Forward-think: Seek “learned optimism.”

But first, we must learn to overcome our caste system – i.e., the value of hierarchy and paternalism.

Recall why the blog keeps raising our instincts: We are parochial and insular. We value hierarchy and paternalism and rely on political patronage and oligarchy that ours is a culture of impunity.

Here’s a quote from an earlier posting: “Learned helplessness occurs when an individual continuously faces a negative, uncontrollable situation and stops trying to change their circumstances, even when they can do so. The term was coined in 1967 by the (American) psychologists Martin Seligman and Steven Maier.

“Engaging in activities that restore self-control can be valuable. Seligman later developed the concept of learned optimism: By explaining events to ourselves in a constructive manner and developing a positive internal dialogue, people can break free from a cycle of helplessness.” [https://www.psychologytoday.com/us/basics/learned-helplessness]

Let’s build on Seligman’s concept of “learned optimism.”

“Sustainable development,” Melandrew Velasco, EVERYMAN, manilastandard.net, 1st May 2021. “This reminds me of former President Fidel V. Ramos, who, during his incumbency, told members of the Rotary Tri-Districts 3050, 3860, and 3870 that in the game of development, there is nothing gained where we don't venture. That holds to this day.

“It is individual initiative and private enterprise that must provide the driving force for development. A published article quotes San Miguel Corporation President and COO Ramon S. Ang, saying it is SMC’s vision to lead efforts to deliver on national goals and help set the pace of progress in the country. ‘Our corporate slogan is to make the world better for Filipinos. I believe both describe our aspiration of making the Philippines succeed and improving the lives of our countrymen. These are the things that inspire and drive us and make us passionate about our work,’ he said.

“The investments of SMC are geared toward sustainable development—economic, environmental, social—not only in the National Capital Region but in every region across the country.” 

That is well and good. But how do we then push the envelope and overcome our inward-looking bias?

Sustainable development must mirror an ecosystem, the best model being the photosynthesis phenomenon. And it is characterized by interdependence. Plants and animals — and humankind — need more than oxygen to thrive in this universe. And Juan de la Cruz needs more than political patronage and oligarchy to become prosperous. 

Indeed, sustainable development is not a cakewalk — and demands setting priorities (aka the Pareto principle) while organizing in parallels, i.e., “the ability to connect unrelated questions, problems, or ideas from different fields.” [Christensen et al., “The Innovator’s  DNA,” Harvard Business Review, December 2009]

It is a dynamic of several elements — best exemplified by the concept of sets and subsets — and not one-dimensional as in hierarchy and paternalism. 

Put another way, and we must overcome the crab mentality and value personal responsibility for the common good. Forward-think and seek learned optimism.

Here’s another quote from an earlier posting: “Benchmark. Benchmark. Benchmark.”

“The purpose of benchmarking should be to get a broad background of an area of knowledge, plus knowledge of state of the art and who is advancing it, and what principles drive the challenge or problem.

“Benchmarking research is the process for rapidly learning the essence of the desired field of knowledge with interest in finding the leading edge.” [University of Delaware]

“We will not be like Vietnam – or the other Asian Tigers – but if we ever learn that there is more to the world than our caste system, it will open our eyes and minds to look outward and forward and learn to benchmark. Benchmarking in business and industry does not mean an enterprise must strive to be a clone. 

“During the infancy of Apple, Steve Jobs benchmarked his innovation and marketing efforts against the consumer-packaged goods industry.”

Consider: “PHL faces ‘fragile’ recovery — ADB,” Beatrice M. Laforga, BusinessWorld, 29th Apr 2021.

“THE Philippine economy’s recovery while expected is ‘fragile,’ the Asian Development Bank (ADB) said. It slashed its growth forecast to 4.5% this year due to uncertainties over the prolonged coronavirus pandemic.

“In its latest Asian Development Outlook report, the ADB said it now sees the country’s gross domestic product (GDP) growing by 4.5%, slower than its 6.5% forecast given in December and below the government’s 6.5-7.5% target.

“Among Southeast Asian peers, the Philippine economy lags behind Vietnam (6.7%), Malaysia (6%), and Singapore (6%), but at par with Indonesia (4.5%). This year, Thailand’s economy will grow by 3%, while Myanmar, which continues to face political and social unrest, is seen to contract by 9.8%.

“Mr. Bird said the Philippine economy’s growth would be driven by state spending, household spending, and exports, while private investments will remain subdued due to excess capacity across industries. Many companies are likely to delay investments and focus on debt consolidation, he added.

“Fiscal policy will expand this year by an equivalent of 1.3 percentage points of GDP. Household consumption could only rise moderately unless the economy reopens further.

“The pace of the country’s vaccination program will remain modest as risks of a global supply shortage remain.”

The bottom line: We have a structural problem and are playing catch up and must learn to “walk and chew gum at the same time.”

Again, from an earlier posting: “When we benchmark, especially against our neighbors, we (1) must seek knowledge of state of the art, (2) find the leading-edge, (3) who is advancing it, and (4) what principles drive the challenge or problem. In other words, to traverse poverty to prosperity is beyond “pwede na ‘yan.”

As the regional laggard, we’re still at ground zero.

“The Philippines is not food secure,” Yvette Natalie Tan, AVANT GARDENER, Manila Bulletin, 30th Apr 2021. “Agriculture workers remain one of the most marginalized sectors in this country. The average age of the Filipino farmer is 65 years old. Many farmers don’t want their children to follow because of the poverty and lack of opportunity associated with working in agriculture.

“And while many private citizens want to ‘help the farmer,’ many of them also don’t understand how the food system (which is pretty opaque, to begin with) works. People don’t understand that farming is a business. There is a tendency to think of the farmer as ‘someone that needs to be helped’ instead of a ‘small business owner whose business will flourish with proper support.’

“A good friend of mine put it very well: to encourage agriculture; we should stop thinking of farming as welfare and start thinking of it as an industry.”

Forward-think: Seek “learned optimism.” But first, we must learn to overcome our caste system – i.e., the value of hierarchy and paternalism.

In other words, we must overcome “pwede na ‘yan” and think state-of-the-art in agribusiness. And even our top companies must also recognize how Vietnam overtook the Philippines. For example, we’re into chips while they are the regional manufacturing hub for Samsung smartphones and Apple AirPods. Why can’t we move up the value chain? We have no industry laurels to sit on!

The challenge remains because, being at ground zero, we succumb to “learned helplessness.” We have missed every fork in the road and have no bearing and orientation on traversing poverty to prosperity.

“Prosperity” seems unreachable that we want to be modest even in defining the future of Juan de la Cruz.

“AmBisyon Natin 2040. By 2040, Filipinos enjoy a strongly rooted, comfortable, and secure life. In 2040, we will all enjoy a stable and comfortable lifestyle, secure in the knowledge that we have enough for our daily needs and unexpected expenses, that we can plan and prepare for our own and our children’s future. Our family lives together in a place of our own, and we have the freedom to go where we desire, protected and enabled by a clean, efficient, and fair government.” [NEDA website]

How do we get into “learned optimism”?

“Engaging in activities that restore self-control can be valuable. Seligman later developed the concept of learned optimism: By explaining events to ourselves in a constructive manner and developing a positive internal dialogue, people can break free from a cycle of helplessness.”

Translation: Juan de la Cruz must traverse poverty to prosperity — and not be stunted by “pwede na ‘yan.”

Gising bayan!

Is Juan de la Cruz falling into “learned helplessness”?

“Learned helplessness occurs when an individual continuously faces a negative, uncontrollable situation and stops trying to change their circumstances, even when they can do so. The term was coined in 1967 by the (American) psychologists Martin Seligman and Steven Maier.

“Engaging in activities that restore self-control can be valuable. Seligman later developed the concept of learned optimism: By explaining events to ourselves in a constructive manner and developing a positive internal dialogue, people can break free from a cycle of helplessness.” [https://www.psychologytoday.com/us/basics/learned-helplessness]

When the wife and I first arrived in Eastern Europe while still in the car on the way to our new home away from home, the host popped the question, “Do you think we can compete against the West? We just invested into this new product, and our knowledge base is nil.”

Fast-forward to today. After these friends showed competition – both foreign and local – the Western brand they feared disappeared from the market – this once poor Eastern European micro-enterprise can crush the brand of the largest industry competition. The investment advisor offered the brand to them, but I did not acquiesce. “You have developed a better product. Keep developing state-of-the-art products, and no one will stand in your way.”

How? Benchmark. Benchmark. Benchmark.

Here’s a quote from an earlier posting: “The purpose of benchmarking should be to get a broad background of an area of knowledge, plus knowledge of state of the art and who is advancing it, and what principles drive the challenge or problem.

“Benchmarking research is the process for rapidly learning the essence of the desired field of knowledge with interest in finding the leading edge.” [University of Delaware]

“We will not be like Vietnam – or the other Asian Tigers – but if we ever learn that there is more to the world than our caste system, it will open our eyes and minds to look outward and forward and learn to benchmark. Benchmarking in business and industry does not mean an enterprise must strive to be a clone. 

“During the infancy of Apple, Steve Jobs benchmarked his innovation and marketing efforts against the consumer-packaged goods industry.

“Recall too that as a mentor to my Eastern European friends, we sat Marketing and R&D together – i.e., properly geared in our product development and innovation efforts – in every business unit. Innovation is not for “innovation's sake” but to respond to a human need and raise one’s wellbeing.

“Unsurprisingly, they have become giant-killers, and so third-party raw material providers chose to partner with them. Three of their brands have attained state-of-the-art, and the fourth one is coming along.

“Those familiar with the blog will recall the wife’s horror when we first arrived because they were the poorest country in Europe, and it showed. ‘What are we doing in this god-forsaken place?’”

Seligman also “developed the concept of learned optimism: By explaining events to ourselves in a constructive manner and developing a positive internal dialogue, people can break free from a cycle of helplessness.”

Benchmarking is a great way to explain events – as in why PHL is the regional laggard – to Juan de la Cruz.

Here’s more from an earlier posting: “From Poverty to Prosperity: Understanding Economic Development. This Massive Open Online Course (MOOC), led by renowned economist Paul Collier, examines the vital role government plays in economic development, analyzing the political, social, and economic factors that elevate society from poverty to prosperity. It will help people understand how their community and country can flourish, wherever they are in the world.” [Oxford University]

Let’s hold it right there. Are we in the Philippine elite class more guilty than Juan de la Cruz for being parochial and insular? Why can’t we look outward and forward, given this universe holds much more promise for Juan de la Cruz than we care to recognize?

There is such a thing as horizontal leadership that Chris Argyris expounded in his “double-loop learning.”

In other words, while national – and local – leadership is imperative, all of us, especially in a democracy – where personal responsibility is “imperative” for the common good – can demonstrate to Juan de la Cruz horizontal leadership.

Let’s take a concrete Philippine example:

“Helping our small farms to cluster together is now a key strategy of the Department of Agriculture, so they can attain economies of scale to be more productive, profitable, and competitive. Farm census data in 2012 show that 88 percent of all our farm holdings are under 3 hectares, and more than half (57 percent) are even less than a hectare. Fragmentation is likely to be even worse today.

“Farm clustering helps government do its job of providing farm support services much easier. For the farms themselves, the potential benefits could be far more significant. The benefits of clustering and consolidation go well beyond production at the farm, where, indeed, the scope for cost reduction from economies of scale is broad.

“Here, savings would come from using labor-saving mass production techniques, which not only reduce costs but also permit more timely farm operations and better product standardization. But clustering and consolidation could also improve the upstream and downstream links of the farm value chain.

“To cluster and consolidate our farms, it is best to do it via cooperatives. Thailand calls its agriculture ministry the Ministry of Agriculture and Cooperatives. I think that speaks volumes about how the DA ought to be moving forward.” [“Farm clusters: Why and how,” Cielito F. Habito, NO FREE LUNCH, Philippine Daily Inquirer, 27th Apr 2021]

Question: Does the above example meet the yardsticks of benchmarking?

Then consider: “The Innovator’s DNA” by Jeffrey H. Dyer, Hal Gregersen, and Clayton M. Christensen; Harvard Business Review, December 2009. And “the ability to successfully connect seemingly unrelated questions, problems, or ideas from different fields, is central to the innovator’s DNA.”

Can Juan de la Cruz connect such seemingly unrelated things? We will develop the instinct if we start to overcome our inward-looking bias. Please recall the Danish example the blog has raised before:

“Denmark is among the world’s largest pig meat exporters.

“For more than 100 years, the production of pigs and pig meat has been a significant income source for Denmark. Approx. Ninety percent of the output is exported and is thereby essential to the Danish economy and trade balance. The Danish pig industry is among the world leaders in breeding, quality, food safety, animal welfare, and traceability. That is the reason why Denmark is among the world’s largest pig meat exporters.

“Danish pig meat producers observe high animal welfare standards, and pig farmers constantly strive to improve live pigs’ welfare. Danish pig production equates to high food safety standards and good animal health. Environmentally sustainable production methods are critical to Danish pig production.

“Around 5,000 pig farms in Denmark produce approx. 28 million pigs annually. Most pigs are slaughtered at the cooperative abattoirs Danish Crown and Tican. Also, a substantial number of live piglets are exported, mainly to Germany.

“Pig meat exports account for almost half of all agricultural exports and more than 5 percent of Denmark’s total exports. More than 70 percent of Danish pig meat production goes to other EU countries, and the remaining part to countries outside the EU.

“Danish pig meat finds home in more than 140 countries, and the largest markets in terms of volume are Germany, UK, Poland, China, Japan, Italy, Russia, and Sweden.” [https://agricultureandfood.dk/danish-agriculture-and-food/danish-pig-meat-industry]

When we benchmark, we (1) seek knowledge of state of the art, (2) find the leading-edge, (3) who is advancing it, and (4) what principles drive the challenge or problem.

In other words, to traverse poverty to prosperity is beyond “pwede na ‘yan.”

And we cannot overcome “pwede na ‘yan” if this is how we spell the future of Juan de la Cruz: “AmBisyon Natin 2040. By 2040, Filipinos enjoy a strongly rooted, comfortable, and secure life. In 2040, we will all enjoy a stable and comfortable lifestyle, secure in the knowledge that we have enough for our daily needs and unexpected expenses, that we can plan and prepare for our own and our children’s future. Our family lives together in a place of our own, and we have the freedom to go where we desire, protected and enabled by a clean, efficient, and fair government.” [NEDA website]

Let’s pause right there. How can we compete against Vietnam or China and the Asian Tigers if we can’t commit to attaining state-of-the-art in agribusiness and industry in general or in education and healthcare?

Don’t we say that we are as good as — if not better than — the next-door neighbor? Or are we to accept that Juan de la Cruz is the mirror image of Bondying or Juan Tamad?

“The ability to successfully connect seemingly unrelated questions, problems, or ideas from different fields, is central to the innovator’s DNA.”

That is why the blog speaks to the modern math concept of sets and subsets.

And it starts with the law of divine oneness that science demonstrates via the photosynthesis phenomenon. In other words, to be a Bondying goes against the grain of human development.

Translation: We took the wrong fork at every turn, benchmarked against our neighbors. “Beg for Western money and technology.” That is how they raised agribusiness to world-class levels, pursued innovation in the broader industry, and attained global competitiveness – edging out wealthier nations.

Can we be more forward-thinking in spelling out the future of Juan de la Cruz?

And it is beyond clustering farms. Or CREATE. That is why the blog keeps raising that our top eight companies cannot even match one Vietnam enterprise. Because we must overcome “pwede na ‘yan.”

With due respect to us in the Philippine elite class, satisfied as we are in our stations in life, we owe it to Juan de la Cruz to demonstrate horizontal leadership. It is beyond the treatise of Chris Argyris. It is what our professed Christianity demands, i.e., the imperative of personal responsibility for the common good.

Put another way, and we must demonstrate that we can overcome learned helplessness – and thrive in learned optimism.

Gising bayan!

Values can come from practice & perseverance v DNA & destiny.

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

Recall Bill Gates: “Our genes influence our intelligence and talents, yet they can develop. Suppose you mistakenly believe that your capabilities derive from DNA and destiny rather than practice and perseverance. In that case, you operate with what Dweck calls a ‘fixed mindset’ rather than a ‘growth mindset.’ Our parents and teachers exert a big influence on which mindset we adopt—and that mindset, in turn, has a profound impact on how we learn and which paths we take in life.” [Carol Dweck is the Lewis and Virginia Eaton Professor of Psychology at Stanford University. Dweck is known for her work on mindset. She was on the faculty at Columbia University, Harvard University, and the University of Illinois before joining the Stanford University faculty in 2004. She is a Fellow of the Association for Psychological Science.]

Why do we struggle with foreign and trade relations?

Let’s pause and ponder, given my DNA. I am essentially from Central Luzon but have more roots in China and India than the rest of the Philippines. Yet, I’m the least surprised given our history: “Long before the Spaniards came to the Philippines in 1521, the Filipinos had established trade relations with neighboring lands like China, Java, Borneo, Thailand, and other settlements. Barter was a system of trading commonly practiced throughout the world and adopted by the Philippines.” [Wikipedia]

[Those familiar with the blog will recall that my MNC-company obtained my US passport for business reasons. In those days, I could not travel to places like India at a moment’s notice. My Philippine passport had to be submitted to the authorities in India and couriered back to New York. As a volunteer expert in Eastern Europe sponsored by USAID, I became a card-bearing resident of Sofia; and was offered citizenship for my contributions. Being a dual citizen gives me a full plate, and I don’t need more to be a citizen of the world.]

Let’s push the envelope further. Recall the law of divine oneness that science demonstrates via the photosynthesis phenomenon. Hence, schooled on interdependence. And we recognize that who and what we are will translate to a subset of a more extensive set – called the universe.

Let’s jump to two further subsets, democracy, and autocracy. And as the blog argues, democracy is the mirror image of Christianity, i.e., the imperative of personal responsibility for the common good.

Here are tangible examples: Think of North Korea, China, and Russia on the one hand and freedom-loving nations on the other.

And then put that side by side with our value of hierarchy and paternalism. Do we see why we have a soft spot in our hearts that Rizal articulated as “He who submits to tyranny loves it”?

The above-referenced countries are the trouble-makers, and they share one thing in common, autocracy aka tyranny. And we don’t have to go very far. Myanmar is a neighbor. And Russia, for example, is again on the wrong side of history — as in Syria.

Still, freedom-loving people must recognize that “globalization” — as the barter trade of old — is a manifestation of interdependence. Why are the UN and wealthy nations not stepping up to the plate? Biden must deliver on his promise of American moral leadership though the challenge is beyond COVAX.

Some of our media editorials continue to manifest the above struggle because of our values. Physical distance alone, for example, does not spell what is supreme – as in the truth. Please think of the Hong Kong people and why they are rising against China. Or Ukraine, why they turned their back on Russia. 

Yet, perfection is not of this world. And I have no respect for US politics – and don’t exercise the right to vote except in the last presidential election, i.e., to kick out a tyrant from the supposed model of democracy.

They demonstrate how cognitive development – the ability to move beyond binary thinking to relativism – can suffer a decline – as in tribalism. As argued by The Economist, the rightist elements of America are an oxymoron Christianity-wise – and anathema to democracy. [There is the converse, of course, nations that cannot learn to put their houses in order — and tyranny will be at the core; Venezuela, despite holding the largest oil reserves comes to mind — will be trouble spots. And they can undermine the world order as in Afghanistan. And in our case, think of our culture of impunity and underdevelopment and why we can’t overcome insurgency.]

Do we suffer – like the Americans – from a decline in cognitive development compared to our forebears? How come China and Thailand – among our barter trade partners in the old days – continue to this day as solid export players? 

And it is in agribusiness and beyond.

“Our low productivity is especially evident when compared to some of our Asian neighbors. In 2016, compared to Thailand, Indonesia, Malaysia, and Vietnam, the Philippines were the only country that posted a trade deficit with $5.1 billion in food exports against $11 billion in imports.

“The US Department of Agriculture also noted that the total factor productivity index of the Philippines only increased by 0.64 percent from 2005 to 2015—a measly growth compared to Malaysia with 1.8 percent, Indonesia with 2.12 percent, Thailand with 2.16, and Vietnam with 2.21 percent.

“To address this, one of the long-term interventions suggested during the hearings was for the country to invest more strategically towards making the production of our livestock feeds more efficient as this is a major contributing factor to the overall cost.” [“Self-Reliance In Food,” Sonny M. Angara, BusinessMirror, 23rd Apr 2021]

Let’s again pause and recall a recent posting: “Double-loop learning will occur only when we rethink the fundamental assumptions and values that support the policy’s logic. That is why the blog keeps raising our instincts: We are parochial and insular. We value hierarchy and paternalism and rely on political patronage and oligarchy that ours is a culture of impunity.” 

“The double-loop model is critical in leadership development. More work is needed to close the gap between leaders’ self-perception and others’ perceptions. Organizations need help to move in the direction that they want to go. Often that means we utilize the Double Loop learning theory developed by Chris Argyris.

“That demands moving from implicit and unchallenged assumptions to explicitly identifying and questioning those underlying assumptions in light of our results and consequences. ’Does what I say match what I do and my underlying values? How does it affect how I should interact with others and do my job?’

“Organizations must deal with double-loop problems that require dealing with their defenses as human beings. They must ask themselves, ‘Is this the way I always respond, and if so, how has it worked?’ If their reaction hasn’t worked, they have the opportunity to consider it from a different perspective or view of the situation.

“Most important, after an interaction or event that might have gone better, true and honest dialogue, either with self or others, needs to occur though it often does not. We dismiss it as a one-time occurrence or someone or something else to blame. Worse yet, if nothing is said, no conversation occurs, and those involved robbed of the opportunity to examine the event to look for double-loop moments.” [invistaperforms.org]

Consider: If we are to be self-sufficient in food, that means beyond food security, we have an innovative and globally competitive enterprise as demonstrated by our neighbors. It is outward and forward-looking, not inward and parochial.

In other words, in “single-loop learning,” the most common problem-solving style, we loop back to the action strategies and techniques we employed to assess what we obtained – or the results and their consequences. With “double-loop learning,” we loop back beyond what we did to why we do what we do – and re-evaluate and reframe our goals and values or beliefs.

Will we ever figure out that DNA and destiny go against the grain – of human development? Sadly, we take our instincts for granted that our caste system blinds us.

Yet, we like to point out the decline of America. That comes from tribalism – which we can differentiate between “white supremacy” and “black lives matter.”

Recall the “Southern strategy – a Republican Party electoral strategy to increase political support among white voters in the South by appealing to racism against African Americans. The civil rights movement and dismantling of Jim Crow laws (in the 1950s and 1960s) deepened existing racial tensions in much of the Southern United States. Republican politicians such as presidential candidate Richard Nixon and Senator Barry Goldwater developed strategies that successfully contributed to the political realignment of many white, conservative voters in the South who had traditionally supported the Democratic Party rather than the Republican Party. It also helped to push the Republican Party much more to the right.”

And here’s a contemporaneous translation courtesy of the conservative side of the New York Times op-ed section: “What’s happening can only be called a venomous panic attack. Since the election, large swathes of the Trumpian right have decided America is facing a crisis like never before. They are the small army of warriors fighting with Alamo-level desperation to ensure the country’s survival as they conceive it.

“When asked in late January if politics is more about ‘enacting good public policy’ or ‘ensuring the survival of the country as we know it,’ 51 percent of Trump Republicans said survival; only 19 percent said policy.

“Over 75 percent of Biden voters chose ‘a big, beautiful world.’ Two-thirds of Trump voters chose ‘our lives are at risk.’

“This level of catastrophism, nearly despair, has fed into an amped-up warrior mentality.

“Philosophic liberals — whether on the right side of the political spectrum or the left — understand people have selfish interests. Yet, they believe in democracy and open conversation because they have confidence in people’s capacities to define their own lives, care for people unlike themselves, and keep society progressing.

“With their deep pessimism, the hyper populist wing of the GOP seems to be crashing through the floor of philosophic liberalism into an abyss of authoritarian impulsiveness. Many of these folks are no longer even operating in the political realm. The GOP response to the Biden agenda has been anemic because the base doesn’t care about mere legislation, just their cultural standing.

“Republicans and conservatives who believe in the liberal project need to organize and draw a bright line between themselves and the ‘illiberals’ on their side. It is no longer just about Trump the man; it’s about how you will look at reality — as the muddle has always been or as an apocalyptic hellscape. It’s about how you pursue change — through the conversation and compromise of politics or intimidations of the macho display.

“I can tell a story in which the Trumpians self-marginalize or exhaust themselves. Permanent catastrophism is hard. But apocalyptic pessimism tends to deteriorate into nihilism, and people eventually turn to the strong man to salve the darkness and chaos inside themselves.” [“The GOP. Is Getting Even Worse: Trumpians have a venomous panic attack,” David Brooks, The New York Times, 22nd Apr 2021]

Why learn about others? To look outward and forward and learn how to benchmark – not to be a clone of another but to be inspired to progress and not decline cognitive development.

Indeed, to benchmark is not a cakewalk given our instincts: We are parochial and insular. We value hierarchy and paternalism and rely on political patronage and oligarchy that ours is a culture of impunity.

We can choose our values from perseverance and practice instead of DNA and destiny.

Gising bayan!

Why is PHL the regional laggard?

Is that a more apt title than “Why PHL is not like Vietnam”? [BusinessMirror Editorial, 19th Apr 2021]

Or do we want to confirm our “fixed mindset”? There is a distinction between a “growth mindset” and a “fixed mindset.” Sadly, it’s a lot easier to rationalize “destiny,” especially given our caste system.

Recall Bill Gates: “Our genes influence our intelligence and talents, yet they can develop. Suppose you mistakenly believe that your capabilities derive from DNA and destiny rather than practice and perseverance. In that case, you operate with what Dweck calls a ‘fixed mindset’ rather than a ‘growth mindset.’ Our parents and teachers exert a big influence on which mindset we adopt—and that mindset, in turn, has a profound impact on how we learn and which paths we take in life.”   

There is logic in the premise that the distribution curve can represent a “bell curve in a universe.” What if we are a weakling in that universe? Then we are destined to be the regional laggard?

Yet, there is another dimension we can extract in a distribution curve, but it presupposes a “growth mindset.” And it’s called the Pareto principle, the “vital few” as against the “trivial many.” And it is anathema to our crab mentality and why we can’t figure out how to prioritize. In more ways than one, that explains the 1-% phenomenon because the conventional wisdom does not favor the “vital few.”

Likewise, our milieu that is this universe is a dynamic, not a static phenomenon.

In my early 20s, I was fascinated by what media reported about Lee Kuan Yew and Singapore. At that time, the Brits were in the final stages of pulling their troops out of Singapore. And so, I took my first overseas trip, destined for Singapore.

Fast-forward to the time I was a regional manager. I had a bias for Singapore and held most of my meetings in the city-state. Did I even imagine that Singapore would outrank the US in the global competitiveness ranking? I represent a US interest. I had a contrary bias that there was no way a tiny territory could best the Americans in global competitiveness.

Marcos was a strong man, and so was Mahathir. But Mahathir proved the better leader. Without going into a full-blown benchmarking exercise, one can see that Mahathir knew his vital few that he prioritized the rapid development of KL over his hometown. And when asked why he thought his training as a physician equipped him to be prime minister, his response is: As a physician, I live with “cause and effect.”

Benchmark. Benchmark. Benchmark.

“The purpose of benchmarking should be to get a broad background of an area of knowledge, plus knowledge of state of the art and who is advancing it, and what principles drive the challenge or problem.

“Benchmarking research is the process for rapidly learning the essence of the desired field of knowledge with interest in finding the leading edge.” [University of Delaware]

We will not be like Vietnam – or the other Asian Tigers – but if we ever learn that there is more to the world than our caste system, it will open our eyes and minds to look outward and forward and learn to benchmark. Benchmarking in business and industry does not mean an enterprise must strive to be a clone. 

During the infancy of Apple, Steve Jobs benchmarked his innovation and marketing efforts against the consumer-packaged goods industry.

Recall too that as a mentor to my Eastern European friends, we sat Marketing and R&D together – i.e., properly geared in our product development and innovation efforts – in every business unit. Innovation is not for “innovation's sake” but to respond to a human need and raise one’s wellbeing.

Unsurprisingly, they have become giant-killers, and so third-party raw material providers chose to partner with them. Three of their brands have attained state-of-the-art, and the fourth one is coming along.

Those familiar with the blog will recall the wife’s horror when we first arrived because they were the poorest country in Europe, and it showed. “What are we doing in this god-forsaken place?”

Why is PHL the regional laggard? Because of our instincts. We are parochial and insular. We value hierarchy and paternalism and rely on political patronage and oligarchy that ours is a culture of impunity.

Beyond Vietnam, do we expect Cambodia and Myanmar to push us further down the abyss? We are sinking fast.

Of course, we in the Philippine elite class won’t mind because we are sitting pretty.

Or is that only if there is no pandemic?

Let’s switchgear and recall a recent posting: “In the end, a crisis brings out the best and worse in both people and government. The quality of decisions made are narratives of the ailments of our political institutions and processes. It is, therefore, part of our collective duty as citizens in a democracy to speak about policy failure.

“Because it is only through the storytelling of failure can the learning process of people, organizations, and institutions begin.

“Public policies are complex, and so are the factors that affect their implementation. There are several reasons why a ‘policy’ is considered a failure. For example, incomplete information at the time of the decision, the changing circumstances across its period, and the inability to think of ‘policies’ interconnectedness,’ i.e., designing something narrow and shortsighted.

“And then there are failures from factors that are structural — such as when the causal theory (i.e., what causes ‘Y’) that is the basis of the ‘policy’ is not sound, and when political institutions break down.

“The former refers to the extent upon which policymakers consider and use accurate and reliable evidence to inform their decisions. On the other hand, the latter is the magnitude by which political power takes policymaking hostage.

“In both situations, policy failures are not just the result of the limitation of information, technology, or even cognition; but it is a product of our ailing political institutions and systems which affect our political processes including policymaking.

“Like human beings, an organization can learn, too, and it does so in two ways. First, when we know what does not work, we can make the necessary adjustments and improve the policy tool (i.e., single-loop learning). Second, an organization can also learn from failure by rethinking the fundamental assumptions and values that support the policy’s logic (i.e., double-loop ‘learning’).

“But for failure to matter, it should be seen as a learning opportunity. All policy failures should induce policy change through a learning process — we often call this ‘reform.’ Chris Agyris’ work on Organizational Learning is helpful at this point.” [“Owning up to policy failure: Why does it matter (?),” Anne Lan K. Candelaria, Blueboard, BusinessWorld, 12th Apr 2021. Candelaria, Ph.D., is the Associate Dean for Ateneo de Manila University’s Loyola Schools’ Graduate Programs. She is also an Assistant Professor at the Department of Political Science.]

Disclosure: I was introduced to the works of Chris Argyris when I was in my early 20s by the late Anacleto del Rosario, considered the first Philippine marketing consultant — and also brought the Louis A. Allen management courses to the Philippines.

Here’s what the PANA website says: “In 1956, Robert Hinchman, Jr., Advertising Manager of Caltex, and Anacleto del Rosario took an active interest in getting advertising practitioners to form an organization patterned after the US Association of National Advertisers.

“Their efforts resulted in an organizational meeting held on 16th Oct 1957 at the Old Manila Overseas Press Club. Forty-five representatives from various businesses established the urgency of organizing the PANA.”

As a mentor, del Rosario also introduced me to Edward de Bono, whom he invited to the Philippines in the early 70s. De Bono is a “Maltese physician, psychologist, author, inventor, philosopher, and consultant. He originated the term lateral thinking, wrote the book Six Thinking Hats, and is a proponent of the teaching of thinking as a subject in school.” [Wikipedia]

Why does lateral thinking – or Edward de Bono – matter? Recall the “The Innovator’s DNA” by Jeffrey H. Dyer, Hal Gregersen, and Clayton M. Christensen; Harvard Business Review, December 2009. And “the ability to successfully connect seemingly unrelated questions, problems, or ideas from different fields, is central to the innovator’s DNA.”

But let’s get back to Argyris. In the Sept-Oct 1977 Harvard Business Review, his article re “Double-loop learning in organizations” appeared.

“In an ongoing national survey of peoples’ belief in the ability of organizations to get things done shows that public confidence reached a peak in the late 1960s, and since then, it has been deteriorating. Simultaneously, information science, technology, and managerial know-how have continued to increase in sophistication.

“Why is it that organizations appear to be less effective as the technology to manage them becomes sophisticated? The answer is, I believe that the management theory underlying the new sophisticated technology is the same as the one that created the problem in the first place.

“Take New York City — the 1975 bankruptcy it faced — as an illustration. All new managerial committees and new leaders dealt with the troubled fiscal situation. They correct many single loop errors, but they have much more difficulty confronting the double loop question if we can judge them from the newspaper accounts.

“The newspapers have, for example, cited several instances where planned cuts in municipal service budgets remained pending a year later.

“I talked with several of the top city financial people, and it was not difficult to see the games they played with budgets and to identify some of the possible dangers.

“Double-loop learning will occur only when these officials examine and alter their willingness to play financial games, which they know are counterproductive, as well as their assumptions that they will remain in control. [Recall that at my 200-year-old MNC-company, I changed the planning and budgeting model.]

“This type of thinking is going on in all parts of our society. Doctors and lawyers know that medical and legal services are inadequate (especially for the poor) and that pressure is building to remedy the situation; yet, they have resisted setting up machinery to evaluate how their actions affect the distribution of their services.

“Someday, even our newspapers may suffer a reduction in their autonomy. I predict this because of what I found in the study of a leading newspaper. The top executive felt helpless in creating the conditions they insisted on the White House and state and city governments within their organization.

“And just as the current climates in those governmental bodies might lead to corruption and distortion, I found the same is true in the newspapers. Why should our nation protect the managers of a newspaper when they are unable to create the milieu they argue is necessary if the truth is supreme?”

In other words, “double-loop learning” will occur only when we rethink the fundamental assumptions and values that support the policy’s logic. That is why the blog keeps raising our instincts: We are parochial and insular. We value hierarchy and paternalism and rely on political patronage and oligarchy that ours is a culture of impunity. 

Why is PHL the regional laggard? Do we want to confirm our “fixed mindset”? There is a distinction between a “growth mindset” and a “fixed mindset.” Sadly, it’s a lot easier to rationalize “destiny,” especially given our caste system.

Gising bayan!

We’re stuck in a defective economic model.

In other words, if the Philippines were a car, are we a lemon?

“What Qualifies as a Lemon? For a vehicle to be considered a lemon, the car must 1) have a ‘substantial defect’ that occurs within a specific time after purchase, and 2) continue to have the defect after a ‘reasonable number of repair attempts.’

“Substantial Defect. A substantial defect is a problem that impairs the car’s use, value, or safety. The defect must be covered under the express warranty and affect a serious function or expectation of the car. The legal line drawn between ‘substantial’ and minor problems isn’t always clear and varies from state to state. No matter what state in which you reside, the defect must occur within a specific period or a certain number of miles.

“Reasonable Number of Repairs. If your car has a substantial defect, the dealer or manufacturer – or both – is then given a reasonable number of attempts to repair the problem before the car can be declared a lemon.” [findlaw.com]

Consider: “Owning up to policy failure: Why does it matter (?),” Anne Lan K. Candelaria, Blueboard, BusinessWorld, 12th Apr 2021. Candelaria, Ph.D., is the Associate Dean for Ateneo de Manila University’s Loyola Schools’ Graduate Programs. She is also an Assistant Professor at the Department of Political Science.

“Statistics and numbers can’t explain the impact of policy failures on the lives of ordinary Filipinos. There is no perfect policy; therefore, they do indeed fail. But for failure to matter, it should be seen as a learning opportunity. All policy failures should induce policy change through a learning process — we often call this ‘reform.’ Chris Agyris’ work on Organizational Learning is helpful at this point.

“Like human beings, an organization can learn, too, and it does so in two ways. First, when we know what does not work, we can make the necessary adjustments and improve the policy tool (i.e., single-loop learning). Second, an organization can also learn from failure by rethinking the fundamental assumptions and values that support the policy’s logic (i.e., double-loop ‘learning’).

“Perhaps the hesitancy in admitting that policies fail is because in doing so, leadership must take the blame. When the regime opens its legitimacy to challenge, the most rational decision will be politically feasible rather than scientifically sound.

"In schools, we teach our students to embrace failure as this is the greatest of teachers. In life, leadership is not about being right all the time; but learning from mistakes. The point is that unless policymakers acknowledge that there is indeed policy failure, learning cannot take place.

“And the soonest they do this, the better. It takes both courage and humility to accept failure, most especially if one’s reputation as a politician and policymaker is at stake.

“In the end, a crisis brings out the best and worse in both people and government. The quality of decisions made are narratives of the ailments of our political institutions and processes. It is, therefore, part of our collective duty as citizens in a democracy to speak about policy failure.

“Because it is only through the storytelling of failure can the learning process of people, organizations, and institutions begin.

“Public policies are complex, and so are the factors that affect their implementation. There are several reasons why a ‘policy’ is considered a failure. For example, incomplete information at the time of the decision, the changing circumstances across its period, and the inability to think of ‘policies’ interconnectedness,’ i.e., designing something narrow and shortsighted).

“And then there are failures from factors that are structural — such as when the causal theory (i.e., what causes ‘Y’) that is the basis of the ‘policy’ is not sound, and when political institutions break down.

“The former refers to the extent upon which policymakers consider and use accurate and reliable evidence to inform their decisions. On the other hand, the latter is the magnitude by which political power takes policymaking hostage.

“In both situations, policy failures are not just the result of the limitation of information, technology, or even cognition; but it is a product of our ailing political institutions and systems which affect our political processes including policymaking.”

Let’s do a recap: The two overarching reasons why a policy is considered a failure are (1) the incompleteness of information at the time of the decision, the changing circumstances across its period, and the inability to think of the interconnectedness of policies – and therefore, designing something narrow and shortsighted; (2) brought about by structural factors — such as when the causal theory (i.e., what causes 'Y') that is the basis of the policy is not sound, and when political institutions break down.

Simply put, a policy can be (a) shortsighted, (b) structurally unsound, or (c) both.

Let’s pause right there.

Recall that several years ago, we were celebrating what we called a manufacturing uptick. Yet, as the blog has argued, we have a structural problem and why our problem-solving has been (a) shortsighted, (b) structurally unsound, or (c) both.

They are no different from our celebrating (a) the OFW phenomenon, (b) the comprehensive agrarian reform, or (c) the 4 Ps.

Consider: “One of the advantages we had relative to many other comparable economies as we entered the pandemic crisis last year was a strong government financial position. Our public debt-to-GDP ratio was relatively low at 40 percent, compared to well over 100 percent for other economies, including Singapore and the United States. We thus had ample leeway to borrow funds through the crisis without endangering our fiscal stability. We ended the year with government debt reported at P9.8 trillion or 54.5 percent of GDP, up from P7.7 trillion in 2019.” [“Doing stimulus right,” Cielito F. Habito, NO FREE LUNCH, Philippine Daily Inquirer, 13th Apr 2021]

Can we again pause and ponder?

With due respect to Ciel, are we better off than Singapore or the US if only we do the stimulus right?

Isn’t the reality that we were the regional laggard and inferior to Singapore before the pandemic, let alone the US?

Why? Because our problem-solving has been (a) shortsighted, (b) structurally unsound, or (c) both.

That is why the blog often speaks to the Asian Tigers. On the other hand, we keep trekking along with our problem-solving informed by our worldview or instincts.

We are parochial and insular. We value hierarchy and paternalism and rely on political patronage and oligarchy that ours is a culture of impunity.

In other words, until we move beyond a consumption-service economy and into an investment-industrial economy, we will not overcome our structural deficiencies.

Fiscal and monetary policies within our economic model – of a consumption-service economy – can make us a strong two-stroke engine but will never be a Formula-One racer akin to that of the Asian Tigers.

Put another way; the inability to think of the interconnectedness of policies explains our dilemma.

We can put two or more modern international airports, dredge Pasig River, connect the North and South expressways – get a few of our tycoons on the Forbes billionaires list – and we will still be the regional laggard.

If we can’t see the reality of our inferior position – as in our top companies can’t match one Vietnam’s enterprise among others – we will sink deeper into the abyss, with or without Covid-19.

If the Philippines were a car, we are a lemon – and stuck in a defective economic model.

Gising bayan!