“Let’s do our homework …”

That's lifted from "Homework, first & foremost," Dr. Jesus P. Estanislao, SWIMMING AGAINST THE CURRENT, Manila Bulletin, 14th Feb 2019.

"An idea that we need to give much more importance to is: before we get helpless with our people drain, let us do our homework in expanding economic and social opportunities for all of our people ...

"Many look at our OFWs as a boon ... But ... this currently advantageous people-dependent process of development can turn out to be a bane for us, if we do not watch out.

"Moreover, it is a disgrace: to have many Pinoys as TNTs in various lands; and as a result of which, Filipinos in general are many times not treated properly; and we are all too often looked down upon by others."

The OFW phenomenon simply means we are not creating enough jobs that can put body and soul together? Consider: "Economist Bernardo Villegas once said, 'there was no question that a country with as large a population as the Philippines would never be really considered industrialized if manufacturing does not constitute a fair share of the Gross Domestic Product (GDP) and employing a significant percentage of the labor force. '

"How did our neighboring countries like Thailand, Malaysia, Indonesia, and now Vietnam manage to industrialize while we are still struggling?" [Industrialization, Boo Chanco, DEMAND AND SUPPLY, The Philippine Star, 15th Feb 2019]

What insights must we seek, but have yet to commit because we are not prepared to unlearn (or unfreeze) to provide room to relearn (change and refreeze)? That's from the German social scientist, Kurt Lewin, that the blog has raised numerous times over the last 10 years.

For example, how does Investopedia define the Four Asian Tigers? They consistently maintained high levels of economic growth since the 1960s ... fueled by exports and rapid industrialization ... which enabled these economies to join the ranks of the world's richest nations ... They share common characteristics that include a focus on exports, an educated populace and  high savings  rates ... And are resilient enough to withstand local crises, such as the  Asian financial crisis  of 1997, as well as global shocks, including the  credit crunch  of 2008.

But we can not seem to internalize such insights and so we concluded that: We can not compare ourselves with Singapore because Lee Kuan Yew was an autocrat, ours is a democracy to be proud of. We can not compare ourselves with Thailand because they are a monarchy, that provides them moral compass. We can not compare ourselves with China or Vietnam being communists, we love our democracy.

In other words, can we unlearn or unfreeze the Pinoy instincts that are frozen in the mind? For example: We are parochial and insular, ie, inward-and backward-looking. We value hierarchy and paternalism. We rely on patronage and oligarchy. The bottom line: We reinforce and nourish a "culture of impunity." Says Rizal, "Why independence, if the slaves of today will be the tyrants of tomorrow? And that they will be such is not to be doubted, for he who submits to tyranny loves it. "

And until we unlearn or unfreeze the mind, we will pay the price of underdevelopment. Consider these news reports: (a) Korean manufacturers decry port congestion, mull departure; on the other hand, (b) Why Samsung of South Korea is the biggest firm in Vietnam: It makes most of its smartphones there; (c) Living up to the name: 'Representa-thieves' [translation: our legislators are a bunch of thieves]; (d) 'First they came for the journalists ...' [the latest being Maria Ressa.]

Why are we the regional laggard, again? "Maybe it is because of the Filipino First import substitution strategy we have had from the '50s. Our so called 'infant' industries got significant protection through high tariffs and non-tariff barriers to entry.

"As a result, consumers suffered having to buy lower quality products at higher costs. Several decades later, our 'infant' industries refused to grow. Protection gave them no incentive to adopt new technology and improve efficiency. "[Chanco, op. cit.]

Can media help? "Media are part of the problem," Luis V. Teodoro, Vantage Point, BusinessWorld, 7th Feb 2019.

"That former TV broadcaster who's running for senator under Sara Duterte's Hugpong of Change party is not alone in denying that the Duterte regime is a threat to press freedom.

"There are other former and still practicing broadcasts, print and online media people who have never quite understood that the most fundamental values ​​in journalism are independence, accuracy, and truth-telling."

But let's get back to Dr. Estanislao: "Let us do our homework in expanding economic and social opportunities for all of our people ..." Because freedom, democracy, nationalism, etc., etc. will be irrelevant if people are hungry. Recall the beginning of the end of the Soviet empire when people woke up one morning and found out there was not enough bread to go around.

Or imagine flying to Sydney and finding out everyone in the country is poor - that is the equivalent of the poverty rate in the Philippines.

Have the Vietnamese learned the lesson? "Vietnam ... is liberalizing its economy to welcome foreign industry. In 2015 the government opened 50 industries to foreign competition and slashed regulation in hundreds more. It sold a majority stake in the biggest state-owned brewer, Sabeco, to a foreign firm last year. Vietnam's enthusiasm for free-trade deals has made it especially alluring to foreign investors.

"The Samsung Electronics factory in Thai Nguyen, in northern Vietnam, employs more than 60,000 people. Its three canteens serve some 13 tons of rice a day. It churns out more mobile phones than any other facility in the world. It and Samsung Electronics' other factories in Vietnam produce almost a third of the firm's global output. The company has invested a cumulative $ 17bn in the country.

"But Samsung is as important to Vietnam as Vietnam is to it. Its local subsidiary's $ 58bn in revenue last year made it the biggest company in Vietnam, pipping PetroVietnam, the state oil company. It employs more than 100,000 people. It has helped to make Vietnam the second-largest exporter of smartphones in the world, after China. Samsung alone accounted for almost a quarter of Vietnam's total exports of $ 214bn last year. "[Why Samsung of South Korea is the biggest firm in Vietnam: It makes most of its smartphones there, The Economist, 12th Apr 2018]

Are not the Vietnamese nationalistic or patriotic? Why would they prefer foreign investors over locals? Or are they smarter than us parochial and insular Pinoys? Consider: (a) They went to school on the Asian Tigers, ie, beg for Western money and technology and (b) did their homework to rapidly pursue industrialization and (c) drastically reduced poverty.

How do we square the circle with this article? "Everyone should be a populist and nationalist," Jemy Gatdula, Being Right, BusinessWorld, 14th Feb 2019. "Our Constitution was authored by 'the sovereign Filipino people.' A constitutional system described as "of the people, by the people, for the people."

In other words, nationalism does not mean protectionism as Boo Chanco described. Or as highlighted in a recent post, in Liliw (Laguna) the footwear industry relies on labor from Batangas and Quezon because the locals prefer something more interesting than sitting the whole day to make slippers. They are not being unpatriotic, they are being human - that their aspirations are moving up the hierarchy of needs.

People are not automatons as the Soviet Union belatedly learned. [But they were godless; we should know better, ie, man is good, says the Creator.] It is not a matter of providing them what the politburo assumed they need: "You need a job we will tell you what job and where you will work. You need an apartment we will tell you where but you can only have two bedrooms. "And as the couple related to the writer, they protested:" But commissar, we have a boy and a girl, they must grow up in separate rooms. "

The verdict? "I tell you what you need and you be grateful!" Fast-forward to the fall of the empire: The first thing the family did was look for and buy another apartment, where the writer was a guest as family members related the story. The original communist apartment was not good enough and so they relocated, now free to live wherever they wish. They can wait 15 years to buy a car under Soviet rule but no commissar will tell them where to live and how to run the family.

And this is where the delusion of Putin lies. He yearns for the good old days of Soviet power when Ukraine, for example, was where space technology resided. Does the adventure in Crimea make sense? And the effort to influence Ukraine is hallucination? Indeed a handful of former Soviet satellite states are still friends with Putin. But it figures: During the transition from Soviet rule those with direct access to Moscow were able to shepherd big industry from communist control to the new oligarchy.

But not the three tiny Baltic states that embraced democracy and trumpeted their opposition to Putin. Not surprisingly, Estonia, for example, is today a technology powerhouse. Consider:  "The tiny former Soviet republic, with a population of 1.3 million ... is arguably the  most advanced digital society  in the world.

"Some 94 per cent of applicants gain e-residency ... E-residency aims to create a digital nation for all, built on inclusion, transparency and legitimacy to empower citizens globally, and achieve worldwide digital and financial inclusion, as outlined on  e-estonia .com .

"Non-Estonians can apply for e-residency, also known as virtual residency, which gives some business benefits, including company formation, but not tax exemption. Estonia has been ahead of the curve since the 1990s. "[Https://www.raconteur.net/technology/estonia-digital-society]

Estonia came to [the writer's] mind upon learning that Liliw relies on Batangas and Quezon to supply labor for their footwear industry. Does Estonia also explain why Putin and Gorbachev do not see eye-to-eye, the latter being a critic? But he is not alone. Poor Russians - visible when one flies from Moscow to Siberia - are escaping what they thought was destiny, including elements of the powerful sports community. If you want to learn fencing you can find some of Russia's best in New Jersey giving lessons.

Poverty in Russia and in the Philippines share something in common, that is, underdevelopment. Which is fertile ground for oligarchy because (a) opportunities are wanting - as in the system does not work - and so (b) hierarchy is the be-all and end-all.

In the case of Russia oil is the driver of the economy; in the Philippines it is OFW remittances and the BPO industry. In both cases, industry is underdeveloped and thus innovation and global competitiveness are beyond reach - and they are defining the 21st century. Think of Venezuela, friends with Russia and Cuba and very oil rich. This once wealthy nation has plunged itself down the abyss.

In the meantime, the world is waiting how Brexit will play out. And the prognosis appears to get worse every day. Scores of regional offices in the financial services sector have already abandoned the UK when not that long ago they made London the bigger financial capital, bigger than New York.

And in the case of the Philippines, why can not we see beyond the horizon? Consider: We can not even agree on why we are underdeveloped!

It comes from what Fr. Bulatao calls our split-level Christianity: on one hand we can not prioritize because we fall into the trap of "crab mentality" whenever our bias for "inclusion" (an expression of our Christianity) offers no way forward being a non-starter to begin with; and on the other we are simply unfocused ("sabog") because our sense of foresight is suspect given our love of tyranny - so says Rizal.

And so when we are told to jump we ask, "how high" instead of "why." Asking the question why can trigger the mind to look beyond the horizon.

For example, was not Juan de la Cruz told that the war on drugs will be over in 3 to 6 months? What about the value of a consumption economy? That it will sustain us and free us from the vagaries of the global economic cycle? Where is foresight in either case?

Then consider: The Pearl River Delta economic development initiative was the catalyst that made China the number one manufacturing enterprise in the world. It speaks to: (a) Pareto, the 80-20 rule and (b) time and space, ie, there is no efficient coexistence and order if time and space is not respected, as in a civilized world.

Think why we're at least 50 years behind in infrastructure development and why despite Arangkada our bias for industrialization is pitiful, if it even exists.

Here is an aside: Someone commented that the postings appear to be connecting the dots - which is how Steve Jobs defines creativity. And it is tall order if we can not overcome parochialism and insularity. And while we talk about big data and analytics, if we are not grounded in Pareto, we will be hard-pressed. And more so if the sense of foresight is suspect. To figure out the 20 and the 80 out of 100 presupposes we instinctively "Begin with the end in mind." That we know where we want to be: Is our problem poverty or underdevelopment?

And in the case of agriculture, we still could not grasp that to begin with the end mind is to look beyond the "input" and into the "output." You can gold-plate the input but if there is no demand for the output - beyond local needs - we will never be a Vietnam or a Thailand, for example. Why beyond local needs? So that the bigger scale will open itself up for greater imagination and investment, as in economies of scale. Retail politics - as in populism - does not work in the innovation and competitiveness demanded by the 21st century.

But here's one exception and a truly great news: "Unifrutti secures P1-B loan from DBP for banana area expansion," Marifi S. Jara, BusinessWorld, 18th Feb 2019. Disclosure: An economist that has read previous postings shared this enterprise with the writer before the news report. And in the conversation the writer stressed the imperative ... of scale ... and greater imagination ... and investment - if we are to make a quantum leap in agriculture especially in Mindanao.

"The loan package - which will be used for the development of 700 hectares of new Cavendish banana farms in the provinces of Davao del Sur and Bukidnon - is so far the government-owned bank's biggest farm development financing ... Unifrutti currently has about 1,200 hectares of corporate farms and 5,000 hectares of contract growers. Its fresh produce are exported to the Middle East, Japan, China, and Korea ... Unifrutti's expansion program is intended to meet increasing export demand. "

Where are we otherwise? We always demonstrate that we are two generations behind our neighbors and why we can not connect the dots: from (a) our failure in infrastructure development (only three major projects have been awarded by the Du30 administration) to (b) industrialization (Arangkada remains an orphan) to (c) innovation to (d) global competitiveness. And the latter two can only come about if we have a wealth of experience coming out of the first two. Gising bayan! 

But let's get back to Russia. What does Putin share with Trump? In the case of the Philippines, we are not as aggressive as the Americans ... when we should be asking: What does Duterte share with China? Even more fundamental, Trump shares with Russia, China and the Philippines the distinction for transparency.

Sadly we must add the Vatican where for the longest time transparency was not in the vocabulary. That injustice - as in tyranny - was harbored. Recall Padre Damaso. Until now: "Pope defrocks Theodore McCarrick, ex-cardinal accused of sexual abuse." The moral of the story truly hit home to folks in the New Jersey / New York area, the cleric in the 80's being one of their own.

Of course, Trump finds comfort in his shrinking base (a clear minority except for the freak electoral college system) while being abandoned even by pillars of the conservative movement - ie, how conservatives can be holier-than-thou with a Trump in their camp ? But not only. He is anomaly given the American character of transparency, as in check-and-balance. And it is in his character and why he's had a battery of lawyers even when still a private citizen. And as the world knows, his personal lawyer turned against him after Trump threw him under the bus.

Trump can lie through his teeth - as in being caught with his pants down in the Trump University case and the Trump charitable foundation, among countless others - and many within his orbit that likewise lied have been indicted if not jailed. He claimed to be a billionaire many times over than his true net worth and thus needed no political contributions from kingmakers. But was he under the thumb of Adelson, the casino mogul, all along? Which is another thing we Pinoys share with Trump: a gambling economy not an industrial economy.

The emergency he conjured does not add up per a recent Gallop report: 75% of Americans see immigration as a "good thing" and 58% are opposed to "substantial expansion" of a border wall between the US and Mexico. If indeed he is following the Nixon playbook he is on a very slippery road.

What about us Pinoys? Let us do our homework in expanding economic and social opportunities for all of our people. But is there a commissar telling us that we are only good as a regional laggard? We can always protest ... and lead a prosperous life as a nation!

And even more fundamental, we can no longer hide behind the skirts of Vatican and harbor tyranny and injustice - as in a culture of impunity. Where Rizal failed, will McCarrick succeed? 

Gising bayan!

"Why independence, if the slaves of today will be the tyrants of tomorrow? And that they will be such is not to be doubted, for those who submits to tyranny loves it." [We are governed by Rizal's 'tyrants of tomorrow' Editorial, The Manila Times, 29th Dec 2015]

" Now I know why Paul dared to speak of 'the curse of the law" (Galatians 3:13). Law reigns and discernment is unnecessary, which means there is little growth or change in such people. When you do not grow, you remain an infant. "[Faith and Science, Open to Change, Richard Rohr's Daily Meditation, 23rd Oct 2017]

"As a major component for the education and reorientation of our people, the mainstream media - their reporters, writers, photographers, columnists and editors - have an obligation to this country. . ." [Era of documented irrelevance: Mainstream media, critics and protesters , Homobono A. Adaza, The Manila Times, 25th Nov 2015]

"National prosperity is created, not inherited. It does not grow out of a country's natural endowments, its labor pool, its interest rates, or its currency's value, as classical economics insists. . . A nation's competitiveness depends on the capacity of its industry to innovate and upgrade. "[The Competitive Advantage of Nations,  Michael E. Porter , Harvard Business Review, March-April 1990]

"You have to have a dream, whether big or small. Then plan, focus, work hard and be very determined to achieve your goals." [Henry Sy Sr., Chairman Emeritus and Founder, SM Group (1924 - 2019)]

"Learning and innovation go hand in hand.The arrogance of success is to think that what you did yesterday will be sufficient for tomorrow." [William Pollard, 1911-1989, physicist-priest, Manhattan Project]

"Development [informed by a people's] worldview, cognitive capacity, values, moral development, self-identity, spirituality and leadership. . ." [Frederic Laloux, Reinventing organizations, Nelson Parker, 2014]

Tourism and Agriculture

Beyond OFW remittances and the BPO industry, tourism and agriculture are near and dear to our hearts because of their impact on employment. In other words, given poverty is our albatross, we strongly feel for these sectors.

These four (4) sectors contribute 40% of GDP, even greater than industry’s 31%. The balance comes from services. And all told, they generate a sizeable local economy that is bigger than that of Malaysia, Thailand and Vietnam.

Yet our poverty rate still makes us the regional laggard – given our inward focus. And why Vietnam outperforms us in exports, 4.5 to 1, and ours are flat versus 10 years ago. On the other hand, the fact that we created a handful of Forbes billionaires blurs our perspective – i.e., we are doing something right. Aha, “inclusive” is what is missing! Let’s do CSR. Let’s do this, let’s do that.

The blog has pointed to our lack of foresight and our instincts of hierarchy and paternalism. We may be kicking and screaming given PH poverty but in our heart of hearts we feel for oligarchy. Because they are Pinoys too – and patronage always comes in handy, it’s our crutch. And because of our instincts of compassion and paternalism, we want these sectors to grow.

Whether it’s instincts or inside the box thinking, our inability to overcome “insanity” – doing the same thing over and over again … and expect a different outcome – is our biggest challenge.

But let’s digress for one moment. The wife, daughter and writer are in the Philippines for the family’s annual homecoming. And they saw a bit of tourism and agriculture and were able to make the contrast versus Ubud, in Bali – their first holiday stop after their arrival – when they drove from Alabang to Tagaytay and then to Liliw and Cavinti in Laguna, with a lunch stop in Pagsanjan on the return. [If you like “krispy pata” and “binagoongan” look for the restaurant at the center where they prepare them as one dish.]

The daughter continued on to Boracay and El Nido with two friends from New York and a cousin. This family is a sucker for holidays, and when the son-in-law can take time off, it becomes a party of four – like when they spent a week in St. Barth in early December. It’s a carryover from the writer’s days in his old MNC-company where every first working day of January, everyone posts their planned holidays for the year – so the world (subsidiaries) can take note and ensure meeting and travel plans are in sync.

When we talk of MNC efficiency, this is one minor element. And which the writer’s Eastern European friends have embraced. The downside is [not really; given the productivity inherent in today’s technology, it’s a cakewalk] even in Bali the writer would go over the daily sales report versus the inventory of products and the forecasts as well as the profit picture that is constantly updated.

Disclosure: This is where big data comes in and as important is the exercise in analytics: Where is growth coming from; How to exploit them; What is restricting growth; How to fix them; How to leverage products, customers and markets as a universe to attain synergy and generate even greater growth and profitability? Think how our neighbors have left us in the dust. They do analytics as a matter of course. We talk about it. And the gap in experience means it will get worse before it gets better for Juan de la Cruz.

That’s a longwinded way to … establish the predicate of this posting.

While on a bicycle sightseeing tour in Ubud, which includes pedaling around rice paddies, one will not miss how efficient the irrigation system is. Says Wikipedia: “Subak is the water management (irrigation) system for paddy fields on Bali island … developed in the 9th century … Irrigation is not simply providing water for the plant's roots, but water is used to construct a complex, pulsed artificial ecosystem. The system consists of five terraced rice fields and water temples covering nearly 20,000 hectares. The temples are the main focus of this cooperative water management, known as subak.”

Another thing a visitor will notice is the center of Ubud, civilized and organized – i.e., there is efficient coexistence and order – that they attract 3 million foreign tourists every year. That is more than the 2 million that Tagaygay gets, both local and foreign. And population-wise, they’re roughly equal: Tagaytay = 72,000; Ubud = 74,000.

We need to better appreciate time and space and the relationships that spell out coexistence and order. In other words, there can be no efficient coexistence and order when time and space is not respected. The evidence? Think of how anarchy has invaded our land use and traffic system – if we can call it that. As well as the constant themes of the blog: from our failure in infrastructure development to industrialization to innovation to global competitiveness. It was plenty clear in Tagaytay, Liliw and Cavinti.

On the other hand, consider this blog post from a woman in Florida: “Before most tourists are wandering the streets the Balinese are out sweeping up all of the previous day’s offerings from around their businesses and homes. Buckets of water are used to wet down the sidewalk and they scrub not only the perimeter around the doorway, but the gutters too.

“The streets of Bali are spotless in the early morning hours and sidewalks, steps, statues, and temples are now ready for the daily gift of offerings meant to appease and please the various gods and demons of Balinese Hinduism.”

Let’s then get to Liliw. The Church of St. John the Baptist is central to Liliw; and like most parishes in the country, the parish church is the hub. And together with its river and the crystal-clear water galloping down Mount Banahaw and the footwear industry, these elements would define for the writer what Liliw is.

If that sounds parochial, the locals aren’t when it comes to the footwear industry. They understand “nationalism” better than Trump and the Brexiteers? Consider: “We don’t like to be sitting the whole day making slippers; we want something more interesting. So we rely on Batangas and Quezon to supply us the labor.”

Even a young boy of less than 10 understood what economics is, the law of supply and demand, for example. While doing selfies in the church grounds, the group was approached by this boy. “These 3 bundles of “paco” leaves sell for 20 pesos per but I will give them to you for 50.” Later on, while window shopping, the boy came again. “It’s after 5, you can have these 3 bundles for 20.” Jeff Bezos will hire this boy in a flash.

About a half-hour drive up Mount Banahaw was another selfies’ spot and where the family met a farmer. “We do tomatoes, cabbage and ampalaya to optimize the yield. These plots of land have different owners, dating back generations. Those whose forebears were truly industrious got the largest plots; all they had to do was make the claim to earn the rights to these plots.”

Livelihood undertakings make these rural folks thrive. And the family saw that from the Airbnb accommodations which the daughter found while in Bali – and signed up for: Tagaytay, Liliw and Cavinti. Livelihood means marginal income and very limited multiplier effect to impact a wider population. And why poverty continues to haunt us. And simply mouthing a euphemism like “inclusive” doesn’t make it so – because of PHL underdevelopment. See above re foresight and the constant themes of the blog. 

After ten years of postings – given the consistency of the themes – those who read the blog will recognize its message re incremental and linear thinking. That this thinking process, which is universal, is not geared to developing one’s foresight and embracing lateral and creative thinking. And why the world can count with its fingers how many visionaries walked the face of the earth.

And Stephen Covey captured it succinctly in his “7 Habits of Highly Effective People,” and Habit #2 expresses it as: Begin with the end in mind. That’s gobbledygook to over 99% of people because logical, incremental and linear thinking is how we all learned to think.

And to paraphrase Steve Jobs’ address to Stanford graduates, you cannot connect the dots if you don’t have the experience; it only comes after you’ve gone through the pain of creativity. In other words, creativity is simply connecting the dots. Think of why the Asian Tigers and even Vietnam are running rings around us: they have the experience and we don’t when it comes to infrastructure development, industrialization, innovation and global competition.

How does it relate to tourism and agriculture? Viewed from the perspective of Economics, we know the imperative of the factors of production; and so they have been our focus in order to raise productivity. That is established knowledge and we must embrace it. But the 21st century demands something beyond, i.e., innovation and global competitiveness. Recall how often the blog speaks to the imperative of benchmarking.

And this is where we fall flat on our face given our inward and backward instincts – as opposed to outward and forward. Think foresight, that is, beyond logical, incremental and linear thinking.

In agriculture, we must benchmark against the products our neighbors dominate. In other words, agriculture is beyond food security, another euphemism; nor is it copra because it is our comfort zone. They are able to dominate a portfolio of agri products because they understand the global market and have figured out which will generate the requisite volumes – revenues and margins – for them to have the confidence to aggressively invest behind these products.

Begin with the end in mind: Define the products that will be the priority for Philippine agriculture, that is, after we went through the benchmarking process. And then work backwards to figure out the 3 sets of dynamics that must become our expertise to deliver the desired outcome: (a) the product mix, i.e., what we must produce and why and how to win and generate the desired revenues and margins; (b) the resource mix, i.e., beyond the factors of production that will raise the probability of winning in the global arena, e.g., economies of scale; and (c) the execution mix, i.e., proactively manage the enterprise, e.g., who will do what, why, when, where and how?

And if we do a rigorous job of benchmarking, these elements are where our neighbors put lots and lots of investment. To us Pinoys investment is all about capital – as in and oligarchy and the big boys. And why we don’t understand that insights are the key to benchmarking.

We must move beyond poverty – and thus livelihood undertakings – as the platform for the agribusiness industry. If the public sector cannot manage such a global undertaking, it makes sense to partner with the private sector, including foreign enterprises that can contribute money and technology. Even our big boys can’t claim the expertise that is called for. And why Vietnam’s exports are 4.5 times more than ours.

This model works in tourism too. For example, Trip Advisor identified the 30 top attractions in the Philippines, i.e., these are our crown jewels that can win in the global arena. [See above re benchmark against the agri products our neighbors dominate.] They must be the focus. Not every tourist spot imaginable can make this cutoff. And this is where crab mentality sinks us to regional laggard status. [See above re time and space and our blurred perspective.]

And so we jump to the conclusion that “inclusive” is key that we forget the imperative, “what is our priority?” Think Pareto. In a previous post the blog discussed how the Pearl River Delta economic development initiative became the catalyst that made China the world’s number one manufacturing enterprise.

And then just like in agriculture, after we defined the priority attractions for Philippine tourism, work backwards to figure out the 3 sets of dynamics that must become our expertise to deliver the desired outcome.

Our small entrepreneurs and subsistence farmers that are focused on livelihood undertakings are thriving albeit generating marginal incomes. It is our leadership and industry that must step up to make PHL a global player. And being a global player has a knock-on effect on small enterprises, e.g., they can be tapped to be providers to the bigger enterprise. For example, how do we overcome the export advantage of Vietnam or how can Tagaytay attract 3 million foreign tourists like Ubud?

Not if we keep to our fixed mindset. That we are destined to be a third-world, underdeveloped, poverty-gripped nation and can’t foresee PHL as a developed, wealthy, first-world nation. And not if we can’t overcome our instincts: We are parochial and insular; We value hierarchy and paternalism; We rely on patronage and oligarchy … that ours is a culture of impunity.

“Why independence, if the slaves of today will be the tyrants of tomorrow? And that they will be such is not to be doubted, for he who submits to tyranny loves it.” [We are ruled by Rizal’s ‘tyrants of tomorrow,’ Editorial, The Manila Times, 29th Dec 2015]

“Now I know why Paul dared to speak of ‘the curse of the law’ (Galatians 3:13). Law reigns and discernment is unnecessary, which means there is little growth or change in such people. When you do not grow, you remain an infant.” [Faith and Science, Open to Change, Richard Rohr’s Daily Meditation, 23rd Oct 2017]

“As a major component for the education and reorientation of our people, mainstream media – their reporters, writers, photographers, columnists and editors – have an obligation to this country . . .” [Era of documented irrelevance: Mainstream media, critics and protesters, Homobono A. Adaza, The Manila Times, 25th Nov 2015]

“National prosperity is created, not inherited. It does not grow out of a country’s natural endowments, its labor pool, its interest rates, or its currency’s value, as classical economics insists . . . A nation’s competitiveness depends on the capacity of its industry to innovate and upgrade.” [The Competitive Advantage of Nations, Michael E. Porter, Harvard Business Review, March–April 1990]

“You have to have a dream, whether big or small. Then plan, focus, work hard and be very determined to achieve your goals.” [Henry Sy Sr., Chairman Emeritus and Founder, SM Group (1924 - 2019)]

“Learning and innovation go hand in hand. The arrogance of success is to think that what you did yesterday will be sufficient for tomorrow.” [William Pollard, 1911-1989, physicist-priest, Manhattan Project]

“Development [is informed by a people’s] worldview, cognitive capacity, values, moral development, self-identity, spirituality, and leadership . . .” [Frederic Laloux, Reinventing organizations, Nelson Parker, 2014]

Our reactive posture

"In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought ... The potential for the disastrous rise of misplaced power exists, and will persist." [ Ike's Warning Of Military Expansion, 50 Years Later, NPR Staff,  npr.org , 17th Jan 2011]

Eisenhower came to mind after the writer read the following: "With DA incompetence, more private involvement needed," Rudy Romero, Business Class,  manilastandard.net , 31st Jan 2019.

"This state of affairs can not be allowed to continue. The growth of this country's economy, the welfare of the rural communities and the nation's food and fiber can not continue being held to ransom by an entity called the Department of Agriculture.

"The time has come for the private sector to give serious consideration to increasing the extent of its involvement in Philippine agriculture. More specifically, the time has come for the zaibatsus of the Philippine economy to make greater investments in this country's agricultural industries. "

Indeed it makes sense. But it must be clarified. Recall how we assumed OFW remittances made sense, ie, employment is key and alleviates poverty. Ditto for the BPO industry. Yet, after the dust settled, beyond the Asian Tigers, even Vietnam drastically reduced poverty and left us the regional laggard.

Consider: We are two generations behind our neighbors: (a) the first can be attributed to our failure in infrastructure development and industrialization; and (b) the second is the outcome of the first, ie, innovation and global competitiveness.

And it boils down to our restrictive economy and why we lag in FDI. And while our local economy is larger than those of Malaysia, Thailand and Vietnam, for example, we lag in exports by a mile, eg, Vietnam's exports are 4.5 times ours: PHL = US $ 48.2-B; Vietnam = $ 214.1-B.

In other words, despite the size of our local economy and the Forbes billionaires it created, the multiplier effect of our economic output pales in comparison with the export advantage that Vietnam has. It explains why poverty continues to haunt us.

And it exposes "Pinoy abilities," a product of our reactive posture and manifested in a knee-jerk and / or a stop-gap.

How else to explain why we're at least 50 years behind in infrastructure development and why EDSA is a continuing nightmare, for example, despite a supposed fix called the PITX. "Policymakers and the public had such high hopes when the Parañaque Integrated Terminal Exchange (PITX) started operations in November 2018. Due to poor planning, lack of foresight, and perhaps even corruption, the P2.5-billion multimodal terminal risks becoming another white elephant. "[Editorial, The Manila Times, 3rd Feb 2019]

And why despite two administrations since Arangkada, we are yet to demonstrate a dogged commitment to the JFC's seven big industry winners - and tossing our restrictive economy. And are still to recognize that the war on poverty, and more recently, the war on drugs, reveals our lack of foresight and why we constantly fall into the trap of a knee-jerk or a stop-gap.

Let's get back to Eisenhower, an ex-military, who knows what he's talking about. And his message is something we Pinoys know by heart: Power corrupts and absolute power corrupts absolutely ... And even our beloved Church is not exempt.

"Vatican magazine denounces sexual abuse of nuns by priests,"  Associated Press ,  inquirer.net , 1st Feb 2019. "If you point to power, to clericalism, the abuse against religious sisters takes on another aspect and can finally be recognized for what it is: that is an act of power in which touch becomes a violation of one's personal intimacy ... "

Absolute power as in tyranny explains our backwardness as an economy, nation and people. But we take it for granted being embedded in our instincts. That despite Rizal our paradigm is set in stone. Recall Padre Damaso.

Consider: " Now I know why Paul dared to speak of 'the curse of the law' (Galatians 3:13). Law reigns and discernment is unnecessary, which means there is little growth or change in such people. When you do not grow, you remain an infant. "[Faith and Science, Open to Change, Richard Rohr's Daily Meditation, 23rd Oct 2017]

The concept of growth mindset versus fixed mindset goes beyond the secular - with Christ being the exemplar, ie, he who upended orthodoxy. 

Consider too: "St. Bonaventure of Bagnoregio (1217-1274) took Francis and Clare's practical lifestyle to the level of theology, philosophy, and worldview. Unlike many theologians of his time, Bonaventure paid little attention to fire and brimstone, sin, merit, justification, or atonement. His vision is positive, mystic, cosmic, intimately relational, and largely concerned with cleaning the lens of our perception and our intention so we can see and enjoy fully! "[The Franciscan Vision, Richard Rohr Daily Meditation, 26th Nov 2018]

If that is beyond our comfort zone, it should not be a surprise. Because Franciscan theology is not mainstream, and why there was no pope named Francis until Pope Francis. While 16 were named Benedict - it reinforces "the  unity of Europe and a powerful call to the irrefutable Christian roots of European culture and civilization."  [ Catholicnewsagency.com ]

The first seven ecumenical councils were convoked by emperors, the polar opposite of St. Francis, the first (AD 325) being Emperor Constantine I in Nicaea (in today's Turkey;  an applicant to accede to the EU since 1987, but since 2016 accession negotiations have stalled.)

Our history, given how it is intertwined with the Church, informs our instincts of hierarchy ... and paternalism, including giving a wink and a nod to malfeasance especially by the powerful. 

Of course we need the country's corporate giants to drive the Philippine economy. But we must move away from our reactive posture.

What we must consider is to challenge ourselves, including our corporate giants, to develop our sense of foresight. Our challenge goes beyond agriculture: We must imagine and visualize PHL beyond simply addressing poverty ... and in fact rapidly attaining economic development. It is beyond incremental and linear thinking ... and in fact attaining a wealthy nation status. 

And, of course, we must learn to walk before we run. And must not conflate the problems of the world - and be frozen into inaction. We must instead guard against analysis-paralysis. Our underdevelopment, which is our own doing, is not equal to the problems of the West as in Brexit, for instance.

If the Brits are in mourning the Vietnamese are in celebration. Think of the laws of big and small numbers. Vietnam's $ 200-B exports drastically reduced poverty, but big Western countries need more.

Vietnam will continue to get better like China did in producing goods that will find a bigger market. It's called experience which PHL does not have given our inability to industrialize - and why we're reduced to "kuro-kuro." What to do? It's not in our instincts to look outward and forward.

Kuro-kuro is another expression of denial and why we have not leveraged the value of benchmarking. Recall how we focused on Lee Kuan Yew being an autocrat while ours is a democracy to crow about. Neither is insightful - which is what benchmarking is - and why we do not learn from others. We would rather talk about their shortcomings and mirror Juan Tamad - wait for the spoils to be served on a silver platter.

It also explains our pitiful innovation quotient. We can not leapfrog innovation efforts if we continue to reinvent the wheel. The key is to quickly learn from others and build upon established knowledge. [Think how the Chinoys were able to dominate the Philippine economy.] It will not happen if we continue to reinvent the wheel. But it will guarantee PHL falling behind our neighbors, generation after generation.

But let's get back to the problems of the world which we alike to opine about: Brexit remains in limbo with its nightmarish potential conclusion that even right-leaning Hungary had to accept EU's supervision of their judicial system. It is very easy to be enamored by the new buzzword of "slowbalisation."

In other words, right-wing nationalism is not a panacea.

Water seeks its own level. Hitler, the right-wing nationalist and poster boy of fascism, found his match in Roosevelt and the Allied Forces ... The universe is a dynamic 24/7 phenomenon ... And man has demonstrated his divinity to respond to the cycle of global upheavals. Think Franciscan theology, and its emphasis on man being created in the image and likeness of the Creator, human and divine.

If we want to be secular, we can go back to growth mindset versus fixed mindset. And our DOST, as it gains more experience in the pursuit of innovation, will recognize its multi-faceted approaches ... and infinite facets.

Innovation is not necessarily homegrown. Parochialism and insularity in fact undermines innovation. Today's major car manufacturers as friendly competitors, for example, are partnering to discover tomorrow's technology. And given man's needs are infinite - as in ever-changing - innovation, being their mirror image, is likewise infinite.

Try to keep track of the number of apps you can download from the Apple Store, for example. Necessity is the mother of invention. In the meantime there is fear of the unknown. See above re Roosevelt: "The only thing we have to fear is fear itself."

And there is a more recent history the writer witnessed 16 years ago when he first met his then new Eastern European friends - from the poorest country in Europe, born and raised under Soviet rule and as socialists and deemed in dire need of development assistance by the West as their nation prepared for accession into the EU. 

Today they are no longer foreign to innovation ... and development. [See below re Laloux, Reinventing organizations.] In fact they've thrived through such global upheavals as the 2008/9 Great Recession and the current wave of right-wing nationalism, ie, their overseas business keeps getting bigger and bigger and continues to dwarf the local counterpart.

Because they have a dozen brands that they are constantly upgrading to win in the global arena while relentlessly developing new products. What's driving their product ideas? Human needs; not rocket science but day-to-day needs! The fear they once had 16 years ago has turned into a celebration no different from our neighbors', the Vietnamese. 

Of course it is easier said than done. Think foresight. And their mantra is simply, "to be the best in business." They had to overcome old instincts developed over decades being the poorest nation in Europe; and where tyranny ruled courtesy of the Soviet empire.

Earlier the writer saw a similar challenge in China. They were a more purposeful people and demonstrated Deng's mantra: Beg for Western money and technology. They appeared at the doorstep of the writer's old MNC-company and offered to a potential partnership the only thing they can offer. "All we are able to offer is this business, this old factory and very tiny brand." 

This scenario was like a template as Chinese small enterprises in countless numbers opened the country to Western money and technology. Today they are poised to overtake the US and be the largest economy. Does it mean the world is coming to a screeching halt? See above re water seeks its own level. 

But what about us Pinoys? We must be thankful we have a Rizal, who was prescient to admonish us ... Although we can always choose to be the present-day Padre Damaso - and be the laughingstock of the region if not the world.

"Why independence, if the slaves of today will be the tyrants of tomorrow? And that they will be such is not to be doubted, for he who submits to tyranny loves it. "[We are ruled by Rizal's 'tyrants of tomorrow,' Editorial, The Manila Times, 29th Dec 2015]

" Now I know why Paul dared to speak of 'the curse of the law' (Galatians 3:13). Law reigns and discernment is unnecessary, which means there is little growth or change in such people. When you do not grow, you remain an infant. "[Faith and Science, Open to Change, Richard Rohr's Daily Meditation, 23rd Oct 2017]

"As a major component for the education and reorientation of our people, mainstream media - their reporters, writers, photographers, columnists and editors - have an obligation to this country. . . "[Era of documented irrelevance: Mainstream media, critics and protesters, Homobono A. Adaza, The Manila Times, 25th Nov 2015]

"National prosperity is created, not inherited. It does not grow out of a country's natural endowments, its labor pool, its interest rates, or its currency's value, as classical economics insists. . . A nation's competitiveness depends on the capacity of its industry to innovate and upgrade. "[The Competitive Advantage of Nations,  Michael E. Porter , Harvard Business Review, March-April 1990]

"You have to have a dream, whether big or small. Then plan, focus, work hard and be very determined to achieve your goals. "[Henry Sy Sr., Chairman Emeritus and Founder, SM Group (1924 - 2019)]

"Learning and innovation go hand in hand. The arrogance of success is to think that what you did yesterday will be sufficient for tomorrow. "[William Pollard, 1911-1989, physicist-priest, Manhattan Project]

"Development [is informed by a people's] worldview, cognitive capacity, values, moral development, self-identity, spirituality, and leadership. . . "[Frederic Laloux, Reinventing organizations, Nelson Parker, 2014]