Running like a headless chicken

Are we or aren’t we?

Until we can define our point A and point B – and figure out how we will get there, we can’t help but run like one.

Do we wonder why the blog keeps raising 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.

If it is not apparent yet, the blog has attempted to establish our point A by synthesizing who and what Juan de la Cruz is. Because if we cannot look in the mirror, we have zero chance to define our point A.

The blog also attempted to synthesize our point B – and how we will get there: Rapidly traverse poverty to prosperity.

Sadly, given that we are “sabog” – which also explains our crab mentality – it appears we can’t come to terms with our point A.

It is not surprising that even America suffers a similar affliction, reflected in the great divide between the Red and the Blue.

And it comes back to the science of “thinking.”

Humankind progressed by relying on logical yet linear and incremental thinking, although we owe visionaries for accelerating the march to the 21st century. In other words, the one-percent phenomenon. And they are represented by the likes of Einstein and Jobs, to name just two.

But how come we became the regional laggard when most of humanity isn’t Einstein-like?

Consider: We value hierarchy and paternalism and can’t reconcile that we have gone against the grain of humankind’s reality.

And that comes from the finite world we embraced. Still, our elders took the pains of calling us out, i.e., the folly of Juan Tamad and Bondying.

Humankind’s reality appears way out of reach to Juan de la Cruz. And why the reminder that “capitalism is a strong force for development, but we aren’t harnessing it enough.” [“Capitalism and Philippine development,” Calixto V. Chikiamco, Introspective, BusinessWorld, 21st Nov 2021]

“I’m not referring to the crony capitalism and the rent-seeking capitalism that’s dominant in the Philippines today. Crony capitalism is the kind you see in the Pharmally scandal; an unfit company awarded billions by the government in contracts without bidding because of its political connections. No capital is at risk, just “laway” or saliva.

“Rent-seeking capitalism, on the other hand, is the pursuit of guaranteed profit. It’s guaranteed because a franchise, a tariff, or, in the case of the telco and transport industries, Constitutional restrictions to foreign competition virtually guarantee their monopoly profits without fear of competition. It’s like a company that somehow owns all the air and charges people for breathing it.

“Yes, that’s also the pursuit of profit, but society doesn’t benefit from it, and that’s not true capitalism but rent-seeking capitalism.

“We have established that capitalism is a powerful force, but we aren’t using it enough. We aren’t using it to solve our problems in agriculture, education, forestry, and many other industries.”

Consider: We look at America as the bogeyman of capitalism and with whom we have a love-hate relationship.

And we go as far as wanting to toss capitalism in favor of socialism. Even to the extent of getting out of bed with America and getting into bed with China or Russia?

In other words, do we see America as a bad guy, worse than China or Russia?

Can’t we still internalize the distinctions between democracy and autocracy – because of our value of hierarchy and paternalism? And why do we submit to tyranny?

These distinctions don’t make one or the other perfect. And even the Vatican isn’t. If America has an imperialist past, the Roman Church has the crusades and inquisitions. How did they overcome those demons; they rode humanity’s march forward as in cognitive development? One is today a hegemon, and the other pursues ecumenism.

Aren’t we running like a headless chicken? 

Did Duterte not brag about tossing America and embracing China? And his minions chanted amen – and for us to embrace Russia too? Why is Duterte then complaining about China? 

Are we surprised that the blog keeps raising the character of the creation story and this universe, i.e., dynamism and interdependence?

It is not an either/or – as in binary thinking. And why the blog introduced cognitive development. Juan Tamad and Bondying are very much at the binary level and far from “relative thinking.” But then again, that is a function of our lack of development experience.

Let’s pause right there.

We may represent the Philippine elite and chattering classes, but we cannot pretend to have the development experience to put us ahead of our neighbors. We must accept the reality that they left us in cognitive development.

Those familiar with the blog may recall that Singapore fascinated me in my early 20’s and took my first foreign trip to that city-state. British troops were then leaving Singapore in their final days. And to my surprise, there was Lee Kuan Yew personally looking over the development of the Singapore Zoo.

And along Orchard Road, workers were hurriedly planting trees. Every time I am in Singapore, I can’t help marvel at how they transformed themselves, literally and figuratively. Unsurprisingly, as a regional manager at my old MNC-company, it was my favorite meeting place.

Then consider: “Singapore is one of the United States’ most vital bilateral partners in Southeast Asia and plays an indispensable role in supporting the region’s security and economic framework. The United States cooperates with Singapore on the full range of security issues, including border security, maritime security, military preparedness, counter-proliferation, cybersecurity, and counterterrorism.

“The access, basing, and overflight privileges granted by Singapore advance US government and partner efforts to bolster a Free and Open Indo-Pacific. Singapore was the first Southeast Asian country to join the Global Coalition. The Singapore Armed Forces have deployed imagery analysis teams, KC-135 aircraft refueling tankers, and medical units to the D-ISIS campaign. Singapore has also played a critical role in our counterpiracy efforts.

“The United States has $8.5 billion in active government-to-government sales cases with Singapore under the Foreign Military Sales (FMS) system. 

“Since 2016, the United States has also authorized the permanent export of over $37.6 billion in defense articles to Singapore via Direct Commercial Sales (DCS). The top categories of DCS to Singapore include aircraft parts and components, gas turbine engines, and military electronics.

“More than 1,000 Singaporean military personnel participate in training, exercises, and Professional Military Education in the United States in places like Luke Air Force Base (AFB), Arizona, Arizona National Guard Silverbell Heliport, and Mountain Home AFB, Idaho, where Singaporean F-16, AH64-D, and F-15SG pilots train alongside their US counterparts. Singapore has operated advanced fighter jet detachments in the continental United States for the past 27 years.

“The US Navy maintains a logistical command unit, Logistics Group Western Pacific, in Singapore and conducts ongoing rotational deployments of Littoral Combat Ships and P-8 Poseidon aircraft. These deployments have facilitated patrols in the South China Sea, multilateral naval exercises, and responses to natural disasters.

“The United States and Singapore have the following agreements: Agreement relating to the establishment of a United States Air Force management training assistance team in Singapore (1977), Agreement Regarding the Exchange of Military Personnel of 2009, and the Acquisition and Cross-Servicing Agreements (ACSA) of 2011.” [https://www.state.gov/u-s-security-cooperation-with-singapore/]

Is Singapore as fickle as we are in its relationship with America? And look, who is wealthier: Singapore GDP per capita = $93,400; US = $60,200. That explains why the US exports – they’re not freebies – defense articles to Singapore. 

For reference, our GDP per capita is $8,000. 

To add insult to injury, are we again in the celebratory mode because the third quarter surprised us when GDP grew by 7.1%? Are we again forgetting that with $60 billion from OFW remittances and the call centers, we have registered a GDP growth rate of 6%-7% for several years? Yet, we remain the regional laggard with Juan de la Cruz suffering from abject poverty, with PH stuck as a service-consumption economy.

We can’t keep our heads buried in the sand.

“I am here at the Alexandra Park Connector near Dawson. This area used to be kampongs and swamps. This neighborhood includes homes, shops, and restaurants, beautifully integrated with nature, running water, and green spaces. Dawson is an example of how we are upgrading Singapore year by year. We work together to improve our lives, build a better home, and hand our children a better Singapore than we inherited. That was the spirit of our pioneers. They worked hard to take Singapore from Third World to First, and they worked together. Thanks to them, we have today’s Singapore.”

That was Lee Hsien Loong in 2014, speaking at the Singapore National Day.

And recall why the blog never tires of raising what Lee and Mahathir said to Deng, “Beg for Western money and technology.” And to Juan de la Cruz, Mahathir reinforced it by saying: “We don’t have to love our former colonizers. But we are poor nations; we cannot go it alone, and we need their money and their technology.”

What is so difficult about that? That we lack the experience in development?

See above; the GDPs per capita of Singapore, the US, and the Philippines.

Sadly, it was us, the Philippine elite class, not Juan de la Cruz, that pushed the US military away.

“PHILIPPINE SENATE VOTES TO REJECT US BASE RENEWAL,” The New York Times, 16th Sep 1991.

“Mrs. Aquino, aware of opinion polls showing that an overwhelming majority of Filipinos support the treaty, is refusing to acquiesce in the Senate’s rejection of it. The Philippine military also strongly favors the treaty.

“At stake are the jobs of tens of thousands of Filipinos who work at the base or in related “jobs,” as well as hundreds of millions of dollars that the Subic Bay installation injects into the strapped Philippine economy each year.

And here’s what Google says following the departure of the US military: “China has established numerous military installations in the South China Sea, primarily in the Spratly and Paracel Islands. In the Spratlys, China has built airfields at Subi, Mischief, and Fiery Cross and potential missile, radar, and helicopter infrastructure at several smaller formations. In the Paracels, China has established a significant military installation at Woody Island and radar and helicopter facilities in several other areas. China continues construction across the region, meaning that it may expand its military presence in the future. The larger bases (Subi, Mischief, Fiery Cross, and Woody Island) have the infrastructure necessary to manage military aircraft, including fighters and large patrol craft. These missiles, radars, and aircraft extend the lethal reach of China's military across the breadth of the South China Sea.”

Are we wondering why the blog addresses us in the Philippine elite and chattering classes? We are responsible for the Philippines becoming the regional laggard by (a) crafting a constitution restrictive of foreign investment and (b) exposing the nation to foreign adventurism as in the WPS.

Who rejects foreign investment yet embraces them (Indonesian interests) for self-interest? For example, aren’t the Vietnamese more brilliant for embracing Samsung and Apple? Simply put, these Indonesian interests, combined with our top companies, cannot match the firepower of Samsung Vietnam.

Consequently, Vietnam put poverty in the rearview mirror, while we can’t overcome poverty – our insidious and nagging challenge.

Pacquiao promising to bring in his billionaire foreign friends is a breath of fresh air. But as the blog had spoken to VP Robredo and raised that I am yet to figure out how forward-thinking she is and how much lateral thinking she employs, Pacquiao too must demonstrate how he would decide which foreign investment and technology to prioritize and lure.

As we say it in the vernacular, “ang ayaw matuto, hind matututo.” Why? Rank has its privileges.

Consider these two articles: (1) “Is our slide to the bottom irreversible (?),” Rafael M. Alunan III, MAP Insights, BusinessWorld, 15th Nov 2021; (2) “The reasons and way forward for unlivable Metro Manila,” Andrew J. Masigan, Numbers Don’t Lie. BusinessWorld, 21st Nov 2021.

“Geopolitical debates almost always boil down to who's pro-American or pro-China. Nowhere in sight is our national interest, and if at all, a passing mention without understanding what it is and what it takes to protect and advance it.

“If we were real patriots (at least a critical mass of, say, a third of the population), we won’t be tolerating the repeated inefficiency, crime, corruption, treachery, and negligence that’s defined us through decades without learning its lessons, as only an idiot nation can. But then again, patriotism is just another word of mouth to sound good.” [Alunan, op. cit.]

“Why is Metro Manila bereft of open spaces? Greed is the culprit. Metro Manila’s Local Government Units decided to abandon Metro Manila’s zoning ordinance ratified in the 1990s. That allowed the mayors to sell public spaces to private entities to build gated communities and commercial developments – even in seismic fault lines and flood catchments. By disregarding the zoning ordinance, the rich and powerful subsumed the interest and safety of the more significant majority.

“Gated communities are another problem. They consume large chunks of land yet provide residence to only a select few. They emphasize income inequality in this regard. Traffic is a consequence of gated communities.

“Gated communities are a two-edged sword that debases the quality of life of our non-elite countrymen. They raise land prices to a point where housing becomes unaffordable for medium to low-income families and push the working class to live in far-flung areas.

“As one can tell, a lot of the problems of Metro Manila stem from the decision of the mayors to override the zoning ordinance of Metro Manila and the fact that the interest of the rich and powerful always subverts the common good.” [Masigan, op. cit.]

Do we wonder why the blog keeps raising the 3C’s of a hardy mindset? (1) Challenge; (2) Commitment; (3) Control.

How come despite our proud Christian heritage, we can’t reconcile democracy with Christianity – that democracy is the mirror image of Christianity, as in the pursuit of the “common good,” and how the Great Commandment came about?

In other words, in democracy, the challenge is personal responsibility, while in Christianity, it is free will – as in God helps those who help themselves.

If we push the theology envelope, our attachment or value of hierarchy and paternalism is an addiction. And the way to free ourselves from addiction is to help ourselves. That’s the AA 12-steps in broad terms.

Sadly, our value of hierarchy and paternalism is something we can’t toss even when it is a failing, not a virtue.

Isn’t it why we can’t figure out what dynamism and interdependence – the character of the creation story and this universe – entail?

If we push the theology more, Juan de la Cruz is in the image and likeness of the Creator, and he is not an object of charity. Else, we create a Juan Tamad or a Bondying. 

Here’s a hypothesis: Given what the blog has argued (for more than a dozen years), if I was born and raised elsewhere, we in the Philippine elite and chattering classes won’t offer me citizenship. See above; our value of hierarchy and paternalism.

Then consider: Why would two nations do it — one the epitome of freedom and personal responsibility and the other, people born and raised as socialists under Soviet rule? In other words, whatever they knew about me came from my worldview and principles that they digested. And in between these two nations were a host of countries and cultures and people.

And I did not solely dispense and pursue efforts that they would readily take but included putting businesses and careers at risk in several cases. Why? Because in the free market system, accountability is inherent, i.e., there is a price to pay.

They understood the object of continually seeking the “common good.” And they had to buy into the character of the creation story and this universe, i.e., dynamism and interdependence – because human endeavors are subsets of more significant sets – all the way to the universe itself. Because the challenge is: “reality” is too dynamic to be captured by any human experience or system.

Recall what I said to my Eastern European friends at the outset: Freedom and the free market are not about rules but principles.

And they were “outraged” because they expected me to dish out the “how-to” and not have to rack their brains in defining their point A and point B – and how to get there. And in the process, they realized they “owned” the undertaking, not imposed on them.

Consider: They were an MSME and were a losing proposition for eight years, and here I was, putting the challenge of the imperative to be a $100-million enterprise. They could not even sell their products at a healthy margin. How much work do you think they had to put in to figure out what would comprise their portfolio – to get to that point B?

In the end, they needed seven state-of-the-art manufacturing facilities. They had to borrow tons of money from Western banks because local banks wouldn’t believe what they called their dream.

And recall the first question they asked, “Do you think we can even compete against the best in the West?” That’s why they had to understand, accept, and internalize what innovation is. “You must invest to understand the hierarchy of human needs because that is what innovation is. Every product must raise one’s well-being.”

But I will be with you until you get there. Freedom and the free market are not about rules but principles. And you must commit to transparency, or I am out the door.

Three years later, they made their first profit and never looked back. The EU Competition Commission took notice and vetted their efforts against over 15,000 big and small companies across the EU. Surprise, surprise, they were a model. And even sweeter, they blew past the $100-million mark several years ago.

And their most significant challenge today is their investment in the US, the most competitive market they can find. But they are already a profitable enterprise in Western Europe. This universe is dynamic and interdependent, and they have to partner with different peoples and cultures as they navigate the unknowns.

In the meantime, I have been WFH since the pandemic. They don’t need my paternalism, although they can use my guidance. And it is easy because they now have the tools like AI. I can be anywhere, and I can still guide them.

But let’s get back to the Philippines.

We want to be respected but then consider 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.

We may represent the Philippine elite and chattering classes, but we cannot pretend to have the development experience to put us ahead of our neighbors. We must accept the reality that they left us in cognitive development.

Are we, or aren’t we running like a headless chicken?

Gising bayan!

Can we find our place in the sun?

Not if we keep to our instincts and turn tribal.

And it is a challenge we can’t seem to accept and commit to overcome and control.

In other words, how do we learn and develop a “hardy mindset” when rank has its privileges – in our caste system?

Translation: We can’t figure out the “common good” because we value hierarchy and paternalism, which we interpret as Christian charity.

On the other hand, look at how our neighbors – and they don’t parade around with Christian charity – deliver the common good, expressed in their poverty rates (2019) against ours: Philippines = 16.7%; Thailand = 9.9%; Vietnam = 6.7%; Malaysia = 5.6%; Indonesia = 9.4%.

And Philippine poverty rate remains the worst despite the tens of millions we borrow for the 4Ps. Yet, we like to invoke Christian charity to overcome poverty – and how insane is that? Does Einstein come to mind?

But then we turn around and look at the misery of others as in “misery” loves company? We have no control over the fate of others; we can control only ourselves; see above, the “hardy mindset.”

In fairness, a Nobel Laureate, Daniel Kahneman, explains our predicament: We’re stuck in “reflex” mode and can’t shift to “reflection” mode, and they are the two operating systems of the brain.

Should we pause and ponder? Can we entertain something foreign in the Philippine elite and chattering classes, given our parochial and insular bias?

The good news is we are not alone if we wonder what’s happening to America, i.e., we like to mix apples and oranges.

They have forgotten the American dream – as in the “common good” – and turned tribal. That’s like sending our species back to living in caves.

Recall the character of the creation story and this universe, i.e., dynamism and interdependence. And that is why humankind possesses the hierarchy of needs – else they can’t survive, much less thrive in this universe. For example, humanity crossed oceans and continents when Africa turned uninhabitable following a set of climate phenomena. 

In other words, a finite milieu generates finite minds and finite thinking. And that goes against the grain of [humankind’s] reality. And George Gorospe, SJ, from the Ateneo de Manila built on the body of knowledge, i.e., “reality” is too dynamic to be captured by any human experience or system.

But then again, that is consistent with Franciscan theology that explains why Christ battled with the scribes and Pharisees — and tyranny. Christ can’t be a heretic, yet he embraced the sinners and declared, he who is first is last, and he who is last is first. He focused on the “common good” – as in love of neighbors, not personal failings. We can’t stress that he fought tyranny. Unsurprisingly, Rizal called us out: he who submits to tyranny loves it.

Christ also educated Christians with the “parable of the talents.” And if we translate that to contemporary times, he understood the multiplier effect of investment.

Consider: Is our poverty rate a reflection of our failure to heed the parable of the talents? And so, despite borrowing tens of millions, Juan de la Cruz suffers from abject poverty?

What’s happening in America?

While America took over the Brits in advancing the industrial age following the war years, it is now in its post-industrial era, with services accounting for 80% of the economy and industry down to less than 20%. And that is the challenge they face. But that is not surprising given the dynamism of this universe. It is interdependent too, and why America can’t turn inward.

And they can’t if they allow Trump to lead them. The guy was born with a silver spoon – or in American lingo, in third base. He didn’t have to figure much out as con people – “selling snake oil,” and why the authorities shut down his charity fund – and why the ghostwriter of his book now disowns him. He was no exceptional person.

And while Detroit once represented the heyday of industrial America – as in “what’s good for General Motors is good for America” because it mirrored middle-class America – today, that is no longer the case. For example, in the wealthier metropolitan areas, the average Joe has been banished. “I can’t afford to live in my city.”

Enter Trump and Kushner: They were not interested in making housing affordable to the average Joe; they were in bed with foreign oligarchs to invest in these unaffordable apartments. But Trump speaks from both sides of the mouth as a matter of course.

Unsurprisingly, there is a contest between the left and the right to identify with populist sentiments, hypocrisy be damned. And The Economist calls it “Ivy League populism.” And, unsurprisingly, it has reinforced the tribalism of American politics.

“A visitor from Mars might find Mr. Glenn Youngkin’s [the newly elected Virginia governor] populist scare tactics at odds with his record of elite institutions (Rice, Harvard, McKinsey, the Carlyle Group) and immense wealth. The Martian should find an up-and-coming Republican with a much humbler résumé. Populist leaders, from Peron to Orban, are more often elite figures than working-class heroes, so it is in the Republican Party. The anti-elitism fervor that has captured the right is essentially a creation of rich Ivy Leaguers.

“Donald Trump, a billionaire alumnus of the University of Pennsylvania, won in 2016 with help from Steve Bannon and Jared Kushner (both of Harvard). His media cheerleaders included Ann Coulter (Cornell), Kayleigh McEnany (Oxford and Harvard), Tucker Carlson (Trinity College), Steve Hilton (Oxford), and Laura Ingraham (Dartmouth College). His chief imitators include Ron DeSantis (Yale and Harvard), Ted Cruz (Princeton and Harvard), Josh Hawley (Stanford and Yale) and Tom Cotton, Mike Pompeo, and Elise Stefanik (all Harvard). A working-class movement, this is not.

“To some extent, it reflects Ivy Leaguers’ dominance of politics and the media generally. Joe Biden and Kamala Harris are the first presidential duo not to have attended an elite institution for 36 years. And the closure of local newsrooms has seen the Ivies emerge as the main source of journalistic talent. A recent study of 150 interns at leading newspapers found that 65% studied at the country’s most selective universities. Yet, in a way, that makes the hollowness of the MAGA crowd’s populist credentials even more striking. American politics is not witnessing a revolt against the elite so much as a power struggle within it.” [“Glenn Youngkin and Ivy League populism,” The Economist, 6th Nov 2021]

But let’s get back to the Philippines.

“As in all national elections, everyone’s distracted by it. Trolling, black propaganda, partisan mudslinging, backstabbing, and all the negatives of self-serving politics are overpowering the nation’s consciousness. Once again, it will be about winnability at all costs. Voters will be entertained and pandered to; lots of money will flow to buy the vote and the count. Substantive generational and nation-building issues skimmed through; no depth, no breadth, no effective plan to deal with it. We keep electing the unworthy, yet, foolishly expecting different results.

“Self-interest continues ahead of the national interest, and it suits our short-cut mentality. Self-interest is naturally divisive, which explains our fractured state. On the other hand, protecting the national interest requires unity of common purpose despite our socio-cultural diversity.

“If we were real patriots (at least a critical mass of, say, a third of the population), we won’t be tolerating the repeated inefficiency, crime, corruption, treachery, and negligence that’s defined us through decades without learning its lessons, as only an idiot nation can.

“Let’s tackle a crucial matter: the absolute necessity for us to think long-term; a firm vision of what we want to be; how we’re going to go about it; and the kind of people we need to have in places of command and control beyond the term of one administration to sustain the journey to the next level.” [“Is our slide to the bottom irreversible (?),” Rafael M. Alunan III, MAP Insights, BusinessWorld, 15th Nov 2021]

See above; the 3C’s of a “hardy mindset.” But how do we learn and develop a “hardy mindset “when rank has its privileges – in our caste system?

What about invoking Christian charity?

“I maintain that the large domestic market of the Philippines, based on a population growing towards 150 million people in the next two decades, will be the main engine of growth of the economy. We have to export only to the extent of having to supplement the foreign exchange earnings that we receive from the Overseas Filipino Workers (OFWs), the BPO-IT (which is part of Industry 4.0), and the up-and-coming tourism sector, which, despite digitalization, will continue to be labor-intensive. We can’t digitize the warm smiles and soft skills of the Filipinos and Filipinas.

“To refocus our attention towards the human person in planning the economy of the future, it would be useful to borrow some basic principles about the essence of human work from Catholic social doctrine. The one who wrote extensively on the philosophy and theology of work was St. John Paul II. In his encyclical letter entitled “Laborem Exercens” (On Human Work), St. John Paul II defines work: “any activity by man, whether manual or intellectual, whatever its nature or circumstances; it means any human activity that is work, amid all the many activities of which man is capable and to which he is predisposed by his very nature, by humanity itself.” [“Human-centered approach to work,” Bernardo M. Villegas, The Human Side Of Economics, BusinessWorld, 16th Nov 2021]

Before we address the above article, here’s what Bernie Villegas wrote back in 2013: “How Competitive is the Philippines?”

“If the Philippines ranks low in global competitiveness, the fault lies in the poor working environment at either the macro level or the firm level, not the individual weaknesses and limitations of the workers.

“I have already written extensively about the very positive contributions made by the foreign chambers of commerce in coming out with the document called Arangkada Philippines, a regular feedback mechanism on how the Government is meeting its targets in key result areas of governance. 

“Global rating surveys abound with ever-expanding coverage, stimulated by the globalization of investment, trade, and information. Until recently, the Philippines lagged most neighbors in too many measures of competitiveness. Indonesia and Vietnam, ranked lower in the past, were overtaking the country. 

“During the last decade, the Philippines was on a downward trajectory in international competitiveness rankings, especially for corruption, governance, and infrastructure.

“Ten lessons summarized the recommendations of the National Competitiveness Council: These ten lessons are: (1) Transparency leads to competitiveness; (2) “Work in progress” is not good enough; (3)  Execution and delivery matter; (4) Teamwork is important; (5) We need to work on multiple fronts; (6) The competition never sleeps; (7) The bar always rises; (8) “Speed to reform” is important; (9) Maintaining momentum is important; (10) We need to institutionalize change.”

That was back in 2013. And here’s today: “I maintain that the large domestic market of the Philippines, based on a population growing towards 150 million people in the next two decades, will be the main engine of growth of the economy. We have to export only to supplement the foreign exchange earnings that we receive from the Overseas Filipino Workers (OFWs), the BPO-IT (which is part of Industry 4.0), and the up-and-coming tourism sector; which, despite digitalization, will continue to be labor-intensive.”

Whatever happened to the need to institutionalize change – when we want to stay with the status quo?

Should we pause and figure that out?

See above; our poverty rate against that of our neighbors.

And our poverty is best explained by where we stand in national income or GDP per capita (2020) in USD: Philippines = 8,000; Thailand = 17,300; Vietnam = 8,200; Malaysia = 26,400; Indonesia = 11,400.

And that is not surprising given how we lag in industrialization (2017) efforts, and why Arangkada is a must: Philippines = 30.6%; Thailand = 36.2%; Vietnam = 33.3%; Malaysia = 37.6%

In other words, we cannot stick to the status quo if we want to respect the humanity of Juan de la Cruz.

“The fault lies in the poor working environment at the macro-level or firm level, not in the individual weaknesses and limitations of the workers.”

Consider: Our eight top companies can’t match the revenues of one Vietnam enterprise, Samsung Vietnam.

Let’s hold it right there. 

These companies are our heaviest hitters, and collectively, they don’t have the firepower against one behemoth. And we expect supplemental exports to be the answer?

How do we square that circle? 

“We have to export only to supplement the foreign exchange earnings that we receive from the Overseas Filipino Workers (OFWs), the BPO-IT (which is part of Industry 4.0), and the up-and-coming tourism sector, which, despite digitalization, will continue to be labor-intensive.”

We are back to square one. 

In other words, OFW remittances plus the call centers and our top companies are, granted, the bulk of the economy that can grow 6%-7%, which we like to celebrate. 

But we now know Vietnam still overtook us, and worse, they keep stepping on the gas. And are breathing down the necks of Singapore — wanting to grab even more significant FDIs.

Unsurprisingly, in 2013, we read this: “Considering the deficient level of FDIs in the Philippines, as compared with our peers like Thailand, Indonesia, Vietnam and Malaysia, charter change should be tops in the agenda of the Government.” [Villegas, op. cit.]

See above; How competitive is the Philippines: We need to work on multiple fronts; The competition never sleeps; The bar always rises; “Speed to reform” is important; We need to institutionalize change.

That is not a cakewalk. 

Consider: Finite milieus — as in a caste system — generate finite minds and finite thinking — aka the status quo.

Let’s bring that down to earth and recall (a) how the pandemic tanked the Philippine economy more than our neighbors and had to borrow the most from the World Bank — i.e., it exposed our fragile economy, stuck as a service economy, given our failure to industrialize; (b) the world had to come together to develop the vaccine against Covid-19 rapidly; (c) we are scratching our heads because of China’s adventurism in the WPS; (d) the world needs to come together even more to combat climate change.

Conversely, both Putin and Xi aren’t hiding their true colors. Hasn’t the world seen this movie before that authoritarianism undermines the world order to preserve power and self-interest? 

In other words, to seek the “common good” may be a struggle in freedom-loving nations, but it is at the mercy of one person — fallible as we are — in an autocracy.

It’s called check-and-balance if we remember our civics lesson. Or have we internalized it? Is that why Rizal called out our love for tyranny?

Do we wonder why the postings often speak to the character of the creation story and this universe, i.e., dynamism and interdependence? 

Or why is benchmarking picking best-practice models?

Our neighbors demonstrated to the world how to become economic miracles that awed the West and called them Asian Tigers. And Japan started the trend, and Lee and Mahathir were smart enough to figure it out. They saw how the West helped Japan recover from WWII. Beg for Western money and technology; they told Deng — if China is to lift its people from poverty.

Why are we dissecting the competitiveness of the Philippines? Because our supposed respect for the humanity of Juan de la Cruz is mere lip service if we can’t lift him from poverty. See above; our poverty rate against our neighbors.

In other words, the “common good” is for the Philippines to traverse poverty to prosperity rapidly. 

How rapidly? We must leapfrog the economic output of our neighbors. And the metric of a 6%-7% GDP growth rate has not delivered that.

Do we still wonder why the blog raised the challenge of rapidly driving GDP by an incremental $200 billion? 

We must get out of our finite thinking to thrive beyond surviving in this universe.

For example, we must figure out which ones will leapfrog economic output beyond doing scores of industry road maps. The operative word is leapfrog. And that is not rocket science, and that is how Vietnam is doing it, and the Asian Tigers and China before them.

It’s sickening to hear what Lee and Mahathir said to Deng, to beg for Western money and technology. And I lived through that when a small Guangzhou enterprise came to my old MNC-company because we were the global market leader in the industry. And in the process, we invested in two businesses in rapid succession.

We may have 81 provinces in the Philippines, and that is not a walk in the park. On the other hand, global enterprises can have over 200 countries and territories as their market. They’re predisposed to invest and transfer technology.

But then again, consider 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.

Can we find our place in the sun?

Not if we keep to our instincts and turn tribal.

And it is a challenge we can’t seem to accept and commit to overcome and control.

In other words, how do we learn and develop a “hardy mindset” when rank has its privileges – in our caste system?

Translation: We can’t figure out the “common good” because we value hierarchy and paternalism, which we interpret as Christian charity. Padre Damaso, anyone?

Gising bayan!

Shortsighted and dysfunctional

Does that define who we are as a nation?

That’s the cut and dried version of 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.

Why do we want to keep our instincts front and center? Because they reflect our paradigm, our mindset. And it happens to be a fixed one – instead of the growth mindset that separates winners from losers.

Recall that finite milieus – aka social environment – bring about finite minds and finite thinking.

Are we surprised that we can’t “problem-solve”? Instead, we keep piling on the problems of Juan de la Cruz – that he runs like a headless chicken.

Can we pause and ponder: Do we grasp the reality we created for ourselves?

For example, instead of condemning the “moro-moro” of Philippine politics, especially the presidential kind, we are all playing right into it!

Sadly, that is unsurprising. Translation: Our culture of impunity is in full panoramic view – represented by Marcos, Duterte, Arroyo – and who else? Did we not read into the failed nomination of Roque to the ICC? Freedom-loving nations won’t submit to tyranny as we do! Can we connect the dots?

Recall that the blog often references the leadership and foresight of Lee, Mahathir, and Deng. Sadly, we still tolerate the notion that Marcos was a great leader – and Duterte too. And so they can pass on the traits to the son and the daughter. Is that how we connect the dots?

Benchmark. Benchmark. Benchmark.

We are not only the regional laggard, but we are also sinking into the abyss. Any reference to the past can’t be a ray of hope, and we blew it.

In other words, we can’t keep to a fixed mindset.

Instead, we must learn to get ahead of the curve – to move from logical yet linear and incremental thinking to forward- and lateral thinking.

That is not easy because it presupposes defining a point A and a point B – and then figuring out how to get there.

Decades of shortsightedness are not easy to upend.

But we have to start somewhere if we ever are to climb out of this abyss.

Should we pause and ponder?

Between the Philippine elite and chattering classes, we represent the crème de la crème of this nation.

And those familiar with the blog may recall that I’ve worked across all the continents and currently maintain homes in three. In other words, we don’t lag in smarts.

For example, my Eastern European friends asked me if they could compete against the best in the West.

And my response: You have two things going for you. You are more creative and have a better facility with numbers than what I live through in New York.

However, they have a big plus; they love to problem-solve and think it is fun. And are instinctively forward-looking and can define a point A and a point B – and how to get there.

Here’s the backdrop of my response:

They showed me the products they had developed, and they would stand out in any store, East or West. And for them to appreciate the comment, I shared with them that we paid a million dollars for the pack design of one brand at my old company. And I knew that whatever they spent, it was a drop in the bucket.

And then I asked for the gross margins of each product, and they flipped open their laptops and read out each one; I said they explain why they had not made money in eight years.

You are between a rock and a hard place. You must price your products low to sell. – and thus the low margins. And you cannot generate demand because they don’t offer consumers a compelling reason – as in addressing a human need – to buy your products. 

We will first revisit your product portfolio and then define what “business” you must be in because you must be a $100-million-company – the median size of a Fortune 500 subsidiary that is your competition. It is like boxing; you must be in the same weight class – if you are to stay in this business.

And that will put you on a higher plane to invest in understanding the hierarchy of human needs and develop products accordingly. That is what innovation is, and it is not technology per se or design per se.

And recall, these friends were an MSME. Still, they had to accept (1) the challenge of competing against the best from the West, and they must be (2) committed to invest behind innovation – i.e., understanding the hierarchy of human needs – and that is all they can (c) control, i.e., themselves. [If we miss it, that was to illustrate the 3C’s of a hardy mindset.]

In other words, MSMEs must not assume they are dead in the water because they are easy prey for the behemoths. Sadly, in the case of the Philippines, our shortsightedness and dysfunction extend beyond the public sector – and into our most significant companies and MSMEs.

Here’s a quote from an earlier posting: “To forward-think is not to predict the future, and it is to think about and plan for the future, i.e., to be forward-looking. 

“It is not to be held back by history, as demonstrated by Vietnam or Mahathir to Juan de la Cruz. We don’t have to love former colonizers. But we are poor nations; we cannot go it alone, and we need their money and technology.”

Benchmark. Benchmark. Benchmark.

“Apple’s strategy is straightforward. What we want to do is we want to put an incredibly great computer in a book that you can carry around with you and learn how to use in 20 minutes. That’s what we want to do, and we want to do it this decade. And we want to do it with a radio link in it, so you don’t have to hook up to anything, and you’re in communication with all of these larger databases and other computers.”

“We shall send to the moon 240,000 miles away, a giant rocket, more than 300 feet tall on an untried mission to an unknown celestial body, and then return it safely to Earth. But why the moon? Why choose this as our goal? And they may well ask, why climb the highest mountain? Why 35 years ago fly the Atlantic? We choose to go to the moon. We chose to go to the moon. We choose to go to the moon in this decade and do the other things not because they are easy but because they are hard. That goal will serve to organize and measure the best of our energies and skills. And because that challenge is one that we’re willing to accept. One we are unwilling to postpone. And therefore, as we set sail, we ask God’s blessing on the most hazardous and dangerous and greatest adventure that man has ever gone.”

Benchmarking is picking the best practice model, e.g., Steve Jobs, JFK.

Let’s get the Philippines.

Consider: “The ADR Institute had a very informative webinar on the problems we face in the power sector. The presentations confirmed my lingering fears.

“Indeed, the webinar elicited broad interest from the private sector. It shows the extent of the business sector’s feeling of energy insecurity.

“That insecurity is making many executives hesitate to invest in anticipation of a boom in consumer demand with the lifting of COVID restrictions. Many are worried that investments may go to waste as power shortages cripple their ability to do business.

“As it is, the gradual lifting of restrictions has already resulted in power demand surpassing pre-pandemic levels. In Luzon, increased demand has already caused brownouts during the summer months.

“We have many things worry. After the two units of 300 MW of Aboitiz Power went online this year, nothing more is due soon. Yet, existing plants are getting old and unreliable. We need at least 600 MW of additional power to cover demand growth per year in Luzon.

“Then there is Malampaya. There are doubts that the Duterte crony who got his hands on it has the financial and technical capability to keep the natural gas flowing flawlessly. Mismanagement may cause depletion to come sooner rather than later.

“While there is a power supply surplus in Mindanao, the situation in Luzon is precarious. Luzon accounts for 70 percent of our GDP. Never mind trying to attract new foreign investments. High power rates and unreliable service will drive out even those who are already here.

“We are 60 percent dependent on coal in Luzon and 70 percent in Mindanao. We import almost all of the coal we use from just one country, Indonesia.

“The energy department today has also allowed a significant slippage in the delivery of the Mindanao to Leyte transmission line. That would have allowed excess power in Mindanao available for Luzon, which needs it.” [“Energy insecurity,” Boo Chanco, DEMAND AND SUPPLY, The Philippine Star, 15th Nov 2021]

Shortsighted and dysfunctional. Does that define who we are as a nation?

Consider: “We need at least 600 MW of additional power to cover demand growth per year in Luzon.”

What does that represent? It is how we can grow GDP by 6%-7%.

In other words, we are stuck in our paradigm, a fixed mindset – and explains our shortsightedness. And shortsightedness feeds a dysfunctional system.

On the other hand, if we rack our brains to forward-think, we want to be of the same fighting weight as Thailand or Malaysia, i.e., their national income is over two times and thrice ours, respectively.

We need a more significant playing field – a less finite one so that we generate “less finite” thinking.

Let’s quote again from prior postings:

“Question: What is the “outcome” that we seek – as the common good?

“Answer: To traverse poverty to prosperity rapidly. How rapidly? Leapfrog the economic output of our neighbors by rapidly driving GDP by an incremental $200 billion.

“We can’t stay with a finite metric that has failed us, e.g., a 6%-7% GDP growth rate.

“Instead, we must figure out what foreign investment and technology we must lure that will rapidly yield an additional $200 billion in GDP. And it is not rocket science as Vietnam showed the world, and they attracted Samsung while we took FDIs for granted.

“The same forward-thinking applies to agriculture. To be an agribusiness powerhouse, we must not stay with a finite metric that has failed us. We must figure out what tropical produce and their counterpart value-added packaged consumer goods will bring us closer to an incremental GDP of $200 billion.

Consider the Theory of Change: (a) defines long-term goals and then (b) maps backward to identify necessary preconditions. It speaks beyond “outputs” – aka “preconditions” – and stresses “outcomes.”

We struggle with energy because we haven’t defined the “outcome” that we seek. Consequently, we can’t map or trace back to identify the necessary preconditions that, when pulled together, will get us to our desired outcome.

Let’s test that.

Did Apple or JFK or my Eastern European friends deliver on the outcomes that they sought?

Shortsighted and dysfunctional. Does that define who we are as a nation?

We are not only the regional laggard, but we are also sinking into the abyss. Any reference to the past can’t be a ray of hope, and we blew it.

In other words, we can’t keep to a fixed mindset.

Instead, we must learn to get ahead of the curve – to move from logical yet linear and incremental thinking to forward- and lateral thinking.

Gising bayan!