nnovation is beyond R&D; Nation-building is beyond Economics

That will be a challenge, a restraining force, in our effort to move the Philippines forward.

Recall the force-field theory. To manage change, we must (a) exploit the driving forces; and (b) fix the restraining ones.

And the challenge comes from our caste system. It explains why we keep shrinking our playing field. And why the knee-jerk is all left to us – and why we can’t imagine the limitations of logical yet linear and incremental thinking.

And part of our caste system is the “ivory tower” syndrome that perpetuates “specialization” while missing out on the “creative process.”

Recall that Steve Jobs defined creativity as simply connecting the dots. We know it as “brainstorming,” the more contemporary model being “design thinking,” which captures the Silicon Valley culture of innovation and global competitiveness. And that presupposes learning how to forward thinking – and lateral and creative thinking.

And it has taken a life of its own, being the character of the 21st century.

But connecting the dots demands more, so we must also learn to translate the “ecosystem” we know as the photosynthesis phenomenon into a tangible model that we can “touch and feel.”

In other words, instead of rolling our eyes when we hear that we are a subset of this universe, dynamic and in constant motion and expansion, we must remember Darwin’s survival of the fittest. In other words, because of the inherent hierarchy of human needs, humankind had to migrate from Africa. And we had to learn that there is a better chance of survival if we graduate from being cave dwellers.

That is a roundabout way to explain that the hierarchy of human needs is the bedrock of innovation.

Let’s hold it right there.

Can we stop, pause, and internalize the above set of predicates in the pursuit of nation-building?

How do we then upend the Philippine caste system? Do we start with education? What about the home? What about the public and private sectors?

First, let’s tackle education. How do we upend the “ivory tower” syndrome? How do we get UP, for example, to move beyond “academic freedom” to mirroring the dynamism of this universe? That we are a subset of a dynamic ecosystem, we know as the photosynthesis phenomenon? In other words, it is not about K-12.

Recall how George Gorospe (SJ) defined “reality;” it is beyond any human experience or system. And recall too how the Philippine culture conflicts with this fundamental given. While the school can instruct the students accordingly, the home and the workplace undermine the effort because of our caste system.

Nation-building “is no longer just economics. We must open our eyes and focus on a bigger canvas, not just economic indicators. Still, most social, political, and other inequality indicators frustrate our efforts to build social cohesion and unite people around certain reforms.” [“PHL urged to focus economic policy on keeping middle class prosperous,” BusinessWorld, 24th Nov 2022]

Let’s drill that down – and start with our instincts, reflected in the Philippine 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.

Can we connect the dots from parochialism to a culture of impunity – given our instincts?

In other words, because we value hierarchy and paternalism, we equated economic development to creating jobs to address poverty and “inclusion,” a tacit and feeble effort to attain social equilibrium.

Here’s a quote from an earlier posting. Laos and the Philippines have been amongst the fastest in Asia, averaging more than 7% GDP growth per year for most of the last decade. Yet, both are cellar dwellers compared to the rest of the region.

The bottom line: the platform of Philippine economic development is a fallacy. It does not get us where we want to be.

How did we get here — beyond crafting a restrictive Constitution?

Recall that our education system follows the West, including Economics. We had to expound our understanding of deficit spending, for example, then the buzzword at Harvard. And so we employed the same tools they did, including monetary and fiscal interventions. I still remember my paper in Economics 101 [in the MBA program.]

On the other hand, our neighbors, who would become the Asian Tigers, saw through the missing piece: The West had already traversed the journey from agriculture to industry.

Unsurprisingly, Lee and Mahathir quickly shared this with Deng, “Beg for Western money and technology, to lift the Chinese people from poverty.” And Mahathir shared it with us too. Sadly, we’re too highfalutin. And it comes from the Philippines caste system. We higher up in the hierarchy enjoy the privileges of omnipotence.

In other words, our neighbors became first-world economies by leapfrogging industrialization and are today the most significant exporters. [Recall the header of this blog of over 12 years and why it hasn’t ceased challenging us: “Philippine Economy: Reinventing Ourselves.”]

These neighbors understood where their nations were in the hierarchy of human needs.

And the hierarchy is a continuum – of physiological to self-actualization. Said differently, from the need to survive to the need to be prosperous.

It is not only the Philippine elite that needs self-actualization or prosperity. Juan de la Cruz is beyond poverty, jobs, and inclusion. Prosperity is his right as it is ours.

And that means where we want to be is to be a first-world economy and nation. It is beyond creating jobs to address poverty and inclusion.

But that is why our economic managers – if they believe that nation-building is their portfolio – must learn “innovation.” And that the hierarchy of human needs is the bedrock of innovation.

And they must also learn “horizontal leadership,” which is an expression of “self-government” fundamental to freedom, democracy, and free enterprise. In other words, innovation is beyond R&D. And nation-building is beyond Economics.

Here’s a quote from an earlier posting. We must not only put the BOI in the crosshairs to match the Pearl River Delta Economic Zone – the center of the China economic miracle – or the Samsung-Vietnam partnership. We must also rack our brains to get Juan de la Cruz the basics of water, food, and electricity. Not because that is easy but because it is hard. Think of the Kennedy moonshot speech.

In other words, the China economic miracle mirrors an ecosystem, reflected by the photosynthesis phenomenon. 

But we don’t have to reinvent the wheel and instead task the BOI to restate the ecosystem that is the Pearl River Delta Economic Zone. 

That means thinking out of the box and tossing our PEZA model because it pales in comparison.

Said differently, can the BOI build on the Ang Bulacan initiative to mirror the success of the Pearl River Delta Economic Zone?

Innovation is beyond R&D; Nation-building is beyond Economics.

That will be a challenge, a restraining force, in our effort to move the Philippines forward.

Recall the force-field theory. To manage change, we must (a) exploit the driving forces; and (b) fix the restraining ones.

And the challenge comes from our caste system. It explains why we keep shrinking our playing field. And why the knee-jerk is all left to us – and why we can’t imagine the limitations of logical yet linear and incremental thinking.

The latest evidence? The Maharlika Wealth Fund. It is classic “Pinoy abilidad.” Yet, while it has tons of detractors, there are still supporters. Look, whom did we elect as President? 

But that is par for the course, given that we hue closer to autocracy than democracy. And why we applauded China, Russia, and whoever else because we can’t fathom the continuum of authoritarianism to freedom. And instead, we like to debate human constructs as in a system.

Democracy is “self-government.” The system we like to criticize is of our making.

But that is why we can’t upend the Philippine caste system.

Do we start with education? What about the home? What about the public and private sectors?

Nation-building “is no longer just economics. We must open our eyes and focus on a bigger canvas, not just economic indicators.” 

Gising bayan!