Do we see a “paradigm shift”?

Change is not the easiest thing in the world. And it is true, especially for Juan de la Cruz.

And that is why we are the laughingstock of the region – the regional laggard for the longest time – and still on a downward spiral.

Visionaries are rare, yet we can learn forward-thinking per neuroscience. Because, like the muscles, we can tone the brain.

Sadly, given our caste system, we pigeonholed Juan de la Cruz in his rank and why we value hierarchy and paternalism. And it explains his narcissism. “We are no longer children,” per the educator, Preciosa S. Soliven.

The excellent news is that a preeminent economist (Cielito F. Habit) and a senator (Sonny Angara) have raised the challenge we face.

It is beyond the 6%-7% World Bank-endorsed GDP growth rate – because we lag our neighbors in export revenues big time.

Moreover, Mr. Ramon Ang of San Miguel addresses the challenge squarely with his Bulacan initiative. More than an airport, he identified export industries that, in partnership with foreign investors, can raise Philippine exports to $200 billion.

We have a structural problem. Yet, we took comfort in the OFW remittances and call centers – because they generated over $50 billion, drove the Philippine economy, and delivered 6%-7% GDP growth (for a decade.) Still, Vietnam, the latest Asian Tiger, overtook us to confirm our stature as the regional laggard.

Let’s hold it right there.

Our caste system is akin to a bunker – it makes us feel secure. Conversely, it explains why we can’t determine a structural problem.

In other words, nations and economies move up the value chain, and our neighbors demonstrated that. They eschewed the Western model – and turned their countries into economic miracles.

It started with Japan Inc. and continues with Vietnam, the latest Asian Tiger.

Recall that the blog raised the imperative to move beyond “consumers of knowledge” to “creating knowledge.” And our neighbors, wittingly or not, did it. Does our caste system explain why? Does it explain why innovation is foreign to us? In other words, do rank and hierarchy come with hubris, that our knowledge base is superior and that we’re stuck?

My Eastern European friends deferred to my Western background and experience that they expected me to spell out the rules of freedom and the free market. And they were angry that I refused.

“It is about principles, not rules. I cannot teach you better than your experience.”

In other words, they had to get out into the world and learn the ropes. And they fell several times. Yet, the experience enriched them.

Relate the above anecdote to “Design Thinking,” the model that captures the ways of Silicon Valley. It is cross-discipline yet time-bound and exploits the use of prototypes to gain knowledge and experience.

Our challenge is not a walk in the park. We cannot leave the heavy lifting to the handful of folks referenced above.

Recall how the US education system came under the microscope when Japan Inc. pulled the rug from under US manufacturing. Where was the forward-thinking?

The Japanese onslaught did not spare General Motors and IBM. The former was once synonymous with the US economy: What was good for General Motors was good for America. While the latter held – and still does to this day – the most patents.

In other words, forward-thinking is a scarce commodity.

But we Filipinos see the world differently – aka “bunker mentality” – including when China became the world’s manufacturing hub. The evidence? Duterte pivoted to China, and what do we have to show for getting in bed with them?

Consider: Deng heeding the words of Lee and Mahathir, turned China into an economic miracle: Beg for Western money and technology.

We measure everything by our instincts, i.e., parochial and insular – and thus the value of hierarchy and paternalism.

We cannot compare freedom, democracy, and the free market with autocracy. Yet, we are closer to the latter in the continuum of democracy and authoritarianism. Unsurprisingly, we would mirror what Putin, for example, says about freedom-loving people and nations. How can we acquiesce to Duterte’s EJKs when the world saw us as pariahs?

Because we pigeonholed Juan de la Cruz in his rank, we cut off the rest of the Universe from our worldview. First, the Universe is dynamic and in constant motion, the inverse of our static parochial and insular world.

The dynamism of the Universe did not end with the Berlin Wall’s collapse nor with China’s emergence as a superpower.

Recall how the photosynthesis phenomenon manifests the dynamism of the Universe.

Unsurprisingly, the inferiority of Ukraine’s military has already embarrassed Russia. And Putin appears unhinged by the day. And Xi is not naïve. He knows he could also be embarrassed.

Look at how China has to lock down scores of cities because of covid. Why? They don’t have the healthcare infrastructure of an advanced economy.

Nor the infrastructure of a developed financial system. Homebuyers have to ante money upfront. Surprise, surprise; only 60% of these homebuyers got coveted homes.

According to The Economist, China is not growing like China this year. The economy will grow less than 3%.

In other words, China is flirting with a homegrown “revolution.” And that will distract them from significant world events. But they must continue to flex their muscles because the Chinese people themselves will see the weakness that they know firsthand.

China’s overall economic output is humongous, but its income per capita is not at par with wealthy nations. The people will put up with repressions for as long as they share the prosperity.

But their size, while an advantage in rapid economic expansion, is also a disadvantage because it will take time for them to create an “ecosystem” across the pillars of nation-building. See above; they are still deficient in healthcare and financial infrastructure.

Even their military is under the umbrella of the Communist Party – e.g., recall Tiananmen Square. An army is a crucial tool in their efforts to keep the sword of repression dangling – the opposite side, Chinese “capitalism,” of the same coin.

In other words, China’s Communist party must offer both carrots and sticks in the hope that they could get the balance right.

The challenge of Juan de la Cruz is not a walk in the park either.

How do we unlearn our bunkered and linear worldview?

Major undertakings demand more than logical yet linear and incremental thinking.

The blog often raises the key initiatives we proudly pursued that was shortsighted: from the comprehensive agrarian reform to the OFW phenomenon to the call centers to the LGUs.

What about Arangkada, AmBisyon Natin, and the scores of industry road maps?

They are examples of logical yet linear and incremental thinking – and mirror strategic planning from the ground up.

But strategic planning as management by objective has evolved. Both demand top-down and bottom-up thinking.

And top-down thinking presupposes forward-thinking.

Take our efforts to create jobs and address poverty. The comprehensive agrarian reform did not deliver prosperity – nor did the OFW remittances and call centers. Ditto for LGUs.

There was top-down thinking behind them but not forward-thinking.

That is why we must take a page from our neighbors. Forward-thinking demands that the Philippines be an Asian Tiger. Anything less is akin to “pwede na ‘yan.”

Benchmark. Benchmark. Benchmark.

Sadly, it also demands tossing the crab mentality because it means distinguishing the “vital few” from the “trivial many.” And why Pareto must be a mantra.

Whether it is industry or agriculture, to be an Asian Tiger means the Philippine industry and agriculture must be world-class. Think of how Toyota disassembled German automobiles to leapfrog their pursuit of innovation – which is at the heart of a world-class endeavor.

Change is not the easiest thing in the world. And it is true, especially for Juan de la Cruz.

Could you take a look at our chattering classes?

Consider: We lag the region in most respects, including education. But we won’t concede in our hearts that we must “overcome inertia and dismantle our existing mindset.”

For example, we like to address our shortcomings in food security – in rice, sugar, and beyond. But they are merely symptoms.

On education, do we agree with Preciosa S. Soliven that we must grow up? Education reform is not about K-12.

That’s why the blog submits that we are a rudderless ship – and floundering. But it is about “principles,” not “rules.” And the best examples are the battles between Christ and the Pharisees and scribes.

See above; we have a structural problem – because of our caste system: We are parochial and insular. We value hierarchy and paternalism and rely on political patronage and oligarchy; ours is a culture of impunity.

I am in Eastern Europe as we speak. And my friends again asked me to address the management of the company. Earlier in the year, they wanted me to discuss “managing in times of crises.” This time they want me to speak about “innovation.”

Why the shift in thinking within the same year?

Recall the “great recession” of 2008-2009 when they saw their enterprise soar, even killing the brand of the industry’s most significant player.

This time they have survived rising costs – commonly known as inflation – owing to the pandemic and witnessing their enterprise again poised to soar.

What better time to speak to “innovation” again – to be far above the competition, western and otherwise?

We are a subset of the Universe that is in constant motion and expansion.

“The only constant in life is “change.” Yet, the fear of change is also a constant.” That’s from Heraclitus, the Greek Philosopher.

“Understand the relation of opposites to each other to overcome the chaotic and divergent nature of the world.

“The world exists as a coherent system; a change in one direction finds balance in a corresponding change in another.

“Between all things, there is a hidden connection so that those that are “tending apart” are “being brought together.” [Britannica.com]

Recall that the blog often speaks to the photosynthesis phenomenon.

Let’s get back to the Philippines.

Do we see a “paradigm shift”?

Change is not the easiest thing in the world. And it is true, especially for Juan de la Cruz.

And that is why we are the laughingstock of the region – the regional laggard for the longest time – and still on a downward spiral.

The excellent news is that a preeminent economist (Cielito F. Habit) and a senator (Sonny Angara) have raised the challenge we face.

But we cannot leave the heavy lifting with a handful. Mr. Ramon Ang may be a visionary, but he cannot go it alone.

Personal responsibility is imperative to pursue the common good.

We in the Philippine elite and chattering classes must roll up our sleeves. 

We must demonstrate that we can overcome the inertia and dismantle our existing mindset.

The only constant in life is “change.”

Gising bayan!