Ignore our instincts at our peril

And we’re pushing the envelope with “pwede na ‘yan” and “Pinoy abilidad.”

It is unsurprising given the stages of dealing with pain: (1) Denial; (2) Pleading, Bargaining, and Desperation; (3) Anger; (4) Anxiety and Depression; (5) Loss of Self and Confusion; (6) Re-evaluation of Life, Roles, and Goals; (7) Acceptance. [“The seven psychological stages of chronic pain,” Jennifer Martin; Elizabeth Kubler-Ross’s five stages of grief]

Sadly, we’re still in the “denial” stage. And it explains the hubris, especially from us in the Philippine elite class.

We are the worst in the inequality index and per capita income in the region.

Consider: Amid a “culture of impunity,” we created the Philippine Competition Commission supposedly to match the competitive playing fields of the Asian Tigers, and China, and Vietnam. 

In other words, we hedged with “pwede na ‘yan” and employed “Pinoy abilidad” under the guise of addressing a pain – aka “denial.”

We know we cannot attract foreign money and technology for a reason. Yet, wear the blinder of denial – that comes from our instincts, which is how we define patriotism – and peter with “activity” while missing the “desired outcome.”

Here’s a quote the blog often raises: “We must generate much more economic output. 

“And we need it in a hurry, like yesterday. That is why the blog has raised the imperative to raise Philippine GDP by $200 billion rapidly. That is what the IRR for CREATE and SIPP must deliver.

“Why? To leapfrog the economic output of our neighbors — which is why they were able to put poverty in the rearview mirror.”

“Question: Do we have to amend the Constitution to leverage CREATE and SIPP to (1) put us on equal footing with our neighbors; (2) attract the suitable foreign money and technology; (3) that will aggressively drive our export receipts – i.e., benchmark against Samsung Vietnam because Vietnam arrested poverty?

“That must be the debate amongst our economic managers and legislators, not to keep to a 6%-7% GDP growth rate.”

In other words, “The Philippines should focus on creating high-quality jobs per the policy brief released by the United Nations in the Philippines.” [BusinessWorld, 6th Aug 2021]

“It must diversify its economy to produce more competitive products. 

“It has failed to respond to the fast-changing environment and has struggled to compete.

“The focus on industrial catch-up is motivated by the prolonged stagnation of the Philippine industry and its profound impact on the country’s labor market.

“Unlike developed countries whose workers have primarily transitioned away from agriculture to industrial and high-skilled services employment, workers in developing countries such as the Philippines have been moving out of low-productivity agriculture towards low-skilled jobs.

“The services sector account for 61% of gross domestic product and six out of 10 workers, but a third in low-paying jobs.

“Meanwhile, elements of its exports sector with a competitive advantage and the number of exporting companies have been declining, making the Philippines a ‘market of consumer goods rather than a hub for manufacturing exports.’

“The country can explore several paths towards economic diversification and upgrading, which includes ‘leapfrogging’ to high-productivity and aiming for more sophisticated goods by adopting high technology over the medium to long term.

“The government can no longer rely on the protectionist instruments of the past and must now muster more positive, enabling measures.” 

How damning can that be on top of our other failings — take education, for instance?

Ignore our instincts at our peril.

The bottom line: With due respect to our economic managers and legislators, we must move beyond “analysis” into “analytics” — and address the entire methodology. See below; connect the dots from this “universe” to our “culture of impunity.”

Consider: The blog, over the last dozen years, has said the same thing repeatedly. In other words, unless we reinvent ourselves, we have zero chance to turn over a new leaf. 

Let’s hold it right there.

The forgoing also explains our problem with Philippine education. “The failure of Philippine education is to develop the ability to think, meet new situations, and solve problems one encounters in real life.”

Here’s another quote from a previous posting: “Our caste system puts us in pigeonholes. Did we not applaud Duterte’s actions because our reason for being is our national interests?

“Aptly said, except that it reveals a myopic value system.

“Can we connect the dots from this ‘universe’ to our ‘culture of impunity? That the universe’s character is one of dynamism and interdependence. And it is what freedom and democracy and the egalitarian ethos represent. These building blocks of nationhood are a product of experiential education – i.e., to educate our youth, they must live out the education process.”

Translation: It takes a village to educate our youth. Because in the classroom, the best students can do is engage in small-group discussions – geared to problem-solving.

Still, the exercise allows them to pursue the “common good,” which presupposes that they debate how to define the object of the activity. And, as necessary, experience the egalitarian ethos.

Let’s digress a bit and speak to a nephew, barely 30 – and those familiar with the blog may recall him; he had sought my advice but very infrequently – interviewed by Tatler:

“Lampara is currently on self-preservation mode – as are other restaurants, I'm sure. Earlier this year, we were supposed to push through with other projects, like opening different dining concepts. But the ever-changing policies and lockdowns not only lagged us but ultimately stifled our plans to pursue any significant undertakings.

“Honestly, it’s tough to look too far ahead nowadays because you get all excited and motivated to launch something new and revolutionary, then the next day, another lockdown is announced. So, we keep in our back pocket the next steps we conceptualized.

“The pandemic stirred alarming anxiety for us [as owners of Lampara], but also the rest of the team. Every decision, every move we make has to consider the ever-changing guidelines from the government. In our neighborhood, there are just a few of us establishments left. And even if you follow the guidelines [you can still end up being closed down].

“At the moment, it feels like Mad Max. Many establishments around the area have closed, either due to the pandemic or for other reasons. Ironically, parking spots are also harder to find. Road renovations are taking months to finish, and at times would commence at quite inconvenient hours. The service we provide our customers isn’t limited to what happens inside Lampara; and must include how they arrive and leave our restaurant – it’s the whole experience. Being unable to help out our customers concerning parking is something very troubling.

“We adapted to the pandemic by launching our weekly meal plan brand. It kept us afloat during lockdowns, and we’ve even had subscribers stay with the subscription the whole time. We are truly grateful to them because, without them, we would probably be closed by now. We experimented with something a bit off-brand with that one, outside Filipino Food – we incorporated different cuisines to keep it interesting. We also noticed that many Filipino restaurants are not performing well in take-out operations because of the mentality that you can cook it at home.

“We were able to explore new products and dishes, and we received offers for some collaborative projects too. The ‘tres leches’ resulted from the lockdown, which we have since adapted to our regular menu, and it has been a strong player ever before.

“It made us more creative; we were able to experiment with other techniques and cuisines that we have now integrated into our current menu. Through Lampara Lite, we explored different cuisines and developed some feasible concepts even if another lockdown takes place.

“I still don’t think I deserve the title of Chef because it takes years of experience to earn that designation – I’ve just started. The responsibilities and duties of a chef do not end in the kitchen. It’s all around. I’m still learning. As is the case with many people, the pandemic is a challenging road that we all need to walk, but we will come out stronger in the end. Still, that does not mean that you have completely overcome those challenges, but it does make you stronger. I’m probably still in the process of overcoming these challenges myself. It has been problem after problem, and every time you feel like you have that moment of peace, another issue immediately presents itself, and you have to greet it with rationale and a clear mind as much as possible.” [https://ph.asiatatler.com/dining/coping-with-change-lampara-poblacion-interview]

Recall the GPS model: Where are we; Where do we want to be; How do we get there.

Unfortunately, our students live out our instincts once outside the classroom: We are parochial and insular. We value hierarchy and paternalism and rely on political patronage and oligarchy that ours is a culture of impunity.

That’s why after reading the Tatler interview, I told my nephew that he exhibits the 3C’s of the “hardy mindset” to a T: (1) Challenge; (2) Commitment; (3) Control. He embraced and committed to an immense challenge, recognizing he controls only himself. He either swims or sinks.

Recall Fr. George Gorospe questioning our perception of reality. He laments that even if in the classroom students are introduced to the dynamism of “reality,” once they step out, they are back to our reality.

We respect the private sector; supporting teachers’ training – amid the above setting – is an exercise in futility.

See above; we created the Philippine Competition Commission subsumed in our culture of impunity.

Consider: “How we balance the health [of Juan de la Cruz], and the economy is crucial in the next few months. As Sec. Karl so aptly puts it: We have two economic principles to memorize, dream about, and apply: Nothing is free from heaven, and everything is a trade-off." [“Recovery,” Boo Chanco, DEMAND AND SUPPLY, The Philippine Star, 23rd Jul 2021]

Then recall what Mahathir said to us: “You don’t have to love your former colonizer. But beg for money and technology. We are poor nations. We cannot go it alone.”

And that is the trade-off we refuse to accept because of our instincts. It is a false choice. And it reveals we are inward-looking and not outward- and forward-looking. And it explains why we have the worst inequality index and income per capita.

And why tens of millions of Filipinos are undernourished, beyond the insidious poverty that we can’t arrest. 

But why can’t we figure out if we’re coming or going? 

Recall the challenge of cognitive development. We must move away from binary and closer to relative thinking. 

If we fail, we are confirming that we are the present-day Padre Damaso.

Consider: Mahathir demonstrated that the art of strategy versus the theory is: a practitioner is both strategic and tactical. He zoomed in and prioritized KL over his hometown and zoomed out to the big picture: to relentlessly drive Malaysia’s growth and development.  

And where is our head?

Consider: “Now is the time to actively invite foreign direct investors, especially from South Korea, Japan, Taiwan, Spain, Germany, Italy, and the United States, to team up with local investors in establishing these Industry 2.0 sectors.

“The good news today is that thanks to Filipinos’ preference for big families, our population has swelled to four or five times its level in the 1950s. Like countries such as China, India, and Indonesia, our economy does not have to be dependent on exports (such as our neighbors Singapore, Taiwan, Malaysia, and even Thailand) for long-term economic growth.” [“Understanding the four industrial revolutions,” Bernardo M. Villegas, Human Side of Economics, BusinessWorld, 3rd Aug 2021]

See above; we hedge with “pwede na ‘yan” and employ “Pinoy abilidad” under the guise of addressing a pain – aka “denial.”

In other words, our instincts will always get in the way. Simply put, how and when will a market of over 100 million Filipinos generate the economic output comparable to the region, if not the world?

Consider: “Immediate impact of AFTA. With a free trade agreement forged, the region’s countries extend their economic market reach by creating a collective market. It is simply aggregating all country markets into one big market. More extensive trade creation is the most likely result, and in the ASEAN case, this was the outcome.

“This is game-changing for all participants. There are enormous economic implications for all countries. For instance, from a Philippine viewpoint, the ‘domestic’ market expands almost seven-fold from a country with close to 100 million people to one with 670 million.

“Mindset change. This surge in potential market multiplies the possibilities for any country in terms of possible expansion. A mindset change is required to maximize the gains derived from an enlarged free trade area; if a country begins from a background of protectionism and high-tariff and nontariff regimes.

“Philippine companies now have a much larger field of economic vision. It means that enterprises of other nations seeking new economic opportunities see larger market possibilities for their activities. When the enterprises of different nations seek economic and investment opportunities in one large market, it is inevitable that the degree of competition increases.” [“PH in AFTA: Moving forward in 2015,” Gerardo P. Sicat, Philippine Daily Inquirer, 25th Jul 2014]

How do our instincts get in the way?

“I received this e-mail from a senior Korean business executive who was reacting to a column I wrote on Vietnam and how it overtook us in economic growth.

‘Your column on 12th Feb was quite instructive for me. I’ve been thinking it over, and I suggest you write another column on ‘Why Samsung Electronics went to Vietnam.’

‘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 significant Korean investments will come.

‘None of the other countries in the region have such restrictions on foreign investors. Every country is willing to give special incentives and benefits to foreign investors. Would you mind studying why Samsung went to Vietnam in 2008?

‘Now, the biggest investors in Vietnam are Korean. More than 9000 Korean companies are in Vietnam. (Here, only a few hundred). Whenever I talk to officials of the government, I think they don’t know this story.’

“Unfortunately, the Senate may continue to be a hindrance to foreign investments.” [“Filipino last (?),” Boo Chanco, DEMAND AND SUPPLY, The Philippine Star, 7th Jun 2021]

Are we pushing the envelope with “pwede na ‘yan” and “Pinoy abilidad”?

Ignore our instincts at our peril.

Gising bayan!