Why can’t Juan de la Cruz be dynamic?

It is because of our instincts – which we manifest in our caste system that makes destiny a given. And so, rank has its privileges.

Unsurprisingly, “South Korea and the Philippines had similar per capita incomes in the early 1960s. Still, the Philippines languished in political and economic institutions (especially because power and wealth concentrated in a few hands), so it remains a developing country. In contrast, South Korea has joined the ranks of the developed.” [“Globalization and Poverty,” Pranab Bardhan, Scientific American, 26th Mar 2006]

In fairness, Western financial institutions nudge us and reinforce said instincts because we value the same metric. And so, they raised our credit ratings to recognize our GDP growth rates of 6%-7% — despite our reliance on OFW remittances and failure to move up from a consumption-service economy to an investment-industrial economy.

What is wrong with this scenario? Even The New York Times, in the obituary for PNoy (May he rest in peace!), recognized our GDP growth rates under his presidency.

Question: How come, despite several years of growing at the said pace, we are still the regional laggard?

On the other hand, consider the US economy that is fast recovering from the pandemic, it is growing at the same metric of 6%-7%.

What’s the difference? The US GDP is over $20 trillion. Ours is a drop in the bucket. Yet, we like to believe that we are better than our neighbors whenever they report a lower growth rate because of this metric.

What is our reality? We are the regional laggard. And only Mongolia is the last neighbor left to leave us in the dust.

It is grade 5 arithmetic. The laws of big and small numbers govern percentages.

And because we aren’t dynamic – in mindset and thinking – we can’t see beyond a narrow metric.

Recall that I changed the planning and budgeting system in a 200-year-old Fortune 500. And did several restructuring initiatives in different parts of its worldwide markets.

Let’s hold it right there.

Don’t we like to say that being Pinoys, we are different? But “reality” is, everyone is different; otherwise, we are as predictable as robots.

Many postings ago, some may recall that I shared this anecdote: Over dinner, the country manager where I was doing a restructuring said, “My wife asked me to ask you if you are firing me.”

I always had a ready answer for these questions: I am here to guide you and your team to figure out three things: (1) Where are you as an enterprise; (2) Where do you want to be; and (3) How do you get there.

It is a classic exercise in defining the common good. And as the Franciscans would say, it is about unity, not uniformity. Uniformity undermines creativity and innovation. While the search for the supposed unknown benefits from differences — and diversity.

That’s why Juan de la Cruz sits in abject poverty. Consider: We want homogeneity to the nth degree that we can’t even live with our Muslim brothers and sisters.

Why can’t we think beyond the 6%-7% GDP growth rate despite missing our plans? If we were a Fortune 500 company, we would have done a restructuring exercise by now. Why? So that we can figure out three things: (1) Where are we as an economy; (2) Where do we want to be; and (3) How do we get there.

Why? We will be running like a headless chicken if we can’t articulate a vision or forward-think.

For example: (1) Our economy has a structural problem. Think of the Miami condo that collapsed. We failed to move up from a consumption-service economy to an investment-industrial economy. While our neighbors begged for Western money and technology, we designed our economy to be restrictive.

(2) We want to traverse poverty to prosperity.

(3) Firstly, we must establish a benchmark, and the Asian Tigers are it. We do not have to reinvent the wheel and let our egos get in the way. And that comes from our caste system. We in the Philippine elite class must recognize that we failed this nation. We cannot cherry-pick our good deeds. We have countless accountants and know the distinctions among assets, liabilities, and net worth. Our net worth equates to the lowest GDP per capita in the region because we lag in competitiveness save for Mongolia.

The textbook metrics that we rely on are very narrow and reflect our lack of experience in development – and where we are in the cognitive development scale.

As the Franciscans would say, St. Francis of Assisi knew the laws like the back of his hands that he could go beyond them. That is why he’s the patron saint of the environmentalists; he saw the broader universe and the oneness and interdependence of creatures. Yet, as the Franciscans would explain, all he was doing was internalize what Christ did while on earth – and why he had to suffer on the cross, being a contrarian and a radical.

There are metrics, and there are metrics.

And we must not be surprised, especially us in the Philippine elite class – and chattering classes. We like to talk about the social responsibility inherent in a business enterprise. Or a sense of purpose. Or to save the planet, or whatever.

On the other hand, we see the West as overly profit-driven and miss the humanity of commerce and industry.

Yet, we’re stuck with the one narrow metric of 6%-7% GDP growth. 

That’s why the blog asked, what’s the difference between economics and business? For example, in the latter, you pay the price for missing your plans. And you cannot just rational a miss.

How many times have we missed our growth targets as an economy and nation? But there is no sanction, and we never pay the price – except that Juan de la Cruz sits in abject poverty.

On the other hand, our neighbors awed the West – and acknowledged them as economic tigers. They were not prisoners of a narrow metric. Instead, they knew they had to beg for Western money and technology.

But why can’t we? Consider: We are parochial and insular. So, we value hierarchy and paternalism and rely on political patronage and oligarchy that ours is a culture of impunity.

And because of our instincts, there is no “dynamism” to pull out from our quiver.

Consider: Even the conservative US bishops did not follow through with their instincts. “They won't withhold Communion from politicians. Days after a vote triggered a tsunami of Catholic debate about Communion and politics, leading US Catholic bishops working on an upcoming pronouncement about the sacrament are now deemphasizing confrontation with President Biden or other Catholic politicians who support abortion rights.

“A public document on the Eucharist is very appropriate. But it must focus on ‘How do we attract people and make the beauty of what it means to us more evident to our young people and for them to understand why it’s so significant, instead of being focused on who can and who cannot receive.’” [The Washington Post, 25th May 2021]

Recall that the blog often speaks to the cognitive development ladder. That Franciscan theology, supported by the Jesuits, recognizes the spectrum of binary and relative thinking. Relativity isn’t solely Einstein’s – who also recognized a Creator because humankind, he included, can’t figure out the totality of the universe.

Recall that the blog never fails to raise the elements of dynamism and interdependence as inherent in an organism’s ability to thrive in this universe. And that includes humankind – and Juan de la Cruz. But that’s not foreign, given Darwin’s “survival of the fittest.”

But why can’t Juan de la Cruz be dynamic?

Unsurprisingly, “South Korea and the Philippines had similar per capita incomes in the early 1960s. Still, the Philippines languished in political and economic institutions (especially because power and wealth concentrated in a few hands), so it remains a developing country. In contrast, South Korea has joined the ranks of the developed.”

Here’s a quote from an earlier posting: “Will the implementing rules and regulations for CREATE and SIPP, accelerate raising GDP in absolute dollars? Take $200 billion. Over what period? In other words, a growth rate of 6%-7% did not lift us from regional laggard. And if the IRR will, what, industries and products will ensure that they do?

“Think of Vietnam and how one enterprise, i.e., Samsung, delivers more revenues than our eight top companies combined. We cannot be theoretical in this effort. We must step up to the real world of Juan de la Cruz.”

Gising bayan!

We must keep our eyes on the ball.

Here’s a quote from an earlier posting: “How come we in the Philippine elite class can’t keep our eyes on the ball? The reality is only Juan de la Cruz is impacted by our meager GDP per capita ($8,908) because we make even more than the average Malaysian’s $28,364. 

“Denial is how we perpetuate our caste system – and preserve our rank and privileges.

“Over decades, we kept managing our economy via logical and incremental thinking – instead of lateral or creative and forward-thinking – and proudly celebrated a GDP growth rate of 6%-7%. Yet, we remained the regional laggard – and must borrow tons of money for the 4Ps so that Juan de la Cruz can put body and soul together.

“Sadly, that paradigm is not the answer. Why? Because as our neighbors demonstrated, it is about traversing poverty to prosperity. It is not charity per se. Charity is not what ‘inclusive’ means. ‘Inclusive’ means to become prosperous as an economy and nation.

“But we want to keep to our puny minds – aka binary or dualistic thinking – even when our neighbors already scaled the cognitive development ladder. So, they embraced dynamism and interdependence that wealthy nations opted to partner with them – pouring loads of money and technology.

“Should we stop and ponder?”

The challenges posed by the Mandanas law and, say, the backlog in housing are merely symptoms of our underdeveloped economy.

Of course, there is more to nationhood than GDP. But with a GDP per capita just a fraction of Malaysia’s, there is no way we can lift Juan de la Cruz from poverty – and be as well off as the average Malaysian.

Maslow has edified the world about human needs. At the very basic are the physiological “needs.” Juan de la Cruz is at that level.

That is why we talk of food security and the housing backlog, for example. But, in short, poverty is our reality – and then some. 

The problem is, we in the Philippine elite class can’t keep our eyes on the ball. And that comes from our caste system.

There must be a way to feed Juan de la Cruz and to put a roof over his head – if only we can be more charitable?

There is none.

One more time with feeling, there is none – given the reality of our GDP per capita and, worse, the impunity inherent in the war on drugs. In short, charity and EJKs aren’t the answer to Philippine poverty.

Question: What’s the difference between economics and business? With the latter, you pay the price when you miss your plans at the heart of the compensation program. You cannot just rationalize a miss. Recall that I changed the planning and budgeting system in a 200-year-old Fortune 500 company. And every manager is equipped via the-house course they must take.

For example, will the implementing rules and regulations for CREATE and SIPP accelerate raising GDP in absolute dollars? Take $200 billion. Over what period? In other words, a growth rate of 6%-7% did not lift us from regional laggard. And if the IRR will, what, industries and products will ensure that they do?

Think of Vietnam and how one enterprise, i.e., Samsung, delivers more revenues than our eight top companies combined. We cannot be theoretical in this effort. We must step up to the real world of Juan de la Cruz.

How many times did FVR talk about the imperative to make the Philippine pie bigger? He wanted Juan de la Cruz to appreciate the challenge we faced. 

Yet, we can’t be conflating the challenges of developed economies with ours. That is comparing apples and oranges.

That is why the blog keeps speaking to the Asian Tigers – and, most recently, Vietnam. These Asian economies can’t compare with where the US is, economic development-wise. For example, the US spends over $700 billion in defense because it has a role to play as a hegemon. Think of the need to defend Ukraine from Russia. Or think of the need to protect South Korea and neighboring countries from North Korea.

We are more comparable to our neighbors. That is how we can keep our eyes on the ball.

In foreign relations, think of what happened to Germany and Japan. Should they fear the US because the US brought them to their knees?

Recall the Marshall Plan: “It was also known as the European Recovery Program, a US program providing aid to Western Europe following the devastation of World War II. It was enacted in 1948 and provided more than $15 billion to help finance rebuilding efforts on the continent. It was the brainchild of US Secretary of State George C. Marshall and crafted as a four-year plan to reconstruct cities, industries, and infrastructure heavily damaged during the war and remove trade barriers between European neighbors, and foster commerce between those countries and the United States.

“In addition to economic redevelopment, one of the stated goals of the Marshall Plan was to halt the spread of communism on the European continent.

“Implementation of the Marshall Plan has been cited as the beginning of the Cold War between the United States and its European allies and the Soviet Union, which had effectively taken control of much of central and eastern Europe and established its satellite republics as communist nations.

“The Marshall Plan is also considered a key catalyst for forming the North Atlantic Treaty Organization (NATO), a military alliance between North American and European countries established in 1949.

“Post-war Europe was in dire straits: Millions of its citizens had been killed or seriously wounded in World War II, as well as in related atrocities such as the Holocaust.

“Many cities, including some of the leading industrial and cultural centers of Great Britain, France, Germany, Italy, and Belgium, had been destroyed. In addition, reports provided to Marshall suggested that some regions of the continent were on the brink of famine because the fighting had disrupted agricultural and other food production.

“In addition, the region’s transportation infrastructure – railways, roads, bridges, and ports – had suffered extensive damage during airstrikes, and the shipping fleets of many countries sunk. One could easily argue that the only world power not structurally affected by the conflict had been the United States.

“The reconstruction coordinated under the Marshall Plan was formulated following a meeting of the participating European states in the latter half of 1947. Notably, the Soviet Union and its satellite states received invites.

“However, they refused to join the effort, allegedly fearing US involvement in their respective national affairs.

“President Harry Truman signed the Marshall Plan on 3rd Apr 1948 and distributed aid to 16 European nations, including Britain, France, Belgium, the Netherlands, West Germany, and Norway.

“To highlight the significance of America’s largesse, the billions committed in aid effectively amounted to a generous 5 percent of US gross domestic product at the time.” [History.com]

What about Japan?

“Occupation and Reconstruction of Japan, 1945–52: After the defeat of Japan in World War II, the United States led the Allies in the occupation and rehabilitation of the Japanese state. Between 1945 and 1952, the US occupying forces, led by General Douglas A. MacArthur, enacted widespread military, political, economic, and social reforms.

“The groundwork for the Allied occupation of defeated Japan emerged during the war. In a series of wartime conferences, the leaders of the Allied powers of Great Britain, the Soviet Union, the Republic of China, and the United States discussed how to disarm Japan, deal with its colonies (especially Korea and Taiwan), stabilize the Japanese economy, and prevent the remilitarization of the state in the future. Finally, in the Potsdam Declaration, they called for Japan’s unconditional surrender; by August 1945, they did.

“In September 1945, General Douglas MacArthur took charge of the Supreme Command of Allied Powers (SCAP) and began the work of rebuilding Japan. Although Great Britain, the Soviet Union, and the Republic of China had an advisory role as part of an ‘Allied Council,’ MacArthur had the final authority to make all decisions. And the occupation of Japan consists of three phases: the initial effort to punish and reform Japan, the work to revive the Japanese economy, and the conclusion of a formal peace treaty and alliance.

“The first phase, roughly from the end of the war in 1945 through 1947, involved the most fundamental changes for the Japanese government and society. First, the Allies punished Japan for its past militarism and expansion by convening war crimes trials in Tokyo. At the same time, SCAP dismantled the Japanese Army and banned former military officers from taking roles of political leadership in the new government.

“In the economic field, SCAP introduced land reform, designed to benefit the majority tenant farmers and reduce the power of wealthy landowners, many of whom had advocated for war and supported Japanese expansionism in the 1930s. MacArthur also tried to break up the sizeable Japanese business conglomerates, or zaibatsu, to transform the economy into a free-market capitalist system. Finally, in 1947, Allied advisors essentially dictated a new constitution to Japan’s leaders. Some of the most profound changes in the document included (a) downgrading the emperor’s status to that of a figurehead without political control, (b) placing more power in the parliamentary system, (c) promoting greater rights and privileges for women, and (d) renouncing the right to wage war, which involved eliminating all non-defensive armed forces.

“By late 1947 and early 1948, the emergence of an economic crisis in Japan alongside concerns about the spread of communism sparked a reconsideration of occupation policies. This period is sometimes called the ‘reverse course.’ In this stage of the occupation, which lasted until 1950, the economic rehabilitation of Japan took center stage. SCAP became concerned that a weak Japanese economy would increase the influence of the domestic communist movement. Moreover, with a communist victory in China’s civil war increasingly likely, the future of East Asia appeared to be at stake.

“Occupation policies to address the weakening economy ranged from tax reforms to measures aimed at controlling inflation. However, the most serious problem was the shortage of raw materials required to feed Japanese industries and markets for finished goods. The outbreak of the Korean War in 1950 provided SCAP with just the opportunity it needed to address this problem, prompting some occupation officials to suggest that ‘Korea came along and saved us.’

“After the UN entered the Korean War, Japan became the principal supply depot for UN forces. The conflict also placed Japan firmly within the confines of the US defense perimeter in Asia, assuring the Japanese leadership that no real threat would be made against Japanese soil whatever the state of its military.

“In the third phase of the occupation, beginning in 1950, SCAP deemed the political and economic future of Japan firmly established and set about securing a formal peace treaty to end both the war and the occupation. Moreover, the US perception of international threats had changed so profoundly in the years between 1945 and 1950 that the idea of a re-armed and militant Japan no longer alarmed US officials; instead, the real threat appeared to be the creep of communism particularly in Asia.

“The final agreement allowed the United States to maintain its bases in Okinawa and elsewhere in Japan, and the US Government promised Japan a bilateral security pact. In September of 1951, fifty-two nations met in San Francisco to discuss the treaty, and ultimately, forty-nine of them signed it. Notable holdouts included the USSR, Poland, and Czechoslovakia, all of which objected to the promise to support the Republic of China and not do business with the People’s Republic of China that was forced on Japan by US politicians.” [history.state.gov]

What about China? Should China fear the US?

Didn’t Deng Xiaoping tell (upon the advice of Lee and Mahathir) the West that China needed Western money and technology if they were to lift their people from poverty?

Or should Russia fear the US? What happened to former Soviet satellite states after the fall of the Soviet empire? Why did they want to join NATO, for example? Of course, there will always be exceptions. But these are nations that kept to the tyrannical rule they knew from the days of the old Soviet empire. And Belarus is a good example.

And even wealthy Germany saw local town folks lament the pronouncement of Trump that the US military will shut down the US facility in their backyard – because they were like family. They could also use the economic benefits generated by the US military base. Thank God for Biden. What a relief to said people.

Of course, it’s not a perfect world as the EU continues to demonstrate – with Brexit in particular. And I have a ringside view, working and living with Eastern Europeans for almost 20 years, and assisted them when they geared up for ascension – and beyond – into the EU. Recall too that I covered the Asia-Pacific region for a decade, including China and Vietnam – and have many friends in these countries.

Perfection is not of this world. Even Pope Francis warned the US bishops about assuming that the Catholic faith is the epitome of perfection. Because even spiritual development is a work in progress, recall John Paul VI would start his morning prayers with the admission that he comes to the Creator as a sinner.

And that’s why the blog never stops asserting that democracy is the mirror image of Christianity, i.e., the imperative of personal responsibility for the common good – a work in progress if indeed there is one.

Why are freedom-loving nations again rallying around America – or Biden in particular? Because the global community must seek to demonstrate personal responsibility for the common good. And America, like it or not, has the resources and capability to take the lead in this collective undertaking.

To be sure, the US isn’t perfect either. Recall that I have no respect for US politics – seeing through the culture wars – and chose not to exercise the right to vote. But as the world saw, the majority of Americans won’t submit to tyranny.

But how does Juan de la Cruz find his place in the sun?

Consider our instincts: We are parochial and insular. So, we value hierarchy and paternalism and rely on political patronage and oligarchy that ours is s culture of impunity.

In other words, why do we struggle with trade and foreign relations?

In both cases, we remain an adolescent given our lack of (a) development experience – and why we are closer to dualism or binary thinking than relativism; and (b) failure to move up from a consumption-service economy to an investment-industrial economy.

Consider: “Opening the economy to trade and long-term capital flows need not make the poor worse off. The key is to put the appropriate domestic policies and institutions in place – to help shift production to more marketable goods and help workers enter new jobs.

“Contrasting case studies of countries make this quite apparent. For example, although the island economies of Mauritius and Jamaica had similar per capita incomes in the early 1980s, their economic performance has diverged dramatically, with the former having better participatory institutions and the rule of law and the latter mired in crime and violence.

“South Korea and the Philippines had similar per capita incomes in the early 1960s. Still, the Philippines languished in political and economic institutions (especially because power and wealth concentrated in a few hands), so it remains a developing country. In contrast, South Korea has joined the ranks of the developed.

“Botswana and Angola are two diamond-exporting countries in southern Africa, the former democratic and fast-growing, the latter ravaged by civil war and plunder.” [“Globalization and Poverty,” Pranab Bardhan, Scientific American, 26th Mar 2006]

“How come we in the Philippine elite class can’t keep our eyes on the ball? The reality is only Juan de la Cruz is impacted by our meager GDP per capita ($8,908) because we make even more than the average Malaysian’s $28,364. 

“Denial is how we perpetuate our caste system – and preserve our rank and privileges.”

Gising bayan!

Instincts. Denial. Cluelessness. Destiny.

Translation: Our instincts feed on our denial, and the outcome is cluelessness and the embrace of destiny.

Consider: “OFWs save the day,” EDITORIAL, Philippine Daily Inquirer, 21st Jun 2021.

Question: Have we forgotten that remittances are the driver of the Philippine economy?

Let’s dissect the assertions: We are parochial and insular. So, we value hierarchy and paternalism and rely on political patronage and oligarchy that ours is a culture of impunity.

In other words, our paradigm can only shrink our playing field – beholden to our value of hierarchy and paternalism and manifested in our caste system – and cannot expand it.

Let’s pause and ponder.

We have been trumpeting OFW remittances and proudly proclaiming our monetary and fiscal policies. But, in fairness, financial institutions enable us when they value logical and incremental thinking – as in our GDP growth rates in the 6%-7% range.

Yet, we also know that financial institutions move “hot money” in and out of countries as often as they need to window-dress their investment performance to satisfy investors – and half of the American population invests in the market via their pension funds.

In other words, financial institutions don’t care about the Philippines navigating poverty to prosperity.

It is for Juan de la Cruz to manifest personal responsibility for the common good.

Consider: “The visiting team from the International Monetary Fund highlighted the need to continue helping poor sectors with the crisis. The government may need to invest more to beat the coronavirus pandemic to ensure the country’s return to sustainable economic growth this year and in 2022.” [“OFWs save the day, EDITORIAL, Philippine Daily Inquirer, 21st Jun 2021.]

But we don't want to bloat our budget deficit further.

Translation: Our instincts feed on our denial, and the outcome is cluelessness and the embrace of destiny.

In other words, we want to keep a squeaky-clean balance sheet, said like a proper fiscal person.

[Prof. Jesus P. Estanislao was my Economics 101 professor. And he required a paper re why governments pursue deficit financing – aka Keynesian economics. And it also works in real life. For example, when I took a mortgage loan to finance our dream house in a much-preferred gated community, my mother was so concerned: “Can you afford such a humongous loan?” And my old MNC-company maximizes borrowings – beyond the textbook “acid-test ratio,” yet is acknowledged a “dividend king” by Wall Street – to sustain investment and growth. And when my Eastern European friends had to invest in a state-of-the-art facility to be the leading edge, a Western bank stepped up to the plate.]

Recall that the blog never fails to raise our structural problem, with the economy driven by OFW remittances.

Question: When do we break the vicious cycle?

Or can we? That’s why the blog often says that to be dynamic is not in our bag of tricks. And we can’t sweep that under the carpet.

In other words, the Philippine economy’s structural problem comes from a weak income stream. Playing the musical chair — as in devolution or the Mandanas ruling — is merely window dressing. 

Whether it is an individual, a company, or a nation, the enterprise must break its paradigm and create a substantial income stream. Think of Vietnam and how it overtook us just recently. It lured Samsung to make them the regional manufacturing hub for their smartphones.

And that lack of dynamism explains why our economic managers – going decades – have not led the way in moving up the Philippines from a consumption-service economy to an investment-industrial economy. As the blog asserts, the Constitution is merely an expression of our instincts. We can point the blame only on Juan de la Cruz.

Here’s a quote from an earlier posting: “The country still lags in the region, as it ranked 13th out of 14 Asia-Pacific economies. At the 60th spot, Mongolia was the only Asia-Pacific economy behind the Philippines.

“After being overtaken by Vietnam, Mongolia is the only country left to leave us in the dust.

“Has our day of reckoning come and gone? Where to the Philippines?”

That lack of dynamism will leave us farther and farther behind. Why? Our caste system is anathema to innovation.

Here’s more from an earlier posting: “The habits of Steve Jobs, Jeff Bezos, and other innovative CEOs reveal much about the underpinnings of their creative thinking. For example, research shows that five discovery skills distinguish the most innovative entrepreneurs from other executives.

“Dyer, of Brigham Young University; Gregersen, of Insead; and Christensen, of Harvard Business School, reveal how innovative entrepreneurs differ from typical executives. Their study demonstrates that five ‘discovery skills’: (1) Associating – it helps them discover new directions by making connections among seemingly unrelated questions, problems, or ideas; (2) Questioning – it allows innovators to break the status quo and consider new ideas. Through (3) observing, innovators carefully and consistently seek small behavioral details—in the activities of customers, suppliers, and other companies—to gain insights about new ways of doing things. In (4) experimenting, they relentlessly try on new experiences and explore the world. And through (5) networking with diverse individuals from an array of backgrounds, they gain radically different perspectives.” [“The Innovators’ DNA” by Jeffrey H. Dyer, Hal Gregersen, and Clayton M. Christensen; Harvard Business Review, December 2009]

“Those familiar with the blog know that this is not the first time it spoke to the innovators’ DNA. For example, ‘the ability to successfully connect seemingly unrelated questions, problems, or ideas from different fields is central to the innovator's DNA.’”

For example, we rely on our economic managers to manage the Philippine economy. And our "kuro-kuro" reflects our respective fields of expertise. But who will pull them together?

Our caste system reinforces our dilemma.

The bottom line: Very soon, we will be aghast when Mongolia overtakes us. But why haven’t we responded to our reality all this time?

Habits are too hard to break. And when it means preserving our rank and privileges, all the more.

Translation: Our instincts feed on our denial, and the outcome is cluelessness and the embrace of destiny.

Gising bayan!

Has our day of reckoning come and gone?

“Philippines slumps to lowest competitiveness ranking in 5 years,” Jenina P. Ibañez, BusinessWorld, 18th Jun 2021.

“Switzerland-based business school International Institute for Management Development’s (IMD) 2021 World Competitiveness Report ranked the Philippines 52nd out of 64 countries, down seven spots from 45th last year. This year’s ranking is the Philippines’ lowest in five years.

“The country still lags in the region, as it ranked 13th out of 14 Asia-Pacific economies. At the 60th spot, Mongolia was the only Asia-Pacific economy behind the Philippines.”

After being overtaken by Vietnam, Mongolia is the only country left to leave us in the dust.

Has our day of reckoning come and gone? Where to the Philippines?

“However much the Palace and its minions wish to dismiss and disparage outgoing International Criminal Court (ICC) Prosecutor Fatou Bensouda’s announcement, the news represented an electrifying development.

“For relatives of thousands of drug suspects ‘neutralized’ without due process, the ICC prosecutor’s announcement is a significant step toward long-overdue accountability. Others may call it karma, the slow mills of the gods grinding exceedingly fine, or the coming reckoning for the regime of violence and abuse that had unleashed on the land in the last five years.

“Should the PTC give the ICC its go signal for the investigation, Mr. Duterte may end up becoming the first Asian leader to be hauled before an international court for ‘crimes against humanity.’

“While Malacañang has made much of the country’s withdrawal from the ICC in March 2018, the fact is, the Court retains jurisdiction over crimes alleged to have taken place while the state was still a member of the Rome Statute that established the ICC. ‘Moreover, these crimes are not subject to any statute of limitation,’ the ICC prosecutor pointed out.” [“The coming reckoning,” EDITORIAL, Philippine Daily Inquirer, 18th Jun 2021]

Did Juan de la Cruz enable Duterte to drag the nation down the abyss?

Consider: “In our predominantly Christian society, we must constantly relate this challenge of redesigning the workplace to meet the so-called age of accelerations to what we may call the Theology of Work.

"Here I quote St. Josemaria Escriva, who, together with St. John Paul II, can be considered a leading theologian of Work during the 20th century. In a homily on St. Joseph the Worker (let us remember that we are still celebrating the Year of St. Joseph till 8th Dec 2021), St. Josemaria said: 'Work is part and parcel of man's life on earth. It involves effort, weariness, exhaustion: signs of the suffering and struggle which accompany human existence and which point to the reality of sin and the need for redemption.

“But in itself, ‘work’ is not a penalty or a curse or a punishment: those who speak of it that way have not understood sacred Scripture properly. It is time for us Christians to shout from the rooftops that work is a gift from God and that it makes no sense to classify men differently, according to their occupation, as if some jobs were nobler than others. Work, ‘all work,’ bears witness to the dignity of man, to his dominion over creation. 

“It is an opportunity to develop one’s personality. It is a bond of union with others, the way to support one’s family, a means to aiding in the improvement of the society in which we live and in the progress of all humanity.’” [“The enduring humanity of work,” Bernardo M. Villegas, Human Side Of Economics, BusinessWorld, 15th Jun 2021]

Has our day of reckoning come and gone?

We’re supposed to be hard-working Christians, and why we celebrated the over 10 million OFWs. Beyond supporting their families, they also became the drivers of the Philippine economy.

The acid test: Did we aid in the improvement of society and the progress of all humanity?

Recall that the blog never fails to raise that democracy is the mirror image of Christianity, i.e., the imperative of personal responsibility for the common good.

How come we can’t meet the acid test?

Consider our instincts: We are parochial and insular. So, we value hierarchy and paternalism and rely on political patronage and oligarchy that ours is a culture of impunity.

Did we not, including us in the Philippine elite class, applaud the war on drugs because it will make our neighborhoods safe?

Many postings ago, the blog challenged us to look for a benchmark in dealing with the drug menace. And it is not the US.

“In much of the country, disillusionment with the drug war has already led to the repeal of some of the most punitive policies, including mandatory lengthy prison sentences for nonviolent drug users.

“In recent years, voters and politicians in 17 states — including red-leaning Alaska and Montana — and the District of Columbia have backed the legalization of recreational marijuana, the most popular illicit drug, a trend that once seemed impossible. Last November, Oregon became the first state to decriminalize small quantities of all medications, including heroin and methamphetamines.

“Many critics say the course correction is too modest and too slow.

‘The war on drugs was an absolute miscalculation of human behavior,’ said Kassandra Frederique, head of the Drug Policy Alliance. She said the criminal justice model failed to address the underlying need for jobs, health care, and safe housing that spur addiction.

“Indeed, much of the drug war’s architecture remains intact. Federal spending on drugs — much of it devoted to interdiction — is expected to top $37 billion this year.” [“After 50 Years Of The War On Drugs, 'What Good Is It Doing For Us?'” Brian Mann, NPR, 17th Jun 2021]

Consider: "Portugal has set a positive example, i.e., what to seek when drug policies prioritize health rather than criminalization. At the turn of the century, Portugal was facing a crisis, including high levels of HIV infection among people who use drugs. Many reform impacts resounded immediately: new HIV infections, drug deaths, and the prison population fell sharply within the first decade. The second decade saw slower improvement in key measures, as well as an upturn in drug deaths.

“However, many of these factors need to be put into context. Drug policy is still only one variable interacting with a complex mix of social, economic, cultural, and political factors, and cuts to more comprehensive health provision in that period will have played a part in this. Nevertheless, Portugal is in a much better position than in 2001, and recorded drug use and drug deaths as a proportion of the general population are well below the European average.

“Portugal’s experience is a lesson, i.e., what to seek when policy innovation and political will aligned in response to a crisis, and hopefully, it will continue to evolve and lead on this issue. However, while ending the criminalization of people who use drugs is hugely important both in its own right and reducing stigma — and as an enabler of any effective public health response — it only addresses part of the harms caused by prohibition.

“With innovation taking place elsewhere, including regulated cannabis sales in North America and safe supply of opioids and other drugs in Canada, there is also room for Portuguese drug policy to learn from and build upon other reform efforts and continue in its global leadership role.” [“Drug decriminalization in Portugal: setting the record straight,” Transform Drug Policy Foundation, 13th May 2021]

We’re way down the abyss, yet we remain blind?

Because our instincts nourish and perpetuate our caste system?

Consider: “Although I may not be a representative knowledge worker, I have gotten more of working time daily because of the many hours of travel time I have been able to save during those lockdowns – that our government excelled in implementing.” [Villegas, op. cit.]

Let’s hold it right there.

“IMF cuts PHL growth projection to 5.4%,” Bianca Cuaresma, BusinessMirror, 17th Jun 2021.

“What pulled the economy down in the first half of the year is essentially the second wave of Covid-19 cases in the country, which likely peaked in April, IMF Article IV Consultation Mission Head Thomas Helbling told reporters in a virtual briefing.

“The resurgence of cases during the period necessitated stricter quarantine measures which disrupted economic activity and has ‘weighed’ on market confidence.

“While the IMF said the economy should start its path to recovery toward the third quarter of the year, Helbling warned of pockets of uncertainty in the near-term recovery. ‘Uncertainty around the pace of the economic recovery is high, and the balance of risks to economic activity tilts toward the downside.

“Supply constraints could lead to delays in vaccinations, which in turn would increase the risk of virus resurgence after the recent second wave and tightening quarantine measures.

“Also, it could amplify the effect of external shocks, such as rising global interest rates and inflation, that would constrain the monetary policy response and raise financing costs for the public and private sector.”

Has our day of reckoning come and gone? We’re way down the abyss.

Here’s a quote from a recent posting. Consider: “We are not the homeless boy who seeks to sniff epoxy — at the risk of being the target of EJK — to bring him to sleep and not face the reality of hunger. 

“Moreover, the Philippine pie is so tiny that raising the shares of the LGUs of the national tax revenues will undermine the efforts of the nation to provide Juan de la Cruz with his basic physiological needs. It is pure unadulterated crab mentality, the consequence of Pinoy abilidad.

“Let’s pause right there. How come we in the Philippine elite class can’t keep our eyes on the ball? The reality is only Juan de la Cruz is impacted by our meager GDP per capita ($8,908) because we make even more than the average Malaysian’s $28,364. 

“Denial is how we perpetuate our caste system – and preserve our rank and privileges.

“Over decades, we kept managing our economy via logical and incremental thinking – instead of lateral or creative and forward-thinking – and proudly celebrated a GDP growth rate of 6%-7%. Yet, we remained the regional laggard – and must borrow tons of money for the 4Ps so that Juan de la Cruz can put body and soul together.

“Sadly, that paradigm is not the answer. Why? Because as our neighbors demonstrated, it is about traversing poverty to prosperity. It is not charity per se. Charity is not what ‘inclusive’ means. ‘Inclusive’ means to become prosperous as an economy and nation.

“But we want to keep to our puny minds – aka binary or dualistic thinking – even when our neighbors already scaled the cognitive development ladder. So, they embraced dynamism and interdependence that wealthy nations opted to partner with them – pouring loads of money and technology.

Should we stop and ponder? 

Binary thinking reflects a fixed mindset and our lack of experience in development. And that explains why we can’t move across the spectrum of dualism and relativism. Yet, relativism isn’t evil if we recognize Franciscan theology. And they are joined by the Jesuits in acknowledging that even spiritual development is a work in progress.

To be sure, even at the Vatican, there are the conservative and the progressive wing. And the recent decision by the US bishops regarding the one-to-one relationship between support for abortion and holy communion says the US Catholic church hues the conservative, despite the admonition from the Vatican. Which is not surprising given Pope Francis being a Jesuit? 

Still, the US bishops will add fuel to the political divide in the country. On the other hand, within the US Episcopal church, they are going through a self-examination precisely because of the shortcomings of American politics. For example, recall how the primacy of the nation ruled the GOP that Nixon resigned in acknowledgment of Watergate. Today, GOP leadership lies through its teeth despite continuous TV coverage during and after the infamous 6th January insurrection.

Recall I saw through the US culture wars over the more than three decades as a resident and why I have no respect for US politics — and chose not to exercise the right to vote. I’m the least surprised by the insurrection, having witnessed how tyranny brought chaos to nations.

Beyond the Philippine People Power, I hosted a regional meeting in Bangkok and witnessed a coup. And in the Ivory Coast, the French military attaché accompanied me while on a business trip and ensured that I safely got through military checkpoints. And I have been a card-bearing resident in Eastern Europe just shy of 20 years — and traveled around former Soviet satellite states.

The bottom line: The difference between democracy and tyranny is like night and day, yet we can distinguish between dusk and dawn.

And as the blog often raises, democracy is the mirror image of Christianity, i.e., the imperative of personal responsibility for the common good.

But let’s get back to the Philippines.

“How do we shift paradigms?

“One of our most significant shortcomings is our inability to think forward and prioritize courtesy of our crab mentality. And it is complicated by our binary thinking, i.e., we don’t distinguish charity from the common good. Put on top of that our caste system.

“It explains why we see virtue in hierarchy and paternalism – that only Rizal saw otherwise.

“In other words, until we can own up to our instincts, we will constantly be blindsided.

“Let’s test the assertion that we can’t think forward and prioritize – compared to our neighbors.

“Our top two exports account for over 64 percent of export revenues. They are (1) Electrical machinery, equipment, and (2) Machinery, including computers.

“On the other hand, fruits and nuts are less than 4 percent.

“And our top eight companies, combined, can’t match the revenues of Samsung Vietnam, the latest of the neighbors that overcame poverty – while we haven’t.

“Let’s pause right there.

“To be dynamic is not in our bag of tricks — and we can’t keep ignoring it. 

“We must embrace a growth mindset — and get ahead of the curve. 

“We must satisfy the 21st century — i.e., innovation and global competitiveness.

“We must attain state-of-the-art and be the leading edge.

“Yet, we don’t have to go it alone.

“We must lure foreign money and technology. 

“Pinoy abilidad” and an inward-looking bias turned us into the regional laggard.

“Juan de la Cruz cannot personify Bondying — as in an underdeveloped economy and nation.”

Gising bayan!