Tap dancing like mad

Are we “tap-dancing like mad” to justify our fate?

Consider: “The Philippines should open further to foreigners if it wants to corner more job-generating investments, Asia-based Hinrich Foundation said.

“After reaching a record-high $10.1 billion net inflows in 2017, data showed FDI to the Philippines started declining from that peak, with the pandemic worsening the downtrend.” [“Gov't urged to open up the Philippines to more foreign investments,” Philstar.com, 15th Jun 2022]

“How we wish our next secretary of the Department of Trade and Industry (DTI) would be known as the champion and booster of Philippine exports,” someone mused. “He knew how far behind our comparable Asean peers have left us in export performance.” [“Doing a Vietnam,” Cielito F. Habito, NO FREE LUNCH, Philippine Daily Inquirer, 31st May 2022]

Que sera, sera?

The simple formula the world learned from our neighbors is to beg for Western money and technology – because the object is to accelerate industrialization. In other words, the first order of business is to generate wealth that can fund and support the common good. Even in the Nordic countries, industrialization was the key that paved the way for their brand of democracy.

But we’re the Philippine elite – and rank and privileges are supreme.

And to protect our standing, as in hierarchy, we held Western money and technology at bay – except when we benefited from political patronage and oligarchy.

But we can’t look in the mirror – and left to tap dance like mad.

Do we want to sweep Juan de la Cruz’s reality under the carpet?

“Angara says PHL debt of P12.7 trillion still ‘reasonable,’” Alyssa Nicole O. Tan, BusinessWorld, 16th Jun 2022.

“I think that one way of looking at it is attacking the spending side. The Philippines should spend on things that benefit the people and will pay dividends over the long term, such as education, health, and infrastructure. Those are the things that we can’t compromise. I suppose we have to be more judicious in our expenditure to pay and bring public debt (to manageable levels),” Mr. Angara said.

“What matters more is how you spend that debt and whether it’s sustainable,” he added.

In other words, we aren’t thinking beyond monetary and fiscal interventions. And which explains why we can’t do a Vietnam?

Consider: “The debt-to-GDP ratio was 63.5% as of the end of the first quarter, exceeding the 60% threshold considered by multilateral lenders to be manageable for developing economies. The pre-pandemic level was 39.6% of GDP at the end of 2019.

“Finance Secretary Carlos G. Dominguez III has said that the Philippines may need at least ten years before its debt-to-GDP ratio returns to about 40%.

“The senator said that the right mix of policy and economic incentives for the private sector will ensure recovery from increased revenue.

“As the budget grows yearly, Mr. Angara said the challenge is to make revenue grow proportionally.

“However, Mr. Angara said increasing taxes may not be the solution as the people still suffer from the after-effects of the pandemic. “You want to grow your economy in this period. You want it to recover,” he said, “and increased taxation might be sending the wrong message during this time.

“Economic managers target GDP growth of 7-8% this year.

“Mr. Dominguez has said the Philippines needs to grow an average of 6% annually in the next six years to reduce debt effectively.”

What (ever) happened to Arangkada and the scores of industry road maps?

When are we going to put “industrialization” front and center?

Should we pause — and ponder?

“Industrialization” is real-world stuff. Recall that the blog raised the question, how many dissertations ever find the light of day? 

Weren’t we impressed at ourselves as we created the scores of industry road maps? 

In other words, there is a reason why even in America, they had to grapple with the shortcomings of higher education. And it boils down to the imperative to forward-think, distinguishing the “vital few” from the “trivial many” and “drivers” from “enablers.”

Recall the 613 rules of the scribes and Pharisees and their battles with Christ, who came down with the Great Commandments. Or how Pareto influenced economics.

On the other hand, think of our crab mentality. It explains our inability to separate the wheat from the chaff. And why “innovation” is foreign to us. And why we can’t wrap our heads around “competitiveness.”

That’s why the blog wants to recall that over two administrations, PNoy and Duterte, we failed to overcome a critical obstacle to Philippine economic development. And at the rate we’re going, the BBM administration will emerge empty-handed too.

What are we missing?

We aren’t thinking beyond monetary and fiscal interventions. And which explains why we can’t do a Vietnam?

We did 6%-7% GDP growth from 2009 to 2019 – or over a decade – and yet remained the regional laggard.

Now we want 7-8% growth this year? We can’t think of “one year” if we’re going to set up a sustainable path of explosive economic growth – the way our neighbors did.

In other words, we can’t seem to toss logical yet linear and incremental thinking.

What do you want to be when you grow up? Weren’t our ears bent by our elders when we were growing up?

Forward-thinking came to us early in life. What happened?

Consider our caste system and our instincts: We are parochial and insular. We value hierarchy and paternalism and rely on political patronage and oligarchy; ours is a culture of impunity.

In other words, has destiny defined Juan de la Cruz – that we have fallen into the trap of “learned helplessness”?

“Learned helplessness occurs when an individual continuously faces a negative, uncontrollable situation and stops trying to change their circumstances, even when they can.

“The term was coined in 1967 by the (American) psychologists Martin Seligman and Steven Maier.

“Seligman later developed the concept of learned optimism: By explaining events to ourselves constructively and developing a positive internal dialogue, people can break free from a cycle of helplessness.” [https://www.psychologytoday.com/us/basics/learned-helplessness]

In other words, the “destiny” of Juan de la Cruz is our creation. And – wittingly or not – aren’t up to undo it.

And in such a confused state – aka a damaged culture – how can we ever attain clear-headedness?

And it explains our inability to forward-think, distinguish the “vital few” from the “trivial many” and “drivers from enablers.”

In short, we confused the meaning of “inclusiveness” – as in, an economy.

“Inclusiveness” is an oxymoron in a caste system, full stop.

The challenge, unfortunately, is way beyond our heads. The evidence? After Vietnam, will Cambodia be the next to leave us in the dust?

In other words, if our society at large (a) can’t execute Arangkada and the scores of industry road maps and (b) tap monetary and fiscal interventions – that did not work for us for decades – what else is in our bag of tricks?

Is BBM our savior? Did we not think of Marcos as one too? Or Duterte?

Juan de la Cruz is back to square one – or is he in a worse position? Moreover, no one has demonstrated the vision, leadership, and “miracle” that can propel the nation to glory.

On the contrary, as the blog never ceases to stress, ours is a culture of impunity.

Consider: “Reporters Without Borders writes that mainstream media in the Philippines has seen increasing levels of ownership concentration and that in some corporate newsrooms, journalists have little editorial autonomy, self-censorship is the rule, and respect for journalistic ethics is not guaranteed.

“The imagined difficulty for journalism under another Marcos administration varies from journalist to journalist. Some fear a martial law redux. Others say the press would bog down by battling bogus court cases. Most are grappling with the decline in trust in journalism.

“During the presidential campaign, stories criticizing the Marcoses were sanitized. Some stories would not even be published online to limit circulation. And it will get worse following Marcos’ win.

“Reporters Without Borders, which monitors press freedom, notes the return of “red-tagging” – a practice inherited from the colonial era and the Cold War, i.e., branding journalists who do not toe the government line as “subversive elements” or “reds." That amounts to pointing them out to law enforcement as legitimate targets for arbitrary arrest or, worse still, summary execution.

“Others are swamped by a steady stream of online harassment that can get foul. Writes Regine Cabato of the Washington Post, “I'm almost relieved when someone calls me a slut or some other generic slur because I’m always expecting something worse.”

“It’s not like Marcos Jr. would be starting from scratch. The administration of his predecessor, President Rodrigo Duterte, relentlessly attacked independent and critical media. The Philippine Daily Inquirer is financially weaker. Rappler faced several court charges. ABS-CBN is gone from free TV.” [“Filipino journalists find selves at crossroads after Marcos Jr. victory,” Xave Gregorio, Philstar.com, 17th Jun 2022] 

Are we “tap-dancing like mad” to justify our fate?

Gising bayan!