Friday, June 11, 2021

The folly of “Pinoy abilidad”

If it took the Americans a hundred years to acknowledge the truth about the Tulsa race massacre, are we in a race to a failed state if we’re not there yet?

In 25 more years, it would be a hundred years since the Americans granted us independence.

The real scare is: Will 25 years be enough for us to own up to our instincts or habits?

Let’s pause right there. How else to recognize that if we are kidding anyone, it is only ourselves? Juan de la Cruz cannot personify Bondying — as in an underdeveloped economy and nation.

Recall this anecdote: “In 2008, the big boss of Samsung was here in the Philippines to evaluate the business conditions on which country is the best for them. But finally, Samsung chose Vietnam. Not the Philippines.

“This is quite an interesting story because the Philippines still has the same way of thinking as in 2008. There are many restrictions and limitations on foreign investors here in the Philippines. Under these restrictions, I am sure no big Korean investments will come.” [“Filipino last (?),” Boo Chanco, DEMAND AND SUPPLY, The Philippine Star, 7th Jun 2021]

Translation: In 2019, Vietnam’s exports were $249B against our $131B. Recall the impact of the “multiplier effect” in an investment-industrial economy compared to a consumption-service economy – and why poverty still confounds us but not Vietnam – on generating far more and higher-paying jobs.  

Enter “Pinoy abilidad.”

“PRESIDENT RODRIGO R. Duterte’s executive order directing the devolution of certain National Government functions to local government units (LGUs) could end up displacing civil servants, according to a union of public-sector workers.

“Mr. Duterte last week issued Executive Order (EO) No. 138, requiring National Government agencies to transfer several essential services to LGUs by 2024.

‘In the DSWD (Department of Social Welfare and Development) alone, based on our initial estimates and the devolution transition plan, more than a thousand workers will be affected by this devolution,’ Alan Balaba, president of the DSWD employees union, said in the statement.

“EO 138 follows a Supreme Court (SC) ruling entitling LGUs to an expanded share of the National Government’s tax take, which triggered the move to devolve certain activities to the local level in light of their greater funding.” [“Public sector union warns LGU devolution could displace civil servants,” Kyle Aristophere T. Atienza, BusinessWorld, 6th Jun 2021]

This story is more than classic “Pinoy abilidad.” It is also an expression of our crab mentality. It’s a pyrrhic victory – and why we’re the regional laggard.

Recall that FVR kept talking about “making the pie bigger.”

And the best way to explain that is to compare our GDP (PPP) per capita (US$) against our neighbors: PHL = 8,908; IDN = 11,812; THA = 18,460; MYS = 28,364.

Let's hold it right there. We don't need a Ph.D. to make that simple comparison. How come we even entertained the notion that we are a wealthy nation pretending to be poor?

Or why shift our focus to “happiness” that we want to toss the reality of our national income? 

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.

What to do?

As FVR said, we must make the pie bigger. How?

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.

It is not out of this world. It is how civilization evolved.

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

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. If no will edify us to distinguish charity from the common good, we won’t ever see the light of day. 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.

Recall that the blog teed up, generating an incremental GDP of $200 billion. Such specificity should impel us to think and prioritize forward. In short, we will then ask ourselves, what industries and products will deliver the most outcomes that will bring us closer to that ideal number?

Let’s hold it right there. Did that thought process ever come to our minds? That’s why the bog often refers to the different chambers of the brain. Yet, humankind is a creature of habit. We’re not predisposed to move out of our comfort zones, especially us Pinoy – and more so us, in the Philippine elite class – given our caste system. 

Then consider: That a substantially higher GDP generates more significant national tax revenues. Simply put, let’s first make the pie more significant. Then we can entertain farming tax takes out to LGUs – because currently, we can only farm out so little while undermining the ability of the nation to traverse poverty to prosperity.

If it took the Americans a hundred years to acknowledge the truth about the Tulsa race massacre, are we in a race to a failed state if we’re not there yet?

In 25 more years, it would be a hundred years since the Americans granted us independence.

The real scare is: Will 25 years be enough for us to own up to our instincts or habits?

Gising bayan!

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