Will a new president help us?

None of our leaders was able to deliver on our promise as a high potential (developing) country.

Economic development is about “growing up” – manifesting what it is to be economically developed? For example, embracing investment, competitiveness, revenue, profit or productivity? Or are they some western ideology that is being imposed upon us? How come communists China and Vietnam have espoused the exact, same ideology in pursuit of economic development? Can a new president help us? Or only God can?

Now that Aquino won . . . does corruption go away? Does patronage politics go away? Will there be less people working/allowed at the airport/harbor – or is it why we can’t run a world-class airport or harbor? An airport or harbor teeming with employees and/or entry-pass holders is (a) a security-risk, and (b) unproductive? Productivity is a key building-block of competitiveness that drives revenue and profit – and must characterize our economic life . . . because it also undercuts corruption? For example, a border facility swarming with personnel is a breeding ground for corruption? Should we ask these same questions to every agency, bureau or department, and even private enterprise?

It’s not a surprise our employers want lower wages – if a recent earnings report from a major enterprise is representative of the profitability of our industry. In that sector the global standard is double-digit profits, not less than 5%! What is surprising (and is our key challenge) is why our industry does not raise their sights to meet global competitive, productivity and profitability standards – so that we become world-class and attain developed-country status? It is not in their DNA? And so we better aggressively attract foreign investors with the right DNA? Or does that rub our patriotism the wrong way? It does not the Chinese, the Vietnamese, the Asian tigers?

The writer’s Eastern European friends recently hired an R&D manager, not from a local company but from a western enterprise – an expatriate notwithstanding the availability of local chemists with their PhDs. Because they want someone who has done product development and more importantly commercializing ideas . . . fast . . . many times over! (The local chemists recognize that they still need to learn the ropes; that their chances will come as their employer continues to expand overseas operations, e.g., the home market will come down to less than 10% of revenues.) They want rapid growth, with revenues expanding exponentially, and they want the latest ideas . . . the latest technology, and the most productive workforce (like the managers they hired from western global behemoths that used to ignore them, but have now realized why they were beaten in their own game – manufacturing and marketing) and are not petitioning government for lower wages; but in fact are paying up to attract the talents they need across the region!

This is a bunch of ex-socialists committed to revenue, profit and productivity – founded on aggressive investment and competitiveness! Seven years ago it was a rickety-cottage industry salvaged from an ex-communist facility. Yet amazingly, they are currently working on an acquisition, their 4^th strategic business unit – with another smaller project under review, i.e., they’re growing both organically and via acquisition, and constantly elevating their knowledge base and competitive advantage. They want to be global competitors, not local oligarchs?

We were supposed to lead the rest of Asia as a market economy; but today they’re all showing us the way instead, i.e., they tap outside markets and leverage outside resources while we remain parochial – an albatross around our neck – and paying a heavy price for it?