What to do?

[Why is ours a damaged culture? Then consider: We are too weak to face a pandemic and the 21st century. Beyond survive, how can we make Juan de la Cruz thrive?]

“Here is a land in which a few are spectacularly rich while the masses remain abjectly poor. And where freedom and its blessings are a reality for a minority and an illusion for the many. Here is a land consecrated to democracy but run by an entrenched plutocracy, dedicated to equality but mired in an archaic system of caste. 

“But the fault was chiefly their own. Filipinos profess the love of country, but love themselves – individually – more.” [Ninoy Aquino, Foreign Affairs magazine, July 1968; Stanley Karnow, New York Times Magazine, “Cory Aquino’s Downhill Slide,” 19th Aug 1990.]

What to do?

If we take off our caste system’s mask, we will stop to think we are a poor, underdeveloped country – that will struggle post-COVID-19. The pandemic created a level playing field of sorts. Even America is vulnerable.

Recall the writer’s Eastern European friends kicked the butts of Western giants post the 2008 Global Recession. They have the playbook and just dusted it off to gear up for COVID-19. But they also doubled profitability last year. Simply put, they have a year’s profitability to burn – to fight and again come out the more robust post this crisis.

That means they can access raw materials, bite the bullet assuming prices are rising, keep the factories running – they do individual checks of workers twice a day and tests as often as necessary. How did they do it? They showed the local government how to manage the pandemic and led the business community in funding the campaign. The town did not get a surge like the major metro areas.

They do dynamic quarterly production and sales planning while the writer is a lockdown in suburban New York. Yet, he enjoys the “view” from his laptop – how Big Data plays out – and does his analytics. And he gets his feedback to people in different parts of the world. Take Ukraine or Romanian or the New York metro area market, for example.

Ships are still sailing from Europe to North America. In other words, Pareto is a dynamic phenomenon, like photosynthesis. One market may be slow, but when a business has a portfolio of products, there will be those that will defy the odds. Think of how toilet paper and sanitizers are always out of stock in retail stores in the West – but not only.

Recall these friends’ mindset is to create a virtuous circle. They are in continual learning mode, developing new products, conscious of the hierarchy of human needs, and respect for human dignity – they are a perpetual fountain of innovation. Unsurprisingly, their business and profitability are getting more robust year after year.

We in the Philippines must start somewhere. In an earlier posting, the blog presented how we can prioritize the initiatives from Arangkada, AmBisyon, the 42 DTI’s industry road maps, and Tatak Pinoy.

What can we do as individuals to get Juan de la Cruz out of his stupor? This crisis is not a joke. It will get worse before it gets better as we know it.

Who has access to Sec. Dominguez or Mr. Ang of San Miguel? To make them revisit how we are pursuing the growth, progress, and development of this country? Or, more precisely, how can we embrace a dynamic world view so that we are in sync with this dynamic universe?

The good news is that the West is as vulnerable as everyone.

Consider these “brands that may not survive COVID-19: (1) Neiman Marcus; (2) JCPenney; (3) AMC Theatres; (4) Sears; (5) J. Crew; (6) Bed Bath & Beyond; (7) Hertz; (8) Steak ‘n Shake; (9) Nordstrom; (10) GNC; (11) Ruby Tuesday; (12) Gold’s Gym; (13) Norwegian Cruise Line; (14) Party City; (15) Modell’s Sporting Goods; (16) Best Buy.” [USA Today, 12th May 2020]

That’s why the blog had raised the question of whether Vietnam is more impoverished than we are and can partner with Samsung to generate more revenues than our eight top enterprises in the Forbes list combined, why can’t we?

And that should be challenging enough for Messrs. Dominguez and Ang to pause and ponder.

If we aren’t held back by our caste system, we won’t be intimidated by competition, whomever they may be, and wherever they are. 

Or we would not have kicked out the US military. How shortsighted do we want to be? Why do we engage in self-flagellation? Trump may be an idiot and a moron – even a tyrant – so said those who knew him. Yet, the institutions in this pluralistic and diverse culture will find its bearings as history demonstrated time and again.

But how do we undo idiocy in the Philippines unless we upend our caste system? We mirror ourselves when we define who our friends are, which is not a virtuous model for betting our future.

We must learn to die with our ego-self to give room for our true-self, so says Franciscan theology. The true-self is what the Creator pronounced as “good.” It seeks the virtuous circle, not the vicious one. 

Let’s get back to Vietnam to appreciate how we can replicate a virtuous circle. Consider these characteristics that now define Vietnam and why the international institutions see them on track to overtake even Singapore. Beyond Samsung, they also successfully partnered with Apple recently to manufacture the AirPods. And we’re still stuck doing chips.

Vietnam’s exports (2019) are over $300 billion or more than four times ours. They can pay the universal base income (UBI), and we cannot, so our poverty rate is almost three times theirs. Why? Our employment comes mostly from MSMEs, about two-thirds, and they cannot generate revenues like Vietnam’s exports, which are higher-margin businesses, to boot. 

That is not rocket science but simple arithmetic. Yet, it may sound Greek to Juan de la Cruz, given our parochial and insular instincts. For example, we had experts behind several inward-looking interventions like the comprehensive agrarian reform program, the 4Ps, the BPO industry, among others. Indeed, we had experts too behind EPIRA and the water distribution privatization. How come we can’t provide the basics of water and electricity?

Recall the levels in human development, and the square-one is absolutism. It is not that expertise is wrong, but absolutism is folly. And why undertakings mustn’t overlook dynamism. Sadly, our caste system will always stand in the way. Moreover, unlike in advanced countries where expertise is in great abundance, we encounter fewer of them at home. That is why the blog often references supposed gold standards, yet upended because this universe is a 24/7 dynamic phenomenon, e.g., Apple over IBM.

But let’s resume the above analogy. The two drivers of the Philippine economy (a) OFW remittances and (b) the BPO industry generate roughly $60 billion but are nowhere near the over $300 billion Vietnam has under their belt because of exports.

Are POGOs the answer or the 4Ps? Or even tax rationalization? In the world of corporate America, that’s called financial mumbo jumbo, i.e., we are way behind the curve!

A virtuous circle is a product of dynamism and forward-thinking, not misplaced compassion. We cannot squeeze blood out of a stone. That is why we must seek the virtuous circle.

But can Juan de la Cruz embrace a dynamic and growth mindset and be a functioning element of this dynamic universe?

Can we, in our respective circles, get the rest moving in that direction? Boo Chanco shared the Zoom discussions with his FEF friends. Can they switch the topic next time?

What about the virtual classrooms that have become the COVID-19 normal? How can we get young people likewise to develop a dynamic and growth mindset?

Same old, same old will guarantee that we sink deeper into the abyss.

Gising bayan!

“True social reform has little to do with politics. To unmoor ourselves from the burdens of the past, we must be engaged in the act of continual and conscious self-renewal. All men are partially buried in the grave of custom. Even virtue is no longer such if it is stagnant.

“Change begins when we finally choose to examine critically and then recalibrate the ill-serving codes and conventions handed down to us, often unquestioned, by the past and its power structures. It is essentially an act of imagination first.” [David Henry Thoreau; American essayist, poet, and philosopher; 1817-1862]

“Why independence, if the slaves of today will be the tyrants of tomorrow? Moreover, 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]

Stuck to a 6%-6.5% GDP growth-rate paradigm

[Why is ours a damaged culture? Then consider: We are too weak to face a pandemic and the 21st century. Beyond survive, how can we make Juan de la Cruz thrive?]

The Philippine GDP growth rate over the past five years averaged 6.33%; it was 6.306% the past ten, and fifteen years earlier, in 2004, it was a whopping 6.698%. They were all in the 6%-7% band, the global standard for a fast-growing economy.

Question: Who is the regional laggard today?

Does Juan de la Cruz only have a hammer – in his toolkit, aka his mindset – that for half a generation, he boasted about the GDP growth rate? In fairness, every so often, he thanked the OFW for paying the social costs to fuel our sprinting economy.

Enter: COVID-19. The good news is that every nation was held back by the pandemic. But if our mindset remains stuck in neutral, still proud of “Pinoy abilidad,” God bless us!

We must learn to walk and chew gum at the same time.

In an earlier posting, the blog discussed the Marcos 11 major industrial projects, circa 1979. And none of them drives the economy today like the OFW phenomenon and the BPO industry.

Since the time of the Aquino administration (2010-2016), we have had Arangkada on the table, and the 42 industry road maps on the DTI’s agenda. And in 2016, NEDA launched AmBisyon 2040, while a year ago, Senator Juan Edgardo “Sonny” Angara introduced Tatak Pinoy.

In other words, as far back as 41 years – over a generation – ago, to as recently as a year ago, we have attempted to move beyond the square-one of modern economic development, a service-consumption economy, and are yet to notch a win. Why? Because as recently as a week ago, the CB Governor was bragging about the $90 billion forex reserves.

In fairness, it was perhaps to assure us that we can deal with the fallout from COVID-19. But if our economic managers cannot walk and chew gum at the same time, as the last 41 years show, how do we expect Juan de la Cruz to know any better?

To pursue a significant undertaking demands a clear head, not premature, and a continual celebration. Indeed, to figure out and traverse the road from poverty to prosperity, it must be the song sheet that Juan de la Cruz must play.

Can we pause here for a moment and ponder how we can get our act together? Is that what the economic cluster within the cabinet must answer? When the Duterte administration came, this team found time to meet society at large to explain the Duterte “economic program.” Yet, the real question of Juan de la Cruz is, can you figure out the road from poverty to prosperity and how are you going to lead us?

Consider: We are again in survival mode that the mental model responsible for the comprehensive agrarian and land reform program, the OFW phenomenon, the 4Ps, the POGO spectacle, among others, is at the forefront. Because “the Pinoy knee-jerk” is the hammer, the only one in our toolkit. So, let’s add the universal basic income (UBI) or “Balik Probinsiya?”

“Here is a land in which a few are spectacularly rich while the masses remain abjectly poor. And where freedom and its blessings are a reality for a minority and an illusion for the many. Here is a land consecrated to democracy but run by an entrenched plutocracy, dedicated to equality but mired in an archaic system of caste. 

"But the fault was chiefly their own. Filipinos profess the love of country, but love themselves – individually – more."

That was Ninoy Aquino, in Foreign Affairs magazine, July 1968, as quoted by Stanley Karnow in the New York Times Magazine article, “Cory Aquino’s Downhill Slide,” 19th Aug 1990.

As the blog has repeatedly said, no one can save us but Juan de la Cruz himself. But we need more than a hammer. Or the mindset that has turned us into the regional laggard. 

We need more than the success of our top eight enterprises in the Forbes list. 

We need more than the efforts of close to 800,000 MSMEs that employ two-thirds of the working population yet represent 99.6% of registered enterprises but only 35% of national income.

To add insult to injury, do we want to mandate the UBI for these MSMEs? Why can’t the big retail players hire every employee permanently, for example? Brick-and-mortar stores have fragile margins globally and going extinct in the West. If they go extinct in the Philippines, what picture do we expect to see?

What to do? That’s why the blog has never ceased discussing the imperative to move up to an industrial-investment economy. 

But before we get too far, let’s recall the distinction between analysis and analytics. Analytics demand forward-thinking, beyond incremental thinking. For example, back in 2004, 16 years ago, we had a GDP growth of 6.698%, and over the past ten years, we averaged 6.306%. If we analyze and compare the performance of our economy to the global yardstick of 6%-7% (a fast-growth economy), then we can indeed celebrate as we have been for the longest time. That is why we now own the “Dutch disease.”

We can be blind to the social costs OFWs pay for this misplaced celebration because we in the elite class enjoy the spoils, given our caste system. 

On the other hand, if we do the analytics, we will forward-think and ask, what is nirvana if the 6%-7% yardstick will take us a generation to lift Juan de la Cruz from abject poverty? The reason we fall back on quick fixes is that we recognize Juan de la Cruz cannot afford to remain poor counting generations.

To forward-think, we must be better than our neighbors that have overcome poverty. But that is too abstract for Juan de la Cruz to appreciate. We need something concrete, but we also know that the GDP growth numbers that have consumed us all these years can’t define nirvana. In an earlier posting, the blog introduced raising our GDP by an incremental $200 billion because that will put us ahead of Malaysia, Thailand, and Vietnam.

The exercise is also to distinguish “drivers” from “objectives.” The 6%-7% GDP growth metric is an objective from traditional economics that relies on monetary and fiscal policies as the drivers. But that is a very Western concept consistent with the free enterprise system and upended when the Asian Tigers demonstrated how to leapfrog economic growth and development. For example, beyond begging for Western money and technology, which Deng learned from Lee and Mahathir, China transformed the Pearl River Delta – mostly agricultural land – into a manufacturing hub and a global economic superpower.

Meanwhile, we can start with defining nirvana – a more tangible, profound “objective” – as raising our GDP by an incremental $200 billion. And to then prioritize the initiatives from Arangkada, AmBisyon, the 42 industry road maps on the DTI agenda, and Tatak Pinoy to be the “drivers” – to attain rapid growth, sooner than a generation if we stay with the 6%-7% norm.

Dynamism. Dynamism. Dynamism.

The dynamic behavior of COVID-19 is a lesson we must not take for granted. Organisms for good or ill are a dynamic phenomenon. How we win over the “vicious” ones presupposes that we are the “virtuous” counterpart. Satan is a given. We must make the choice of good over evil because we represent the good in the story of creation.

For example, the big players of the Philippine industry can be the likely source of new vigor for this economy. But they must shed our parochialism and insularity. That is why the blog has posed a challenge.

The next order of business must be: To replicate the success of the Samsung Vietnam marvel because that will put us a quarter of the way toward the $200 billion incremental GDP definition of nirvana. 

And given the magnitude of the task, we need the best players we can tap to form a small task force, and the blog suggested Mr. Ang of San Miguel. The writer doesn’t know him. The operative word is “small,” so we don’t imagine a big committee. And members of the task force must forego their interests and be dedicated to Juan de la Cruz, and led by Finance Secretary Dominguez. See above; what Ninoy Aquino said of us Filipinos.

Consider: Samsung Vietnam by its lonesome self, generates roughly the combined output of our OFWs and the BPO industry, and beats our top eight listed companies in the Forbes list, by a mile. That is why we may have to define a couple of other priority industries if we can’t identify one that will meet the desired outcome.

[Recall from an earlier posting that the exercise is for us to learn how to prioritize. Think of the Pareto principle and the imperative to overcome the crab mentality. And to adopt the “fast-fail” model of Silicon Valley of rapid prototyping. The object is to quickly gain knowledge in the pursuit of the undertaking while being in continual learning mode so that each prototyping cycle yields a better outcome. A project will have any number of subsets and may require a hypothesis that is tested and then translated into a prototype. The exercise must then be replicated to pursue the rest of the priority industries accordingly, and not try to implement all 42 industry road maps on the DTI’s agenda. We must learn from our failed attempts to chase industrialization. We must not bite more than we can chew.]

Then consider: We are still a lower-cost producer compared to the wealthy nations, especially in the West, but need the basics of water and electricity, and the vital infrastructure development. That holds even if we pay the equivalent of what OFWs make today to those hired to the enterprise that will be a match to Samsung Vietnam.

Note too that they can pay the UBI in Vietnam because their export revenues (of over $200 billion) generate higher margins than our MSMEs. Or even our big retail players. 

Pay is a function of the design of an enterprise, not an arbitrary or whimsical dictate. Recall why the MNC pay practices were the benchmark for the writer’s client-friends in Eastern Europe. The North Star of the enterprise is to compete and win against Western giants.

Recall personal responsibility is inherent in the free enterprise system. And so is transparency and the rule of law. Why? It must create a virtuous circle consistent with the story of creation and its subset, the garden of Eden.

That is why we need to boost our income streams big time. It cannot happen with happy talk and misplaced compassion. Or “pwede na ‘yan.” 

What about the global arena post-COVID-19? There is where the lower-cost producer wins, even in a decelerated global market. And we can be that lower-cost producer – as Samsung Vietnam is and why they generate revenues that dwarf even our big boys – given the pay levels of OFWs, assume they represent the benchmark, are still below the norm in developed markets.

Those familiar with the blog may recall that post the 2008 Global Recession, the writer’s Eastern European friends kicked the butts of Western global behemoths because of that cost advantage. But beyond that, they have relentlessly pursued the development of world-class products, continually expanding their portfolio.

And Western third-party providers of raw materials, which are likewise continually in pursuit of innovation and technology, have partnered with them. People go with the winners, not the losers. And they are today a more formidable competitor to these Western giants.

But we Pinoys will have to start somewhere, not drag our feet over decades and generations.

When and how do we introduce the imperative of dynamism to Juan de la Cruz? Should the educational system show the way? 

Sadly, we’re the regional laggard in higher education that may likewise explain our inability to walk and chew gum at the same time.

We cannot stick to a paradigm that has sunk us into the abyss. Our value of hierarchy and paternalism cum caste system is not limited to government and industry. It is present in the classroom too.

For example, professional jealousy is a given in education, as in “publish or perish.” That is why the blog has spoken to the way Fortune 500 companies in America took matters into their own hands. Their higher education shares the shortcomings. No, to lectures, but yes, to workshops, for example.

It is not to put the education community on the defensive, but it must step up to plate – of the story of creation too. It must rapidly learn dynamism. Recall the Ph.D. candidate the writer guided. He had access to the database commonly used in graduate research work, and could not help but shake his head. They were mostly dated when this universe we live in is a 24/7 dynamic construct.

In other words, institutions to be a subset of this universe must, by necessity, be dynamic. And why human needs are in a continuum and a perpetual fountain of innovation. Question: Does it explain why ours is a damaged culture? And why dynamism isn’t inherent in us?

That Ph.D. candidate, of course, successfully defended her thesis; and just the other day, she sent a proud note: “I am now the global marketing director of this major brand. The promotion came amid the lockdown mode we’re all in.” Why? Her dissertation was purposely designed to be executed and win in the real world.

But let’s bring it back to today. The administration and both the Senate and Congress are pulling together the must-do initiatives to restart Philippine life post-COVID-19.

Yet, that won’t suffice if we retreat to “Pinoy abilidad.” See above; what Ninoy Aquino said 52 years ago. We’ve wasted decades then, and we’ve lost even more since.

We must learn to walk and chew gum at the same time. Consider: We’re stuck to a 6%-6.5% GDP growth-rate paradigm when the road from poverty to prosperity for Juan de la Cruz demands dynamism and creating a sustainable, virtuous circle.

We must move from the square-one of modern economic development, a service-consumption economy that we’ve relied on for almost half a century, to an industrial-investment economy geared to win in the global arena. 

We must say goodbye to parochialism and insularity.

How will the economic managers figure out the road from poverty to prosperity? How will the administration lead Juan de la Cruz, given his need to aspire to be a wealthy nation?

Gising bayan!

“True social reform has little to do with politics. To unmoor ourselves from the burdens of the past, we must be engaged in the act of continual and conscious self-renewal. All men are partially buried in the grave of custom. Even virtue is no longer such if it is stagnant.

“Change begins when we finally choose to examine critically and then recalibrate the ill-serving codes and conventions handed down to us, often unquestioned, by the past and its power structures. It is essentially an act of imagination first.” [David Henry Thoreau; American essayist, poet, and philosopher; 1817-1862]

“Why independence, if the slaves of today will be the tyrants of tomorrow? Moreover, 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]

Creativity: You can only connect the dots going backward

[Why is ours a damaged culture? Then consider: We are too weak to face a pandemic and the 21st century. Beyond survive, how can we make Juan de la Cruz thrive?]

You can only connect the dots going backward, that is, with the benefit of experience. And that is how Steve Jobs defined creativity.

But we must first reject parochialism and insularity before we get to creativity. That is, to develop the instinct to look outward and forward. Because if we don’t, we won’t embrace the imperative to benchmark.

And it is when we are at home benchmarking will we gain the insights on how our neighbors figured out the North Star. And establishing the North Star – or defining nirvana – is the first step in the creative process. Without it, what is the object of the exercise in the first place?

In other words, we must pause and challenge Juan de la Cruz: Why is “the knee jerk” the “driving force” of this ship – we call the Philippines?

Consider: Marcos – with his “new society” – was to bring the old glory of this once “pearl of the orient.” “His economic counselor conceived and implemented (in the mid-70s) the historic dollar-remittance program for overseas Filipino workers worldwide.” [Wikipedia]

"Late in 1979, the Marcos government accelerated the launching of 11 major industrial projects: (1) Copper smelter; (2) Phosphate fertilizer; (3) Aluminum smelter; (4) Diesel engine manufacturing; (5) Cement industry expansion; (6) Coconut industry rationalization; (7) Integrated pulp and paper mill; (8) Petrochemical complex; (9) Heavy engineering industries; (10) Integrated steel project; (11) Alcogas." [https://www.csmonitor.com/1980/0919/091972.html]

These supposed major industrial projects will perhaps explain why Bongbong still claims his father was the greatest president.

How come the OFW phenomenon became the driver of the economy? And with the BPO industry, together they bring in foreign exchange to the tune of roughly $60 billion. Still, the CB governor crows about the $90 billion forex reserves, while none of the above-referenced major industrial projects can make the assertion.

It’s a misplaced boasting. Recall Donald Trump received $413 million from his father’s business empire, yet he declared bankruptcy six times. “No other banks would lend him except Deutsche Bank: $2 billion in loans and a wary board.” [https://www.nytimes.com/2019/03/18/business/deutsche-bank-donald-trump.html]

How does Trump do it? By undoing a great asset of his country, i.e., transparency as in checks and balances and the rule of law. In the meantime, he ensures his benefactors get their fair share of lowered taxes – plus a piece of the stimulus/relief package meant for those in need and embraced populism and voted him to the White House.

And he is fighting China for the latter to play it fair and square – from intellectual property rights to a lopsided trade balance to subsidizing favored industries to low regard for product quality and safety to playing games with forex. That will explain his reelection if it happens. Americans vote for the economy.

Is that what the country stands for? Because of polarization – aka dualism, the square-one of human development – presidential elections today are down to four swing states.

And surprise, surprise: Juan de la Cruz and Trump have something in common. They rely on “the knee jerk” – which Trump proudly turned into a book, “The Art of the Deal,” that the ghostwriter now regrets writing.

News item: “Rupert Murdoch called Trump a ‘f*cking idiot.’” And another: “Tillerson again refuses to deny he called Trump a ‘moron.’”

Those familiar with the blog will recall the writer doesn’t vote in US elections. The wife is a registered Republican, not surprising being a Wall Street family – i.e., invested in the market while the daughter and son-in-law are products of Wall Street. And the wife and writer pay a pair of city and state taxes plus federal. He also preaches “personal responsibility” as a free-enterprise practitioner and volunteer development worker.

If it is not apparent yet, the blog is demonstrating an approach to benchmarking, raising the question: What does America stand for? For example, people point to the pursuit of life, liberty, and happiness. Most nations may want to embrace that until they recognize that freedom demands a lot from its people, e.g., transparency and the rule of law and pluralism and diversity and personal responsibility, among others.

And they invoke Divine Providence, which brings us to the story of creation. And where dynamism and the virtuous circle are crucial elements. They explain Silicon Valley – San Francisco and San Jose – and Boston, San Diego, and Seattle, all innovation hubs.

In other words, America is not a static enterprise. It is a work in progress, aka the American experiment. Inherent in its dynamic character is the aspiration to be a perfect union. It doesn’t assume it will attain perfection and why it believes in second chances.

But those positives are just one side of the coin. For example, its Judeo-Christian heritage has been interpreted in absolute terms by the loudest segment of the country that polarization is the unmistakable outcome. And it includes “Build that wall.” That brings this once “beacon upon the hill” back to the square-one of human development, dualistic and absolute.

In more contemporary lingo, America needs a “uniter,” not a “divider." And it's history says it can right its ship.

The bottom line: Benchmarking doesn’t mean that the established benchmark is a model of perfection. The object is to find out what makes them tick. “Perfection” is not of this world. And in the case of the writer, he represents the desirable qualities of America by answering the call for volunteerism, paying taxes, investing in the market, but opting not to vote. Because freedom also means the freedom not to vote, as in to protest. Likewise, it is not absolute.

But let’s get back to the Philippines. Why can’t we be like Singapore, for instance? To us, a model must be perfect? And Singapore isn’t because Lee Kuan Yew was an autocrat? Again, benchmarking is picking and choosing what makes the established benchmark tick.

On the other hand, recall (a) the comprehensive agrarian and land reform program, (b) the 4Ps, and (c) the POGO spectacle, among others. And the absoluteness of a 6%-7% GDP growth rate.

With due respect to our economic managers, rationalizing taxation is not going to cut it. It will still take a generation before we see the light at the end of the tunnel, even before COVID-19.

In the meantime, we instinctively fall back on “the knee jerk.”

In fairness, there are (a) Arangkada, (b) AmBisyon, (c) the 42 industry road maps. And there is Tatak Pinoy. See above; the Marcos eleven major industrial projects.

What gives? Toss parochialism and insularity to learn to benchmark and figure out the North Star. Indeed, those are critical dots that are separate and eons apart and aren’t easy to connect.

That is why the blog ceaselessly speaks to Lee and Mahathir and Deng, begging for Western money and technology. There is no parochialism and insularity there. And they are the epitome of benchmarking – as in the West is the best practice model for development. But by no means is it a vote of absolute superiority.

On the other hand, Juan de la Cruz can’t walk away from his inward-looking bias. Benchmarking likewise gives insights on how to prioritize – as in Pareto. And more so, it reveals the North Star, the compass of advanced countries.

That brings us back to forward-thinking. Benchmarking demands, beyond analysis, analytics. And analytics can only be relevant if the exercise is in pursuit of a North Star; otherwise, it is an exercise in futility.

Sadly, we are way behind the curve, stuck in quick fixes and the crab mentality. And with a litany of must-dos. And where do we begin? See above, the Marcos eleven major industrial projects.

“My FEF friends had two Zoom discussions on a wide range of topics from finance to logistics to agriculture to transportation and anything else that could help us get going again. I only have space to focus on ‘Balik Probinsya.’ It is an all-encompassing proposal that’s not new, but covers several reform areas.” [Never waste a crisis, Boo Chanco, DEMAND AND SUPPLY, The Philippine Star, 1st May 2020]

Consider: How did China become the manufacturing hub of the world? Recall the Pearl River Delta Economic Development Zone. Or Singapore, in and of itself, is a model economic development zone being a tiny city-state. And Malaysia, where Mahathir prioritized KL over his hometown.

Why aren’t we benchmarking against these neighbors?

What must be our North Star? It is to be a developed, wealthy economy and nation. And that means figuring out and traversing the road from poverty to prosperity. Recall the pronouncement, “It is good” – which came from the Creator. While here we are, stuck on the war on poverty, especially in the rural areas. And as if our hands aren’t full, we added and applauded the war on drugs.

The story of creation is not about a quick fix; it took “seven days,” not a magic wand. It is a virtuous circle, i.e., sustainable, and manifested by the photosynthesis phenomenon.

Enter: COVID-19. Now we want to believe that the evolving rightist-nationalist sentiments in several countries that embraced populism will become the “new normal” – reinforced by the lockdown phenomenon?

But that is again an absolutist instinct.

Consider: “With much of the world still under a Covid-19 induced lockdown, the race is on to find a vaccine.  More than 100 are under development around the world, with six already undergoing clinical trials.

“In hopes of fast-tracking the process, the United Nations, several world leaders, and the Bill and Melinda Gates Foundation recently launched a global collaboration. Among them are governments, pharmaceutical companies, and other private sector actors to end the pandemic through more effective diagnostics, treatments, and, more importantly, a vaccine.

“Part of the initiative is a global pledging effort to raise $8.1 billion—roughly P411 billion—for medical research in these areas.

“We are already contributing to the global pandemic response in no small way. Our government is working so that clinical trials for Avigan—or the anti-influenza drug Favipiravir developed by Toyama Chemical Co. under Fujifilm Holdings—can be conducted here before the end of the month.” [Medical solutions to Covid-19, Sonny M. Angara, BETTER DAYS, BusinessMirror, 1st May 2020]

Consider: If that is how we thought before Samsung Vietnam came into being, would we have had the chance to host this significant foreign investment? Vietnam came after the Philippines in economic development, if we want to recall.

Creativity: You can only connect the dots going backward, so said Steve Jobs.

In other words, it is a function of experience. But how come the Vietnamese beat us to the draw with Samsung? Because they weren’t inward-looking and parochial, they benchmarked against their neighbors that had the best practice models in accelerating development. 

In the meantime, we are not gaining much experience, development-wise.

We don’t want Arangkada, AmBisyon, the 42 industry road maps, and Tatak Pinoy to go the way of the eleven Marcos industrial projects. What to do?

For example, the blog provided a simple definition of nirvana: We want an incremental GDP of $200 billion to put us ahead of Malaysia, Thailand, and Vietnam.

Where will these income streams come from, and how do we prioritize them? From Arangkada and Ambisyon and the 42 industry road maps and Tatak Pinoy. Can Finance Secretary Dominguez pull them into a collaborative group as in a small task force to answer such a question?

Forget about the war on poverty or Federalism or whatever for a moment.

There must be, in the small task force, a visionary and a tycoon like Mr. Ang of San Miguel, who has experienced doing business outside the Philippines. The group must be laser-like focused. For example, how do we replicate the Samsung Vietnam phenomenon?

Which industry must be the number one priority, not the ones favored by any of the tycoons? The task force must wear their Juan de la Cruz hat, not their business or vested interests. 

They must swear not to omertà but transparency because they shall commit to work for Juan de la Cruz, the principal equity ownership of the undertaking. 

Recall the hierarchy of his needs, beyond water and electricity and rapid infrastructure development, is to aspire to be a wealthy nation. We must not let our caste system perpetuate our blindness to human dignity.

Which foreign investor and technology can match the Samsung Vietnam model with the Philippines as the Asian partner? In other words, we must be looking at winning in the global arena, beyond the Philippines.

And what other two options must we consider – if there is not one single initiative that can do the trick?

Why must we do the exercise? Samsung Vietnam generates more than the combined revenues of our top eight listed companies in the Forbes list. And must be the benchmark.

What about dispersing industries outside Metro Manila? We must first learn how to win, win big, and at lightning speed. Think of the rapid prototyping model of Silicon Valley – to accelerate learning and be in continual learning mode.

Because what we want is to get on the road that we must traverse, from poverty to prosperity.

Can we see how the dots connect? From nirvana – of equaling the revenues of Samsung Vietnam – we must connect the dots going backward until we figure out the number one industry priority.

That is how Juan de la Cruz will learn how to prioritize and overcome the crab mentality. The exercise will get us a quarter of the way toward generating incremental GDP of $200 billion. Moreover, we would gain the experience of winning big and at lightning speed.

Creativity: You can only connect the dots going backward, that is with the benefit of experience.

The exercise will also reveal the location where we must erect such a significant undertaking as well as the support utility and infrastructure development it demands. Marcos failed because they did all eleven industrial projects all at once.

To be blind once is bad enough. To be blind eleven times is a ticket to hell. What more of 42 industries? In other words, they will open the door to greed, as in the unexplained wealth of Marcos and whoever else.

Gising bayan!

“True social reform has little to do with politics. To unmoor ourselves from the burdens of the past, we must be engaged in the act of continual and conscious self-renewal. All men are partially buried in the grave of custom. Even virtue is no longer such if it is stagnant.

“Change begins when we finally choose to examine critically and then recalibrate the ill-serving codes and conventions handed down to us, often unquestioned, by the past and its power structures. It is essentially an act of imagination first.” [David Henry Thoreau; American essayist, poet, and philosopher; 1817-1862]

“Why independence, if the slaves of today will be the tyrants of tomorrow? Moreover, 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]