Monday, May 31, 2021

Can we find the needle in the haystack?

Not if we keep the cobwebs in our heads. Why is Juan de la Cruz so “sabog”?

Think of our crab mentality; it dismisses the imperative of personal responsibility for the common good.

Yet, it is unsurprising 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.

In other words, how can we explain our inability to course-correct? How often have we – in the chattering classes – raised that we can’t remain a consumption-service economy? That the OFW phenomenon and the BPO industry have driven PHL’s economy.

Unsurprisingly, beyond the Asian Tigers and China, Vietnam is the latest neighbor that has overtaken us in industrial development.

Let’s pause right there.

By the end of the Duterte administration, we would have wasted a dozen years pursuing industrialization. At the beginning of the Aquino administration, the blog was pretty hopeful about our chances of finally moving forward because of Arangkada.

But given the cobwebs in our heads, it isn’t surprising that we’re back to square one.

And it comes from our instincts. And why the blog keeps raising that despite our professed faith, we are yet to bridge the gap between Christianity and the reality of Juan de la Cruz: Democracy is the mirror image of Christianity, i.e., the imperative of personal responsibility for the common good.

The good news is that we are not alone.

Where we suffer is our inability to overcome our inward-looking bias. Our parochialism and insularity will explain why we remain the regional laggard.

And we won’t find the needle in the haystack if we can’t come around to this reality.

And how do we clear the cobwebs in our heads? If we care to look outward, we can learn from others.

Indeed, the haystack is a maze. Yet, our neighbors demonstrated that humankind could thrive in this universe despite its complexity.

For example, there are universal principles, if not laws, that can crystallize how to put method behind the madness.

Sadly, our model missed it totally and completely. Think of Padre Damaso. And why the blog asserts that we are the present-day Padre Damaso.

But then again, even within the Vatican, there are the conservative and progressive wings. Yet, the Vatican called out to the US bishops that the faith is beyond one-dimensional.

Sadly, we are the least able to comprehend that because of our instincts.

How do we put method behind the madness? Recall that the blog often refers to the dynamism of this universe. For example, the galaxies are in constant forward motion – that it is getting farther and farther away from planet Earth – and expansion. And if the Hubble telescope can’t keep up with the galaxies, how can we find a method?

Take the photosynthesis phenomenon. It is a very concrete demonstration of the dynamism of the universe, and not to forget, its character of interdependence.

Dynamism and interdependence: are these the starting point of finding the method behind the madness – of finding the needle in the haystack?

If they are, consider 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.

Let’s again pause right there.

“Digital technology key to driving PHL recovery,” Keren Concepcion G. Valmonte, Beatrice M. Laforga, and Arjay L. Balinbin, BusinessWorld, 27th May 2021.

“THE PHILIPPINES should continue to develop digital infrastructure to drive economic recovery, as the coronavirus disease 2019 (COVID-19) pandemic helped accelerate digital transformation initiatives for both the public and private sector.

‘COVID-19 did more for digital transformation than executives did for their organizations,’ Ayala Corp. President and Chief Executive Officer Fernando Zobel de Ayala said in a keynote speech at the BusinessWorld Economic Forum. ‘Organizations should digitally transform themselves to remain relevant.’

“Digital transformation, which combines technology and a firm understanding of stakeholder needs, is indeed the way forward towards a more resilient, progressive, and equitable country. As we build a digital economy founded on reliable infrastructure, digital identity and access to services, and airtight cybersecurity, we all have much to contribute.

“Martha Sazon, president and chief executive officer of Mynt — the operator of GCash, said the pandemic highlighted the need for safe and convenient access to digital payments. GCash currently has over 40 million registered users as of April 2021, up from 33 million as of end-2020.

‘Because of the change in the conditions that we’ve seen, people must reimagine the business to service the customers in a way that will reach the customers even better,’ Ms. Sazon said.

“This was echoed by Boston Consulting Group Managing Director and Senior Partner Anthony Oundjian, who said that digital transformation, in the first place, does not start with technology.

‘I would say it starts with the consumer pain-points and the design of simple solutions to address these pain-points,’ Mr. Oundjian said.

“The rise in electronic payments in the Philippines during the pandemic could be an indicator that the digital divide in the country has narrowed, a World Bank economist said.

‘The digital divide may have narrowed in the Philippines given the increase in digital payments. Still, there is much catching up by aggressively breaking the barriers,’ World Bank Senior Economist Kevin C. Chua said at the “BusinessWorld Virtual Economic Forum through greater participation and investment.”

“Meanwhile, National Economic and Development Authority Undersecretary Rosemarie G. Edillon said the Philippines should loosen up its restrictions to foreign players in the telecommunications industry and make it easier for investors to do business to help the digital sector grow faster.

‘Fostering competition in the telecommunications sector could boost internet connectivity and lower costs,’ Ms. Edillon said, which will give Filipinos more access to the internet.”

What’s the bottom line? Indeed, digital technology is upon us. And just like “technology and innovation” in general, we must play catch up. And to leapfrog the effort, we must tap foreign investment and technology. Think of dynamism and interdependence.

But, and it’s a BIG BUT.

How come no one is talking about our economic platform – i.e., a consumption-service economy?

In other words, yes, digital technology will advance our consumption-service economy, but we will still lag our neighbors and be the regional laggard.

That is where our economists must educate Juan de la Cruz on the import of the “multiplier effect.” The multiplier effect is much more significant in an industrial economy, including creating far more and higher-paying jobs.

In other words, the reason Vietnam put poverty in the rearview mirror is that they leapfrogged industrial development. They are the regional manufacturing hub of Samsung smartphones and Apple AirPods – while we are still in chips.

On the other hand, if we are to be in chips, we better match the speed and expertise of the Taiwanese.

We cannot keep our heads in the sand. We must industrialize like yesterday.

Let’s pause once more and raise the familiar, i.e., NEDA’s Ambisyon natin: 2040 and Arangkada.

What if we move to version 2.0 of both these initiatives?

For example, instead of defining nirvana as a GDP growth rate of 6%-7%, we set it as an incremental GDP objective of $200 billion? Because that means beating the hell out of our neighbors, including Malaysia. That is a vivid way to explain benchmarking. We cannot be academic with the exercise.

Why? That will facilitate putting the method into the madness. Recall that we’ve had the 6%-7% growth rate for several years, yet we remain the regional laggard – because we’re stuck as a consumption-service economy.

Moreover, we must – sooner than later – overcome our crab mentality. And starting with an incremental GDP goal of $200 billion should impel us to prioritize. Think of the Pareto principle.

In other words, we must prioritize our top exports because they will have far greater chances of delivering much of the $200 billion. We cannot think of 50 industry road maps. That is too academic.

Recall the Ph.D. candidate I mentored: I will only assist you if you commit to employing the outcome of this dissertation to a real-world challenge. And she did. Today, she is the global marketing director of one of the world’s most popular brands. Many of us may even be using her brand.

But how did she do it when she’s not from the West? She showed her company that she could traverse the road from benchmarking against the world’s best to attaining state-of-the-art – and be the leading edge.

But back to the $200 billion incremental GDP.

Our economic managers and legislators must lead the efforts to identify the priority industries and products that will deliver the most extraordinary revenues. And then figure out the must-do policies and initiatives to attract suitable investments and technologies. In other words, CREATE and SIPP must come down to their most granular levels.

We have challenges related to infrastructure, including power and logistics, but if we can be laser-focused on our priority export industries, we can figure out the requisite infrastructures.

Can we find the needle in the haystack?

Not if we keep the cobwebs in our heads. Why is Juan de la Cruz so “sabog”?

Think of our crab mentality; it dismisses the imperative of personal responsibility for the common good.

Gising bayan!

Sunday, May 23, 2021

Where are we, and where do we want to be?

Has Juan de la Cruz asked this question?

Does it remind us of being in a mall? And chances are there is a monitor that will pinpoint where we are and guide us to the store we want to be.

It is similar to driving a car and wanting to go to an unfamiliar place.

Thank God for the GPS.

As we speak, the wife and I are visiting the daughter and son-in-law in Richmond, Virginia. They are on a road trip that started in Florida – where they spent several weeks, their version of working from home – making stops in Savannah, Charleston, and Richmond on their way back home to Connecticut.

While the wife and I made a much simpler trip: From Connecticut, we spent a night by the Baltimore waterfront before Richmond.

If it isn’t apparent yet, the blog replicates the GPS exercise.

Those familiar with the blog may know that I had a career in strategy, except that at my old MNC-company, managers don’t just plan; they must deliver results no matter their roles. For example, I did numerous restructuring initiatives, not simply to craft a new direction but to ensure its execution – i.e., to create a sustainable and competitive enterprise. And that included tapping an outside technology to beat the competition in the technology race that paved the way to becoming a dominant global brand – reaching close to 70 percent of households globally.

As a blue-chip enterprise with over a hundred years of continuous, uninterrupted dividend history, many retirement funds invest in the company. And now that I’m retired, I appreciate investments that deliver sustainable returns. And as far as the company is concerned, it encourages retirees to diversify their investments, not put their eggs in one basket. And that includes the company’s stock.

But then again, this universe is dynamic that over the last couple of years, they had to up their innovation game. And Juan de la Cruz struggles to internalize this reality — to embrace a growth mindset.

The experience at my old MNC-company of doing both “planning and execution” comes in handy as a volunteer expert in Eastern Europe. I started as a consultant – to introduce them to innovation and product development founded on understanding the hierarchy of human needs and benchmarking against the world’s best brands. But then I was requested to organize and develop the sales organization – because they were a local enterprise and had to learn the ropes in doing business regionally – and globally.

Still, I stepped aside after two years because experience is the best teacher, i.e., they had to learn by doing. As necessary, they “learn” (1) how to think laterally or creatively and (2) to work in teams and cross-functionally – a critical imperative in the pursuit of innovation.

Recall “The Innovator’s DNA” by Jeffrey H. Dyer, Hal Gregersen, and Clayton M. Christensen; Harvard Business Review, December 2009. “And the ability to connect unrelated questions, problems, or ideas from different fields, is central to the innovator’s DNA.”

And thanks to my once assistant, translator, and driver, then a working engineering student – and earning a masters’ degree to boot – the company has an AI-driven information system. And despite Covid or being anywhere in the world, I’m engaged in “big data and analytics” – to guide them in their efforts to (1) stand up to global behemoths and (2) attain sustainable growth and profitability.

As they gained experience, they realize that finding the needle in the haystack presupposes internalizing the GPS power: where are we; where do we want to be; how do we get there.

But let’s speak to the Philippines.

And the following articles drew my attention: (1) Saving capitalism from profit obsession; (2) Export industry seeks more gov't support for promotion; and (3) Focus aids to farms to achieve competitiveness, Habito says.

But first things first: (1) Where are we? (2) Where do we want to be? (3) And how do we get there?

Here is (1) where our instincts come into play and get in the way of answering these simple questions, and then (2) think of finding the needle in the haystack, aka “big data and analytics.”

Recall too the two operating systems in the brain postulated by the 2002 Nobel Prize (in Economics) winner, the Princeton psychologist Daniel Kahneman: (1) automatic and (2) conscious.

One of the best pieces of advice I heard earlier in my career is: “sleep on it.” It reminded me of my first science experiment in high school: an experiment will test a hypothesis. “Air has weight and occupies space.”

In other words, our instincts, background, and experience will explain “our automatic” response to a challenge, for example. And which – as a practitioner and mentor – I would call the ABC of problem-solving: our assumptions, biases, and comfort zones.

And the wife would still remind me “to count to ten or bite your lips.”

So, where is the Philippines, and where do we want to be?

And that is why the blog chose to speak directly to us in the Philippine elite class. Our value of hierarchy and paternalism will explain why we automatically pull rank “for the good of Juan de la Cruz.” In other words, it is not “mother knows best” – “we know best.”

We must acknowledge that we are the regional laggard – and why Juan de la Cruz suffers from abject poverty. That is where we are – our being in the Philippine elite class notwithstanding. See above; finding the needle in the haystack.

The bottom line: We must traverse poverty to prosperity.

But can be we embrace that? 

We must acknowledge that our neighbors demonstrated to the world how to be economic tigers. Ergo: we must benchmark against them – to ascertain “state-of-the-art.” Why? That is how to test if we have attained competitiveness as an economy and nation.

We must recognize that beyond our parochial and insular view is the reality of the 21st century, i.e., defined by (1) innovation and (2) global competitiveness.

Wealthier nations will not demonstrate our value of paternalism.

Recall that democracy is the mirror image of Christianity, i.e., the imperative of personal responsibility for the common good. Freedom-loving nations will embrace interdependence, but that presupposes personal responsibility, not paternalism.

Let’s get back to the articles that drew my attention.

“Saving capitalism from profit obsession,” Bernardo M. Villegas; Human Side of Economics, BusinessWorld, 18th May 2021.

“Given the pressure that the pandemic has exerted on practically all businesses to re-examine their objectives, strategies, and policies as they face the ‘New Reality,’ the concept of corporate purpose has come at a very opportune time.

“Examining the Vision and Mission statements of some of the [PHL’s] leading business conglomerates such as San Miguel Corp., Ayala Corp., and DMCI Corp., one can already discern the seeds of corporate purpose being at the center of strategy, policies, and business model. All three companies — San Miguel, Ayala, and DMCI — started, like Ikea and Ingka, as modest business operations with objectives already beyond profit maximization. In their present forms as large business conglomerates, they have embraced environmental, social and governance (ESG) goals and more.”

Let’s pause right there and ponder: How do these leading Philippine conglomerates expand their social goals?

We must acknowledge that we are the regional laggard – and why Juan de la Cruz suffers from abject poverty. That is where we are – our being in the Philippine elite class notwithstanding. See above; finding the needle in the haystack.

Recall that Vietnam has overtaken us in industrial development. We are into chips while they are the regional manufacturing hub of Samsung smartphones and Apple AirPods.

How much has Vietnam leapfrogged industrial development? The OFW phenomenon has been the driver of the Philippine economy and magnifies how much we’re stuck as a consumption-service economy.

Consider: Our top eight companies combined can’t match one Vietnam enterprise in revenues.

In other words, we are paying dearly for our parochialism and insularity. i.e., failing to (1) embrace a growth mindset and (2) recognize the dynamism of this universe, characterized by interdependence.

Let’s next turn to this article: “Export industry seeks more gov’t support for promotion,” Jenina P. IbaƱez, BusinessWorld, 18th May 2021.

“THE EXPORT INDUSTRY is asking for more funding for government promotion and product development initiatives to back the sector’s recovery from the coronavirus pandemic.

“The Trade department can assist product development and use data to identify which sectors to promote; the country continues to lag behind other Southeast Asian economies.

“We think that we have the advantage in terms of creativity, innovation, but we need to support our exporters.

“Financing for smaller exporters continues to be a challenge. [Meanwhile] applications for loans from the Small Business Corp. (SB Corp.) have been sluggish, as the government agency tightened lending standards. SB Corp. had additional funds to assist businesses affected by the pandemic.

“It is difficult for the Philippines to penetrate the export market as it competes against Thailand, Indonesia, China, and Cambodia.”

Let’s stop right there.

Does the preceding article confirm that we suffer from “learned helplessness?” Here’s a quote from an earlier posting: “As I have listened to individuals who feel trapped and stressed, unable to muster the energy to facilitate change, I think about Martin Seligman’s research on ‘learned helplessness.’ It captures the belief that ‘regardless of what I do, nothing really will change, so why exert the effort.’ Once a feeling of learned helplessness begins to dominate one’s mindset, most difficult situations elicit feelings of resignation, defeatism, and stress.” [Stressed Out or Stress Hardy (?), Robert Brooks, Ph.D., http://www.drrobertbrooks.com/wp/wp-content/uploads/1999/04/Stressed-Out-or-Stress-Hardy-Part-1.pdf]

In other words, we are engaged in a circular argument: which comes first, the chicken or the egg?

The industry is pointing the finger at the government that is then returning the favor. Recall that despite our professed faith, we are yet to internalize that democracy is the mirror image of Christianity, i.e., the imperative of personal responsibility for the common good.

Sadly – and that is an understatement – we are yet to wake up to the reality of the 21st century. Our instincts can render us extinct if we don’t do it soon enough.

Here’s one more article to discuss: “Focus aids to farms to achieve competitiveness, Habito says,” Revin Mikhael D. Ochave, BusinessWorld, 18th May 2021.

“SELF-SUFFICIENCY in food production will depend on well-targeted support to farmers in improving their productivity and competitiveness, a former head of the government’s socioeconomic agency said.

“Food self-sufficiency is best pursued via meaningful and ‘effective’ support for farmers to improve productivity and competitiveness, Mr. Habito said.

“Agriculture is too important to be left to the DA alone. Farmers, bureaucrats, scientists, large and small entrepreneurs, bankers and financiers, traders, logistics providers, workers, and general consumers all have valuable roles to play, Mr. Habito said.

“Rolando T. Dy, executive director at the Center for Food and Agri-Business of the University of Asia and the Pacific, said the country needs to exert extra effort in controlling African Swine Fever (ASF).

“We need extra effort in the control of ASF, the development of its vaccine, and the clustering of backyard hog raisers because they are usually the source of ASF, Mr. Dy said.

“Mr. Dy added that the Philippines was 73rd out of 113 countries in the Global Food Security Index and lagged other countries in ASEAN such as Indonesia at 65th, Thailand at 51st, and Malaysia at 43rd.

“The index is an annual assessment measuring food security using the anchors of affordability, availability, quality, and safety metrics.

“Agriculture Secretary William D. Dar said he expects the farm sector to rebound this year and added that the DA is still aspiring to achieve its 2.5% growth target for 2021.

“We in government cannot do this alone. We need the support of all stakeholders and sectors, especially our local governments, in making our food production and distribution systems more inclusive, resilient, and sustainable,’ Mr. Dar said.

“Investment in agriculture — both from government and the private sector — can help revive food production, modernize and industrialize the agriculture and fishery sector, and create jobs following a crisis and enable rural communities to recover and grow.”

The bottom line: What else is new?

Can the Philippines save capitalism, or should Juan de la Cruz “save” the Philippines? 

At the rate we are going, we are in an aggressive race to the bottom.

Why? 

Recall 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 not kid ourselves. This was a long time coming?

And over the dozen years of the blog’s existence, we are yet to demonstrate that we can course correct. 

We missed every turn in the fork. And we in the Philippine elite class must recognize our shortcomings.

Benchmark against our neighbors. 

Seek “state-of-the-art.” 

We are “behind the eight ball!”

Gising bayan!

Tuesday, May 18, 2021

We kicked up a perfect storm!

That means us in the Philippine elite class. 

But how?

Have we ever asked how our instincts stand up against our professed faith?

Consider: “To whom much is given, much will be required.” [Luke 12:48]

Then think of all the major initiatives that we championed; they were all to address the poverty of Juan de la Cruz.

But that is not a surprise 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.

Sadly, when we go full circle, Juan de la Cruz is mired in abject poverty.

But why?

The house is burning – aka “learned helplessness” – yet we like to highlight our good “deeds” even when they reveal our values of hierarchy and paternalism.

Here’s a quote from a 2015 posting: “When I listen to individuals who feel trapped and stressed, unable to muster the energy to facilitate change, I think about Martin Seligman’s concept of ‘learned helplessness.’ It captures the belief that ‘regardless of what I do, nothing really will change, so why even exert effort to change.’ Once a feeling of learned helplessness begins to dominate one’s mindset, most difficult situations elicit feelings of resignation, defeatism, and stress.” [Stressed Out or Stress Hardy (?), Robert Brooks, Ph.D., http://www.drrobertbrooks.com/wp/wp-content/uploads/1999/04/Stressed-Out-or-Stress-Hardy-Part-1.pdf]

Recall also my old MNC-company. “The company drew a restructuring plan that called for selling over a hundred brands – almost all of them. And to ensure the few brands left can make up for lost revenues, the mindset of the enterprise had to change – totally and completely. And so, New York instructed the top ten subsidiaries to hire ‘change agents.’ And I was one of them.”

Am I surprised that the blog has fallen on deaf ears – despite being around a dozen years and a book that summarized earlier blog postings?

Consider: Juan de la Cruz is the poster boy of the “status quo.” And with a bit of help from us in the Philippine elite class, that’s how we kicked up a perfect storm – and why we’re the regional laggard.

And it will persist: “The average Filipino student has an average Intelligence Quotient (IQ) of 86 compared to an IQ of 108 for the average Singaporean, South Korean, or Hongkonger. Filipino children have the lowest IQ in ASEAN, below that of Myanmar, Laos, and Cambodia. It’s safe to say that our youth are among the least future-ready on the planet.

“Most worrying is that a whopping 69% of Filipino students believe that their level of intelligence is a given. Only 31% believe they can improve if they work hard.” [“Plummeting education standards: A national emergency,” Andrew J. Masigan, Numbers Don’t Lie, BusinessWorld 9th May 2021]

We need to put our noses on the grinding stone instead of unceasingly patting ourselves in the back.

But we must pause and ponder.

For instance, should we refine our sense of Juan de la Cruz’s future? It is beyond “AmBisyon Natin 2040. By 2040, Filipinos enjoy a strongly rooted, comfortable, and secure life. In 2040, we will all enjoy a stable and comfortable lifestyle, secure in the knowledge that we have enough for our daily needs and unexpected expenses, that we can plan and prepare for our own and our children’s future. Our family lives together in a place of our own, and we have the freedom to go where we desire, protected and enabled by a clean, efficient, and fair government.”

That will not occur if we don’t traverse poverty to prosperity.

And so, that must be our “way forward,” i.e., it is beyond addressing Juan de la Cruz’s poverty.

That is why the blog challenged the object of CREATE and SIPP.

We cannot celebrate granting enterprises tax breaks per se because the biggest beneficiaries will be our top eight companies. They have not earned industry laurels for the Philippines to be sitting pretty.

The object of these two significant initiatives must be to raise our GDP by $200 billion – i.e., we must benchmark against our neighbors and seek state-of-the-art; otherwise, we shall remain the regional laggard.

But because we grew up reading GDP as a growth metric, we can’t turn things on their heads. 

Yet, when prodded, we will concede that we don’t live in a one-dimensional world. Recall Daniel Kahneman’s treatise of the brain’s two operating systems, (1) automatic and (2) conscious.

For example, it is not enough to celebrate generating more FDI than before – we must seek a quantum leap in our economic output. And where is the disconnect? 

We can’t figure out that the tax revenues we want to farm out to the LGUs are a function of PHL’s economic output. It’s nice if all we must measure is “happiness” with no regard to what we generate as an economy.

That is why we must learn to prioritize – as in the Pareto principle – while assembling and pulling several elements together. And that starts with our economic managers, legislators, the private sector, and the rest of the public sector.

It is more than a road map as we know it. We must distinguish between “activity” and “outcome.”

In other words, we must fight and overcome our crab mentality.

But why the crab mentality? Aside from an inward- if not selfish-looking bias, it comes from linear and incremental thinking. Given our lack of development experience – and why we’ve been a developing economy for the longest time – to forward-think is not in our repertoire.

Recall Stephen Covey’s seven habits of highly effective people; for example, to “begin with the end in mind” is not second nature to us. The evidence?

How many years did we celebrate 6%-7% GDP growth rates – yet we remain the regional laggard? 

Or think of how we trumpeted the OFW phenomenon as our answer to an export-driven industrial economy. We assumed we were smart every time there was a regional if not global economic upheaval.

Yet, we nonchalantly rationalized our parochialism and insularity. But at what price? We developed neither our “technology” or “innovation” quotient (“IQ”).

To be sure, we must develop R&D in the Philippines. But we’re in the 21st century. We must walk and chew gum simultaneously because the world will not wait for us. Think again of how the Asian Tigers leapfrogged technology development, i.e., by “begging for Western money and technology.”

Sadly, we can’t break from the vise of “learned helplessness.”

How do we upend our perfect storm? 

Like we do with the future of Juan de la Cruz, we must redefine our perception of Christianity — being central to our psyche — to one that will reflect the imperative of democracy.

Democracy is the mirror image of Christianity, i.e., the imperative of personal responsibility to pursue the common good.

Recall that the blog speaks to the law of divine oneness. It manifests in this universe – characterized by dynamism and interdependence. It brings to mind the photosynthesis phenomenon – and the interdependence of nations.

We must traverse poverty to prosperity and recognize the shortcomings of parochialism – i.e., it is one-dimensional. And we will not overcome these shortcomings if we don’t strive to move up beyond binary thinking.

But then again, this is where our Christian perspective is suspect.

Consider: “Vatican Warns U.S. Bishops About Denying Communion To Supporters Of Abortion Rights,” SYLVIA POGGIOLI, NPR, 11th May 2021.

“The Vatican’s top enforcer of doctrine has sent a warning to U.S. bishops about a potential proposal by some conservative clergy to deny communion to Catholic elected officials who support legislation allowing abortion.

“In a letter dated 7th May, Cardinal Luis Ladaria, the head of the Vatican’s Congregation for the Doctrine of the Faith (CDF), told the bishops that any such policy requires dialogue first among bishops themselves. And then between bishops and Catholic politicians who support abortion rights — whom the cardinal specifically identified as ‘pro-choice.’

“Ladaria said it would be misleading to present abortion and euthanasia as ‘the only grave matters of Catholic moral and social teaching that demand the fullest accountability on the part of Catholics.’

“And he warned that if U.S. church leaders fail to reach a unanimous decision, a national policy, ‘given its contentious nature,’ could become a source of discord within the American Church.

Biden’s election was welcomed by the Vatican – which made no mention of his support for abortion rights. And the Holy See was annoyed by a U.S. Conference of Catholic Bishop’s statement on Inauguration Day. It lamented, 'our new president has pledged to pursue certain policies that would advance moral evils and threaten human life and dignity, most seriously in the areas of abortion, contraception, marriage, and gender.' That statement added that 'for the nation’s bishops, the continued injustice of abortion remains the preeminent priority.’

“An unnamed senior Vatican official told America that the Inauguration Day statement ‘is most unfortunate and is likely to create even greater divisions within the Church in the United States.’”

In other words, the Christian faith is not one-dimensional: “It would be misleading to present abortion and euthanasia as ‘the only grave matters of Catholic moral and social teaching that demand the fullest accountability on the part of Catholics.’”

And that stands foursquare to human development, i.e., that humankind moves up to relativism beyond binary or dualistic thinking. Why? Humankind is equipped beyond dualism to thrive in this dynamic universe. And the Church goes as far as saying that we are both human and divine.

Put another way; democracy is the mirror image of Christianity, i.e., the imperative of personal responsibility to pursue the common good.

And here’s an effort to define the “common good.”

A Call to American Renewal. This ‘common-sense coalition’ seeks to catalyze the reform of the Republican Party and its recommitment to truth, founding ideals, and decency or, if unsuccessful, lay the foundation for an alternative.

“The group set out a list of principles, emphasizing (1) democracy, (2) constitutional order, (3) truth, (4) ethical government, (5) conservation (‘stewardship of America’s resources — natural, environmental and financial’), (6) pluralism (rejecting the notion that America is about race, religion or birthplace) and (7) rejection of ‘all forms of bigotry.’

“Some of the stated principles hint at stances on current issues. In declaring they ‘oppose disenfranchisement of voters,’ for example, the signatories position themselves as opponents of the voter suppression laws growing like weeds around the country.

“Other statements avoid specific positions, such as their support for ‘policies that further public safety, health, and defense as required for national sovereignty and prosperity.’ Noteworthy is the absence of issues such as abortion or gay rights, suggesting the members of the group have agreed to disagree on some topics that are not central to its aim of restoring democracy.” [“The stampede away from the GOP begins,” Jennifer Rubin, The Washington Post 13th May 2021]

Does it sound like this wing of the Republican Party has moved up beyond dualism or binary thinking – to relativism?

But let’s get back to the Philippines.

We have our work cut out for us. More of the same — including massive charity giving — as in the status quo will not cut it.

Does it bring Fr. George Gorospe to mind?

“No human formulation of reality, no philosophical explanation of human experience can say: ‘I have grasped the whole of ‘reality and crystallized it in an expression or system that exhausts all its meaning.’ Reality is too rich and continuously changing; it can’t fall under a set of categories.” [Christian renewal of Filipino values, Vitaliano R. Gorospe; Philippine Studies vol. 14, no. 2, 1966, Ateneo de Manila University]

Should we in the Philippine elite class show the way?

Gising bayan!

Tuesday, May 11, 2021

Let us not kid ourselves; this was a long time coming!

A nation does not turn on a dime overnight. We were building up the crescendo – in a race to the bottom, aka regional laggard – over decades.

And I share the blame – I should have known better.

My old MNC-company had much faith in the Philippines. The local company was among the top ten subsidiaries  – among over two hundred markets worldwide.

And to the bosses, this connection to the Philippines was even personal. During WWII, the Japanese incarcerated the general manager of the subsidiary at UST, and Filipino employees visited him every day to ensure adequate nutrition. Right after the war, with the company facility in utter disrepair, he assembled an insurance claim assisted by his Filipino employees. [He would climb the corporate ladder and became the international division president, the more profitable side of the business than the US domestic one.]

He used the insurance proceeds to build the subsidiary’s first factory, then a trading enterprise. Unsurprisingly, on his 80th birthday, he chose to celebrate it in the Philippines. And we in the local management threw a birthday bash at the Manila Polo Club, his old hangout, with old friends on the guest list.

In the 70s, this American company had a very rough patch and was on the verge of being taken over by a prominent European investor (with a wealth heritage.) He loved its flagship product but sensed it lost its focus  – it had amassed over a hundred brands in unrelated businesses. He was not shy about his observations and told the company’s management, “either you shape up or I will buy you out.” But his heart was with the company. And the CEO heeded the advice.

Fast-forward to the Philippines. The company drew a restructuring plan that called for selling over a hundred brands – almost all of them. And to ensure the few brands left can make up for lost revenues, the mindset of the enterprise had to change – totally and completely. And so, New York instructed the top ten subsidiaries to hire “change agents.”

And I was one of them. And it became my ticket to become a regional manager – over peers from the region plus colleagues in Australia, New Zealand, and Canada. Before NAFTA, Canada was a great experience, as were the other two for regional managers, i.e., to learn the developed markets.

That was when I should have sounded the alarm bell in the Philippines. For example, the company built its first Asian robotic factory in Thailand, then called the “Detroit of Asia.” [And the board of directors, with their spouses, saw it fit to attend its inauguration. But the Philippines was still top of mind that their first stop on the trip to Asia was Manila and billeted them at the Manila Hotel. We gave them a quick tour of Manila that included a helicopter ride over Taal lake.]

And when the company established a shared services group to implement an enterprise-wide information-technology function, it picked KL. It did not stop there. We put up a regional technology center in Mumbai, among other investments across the region. Recall that as the Asean Economic Community evolved, the Philippines lost out to its neighbors.

Why did we ignore all the warning signs?

That’s why the blog points the finger at us – in the elite class. We never lost out to Juan de la Cruz. We continued to pull rank. Why won’t we reinforce our parochialism and insularity when we had all the comforts within our gated communities – and send out kids to the best schools in the world?

In the meantime, “Filipino children born in the last ten years are at a disadvantage even before entering the workforce. Due to educational standards that have plummeted, today’s average Filipino has become intellectually inferior to his counterparts from Asia, Europe, and North America. Unable to compete, this will relegate the Filipino to be the manual laborers of the world unless we get radical reforms into motion. It is a national tragedy.

“The average Filipino student has an average Intelligence Quotient (IQ) of 86 compared to an IQ of 108 for the average Singaporean, South Korean, or Hongkonger. Filipino children have the lowest IQ in ASEAN, below that of Myanmar, Laos, and Cambodia. It’s safe to say that our youth are among the least future-ready on the planet.

“Most worrying is that a whopping 69% of Filipino students believe that their level of intelligence is a given. Only 31% believe they can improve if they work hard.” [“Plummeting education standards: A national emergency,” Andrew J. Masigan, Numbers Don’t Lie, BusinessWorld 9th May 2021]

Sadly, this tragedy did not happen overnight.

That is the reason why the blog carries the title “Philippine Economy: Reinventing Ourselves.”

Consider: “How does a country become prosperous (?),” Senator Sonny Angara, BETTER DAYS, Manila Bulletin, 9th May. “A country becomes prosperous when it gets its act together.”

The real question Juan de la Cruz must ask is, “Why can’t we get our act together?”

Recall the treatise of Princeton psychologist Daniel Kahneman, the 2002 Nobel Prize winner in Economics – for his groundbreaking work in applying psychological insights to economic theory, particularly in the areas of judgment and decision-making under uncertainty.

He postulated two operating systems in the brain, (1) automatic and (2) conscious.

Then recall the blog never fails to raise 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.

In other words, our instincts – best described as our caste system – can explain our automatic dismissal of the West until we find ourselves between a rock and a hard place. [And why we can’t wrap our head around the mantra that our neighbors embraced, “Beg for Western money and technology.”] Think of China’s adventurism in the West Philippine Sea. And we, including those behind media editorials, justify our ambivalence in our foreign relations, be it with China or America or whoever.

And part of that comes from what Rizal articulated, i.e., he who submits to tyranny loves it. We can’t figure out how to relate to the world, as in the freedom-loving people instead of the tyrannical ones. Why? Because our values of hierarchy and paternalism get in the way.

We cannot get our act together because, in more ways than one, our caste system makes us believe that our respective ranks are a given, and only a minority thinks we can improve by hard work. Ours is the classic “fixed mindset.”

Here’s a quote from an earlier posting: “Recall Bill Gates: “Our genes influence our intelligence and talents, yet they can develop. Suppose you mistakenly believe that your capabilities derive from DNA and destiny rather than practice and perseverance. In that case, you operate with what Dweck calls a ‘fixed mindset’ rather than a ‘growth mindset.’ Our parents and teachers exert a big influence on which mindset we adopt—and that mindset, in turn, has a profound impact on how we learn and which paths we take in life.” [Carol Dweck is the Lewis and Virginia Eaton Professor of Psychology at Stanford University. Dweck is known for her work on mindset. She was on the faculty at Columbia UniversityHarvard University, and the University of Illinois before joining the Stanford University faculty in 2004. She is a Fellow of the Association for Psychological Science.]

How can we then get a grip on the challenges of this century – characterized by innovation and global competitiveness? In other words, we’re facing a complex world.

Consider: “Economic complexity refers to the productive know-how or knowledge held by society as expressed in the products and services it offers.  Using a mixture of big data, network analysis, and creative visualizations, this concept of economic complexity is the best indicator, determinant, and driver for whether a country prospers or not.

“The central thesis is that a given area — be it a city, a province, a state, or an entire country — becomes prosperous when it can produce and trade a diverse array of products and services that are complex and uncommon (or not ubiquitous). The better an area can accumulate productive knowledge and leverage such knowledge, the more likely it will develop and flourish.

“An economically complex society has two basic characteristics: (1) an accumulated sufficient level of productive knowledge spread across many economic actors; (2) they’ve successfully organized themselves, i.e., established the environment where diversity can recombine this knowledge into actual products and services.” [Angara, op. cit.]

Recall this quote from an earlier posting: “In other words, we must overcome ‘pwede na ‘yan’ and think state-of-the-art in agribusiness. And even our top companies must also recognize how Vietnam overtook the Philippines. For example, we’re into chips while they are the regional manufacturing hub for Samsung smartphones and Apple AirPods. Why can’t we move up the value chain? We have no industry laurels to sit on!”

Let’s hold it right there.

Suppose we are to accelerate our growth and development as an economy and nation. In that case, we must learn to focus like a laser despite the imperative to assemble and pull together several elements.

And our top exports must be in our crosshairs. That is why the blog keeps speaking to the Asian Tigers. When we focus like a laser as they did, we can learn the ropes and comprehend the complexities that come with the enterprise.

But we don’t have to go it alone. That is why the Vietnam example is very instructive. For instance, they would not have learned the technology behind the Samsung smartphone or the Apple AirPod at the pace they did if they chose to start from scratch. Think of China too, and the rest of the neighbors.

Is going it alone the mindset of our economic managers? 

Recall my old MNC-company. We had to tap an outside technology to win the technology race against our competition. And my Eastern European friends have won partnerships with Western raw material providers behind their top three brands. And the next one is coming along. Unsurprisingly, they turned into giant killers.

Our parochialism and insularity run the gamut that we keep shooting ourselves in the foot. We can’t operate in a vacuum. This universe is dynamic — and interdependence reigns.

Should we again pause and ponder?

Are we finally waking up – and getting our act together?

“Gov't leads whole-of-society efforts for economic recovery,” Editorial, Manila Bulletin, 6th May 2021. “At a job summit convened by the task group of the National Economic Recovery Strategy held last Labor Day, the country’s top economic managers rallied business, industry, and civil society leaders in adopting a whole-of-society approach to economic recovery.

“Socio-Economic Planning Secretary Karl Kendrick Chua pointed out that the government has allocated P2.5 trillion, or 14 percent of the country’s gross domestic product (GDP); of this amount, P2 trillion will come from the 2021 General Appropriations Act or the national budget approved by Congress.

“Additionally, the government is spending P478 billion in fiscal measures this year including (1) P317 billion from the Bayanihan to Recover as One (Bayanihan 2); (2) P23 billion Social Amelioration Program 2 for the National Capital Region, Bulacan, Cavite, Laguna, and Rizal or the NCR Plus; and (3) P138 billion tax breaks to all enterprises under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law.

“Trade and Industry Secretary Ramon Lopez underlined the urgency of job recovery and job creation measures, including a wage subsidy equivalent to P8,000 per month for a maximum of three months to affected workers through the payroll system of establishments that closed or suspended operations due to the pandemic. As of February 2021, some 4.2 million Filipinos were jobless, record-level unemployment arising from the pandemic’s crippling effects.

“There is a need for retooling and upskilling programs to address shifts in the labor market and ensure a future-ready Filipino workforce. As the pandemic has accelerated the pace of digital transformation, the government must assist those dislocated to rejoin the workforce in other productive areas.”

But what is the bottom line? 

We have lots of balls up in the air. And we are playing catch up. Sadly, we are yet to demonstrate that we can “walk and chew gum at the same time.”

Here’s again a quote from an earlier posting: “Sustainable development must mirror an ecosystem, the best model being the photosynthesis phenomenon. And it is characterized by interdependence. Plants and animals — and humankind — need more than oxygen to thrive in this universe. And Juan de la Cruz needs more than political patronage and oligarchy to become prosperous. 

“Indeed, sustainable development is not a cakewalk — and demands setting priorities (aka the Pareto principle) while organizing in parallels, i.e., “the ability to connect unrelated questions, problems, or ideas from different fields.” [Christensen et al., “The Innovator’s  DNA,” Harvard Business Review, December 2009]

“It is a dynamic of several elements — best exemplified by the concept of sets and subsets — and not one-dimensional as in hierarchy and paternalism. 

“Put another way, and we must overcome the crab mentality and value personal responsibility for the common good. Forward-think and seek learned optimism.

“Benchmark. Benchmark. Benchmark.

“The purpose of benchmarking should be to get a broad background of an area of knowledge, plus knowledge of state of the art and who is advancing it, and what principles drive the challenge or problem.

“Benchmarking research is the process for rapidly learning the essence of the desired field of knowledge with interest in finding the leading edge.” [University of Delaware]

We in the Philippine elite class may have the smarts, but we’re still the regional laggard. We must accept our limitations.

Gising bayan!