Friday, May 7, 2010

Filipino “abilidad”

Countries have their respective versions of Filipino “abilidad” – and national pride makes everyone claiming trait-ownership. In developing countries people grow up “making-do” and thus are able to create things; nonexistent otherwise save for their creativity and resourcefulness – from homemade alcoholic drinks to the “jeepney” or “tuk-tuk”.

The key though is to recognize when an idea or a product is to reach its point of diminishing returns. That’s why competitive strength is assessed by the richness of one’s new-product pipeline, beyond the existing. Marketers grapple with this challenge all the time; and hence have developed a proactive mindset. (Unfortunately, Wall Street did something similar except – disastrously – they missed the requisite tangible-economic value in their creation: they shepherded investors into the “casino”, including supposedly conservative European bankers who did not want to be left out. Greed blinds everyone – no wonder it’s among the 7 deadly sins?)

When an idea or a product reaches its point of diminishing returns, its value goes on a decline; and in much of the developing world, this is not readily accounted for – like efficiency, for example. Because labor is relatively cheap, the imperative of “optimum return on resources” is missed. Thus, instead of pushing economic activity to be productive and generate greater output, it is being sub-optimized – to the detriment of the common good? And this drag on productivity is magnified as the rest of the world steps up innovation and competitiveness – thus explains our rising poverty and continuing slide, i.e., we’re now compared to cellar-dwelling countries?

It needs a lot of maturity to recognize that even the brightest idea can go stale: parents learn that they are the ones maturing when they meet their ‘aha’ moment – and let go – because the daughter is of age? Or it takes a lot of maturity to recognize that sitting on one’s laurels is foolhardy? We have to keep fighting the instinct of “materiales fuertes” – it can set us up for failure – and move up the value chain especially in key exports?

On the other hand, there are fundamental givens; and it is likewise foolhardy to reinvent them – i.e., “don’t reinvent the wheel”? For example, we don’t have to reinvent the characteristics of a developed economy or what we ought to pursue – i.e., “ramp up investment and boost our competitiveness”?

The jeepney was a great idea for its time . . . but with the arrival of diesel fuel that feeds its inefficient engine it has polluted Baguio (and messed up the pine trees), once the cleanest city in the country. Of course, population explosion did not help Baguio either! (Sadly, it can also be said of Davao, Cebu, Iloilo, etc.)

The bigger challenge still is invoking Filipino “abilidad” when unwittingly we are simply unprepared to take the hard decisions – because we may be stepping on toes? And so it boils down to: can we step on toes? For example: it’s 2010 not 1946, where are we on running a world-class airport or harbor? The PCCI invoking retaliation (re EU ban) is misplaced pride? In a community whether local or international or the church, we have to abide by accepted rules and conventions? “Paki” is no magic word in global competition?

At the end of the day we may have already unwittingly made the choice – that we prefer a tropics-like (or a 365-day paradise) quality-of-life because we cherish spontaneity? Are we apt for a more proactive way of life? For example: we wouldn’t tolerate power outages if we had a temperate climate and couldn’t afford to be without heat in the winter?

The bottom line: we are among the happiest people on earth; while a third of us are hungry, and a few are kingmakers – thus perpetuating a lopsided economic structure? And it’s a matter of choice? So long as we make it with our eyes wide open? Like, what are we passing on to the next generation?

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