And we must prioritize, leverage Pareto, and be divorced from the crab mentality.

As important, is to call out the most potent oligarchy that the party is over. We are undermining our efforts to raise our ease-of-doing-business quotient by sweeping aside our culture of impunity.

The DTI, while working on the 42 industry road maps, must identify our priorities, the couple of initiatives that will give us the biggest bang – and almost at warp speed. That means adopting the “fast-fail” model of Silicon Valley, i.e., doing prototypes quickly, so we learn rapidly and be in continual learning mode – as we upgrade a prototype at each go-around.

We need such learning experience so that we can better manage the rest of the 42 industries – and become adept in industrial development. It will also pinpoint how we must prioritize infrastructure development efforts. 

The key is to create a virtuous circle which the blog has discussed in prior postings, to replicate the photosynthesis phenomenon.

And why “the story of creation” is the “context” or the North Star that will ensure Juan de la Cruz thrives in the dynamic environment not only of a pandemic but the 21st century as well.

Beyond Arangkada and AmBisyon is Tatak Pinoy. And they can cater to MSMEs. Note these smaller enterprises, close to 800,000 of them, account for 99.6% of total establishments, and employ two-thirds of the working population. But they don’t pull their weight, accounting for 35 percent of national income.

And the reason is they are primarily livelihood undertakings. If we likewise set a vision of $100 billion incremental revenues from this sector, we are putting them on a higher plane. That means how we support them must also change. We need 1,000 of these MSMEs to each attain revenues of $100 million. That is 0.13% of the close to 800,000 MSMEs that we have. In the bigger scheme of things, it is not as insurmountable.

But as a first pass, we must leverage Pareto. In a universe – of 1,000 MSMEs – it is best to group them, e.g., an A, B, or C. Those that are livelihood efforts for whatever reason, e.g., they are a supplementary source of family income, not the main one, will most likely want the status quo. This group can be the C group.

On the other hand, some are in scalable businesses. And whose products can move up the value chain? They don’t have to be in high technology. The writer’s Eastern European friends are into day-to-day products people need yet have long surpassed the $100 million mark.

They will be the A group. And those in-between will be the B group.

The current efforts to support MSMEs may suffice for those in the B and C groups, although the issue of finance will always be there. It is a function of how much the country is willing and able to set aside to support them. 

But the test is: Are they running a tight ship? Can they create a virtuous circle within a modest enterprise? If they can, there will be a reason for financial institutions to step up. See above; the writer's friends.

Before we get too far, please see above: As a first pass, we must leverage Pareto. Why? To visualize: (a) the “fast-fail” model; (b) how to quickly do a prototype; (c) rapidly learn the model; and (d) to be in continual learning mode. Note this is only a first pass.

In other words, we cannot get 1,000 MSMEs altogether to each become a $100-million enterprise. We must toss the crab mentality and respect Pareto. The problem Juan de la Cruz has is we hate MNCs that we don’t have under our sleeves, managing or even selling a multi-brand portfolio in a multi-country universe. That is the root of the crab mentality and why we are yet to internalize Pareto. And that’s why the blog tirelessly speaks to our lack of experience in development, unlike our neighbors. Think of our failings in the basics of water and electricity, rapid infrastructure development, and in parallel, moving from a service-consumption economy to an industrial-investment economy.

That may also explain why we are yet to understand that absolutism is folly. For example, we know now that the global yardstick of a 6%-7% GDP growth rate for fast-growing economies won’t translate to lifting Juan de la Cruz from abject poverty? See above; IBM, for the last 27 years, was granted the most patents consistently, but people talk about Apple, not IBM. What about the Nobel prize? LTCM brought the financial crisis ten years before the 2008 Global Recession, and two of them were Nobel prize winners. Then we know Padre Damaso.

Recall the blog has repeatedly said that it is not about any isms but dynamism. And that the Soviet empire is now history. Or that because America has fallen into the trap of tribalism and dualism, it is losing its way. The saving grace is institutions remain robust that checks and balances won’t perpetuate tyranny. That when we choose friends, we must recognize what we are dealing with; perfection is not of this world, but tyranny is not what free people seek. But we do love tyranny? 

Let’s then tackle the A group per above. They need lots more financial and technological wherewithal if they are to scale up and move up to higher value-added initiatives successfully. They must demonstrate the foresight and the imperative to compete beyond the Philippines.

Recall the blog never ceases to speak to our instincts: We are parochial and insular. We value hierarchy and paternalism that we rely on political patronage and oligarchy that ours is a culture of impunity.

They are our biggest stumbling block. We must dig deep into our hearts and souls that the sense of personal responsibility will overcome them.

For example, financial and technological wherewithal won’t come down like manna from heaven. That is why the blog speaks to the banishment of Adam and Eve from Eden, and that the first homo sapiens had to migrate from Africa. Dynamism is inherent in the story of creation. It must be the North Star.

Access to finance and technology for the A group presupposes the enterprise is stepping away from the current MSME paradigm. One that is parochial and insular and characterized by static, not dynamic energy. Instead, it has internalized the imperative of innovation because it is a manifestation of dynamism. It commits to respond to the needs and aspirations of humankind to raise its well-being. That will be the source of its ability to participate and win in the marketplace, create a virtuous circle, and thrive accordingly.

In fairness, despite all the dynamism of the writer’s Eastern European friends, he continues to hold their hands. They were under Soviet rule for four decades, and have lots to undo.

This posting builds on the efforts of the blog for us to shift our paradigm. With due respect to our economic managers. Social progress and development demand dynamism and innovation. And collaboration, one discipline alone will not cut it.

That is why two of the concluding quotes of every posting are:

“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]

“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]

But let’s not kid ourselves. See above; we value hierarchy and paternalism. That it reveals our caste system and struggle with dynamism, ensconced in our instincts.

It will take lots of doing before we can undo our paradigm. Still, whatever we believe is our North Star, if we cannot relate the “here and now” and the “must-do” to the “context,” we are most likely to fail than succeed.

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]

The story of creation, not the story of Davao

[Why is ours a damaged culture? Then consider: We are too weak to face a pandemic and the 21st century. How can we then make Juan de la Cruz thrive? Recall the story of creation.]

In the meantime, the government is scrambling – beyond providing medical care – to pour money into the economy and overcome hunger, unemployment, and shuttered businesses.

Indeed, a pandemic hangs over the world, that wealthy nations as well are going through a harrowing reality. 

What more of Juan de la Cruz?

The only guarantee is that everyone must ride the crisis. The city that prides itself as “top of the heap” is, in fact, the epicenter and is approaching bankruptcy if the mayor’s rhetoric is accurate.

Nations, cities, and towns will “walk and chew gum” at the same time. There is no luxury of choice.

In our case, it is not the story of Davao, but the story of creation that must be the North Star.

Then consider, is Eden a terrible idea because Satan was there? 

If we translate that to our history, is the US military awful because they represent American imperialism?

As the blog has argued, it is not about any isms but dynamism. 

Is globalization terrible because several countries moved to populism? But because the world suffered immensely, will it accept the next Hitler?

Why did the blog call “isms” – aka “tribalism” or “dualism” – the “Padre Damaso trap”? Shouldn’t we? Does the Philippine Catholic Church see Padre Damaso as a pejorative terminology? “Archbishop: No more ‘Padre Damaso’ today,” Pia Gutierrez, ABS-CBN News, 3rd Oct 2010.

Those familiar with the blog will remember that Davao has a place in the writer’s heart; he worked and lived there though briefly. Yet, the blog has argued against taking Davao as a model. Recall we in the elite class applauded the war on drugs – i.e., we took Davao as the model.

Recall too that vaccines are harmful despite dengue, and that is recent history. Today, the whole world is scrambling for the much-needed vaccine against COVID-19. But memories are short. We cannot trust science like we can’t believe the Creator because he allowed Satan in Eden?

How about we are the stewards of creation, we have the choice to pursue a virtuous circle, not a vicious one? That’s Catholic theology.

To be a steward doesn’t translate to dualism or binary thinking. Nor a one-issue proposition. And why the debate on stewardship (of creation) is beyond climate change – “for or against” – for instance.

That’s why the blog tirelessly speaks to the Great Commandments and the minority view of the Franciscans. Does Padre Damaso belong to the majority view yet disowned? But let’s get off the high horse of theology and switch to pop culture. Enter: the Golden Rule.

In earlier postings, the blog discussed why the creation story must be the model in the pursuit of social progress and development – as in dynamism and innovation – because it allows organisms to thrive even if that includes COVID-19.

In our case, that means us, Juan de la Cruz. The Creator chose him to thrive, with human dignity and all, because he is a steward of creation. On the other hand, Padre Damaso didn't give a hoot about human dignity. Does the war on drugs care about human dignity?

Yet, we applauded the war on drugs. For those of us in the elite class, it reflects our caste system. “Pwede na ‘yan” is that insidious that we can forget our humanity. There is no more Padre Damaso because we are it.

What are we talking about, the flavor of the month? We are all throwing alms to the needy. Is that the surest sign that after the pandemic, we shall be back to our merry ways? Isn’t that what happened after People Power? Or is it until the next president? 

“True social reform has little to do with politics.” Recall Thoreau, “we must be engaged in the act of continual and conscious self-renewal.” [Disclosure: the wife reminded the writer of Thoreau, your daughter studied him at Brown, and the book is in your study. And it pointed the writer to the creation story.]

We are today closer to the end of the term of Duterte than the beginning. And we are resigned to the reality that the war on drugs can’t succeed. The creation story is about dynamism, not quick fixes. Yet, we can’t wrap our heads around that. That is why we mistake tyranny for sovereignty and patriotism and freedom, and democracy.

The drug problem is merely a symptom of our inability to make Juan de la Cruz thrive. Social progress and development – as in dynamism and innovation – is what will make it happen.

South Korea and Ukraine, just to give two examples, see beyond US imperialism because they have internalized dynamism, more than being stuck in an ism. In the case of South Korea, they have experienced development. And Ukraine has experienced socialism under Soviet rule.

Recall how the blog distinguished the US versus China. How should we choose our friends? The US is democratic and pluralistic, while China is autocratic. For example, despite Trump playing fast and loose in Ukraine, Congress continued the millions of dollars in aid. Can the China politburo go up against Xi, for instance? Ditto for Russia.

Or who is behind the crisis in the West Philippine Sea? What about in Crimea?

But let’s leave the West Philippine Sea and shift to the Dalai Lama. Where is he and why is he there? A Vietnamese would perhaps venture a guess if not an insight. Or we can ask the Vietnamese, why are you running to the Americans despite the Vietnam War? Then consider Vietnam was under China’s rule for over a thousand years.

On the other hand, while the American political system manifests tribalism and dualism – and appears to lose its way – institutions are steeped in democracy and pluralism.

In other words, how did Singapore, Malaysia, China, and, more recently, Vietnam, internalize the dynamism demanded of social progress and development? And what did they achieve? Poverty to them is in the rearview mirror. And where are we, still ensconced in parochialism and insularity?

Here’s a piece of very recent news to describe American democracy and pluralism: “Paul O’Neill, a former Treasury secretary who broke with George W. Bush over tax policy and then produced a book critical of the administration, died Saturday.

“A former head of aluminum giant Alcoa, O’Neill [was] forced to resign after he objected to the second round of tax cuts because of their impact on deficits.

“O’Neill contended that the administration began planning the overthrow of Iraqi President Saddam Hussein right after Bush took office, eight months before the 11th Sept terrorist attacks.

“He depicted Bush as a disengaged president who didn’t encourage debate either at Cabinet meetings or in one-on-one discussions with Cabinet members. Bush was like a blind man in a roomful of deaf people.” [Former Treasury Secretary Paul O’Neill dies at age 84, Martin Crutsinger and Ron Todt, Associated Press, USA Today, 18th Apr 2020]

There are lots more – insights – we shall miss. That is if we don’t overcome parochialism and insularity. And continue to value political patronage and oligarchy.

For example, beyond being stuck with Davao – and applauding the war on drugs to lift Juan de la Cruz – as our model, our inward-looking bias doesn’t appreciate more successful models of social progress and development.

Like Sweden for the forest industry. Denmark for MSMEs or hog raising. Or in agribusiness, learning from Nestle. And from Vietnam, to understand how we can move beyond GVCs (global value chains) and assembling chips and not confined as third-party providers.

There is a more significant and virtuous model than political patronage and oligarchy. And much, much bigger than Davao.

Imagine if we had the dynamism of our neighbors and worked to mirror our progress and development efforts to the story of creation – and not the Duterte story and his war on drugs – where do we think we would be?

Or will we have the problems in the West Philippine Sea if we didn’t kick out the US military? Who could say we are no longer a free nation if we chose that?

Imagine where our hog growers and small enterprises will be today if we modeled our MSMEs to that of Denmark, albeit specific to an industry. It demonstrates how to pool micro-enterprises into a cohesive national enterprise that can leverage economies of scale, tap investment and technology, and capture international markets because of its world-class and competitive products.

As the blog has pointed out, we need a thousand of our close to 800,000 MSMEs to forward-think and craft a game plan to attain a global benchmark, $100 million enterprises. And simultaneously, our large enterprises must collaborate with Arangkada, AmBisyon, and Tatak Pinoy to raise our export receipts by $100 billion. 

But that includes tapping foreign money and technology. Because speed is of the essence, i.e., prioritize and leverage Pareto and be divorced from the crab mentality. It means calling out the most potent oligarchy that the party is over. How many of our tycoons have moved on to the next life, and Juan de la Cruz remains the icon of abject poverty? It cannot be politics as usual and dole-outs as our national conscience. It is tossing our value of parochialism and insularity.

Recall the blog discussed photosynthesis as a subset of the creation story that we must replicate the elements of the phenomenon for an undertaking to thrive. For example, why is Vietnam winning those investments leaving China?

Take the ease of doing business. Our culture of impunity is the most significant barrier. Political patronage beyond grease money can come with equity shielded by dummies. Why has the Marcos unexplained wealth remained unexplained? And who else after Marcos? After this hurdle that we throw comes the requisite support utility and infrastructure initiatives as well as inputs like raw materials and inbound and outbound logistics.

Imagine a full circle that connects the dots that a global initiative requires. For example, power is our Achilles heel. But think beyond. That is why when we prioritize a must-do industry, location is vital and crucial. Politics and social needs must respect where the photosynthesis phenomenon will occur.

Let’s digress some: The Soviet model failed miserably in that regard and why economics became their downfall. It’s not only in the promise of jobs where they failed. They were not merit-based and resulted in a double whammy – discouraged top performers and propped up free-riders – that productivity and product reliability issues put the undertaking on the path of implosion. It also happened with bread – and for the same reason. The central authority was dispensing jobs and food like manna from heaven unmindful of the imperative of a virtuous circle.

In contrast: The hometown (of 80,000) of the writer’s Eastern European friends was godforsaken following the collapse of the Soviet empire. Today, despite employing robotics in factories, it has a 2 percent unemployment rate, aka full employment. Industries, including from the West, realized that foreign money and technology could revive a town when they are globally competitive.

But is their work done? They were under Soviet rule for four decades, and there are lots to undo.

And we Filipinos want to go the other way? God bless us! There is no perfect system, but why even aspire for a failed one? 

Because democracy and the free market failed us? Why don’t we ask our neighbors, the Asian Tigers?

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

But let’s get back to the discussion on how we must prioritize must-do industries and the need to replicate the photosynthesis phenomenon.

Beyond local social needs is the more significant benefit of the common good which can come from the multiplier impact of an undertaking – that mirrors the story of creation. The bonus can be far and wide; for example, a world-class venture may demand higher level-skills yet generate much higher taxes that can pay for the social needs the locality requires.

The above Denmark experience is a variation of the Nestle model in agribusiness. That goes beyond farming to a portfolio of competitive, high-margin packaged food and beverage products.

Disclosure: The nephew who co-owns a restaurant in Makati inspired this posting. “Tito question, did a similar event ever happen before? How did the economy recover? Can you give me some reading materials – so I am prepared?”

This young person who is not even 30 is forward-thinking. He knew the tito lived and worked in different parts of the world. Before he posed the above question, he shared the various initiatives they are pursuing. But he wanted a bigger model, beyond Makati, beyond the Philippines. [Since the blog speaks to innovation as key to social progress and development, for those interested in “Innovation in turbulent times,” there is a Harvard Business Review article (June 2009 issue) by Kara Gruver, James Allen, and Darrell K. Rigby. Recall the 2008 Global Recession and why that article.]

How much success would we have today if we had adopted the Swedish model in tree farming and wood-based industry, instead of our denuded forests and the floods we’ve had where countless perished?

What about our chips assembly if we had the foresight, begged for foreign money and technology, and become the regional hub of Samsung’s technology manufacturing? Instead of relying on political patronage and enabling oligarchy?

Nations, cities, and towns will “walk and chew gum at the same time.” There is no luxury of choice. 

We have long deceived ourselves that “pwede na ‘yan” is our North Star.

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]

We waited for a foreign journalist to call out our “Damaged Culture.”

But still haven’t done much? Ditto for the message from the book, “Why Nations Fail”?

Then consider: We are too weak to face a pandemic and the 21st century. How do we make Juan de la Cruz thrive? Recall the story of creation.

Here’s a refreshing response from Herman M. Lagon, the principal of a private school in Iloilo. He is a licensed civil engineer, physical science teacher, and guidance counselor. [Opinion, Rappler.com, 22nd Sep 2019]

“A Philippines with a life-giving humanistic-internationalist culture – free from the poison of narrow-mindedness, corruption, parochial mentality, oligarchy, violence, bigotry, prejudice, and greed – will surely turn the social triangle upside down and make this naturally rich country rich again.”

“A country that puts a premium on human dignity, objectivity, meritocracy, and reason,” is how Lagon defines humanistic, that he says characterizes first world countries.

We all acknowledge the power of the oligarchy, yet it is only a subset of the elite class. And we in the chattering classes are likewise a subset of that elite class. Sadly, we empower oligarchy – that when one nets it out, we aid and abet the trampling of human dignity that objectivity, meritocracy, and reason go out the window. For example, the writer worked with one of them for eight years.

Recall our value of hierarchy and paternalism, aka our caste system, and it explains why our instincts subordinate human dignity. Think of Padre Damaso. 

In contrast, first world countries put a premium on human dignity. [Lagon, op. cit.] And expatriate Filipinos live to experience the phenomenon. And that experience can explain the following: 

A Filipino friend who also lives in New York shared the writer’s book (“Learning To Reinvent Ourselves”) with some friends back home, acknowledged that “Pare, wala tayong credibility.” That expatriate Filipinos have no credibility for a myriad of reasons, including they are not on the ground and don’t appreciate the challenges; they are not as invested in the country; some experts know better. Short of calling them unpatriotic. And what about invested? Emotionally? Or financially? [In fairness, the PIDS library keeps a copy. PIDS, recognized among the world’s top think tanks, is the brainchild of Dr. Gerardo P. Sicat. For those interested in “understanding the new globalization and its implications for the Philippines,” here’s the link to their website: https://think-asia.org/handle/11540/11189]

What about expertise? Why is innovation not inherent in us? Because we have yet to experience development as our neighbors did, we can’t appreciate that there isn’t one expertise that solely brings innovation. Or why Singapore is now ahead of the U.S. in the global competitiveness ranking. That is why the Silicon Valley model is collaborative – across not just disciplines but a diversity of people. See above, human dignity.

Hierarchy and paternalism explain why we are blind to our inability to provide Juan de la Cruz with the basics of water and electricity.

Yet, we talk about big data and analytics? Or A.I.? Or the problems of the world? Because they affect us? That's the irony, we worry about foreign-bred challenges despite our parochialism and insularity. Recall “Build that wall.” And Pope Francis reminded the world what Christ stood for, and he embraced the poor and the lame and the sinners.

Hierarchy and paternalism explain the sorry state of our higher education, as in we’re the regional laggard. If we take the hypothesis that higher education is to nurture intellectual curiosity, should we put that up against another assumption that the blog continually speaks to, i.e., “We are parochial and insular? We value hierarchy and paternalism that we rely on political patronage and oligarchy that ours is a culture of impunity?”

We are supposedly cyberspace savvy. That is an excellent avenue for our young people to undo parochialism and insularity. Information is accessible to them in one click. We can then teach them, given our experience, how to turn “information” into knowledge? That is how we want higher education to play out.

Here’s where benchmarking comes in. Students can google the best classroom environments they can find anywhere in the world. And that becomes the first segment of the school term, including how the class will match if not outdo them?

Again, what about hierarchy and paternalism? That’s an inherent challenge in higher education, given the superior-subordinate dynamic in the classroom. The professor lectures, the students take notes. How many would dare to question the teacher?

That is where we can learn from the education and training models of Fortune 500 companies, for example. They took matters into their own hands because even in America, higher education was not responsive to the real world. It was not an issue when America overtook the U.K. despite the latter’s lead in the industrial revolution.

But then came Japan Inc. Higher education had to be forward-thinking. [They must replicate that exercise. Consider: China has become the manufacturer of the world – and why the U.S. is no longer a manufacturing economy. And add to that the 2008 financial crisis, blue-collar workers that once represented middle-class America turned to populism. Or that Singapore is far more competitive than the U.S. Or that A.I. is going to undo today’s “normal.”]

So, instead of lectures, they do workshops. Still, a trainer comes prepared to present the theory but with an abundance of examples. 

But first thing’s first: What is the object of the exercise. Why is the subject matter relevant? What is there to gain intellectually, emotionally, and instinctively? Is it personal? Or how does it relate to family, society, and the outside world?

And because it is not a lecture but a workshop, the rule is the trainer must be interrupted every time the theory and example present a disconnect, or solely for curiosity’s sake.

That’s the first part of the session. The second part is to break the class into groups that will do a group homework. They will develop a hypothesis to mirror the theory presented by the teacher but not only. They will then come to class to make the group’s presentation like they are the teachers for the session. The best way to learn a subject matter is to teach it. 

And what about political patronage and oligarchy and our culture of impunity? That can be a course in themselves. And can be pursued in a similar format, described above.

Water. Electricity. Infrastructure development. And in parallel, industrial development – that will pave the way for the Philippines to traverse the road from poverty to prosperity.

They are the needs of Juan de la Cruz – from his lowest physiological needs to the aspirational.

In an earlier posting, the blog discussed the broad stroke framework to satisfy those needs – because those human needs demand innovation for society to progress and develop.

Recall model thinking, and see above, the modern math concept of sets and subsets.

The story of creation is the most significant innovation experience for humankind. And dynamism was built into it. Instead of a magic wand, the Creator went through six days before resting. It is an excellent example that innovation is not an exercise in quick fixes.

And problem-solving too. It illustrates why ideas go through iterations, as in the Monday to Saturday versions. Or why we must not be married to the first bright idea. 

Speed and the search for the correct version is a must in innovation. They are not mutually exclusive. To rapidly translate an idea into a prototype, to be in continual learning mode.

Consider: Since the Aquino administration, we’ve been working on 42 industry road maps instead of prioritizing a few that will propel us to rapid industrial development.

Speed. Speed. Speed.

We are familiar with “the beta version” of software that we may have used, and yet, even the “release versions” go through constant iterations that we laypeople know as updates, in a word, dynamism.

How do we then prioritize the 42 industries? Whatever we’re looking at, as the blog has pointed out, it is not about “we produce this, and then we find a market.” For example, Malaysia moved from rubber to palm oil because the latter generates beyond revenues, higher margins. Think like an MNC, not livelihood projects.

And if we forward-think and do the analytics, we will push the envelope and think like a Nestle, from farming to a portfolio of high-margin packaged food and beverage products. 

How did Vietnam go beyond assembling chips, but we can’t? They “begged for foreign money and technology” following the footsteps of Singapore, Malaysia, and China. Unsurprisingly, they are today the regional hub of Samsung’s technology manufacturing – more significant than China’s.

In the meantime, we’re stuck in the paradigm of GVCs or global value chains. Our mindset is a carryover from the past, the garment industry. It is no different from the OFW phenomenon or BPO industry. We are only useful as third-party providers. 

Recall the blog keeps raising the bestseller, “I'm OK — You're OK,” because we must learn that hierarchy and paternalism can’t be the rule in the trade and foreign relations. For a weak country to kick out the U.S. military speaks volumes, and we are today paying the price. South Korea isn’t even a third world country, why won’t they get rid of the U.S. military? Recall Ukraine too.

See above how Vietnam conducts trade relations. Or what the writer is demonstrating in Eastern Europe representing USAID. His friends are giving Western global behemoths a run for their money.

Why does the blog tirelessly speak to our value of hierarchy and paternalism? It undermines human dignity, dynamism, the best thinking – and why we cannot wrap our head around innovation. 

In a similar sense, America is showing its slips because it has fallen into the trap of tribalism, aka dualism – square-one in human development. It remains the largest economy and can print money in the trillion dollars while developing countries must incur humongous debts to fight this pandemic. Still, it is giving China all the time in the world to catch up. They are losing their way when, for the longest time, they claimed exceptionalism, the unique mission to reform the world.

And what about the universe? It is a subset of the creation story with photosynthesis being its subset. How do we replicate the elements (of sunlight, carbon dioxide, water, glucose, oxygen) to create a virtuous circle?

Pulling all the above, we find a model that illustrates innovation, dynamism, a virtuous circle – the outcome being, organisms can thrive – including humankind, especially Juan de la Cruz.

Recall the Steve Jobs example. That he understood the dynamism of humankind and that for innovation to be sustainable, it must be a virtuous circle. So, he created a product that will nurture the creativity of humanity, that beyond the personal computer, Apple is now well into wellness and healthcare. And it is unfolding efforts of the forward-thinking kind in medical research, medical devices, and beyond. That will be beneficial to humankind.

Sadly, we allowed Juan de la Cruz to fall into the “Padre Damaso trap” continually – that the story of creation is instead about dualism, as in either/or. Or good or bad.

Eden is a subset of the story of creation. And right in the garden was Satan.

Humankind has the choice to replicate the story of creation – as in innovation that social progress and development demand for humankind to thrive – into a virtuous circle, not a vicious one that we’re stewards of creation and mustn’t take it for granted.

In other words, perfection is not of this world. See above; dualism is square-one in human development and how tribalism can make America lose its way.

Humankind has a choice. It doesn’t mean knowledge is a waste. Senior citizens like the writer may know that an over-the-counter antacid is now banned. See above; to be in continual learning mode. On the other hand, to intentionally market opioids to profit from addiction is vicious.

A choice, again, must be dynamic yet virtuous; that is why innovation given human need is endless. See above; Satan was right in the garden.

There are many facets to a virtuous circle. Let’s take the employees of a company, being one. Not Apple or the writer’s old MNC-company. But his Eastern European friends. They had to forward-think despite being an MSME that had lost money for eight years. And the employees were then making the mandated minimum wage.

Still, to compete with Western global behemoths that invaded their country, they had to become a $100-million business. That meant they had to upgrade every aspect of the enterprise to be competitive. For example, was a living wage good enough? No! They had to match MNC practices too to compete for talent. That meant benchmarking pay levels to the 75th percentile of comparable companies, including MNCs. The operative word is forward-think. And to draw up a model that will yield a virtuous circle.

Let’s get back to the Philippines: The challenge remains – how will we stand up to political patronage and oligarchy – given that we are on the road to a failed nation, if not extinction? And who will take the lead?

Here’s a quote from an earlier posting: “Thanks to CJ Panganiban, he throws a breath of fresh air: The PCGG is mandated to chase not only ill-gotten wealth but also other assigned graft cases. Since the public is not familiar with its work, I urge the private sector, especially the Integrated Bar of the Philippines (IBP), to help in the chase and, more so, in the closure of these cases. The IBP can entice the legal academe, principally patriotic law students and their professors, to monitor the cases and assure their complete closure.” [“Closure of graft cases needs IBP's help,” Artemio V. Panganiban, WITH DUE RESPECT, Philippine Daily Inquirer, 12th Apr 2020]

The COVID-19 pandemic will likely wipe out the 6%-7% growth rate that we’ve had for several years now. Then consider: Water and electricity are among our countless disasters even though they are such basic physiological needs for Juan de la Cruz. How can a nation proud of its economic achievements be so remiss?

Meanwhile, oligopolies have their fingers in every pie. At the same time, the nation is stuck in a service-consumption economy, unable to move up to an industrial-investment economy. That will allow the Philippines to traverse the road from poverty to prosperity.

To add insult to injury, Vietnam runs rings around our top enterprises with one singular company delivering more to their economy than our eight top listed companies in the Forbes list, combined, to the Philippines.

Those entities are laughing their way to the bank while Juan de la Cruz has become the icon of abject poverty. Should we ask ourselves how we aid and abet the trampling of human dignity?

Or what do we want instead? “A Philippines with a life-giving humanistic-internationalist culture – free from the poison of narrow-mindedness, corruption, parochial mentality, oligarchy, violence, bigotry, prejudice, and greed – will surely turn the social triangle upside down and make this naturally rich country rich again.” [Lagon, op. cit.]

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, S.M. 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]