Will Covid be our “teachable moment”?

A teachable moment is when the abstract comes with clarity to relate to the real world.

Those that read the blog may recall that I picked that up from the top educators and consultants that my old MNC-company tapped – to develop an in-house education and training curriculum.

With the emergence of Japan Inc. in the early 80s, Fortune 500 companies had a teachable moment – grabbed the bull by the horns – to act, to do something to overcome the shortcomings of US higher education.

Can we grab the bull by the horns, do something, overcome our instincts – now that we know that the economic scarring courtesy of Covid has undermined our fragile economy, i.e., dependent on OFW remittances and call centers?

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.

“To expand FDIs and good jobs at home,” Gerardo P. Sicat, CROSSROADS TOWARD PHILIPPINE ECONOMIC AND SOCIAL PROGRESS, The Philippine Star, 22nd Dec 2021.

“Reversing our mentality. It means reversing our mentality about FDIs. It means putting action where political rhetoric was once cheap. Can we now, finally, walk the talk?

“Our neighbors pull ahead with high-value FDIs. The recent high-valued FDIs in the electronics industry that have flowed into our neighboring partners among ASEAN countries is a sign of how they have pulled ahead in achieving their industrial potentials.

“Compared to them, we have languished in attracting FDIs and in catching the structural economic changes in the whole East Asia region as a result of trade wars and economic realignments of industries and capital flows.

“The actions undertaken recently have been significant to correct these deficiencies, but more needs to be done. The marketplace is shifting in competition. Countries are working on the same objectives to raise the level of FDI investments.”

Consider: The unfamiliar is always taboo that it is human nature to take the path of least resistance. It is the unwitting response demanded by self-preservation – why rock the boat?

But as the world at large kept moving at warp speed, especially in the 21st century, social scientists wanted to get ahead of the curve. For example, they postulated the distinctions between a “growth mindset” versus a “fixed mindset.”

And Microsoft, for example, because of Bill Gates, embraced the imperative of the “growth mindset.” And today, it stands only behind Apple in market value – the only two worth over two trillion dollars.

Those who read the blog may recall that the postings often speak to Steve Jobs and Apple – the benchmark that I introduced to my Eastern European friends.

While they were an MSME, a losing proposition going eight years, they didn’t cower when measured against a behemoth.

And that’s the kind of challenge we Pinoys won’t take because we pigeonholed Juan de la Cruz as a fragile enterprise? And it comes from our value of hierarchy and paternalism?

Was I surprised when the EU Competition Commission recognized my friends as a model enterprise in the EU or that they killed the brand of the most prominent Western competition in Europe with their first focused brand?

Today they have ten other core brands with three attaining state-of-the-art that scare Western competition all the more. Indeed, the entire portfolio will be a formidable competition – as the brands keep moving up the value chain.

Unsurprisingly, these friends were again recognized recently – in the markets where they actively compete – as the industry’s most successful and innovative company.

But then please recall what the wife said when we first arrived in Eastern Europe: What are we doing in this godforsaken place?

What a reversal of fortune?

Can we Filipinos reverse our mentality? It will not be a cakewalk, given our caste system.

Can we pause – and ponder?

If Covid is to be our teachable moment, “it will take a village” for us to have a prayer of upending our instincts.

In other words, if People Power failed to instill a sense of purpose in us Filipinos, can Covid succeed? 

Leadership is a critical element, and the next presidential election will be our chance.

For example, America was inward-looking, a divided nation, especially after WWI. Still, they had the fortune of exemplary leadership in FDR. And Pearl Harbor woke them up.

And so, we have an uphill climb. But then again, democracy is an exercise in self-government.

Can we step up to the plate and embrace the imperative of personal responsibility and pursue the “common good”?

There are two barriers we must recognize (1) the need to overcome our instincts and (2) embrace that sense of purpose — “To traverse poverty to prosperity rapidly.”

And the instincts we must overcome? We are parochial and insular. We value hierarchy and paternalism and rely on political patronage and oligarchy that ours is a culture of impunity. 

And it takes a village to face these formidable challenges.

Here’s a quote from a prior posting: “We can create a de facto group to brainstorm and craft how to traverse poverty to prosperity rapidly.

“Design thinking” – an iterative approach to problem-solving that intentionally seeks out people with different perspectives, knowledge, skills, and experience and has them work together to create a practical solution for a real-world problem.

“And that group can include, among others: economists, “think tanks,” “economic managers,” legislators, the likes of George Gorospe, SJ, whose treatise about “reality” mirrors the character of this universe, i.e., dynamism and interdependence, Mr. Canto of McKinsey, IRRI, Arangkada, AmBisyon.

“We must welcome [too] the winningest coach in college or pro basketball. The winningest coach can edify us on the culture of winning. Indeed, if losing is a culture, winning is too.

"We need a representative to address the next generation BPO industry because we can’t just talk and talk about moving up the value chain.

“Then think of the Theory of Change about defining a desired “outcome” and “outputs” and tracing or mapping backward the critical elements that will constitute the portfolio’s ecosystem.

“And to test that we don’t miss a beat, the mental model must be the photosynthesis phenomenon. 

“For example, if an undertaking is ever to succeed, there are three dynamics to manage: (1) the marketing mix, (2) the resource mix, (3) the execution mix.

“We want to tap a marketing practitioner and an experienced project manager with an enviable execution track record to better handle the above dynamics.”

Let’s hold it right there.

We are not used to brainstorming, especially at the national level. But then, we don’t have a track record either of successfully pursuing ambitious efforts like Arangkada or AmBisyon.

But Arangkada and AmBisyon are good beginnings that we can build on. And so is the prototype offered by Andrew Masigan.

Here’s an avenue to pursue:

Change efforts can be driven simultaneously from the top and below. For example, Andrew can do the latter, and NEDA can do it from the top and tap the referenced resources. The overlaps will be good, especially when the parties build on each other’s efforts.

In the meantime, I read up on Jon Canto of McKinsey and Tim Cone, the winningest coach in the PBA with 23 championships. “Cone knows a thing or two about winning a title.” [NBA.com Philippines]

If people can’t imagine winning 23 championships, Tim Cone has been there and done that. He can reverse our mentality that Juan de la Cruz is a fragile enterprise – and why the focus on poverty.

We now know that all our efforts to address poverty have failed, from the comprehensive agrarian reform program to borrowing tons of money for the 4 Ps, and then some. 

Do we know what Einstein said about such stubbornness?

The excellent news is that Canto and Cone have Philippine roots and know our “culture.”

“McKinsey and Co. Philippines Acting Managing Partner Jonathan Canto said the Philippines should explore a potential niche as a manufacturing hub with 80% of US companies and 67% of European companies from China to elsewhere in Asia. And Vietnam, Thailand, and Malaysia are currently gearing up to take over China.

“Mr. Canto recommended that the Philippines reassess its FDI strategy and priority sectors, build unique deal-focused value propositions, focus on investment promotion, and ensure end-to-end support for investors.” [“Foreign chambers tout FDI as key to economic recovery, poverty relief,” Bianca Angelica D. Añago, BusinessWorld, 1st Dec 2021]

But let’s get back to the object of the exercise:

“The blog advanced a forward view for Juan de la Cruz, which we can label as “outcome,” to differentiate it from “output.” And that is, “To traverse poverty to prosperity rapidly.”

“For example, instead of the 6% GDP growth metric we are familiar with, the blog introduced an incremental GDP of $200 billion as “output.”

“But let’s drill down to the next level:

“The legs of the PH economy are services (60%), industry (31%), and agriculture (10%). And Vietnam: services (51.3), industry (33.3), (agriculture (15.3).

“The narrow gap in the industry is illuminating, i.e., that was how Vietnam was able to arrest poverty.”

“But we struggle to figure out the ‘vital few’ areas that propelled Vietnam to leave us in the dust – as did the Asian Tigers and China before them.”

“What about agriculture? Two of our neighbors are rice exporters, Thailand and Vietnam.

“But then again, beyond eliminating the restrictions on farm sizes and raising the budget of the DA, we must benchmark against Thailand and Vietnam – because there are other factors and nuances that we must know and learn by heart if we are to match their competitiveness.

“And we can add IRRI as a resource – because IRRI is a “knowledge bank” that is too precious to ignore.

“What about coconut. It is a significant export for PH. Have we fully exploited this opportunity? Or has political patronage and oligarchy gotten in the way? Should we do our homework — and tap the right resources — to figure out the way forward for the industry?

“Recall the Pareto principle, the “vital few” versus the “trivial many.” 

"What produce and products must make up the portfolio of the Philippine agribusiness industry? If rice and coconut, and coconut-based products have sizable markets and generate ideal revenues and margins, what else must we consider? Consider crop rotations, for example,"

To recap, the de facto group will be looking at the three legs of the Philippine economy: (1) services – to focus on the next generation BPO; (2) agriculture – to define the “vital few” produce and products that will form the portfolio of the Philippine agribusiness industry and to develop the ecosystem that will ensure we match the competitiveness of Thailand and Vietnam; (3) industry – to focus on the quick hits and big wins amongst the FDIs in China that can move to the Philippines.

In other words, while we’ve identified the big industry winners under Arangkada, we must replicate the coup pulled by Vietnam on Samsung smartphones.

The bottom line: The “desired outcome” is for the Philippines to traverse poverty to prosperity rapidly – i.e., the next Asian Tiger.

Because we did not win despite attaining the 6%-7% GDP growth metric over a decade, we are setting a winner’s goal of an incremental GDP of $200 billion.

We may not deliver the total $200 billion in ten years. Still, we must benchmark against Vietnam and have something substantial in ten years, e.g., bring poverty down to low single-digits – and geared to sooner than later attain the goal. Recall that Vietnam took a mere ten years to overtake us.

And that means the three legs of the economy – services, agriculture, industry – will perform better than historical norms.

Note the focus on the “vital few” versus the “trivial many.”

We want the biggest bang for the buck. Not perpetuate the crab mentality.

That is how we can put the requisite focus on the few that will deliver the output – $200 billion incremental GDP – and outcome we desire – to traverse poverty to prosperity rapidly.

Winning 23 championships is a reality – but way beyond our fixed mindset.

Will Covid be our teachable moment? And overcome our instincts and embrace a sense of purpose?

Gising bayan! 

A healthy and prosperous New Year to one and all!

We live and die by our instincts.

This posting will build on earlier ones that spoke to our need to “get ahead of the curve.”

It is to disabuse our minds – and overcome “pwede na ‘yan.” Recall that the blog often references “forward and lateral thinking” beyond “logical yet linear and incremental thinking.”

Why? Because we are the regional laggard – and it is not new. We may no longer be the sick man of Asia, but we’re still the cellar-dweller.

And the blog commends Andrew Masigan for his article, “PHL performance in the last decade and the reforms needed,” BusinessWorld, 19th Dec 2021.

In brainstorming lingo, or its latest version, Design Thinking, Andrew offered a “strawman” or hypothesis – or prototype.

Ideally, the next step is for the “team” to build on it. And in the real world, as the saying goes, there are six ways to Sunday.

We can easily google “Design thinking” – an iterative approach to problem-solving that intentionally seeks out people with different perspectives, knowledge, skills, and experience and has them work together to create a practical solution for a real-world problem.

And I hope that others would follow suit and build on Andrew’s hypothesis.

And those in the Philippine elite and chattering classes may want to participate?

For example, we must tap beyond economists and “think tanks” and “economic managers” and legislators. We must welcome, for example, the winningest coach in college or pro basketball.

There is a vast chasm between a cellar-dweller and a winning team, and that winningest coach can edify us on the culture of winning. Indeed, if losing is a culture, winning is too.

We also need the likes of the late George Gorospe, SJ, to illustrate what “reality” is, i.e., that it is beyond any human experience or system – which is consistent with the character of this universe, i.e., dynamism and interdependence.

To internalize a winning culture is to get ahead of the curve.

For example, if Vietnam could accomplish a lot in ten years, that must be the benchmark, not twenty years. Recall that in 2009, when the blog started, Vietnam’s GDP per person was less than ours – but their FDI was almost twice. And in 2020, they overtook us.

And it is not unique; they mirrored the Asian Tigers – and China – begged for Western money and technology.

And that’s why the blog advanced a forward view for Juan de la Cruz, which we can label as “outcome,” to differentiate it from “output.” And that is, “To traverse poverty to prosperity rapidly.”

That is a translation derived from the Theory of Change.

And so, the blog is encouraging us to do our homework and read up on Design Thinking and the Theory of Change.

And those who read the blog know that I am not an academic but a practitioner.

Consider: Many best-practice models the blog has shared are consistent with similar theories. In other words, I first learned by doing before I encountered these theories. And the postings are intended to confirm these theories.

Let’s move from “outcome” to “output.”

For example, instead of the 6% GDP growth metric we are familiar with, the blog introduced an incremental GDP of $200 billion as “output.”

But let’s drill down to the next level:

The legs of the PH economy are services (60%), industry (31%), and agriculture (10%). And Vietnam: services (51.3), industry (33.3), (agriculture (15.3).

The above confirms our reliance on OFW remittances and call centers. And Vietnam beats us in industry and agriculture too.

The narrow gap in the industry is illuminating, i.e., that was how Vietnam was able to arrest poverty.

Consider: Their exports are twice more, and they are in tech-based products, e.g., Samsung smartphones. Recall that the blog often raises this one company demonstrates the multiplier effect on jobs and the economy, i.e., its subindustries, e.g., raw material sourcing, parts, and components, among others.

On the other hand, our service-consumption economy cannot spawn such subindustries.

Let’s pause right there.

Our assumption that the focus on jobs via the OFW phenomenon and call centers would suffice to drive the economy and address poverty was way off base. 

Sadly, we continue to speak about “jobs” as the be-all and end-all. 

Our economists must edify us on the import of the “multiplier effect.”

It is no different from the comprehensive agrarian reform program. It did not eradicate poverty. 

That is why the blog often speaks to “forward and lateral thinking” – and we must get ahead of the curve.

Here’s another theory or principle, the “vital few” versus the “trivial many” – aka Pareto. And because of our crab mentality, we have not internalized the import of this universal principle.

In other words, we struggle to figure out the “vital few” areas that propelled Vietnam to leave us in the dust – as did the Asian Tigers and China before them.

And Pareto builds on another change theory, force-field analysis. To successfully pursue change, we must exploit the forces driving the efforts and fix those that will hinder them.

That is why the blog has quoted the following several times: “McKinsey and Co. Philippines Acting Managing Partner Jonathan Canto said the Philippines should explore a potential niche as a manufacturing hub with 80% of US companies and 67% of European companies from China to elsewhere in Asia. And Vietnam, Thailand, and Malaysia are currently gearing up to take over China.

“Mr. Canto recommended that the Philippines reassess its FDI strategy and priority sectors, build unique deal-focused value propositions, focus on investment promotion, and ensure end-to-end support for investors.” [“Foreign chambers tout FDI as key to economic recovery, poverty relief,” Bianca Angelica D. Añago, BusinessWorld, 1st Dec 2021]

There is Vietnam again, gearing up to lure more FDIs.

What about agriculture? Two of our neighbors are rice exporters, Thailand and Vietnam.

But then again, beyond eliminating the restrictions on farm sizes and raising the budget of the DA, we must benchmark against Thailand and Vietnam – because there are other factors and nuances that we must know and learn by heart if we are to match their competitiveness.

And we can add IRRI as a resource – because IRRI is a “knowledge bank” that is too precious to ignore.

What about coconut. It is a significant export for PH. Have we fully exploited this opportunity? Or has political patronage and oligarchy gotten in the way? Should we do our homework — and tap the right resources — to figure out the way forward for the industry?

Recall the Pareto principle, the “vital few” versus the “trivial many.” That is why the blog never misses citing the coup pulled by the Vietnamese in luring Samsung smartphones.

What produce and products must make up the portfolio of the Philippine agribusiness industry? If rice and coconut, and coconut-based products have sizable markets and generate ideal revenues and margins, what else must we consider? Consider crop rotations, for example.

Then think of the Theory of Change about defining a desired “outcome” and “outputs” and tracing or mapping backward the critical elements that will constitute the portfolio’s ecosystem. And to test that we don’t miss a beat, the mental model must be the photosynthesis phenomenon. 

For example, there are three dynamics to manage if an undertaking is ever to succeed: (1) the marketing mix, (2) the resource mix, (3) the execution mix. In other words, it is beyond enlarging farm sizes and raising the budget of the DA.

We want to tap a marketing practitioner, and an experienced project manager with an enviable execution track record to better handle the above dynamics.

To recap: We can create a de facto group to brainstorm and craft how to traverse poverty to prosperity rapidly.

And that group can include, among others: economists, “think tanks,” “economic managers,” legislators, the likes of George Gorospe, Mr. Canto of McKinsey, IRRI, Arangkada, AmBisyon.

We can add another one to represent the next generation BPO industry because we can’t just talk and talk about moving up the value chain. 

In other words, we can’t let “pwede na ‘yan” unwittingly stunt the development of an industry that delivers practically as much as OFW remittances, the two being the drivers of the Philippine economy.

If we dig deeper into this apparent complacency, do we see our instincts getting in the way again? 

Recall that the blog had asked why we didn’t develop the instincts of innovation? Recall too the question from my Eastern European friends on the first brand we focused on: Do you think we can even compete against the best brands from the West?

“You must continually move up the value chain, not be bogged down by the bottom of the pyramid. You must be committed to raising one’s well-being by respecting the hierarchy of human needs. That is what innovation is.”

How do we get ahead of the curve? Recall that beyond “logical yet linear and incremental thinking” is “forward and lateral thinking.” The latter responds to “the 4 C’s to 21st-century skills,” especially critical thinking and creative thinking.

It is not a one-dimensional world. Recall that even in a Fortune 500, neither R&D nor finance can be the be-all and end-all. In other words, there are nuances between the “real world” and the academic world.

Let’s now highlight some of the points raised by Andrew Masigan in his hypothesis:

“To maintain our position as the world’s second-largest provider of IT-KPO, we must evolve to become a center for excellence in artificial intelligence, animation, game development, information and knowledge management, robotics, cloud technology, and software development.

“What reforms are necessary to be competitive in the abovementioned industries?

“Foremost is to restore confidence in government. Policies start from the top and can only regain faith if we elect a transformative, honest, trustworthy leader in 2022.

“We must ament the restrictive provisions of the constitution to make us a competitive investment destination. In particular, the 60-40 rule on equity ownership, the opening of mass media and advertising to foreigners (which is basic if we are to compete in knowledge-based industries), and lifting the prohibition of foreign nationals from professional practice and being represented in corporate boards of directors.”

We live and die by 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.

Indeed, we in the Philippine elite and chattering classes hold the key. We must be the first to embrace change if we find meaning and new hope for Juan de la Cruz.

But we will not find meaning and new hope if instinctively we want to preserve the status quo – where rank has its privileges.

At the risk of being immodest, the blog often speaks to best-practice models that are my personal experiences – because I can talk from the heart about the challenges they presented and how we overcame them.

But recall what I said to my Eastern European friends from the get-go that they were “outraged” because they expected me to spoon-feed them: Freedom and the free market are not about rules but principles. You must commit to transparency, or I’m out the door.

In other words, I did not demonstrate that I was all-knowing but encouraged them to learn the ropes. For example, I did workshops instead of lectures, i.e., it is a journey of discovery, unlike rote.

I learned from experience that “cognitive development” – the ability to move across the continuum of “binary and relative thinking” – is a function of experience.

And that is also the message of this posting: Design Thinking is an iterative approach to problem-solving that intentionally seeks out people with different perspectives, knowledge, skills, and experience and has them work together to create a practical solution for a real-world problem.

But is that something we can embrace?

We live and die by our instincts.

Gising bayan!

The family joins me in wishing one and all a Blessed Christmas and a Healthy and Prosperous New Year! 

Context: We must get ahead of the curve

In a prior posting, the blog spoke to “context.” And that, understandably, we want to celebrate “wins” – even small ones – given that we are the laughingstock of the region. It is vital for our self-esteem and gives us the courage to forge on.

And we may be carrying lots of “psychological baggage” that, to be philosophical, is the mechanism to cope and overcome negative thoughts.

It would explain why we crafted a constitution restrictive of foreign investment and then overruled Juan de la Cruz and kicked out the US military. 

And given our inability to shake off poverty, our economic managers find themselves in the “frontline,” telling us that “we’re doing fine.”  

Sadly, that’s how we get ourselves “out of context.” For example, the blog advanced a “desired outcome” for Juan de la Cruz, i.e., “to traverse poverty to prosperity rapidly.”

But we’re beggars – and we can’t be choosers. In other words, destiny: We pigeonholed Juan de la Cruz as a fragile enterprise.

And that’s why we keep tripping all over and taking the wrong turn at the fork.

“Finance Secretary Sonny Dominguez has been upbeat about prospects for the economy. Indeed, a DOF undersecretary mocked some analysts for their pessimistic outlook on the economy's recent growth.

“Still, the job is not complete. Sec. Sonny urges Congress to complement the enacted reforms and pass the measures to ease restrictions on foreign participation in the economy, amendments to the Public Service Act, Retail Trade Liberalization Act, and Foreign Investments Act. All these will improve the country's standing in mobilizing more foreign capital to the country.” [“Back in business,” Boo Chanco, DEMAND AND SUPPLY, The Philippine Star, 17th Dec 2021]

Let’s hold it right there.

Recall that the blog has kept raising the imperative of benchmarking against best-practice models. To be logical yet linear and incremental is why we are the regional laggard.

And this is the 21st century. Even America finds itself losing its hegemon power. Of course, it was from its own doing. It ceded the moral high ground that it won with the collapse of the Soviet empire with the financial crisis of 2008.

“The Global Financial Crisis of 2008: The Role of Greed, Fear, and Oligarchs,” Cate Reavis, MIT Sloan Management, 16th Mar 2012.

“Prolonged periods of economic growth and prosperity can induce a collective sense of euphoria and complacency among investors that is not unlike the drug-induced stupor of a cocaine addict. The seeds of this crisis came during a lengthy period of prosperity. During this period, we became much more risk-tolerant.

“In other words, ‘we’ became greedy. This greed was spurred on by ‘the profit motive, the intoxicating and anesthetic effects of success.’ When everything began to collapse, our greed then turned into fear.”

And then Trump fed on that fear, preaching nationalism, an inward bias that China and Russia salivated. And Biden does not have the leadership or competence to turn the ship around. 

Those that read the blog may recall that when the wife and I first arrived in Eastern Europe, I established our “social contract” explicitly: Freedom and the free market are not about rules but principles. You must commit to transparency, or I’m out the door.

But let’s get back to the Philippines. Between the Asian Tigers and China, and most recently Vietnam, why can’t we benchmark against their successes?

That is why the blog keeps raising our instincts: We are parochial and insular. We value hierarchy and paternalism and rely on pollical patronage and oligarchy that ours is a culture of impunity.

Consider the dynamism, especially of this century that The Economist calls “the era of predictable unpredictability.”

In other words, if “Pinoy abilidad” failed us before, all the more between now and the foreseeable future – because Juan de la Cruz spells status quo.

We must get ahead of the curve.

And we in the Philippine elite and chattering classes must show the way; otherwise, we won’t ever overcome our fixed mindset. And why the blog admires Bernie Villegas, a preeminent Filipino economist, for acknowledging that we blew it.

“WB report: Covid scarring cuts PHL growth,” Cai Ordinario, BusinessMirror, 7th Dec 2021. “THE extent of the economic scarring caused by the pandemic has cut the country’s long-term economic growth potential to only 5.7 percent on average between 2020 and 2029, according to the World Bank.

“The jobs lost to the pandemic will lead to a higher poverty rate. The World Bank estimated this would mean a poverty rate of 22 percent in 2020 and 21.3 percent in 2021, based on the lower-middle-income poverty line of $3.20 a day in 2011 purchasing power parity (PPP).

“The World Bank said the social assistance under Bayanihan to Heal as One Act (Bayanihan 1) was not enough to prevent more people from falling into poverty.

“This foreshadows that the crisis will have long-lasting effects on Filipinos’ well-being.”

That is the context of the enormous challenge we face.

Here’s a quote from an earlier posting: “Question: Where is PH in wealth inequality? Answer: We have the worst GINI coefficient index in the region. 

“In other words, if from 2009-2019 we grew GDP at a compounded 8% (at constant $) and still suffered a poverty rate of 16.7%, the jobs lost to the pandemic will lead to a higher poverty rate. The World Bank estimated this would mean a poverty rate of 22 percent in 2020 and 21.3 percent in 2021.”

Consider: We in the Philippine elite and chattering classes may be preoccupied patting ourselves in the back, yet roughly 23 million Filipinos can’t put body and soul together.

And so, “a DOF undersecretary mocked some analysts for their pessimistic outlook on the economy’s recent growth.” See above; what an 8% growth rate brought us. 

But what is the point of reference? Our “economic managers” must know that 23 million poor Filipinos are equal to 90% of the Australian population? And more than the entire population of Romania?

In other words, even the manna from heaven that we rely upon — the $60 billion between OFW remittances and call centers — has not sufficed. Instead, it gave us the “OFW disease” and a source of hubris: It is classic adding insult to injury.

Let’s pause right there.

For example, Elfren Cruz invokes Pope Francis and argues for redistributing wealth?

See above; freedom and the free market are not about rules but principles, including the commitment to transparency. 

And that while leadership is inherent in a democracy, it is an exercise in self-government to attain the “common good.”

Will “the measures to ease restrictions on foreign participation in the economy, amendments to the Public Service Act, Retail Trade Liberalization Act, and Foreign Investments Act” be the answer?

Let’s test that:

Our top companies will benefit from “CREATE and other tax reforms and the continued infrastructure drive to help the country’s economic competitiveness.” 

But consider the industries of our top companies: retail, real estate, food, among others. Will these top companies – collectively – mirror Samsung Vietnam’s $57 billion revenues and their impact on Vietnam’s economy and the knock-on effect on poverty?

They won’t. Why? 

Their businesses don’t spawn the subindustries as did tech-based Samsung Vietnam. Moreover, beyond investment, we lag in technology too. And we needed both like yesterday to even have a prayer in raising our innovation quotient and global competitiveness demanded by the 21st century.

That is the real-world context we must satisfy. How?

“80% of US companies and 67% of European companies” in China are potential investors, and, unsurprisingly, Vietnam, Thailand, and Malaysia are gearing up. 

Let’s hold it right there.

These neighbors have left us in the dust. Do we know how they are gearing up to win more FDIs?

We cannot underestimate the abilities of our neighbors. They are far advanced in cognitive development compared to us. For example, they have moved beyond binary thinking.

Translation: We must get ahead of the curve. Our best efforts have fallen short because “pwede na ‘yan” gets in the way. 

Here’s where we stand export-wise against Vietnam, Thailand, and Malaysia: They do roughly twice more than we do. [Correction: I picked up the wrong line the last time the blog quoted export numbers. Sorry.]

We must design our competitiveness measures against the dynamism of this world – because these neighbors can only step on the gas. They have benefited from their development experience and can either exploit or overcome driving and hindering forces accordingly.

“McKinsey and Co. Philippines Acting Managing Partner Jonathan Canto said the Philippines should explore a potential niche as a manufacturing hub with 80% of US companies and 67% of European companies from China to elsewhere in Asia. And Vietnam, Thailand, and Malaysia are currently gearing up to take over China.

“Mr. Canto recommended that the Philippines reassess its FDI strategy and priority sectors, build unique deal-focused value propositions, focus on investment promotion, and ensure end-to-end support for investors.” [“Foreign chambers tout FDI as key to economic recovery, poverty relief,” Bianca Angelica D. Añago, BusinessWorld, 1st Dec 2021]

The alternative to our generic initiatives is right there: reassess our FDI strategy and priority sectors, build unique deal-focused value propositions, focus on investment promotion, and ensure end-to-end support for investors.

But can we heed the above? That’s why the blog raised tapping Mr. Canto as a resource. With due respect to our economic managers, the outcome we must seek for Juan de la Cruz is to traverse poverty to prosperity rapidly.

We must get ahead of the curve.

Arangkada and AmBisyon are yet to bear fruits. 

What to do? We may be carrying lots of “psychological baggage” that, to be philosophical, is the mechanism to cope and overcome negative thoughts. It would explain why we crafted a constitution restrictive of foreign investment and then overruled Juan de la Cruz and kicked out the US military. And given our inability to shake off poverty, our economic managers find themselves in the “frontline,” telling us that “we’re doing fine.”  

Consider: Vietnam suffered so much during the Vietnam war – when the US military razed them to the ground, dropping more bombs than all the wars combined.

But what an irony, they are now the benchmark.

A social scientist, Pauline Boss, offers an answer in her book, The Myth of Closure. She argues that “meaning” and “new hope” are essential for coping, intended to help people consider what the loss signifies in their lives and how they can imagine a future that contains their loss.

Did Vietnam have any choice but seek “meaning and new hope” given centuries of conquest by China, including their current dispute over political and territorial issues in the South China Sea? And that – the “conquest” and current disputes – would render their other conflicts a drop in the bucket? And because life must go on?

“Ambiguous loss” is one without “conclusion,” in the traditional sense of the term, i.e., an experience of paradox — a simultaneous absence and presence — that eluded resolution. 

“Ambiguous loss can result in “frozen grief,” when people are stuck in their sorrow – and can be physical or psychological.

“That ambiguous loss is so broad may be frustrating to those who crave absolute parameters. But its haziness is the point. It’s a theory about imprecision. 

“The Myth of Closure contributes to the already robust study of slavery’s traumatic aftermath. That enslavement caused “social death” and produced a generational transmission of trauma.

“And it is omnipresent in the systems that continue to oppress Black people today. That historical context matters for human development and that being traumatized instead of nurtured will affect not only children but also their offspring as well.” [“What if There’s No Such Thing as Closure (?),” Meg Bernhard, The New York Times Magazine, 15th Dec 2021]

For example, does the above theory explain our ambivalence in our relationship with America?

Let’s pause once more: Does that explain why, despite Lee and Mahathir telling Deng to beg for Western money and technology, we ignored the mantra espoused by our neighbors? And why Mahathir’s message to Juan de la Cruz fell on deaf ears: We don’t have to love former colonizers, but we are poor nations. We need their money and technology.

But can we learn from the Vietnamese? How did they find meaning and new hope?

How do we find meaning and new hope for Juan de la Cruz? 

Between Christianity and democracy — the latter, as the blog argues, is the mirror image of the former, i.e., the imperative of personal responsibility in pursuing the common good — could we have found meaning and new hope?

But we won’t until we overcome 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.

That’s why the blog raised defining our “common good”  via a “desired outcome” for Juan de la Cruz, i.e., “to traverse poverty to prosperity rapidly.”

In other words, we don’t have to pigeonhole Juan de la Cruz as a fragile enterprise — and respond with charity giving. That is where we confuse Padre Damaso and Christianity: Juan de la Cruz isn’t stupid but made in the image and likeness of the Creator — and endowed with the capacity for democracy, the imperative of personal responsibility in the pursuit of the common good. 

For example, can Juan de la Cruz not embrace a “desired outcome” as “to traverse poverty to prosperity rapidly”?

That must be the challenge to whoever will be the next president – and the economic managers.

The new administration must edify Juan de la Cruz. In return, we must not submit to tyranny. Instead, we must hold power to account – which is what the blog has been doing for over a dozen years. It’s called personal responsibility inherent in a democracy.

And it’s not a walk in the park: We did not recognize that Maria Ressa and Harry Roque are two sides of the same coin. Why? Recall that we jumped on the bandwagon peddled by the administration that Ressa was a puppet of foreign interests. Don’t we subscribe to foreign media? I watch more Fox News when I am in Manila because people we visit would most likely do. And aren’t we in bed with the foreign interests out of Indonesia? 

But let’s resume and drill down the above “desired outcome” by defining a more tangible “output” as “raising GDP by an incremental $200 billion.” 

How?

Prioritize the foreign investment and technology to tap by distinguishing the “vital few” from the “trivial many.”

And using Samsung Vietnam as the benchmark, we must figure out which of the “80% of US companies and 67% of European companies” in China are potential investors.

And then design our investment policy-making and tax reform initiatives accordingly: reassess our FDI strategy and priority sectors, build unique deal-focused value propositions, focus on investment promotion, and ensure end-to-end support for investors.

And we don’t have to go it alone. See above; tap a resource, Mr. Canto of McKinsey.

Must we find meaning and new hope for Juan de la Cruz? 

He’s not a fragile enterprise.

We must get ahead of the curve.

Gising bayan!