Squaring a circle

We can leave that for the mathematicians like they sweated to figure out the accuracy of Pi? But to try putting a square peg in a round hole is foolhardy? Is competitiveness a round hole that won’t take a square peg? We’ve thrown loads into the challenge yet competitiveness appears elusive?

Are we ignoring ‘reality’ – or the ‘fundamental givens’? Are we bringing into the challenge a baggage – of ‘Pinoy kasi’? We’re proud Filipinos, especially proud of ‘Filipino abilidad’? But problem-solving doesn’t respect nationality and culture? Which is why Deng Xiaoping said what he said – and embraced market economy? And today it goes beyond Deng, reports the NY Times, May 24^th: “The power companies say they face financial ruin if the government continues to tightly limit the prices they can charge customers, even as strong demand is sending coal prices to record levels. The chairwoman of one giant utility, China Power International, recently warned that one-fifth of China’s 436 coal-fired power plants could face bankruptcy if the utilities cannot raise rates.”

Subsidies [our go-to economic tool?] can only go so far – as we now know? It is like the environment; talking sustainability while denuding the forest doesn’t compute? True compassion is driving development, not treating ‘Pinoy kasi’ as sacred? Our expertise in accounting and finance is recognized worldwide – and why back-office operations are coming to the Philippines. But are we ignoring the fundamentals of margins? When we travel to the West it makes sense to do our shopping because goods are cheaper – and would proudly pull out our iPad2 once we’re home? But that is a function of economies of scale – and so even a democratic president like Clinton pushed for NAFTA, even though the US market in and of itself is a huge market?

Put another way, a market of 100 million Filipinos is still a disadvantage scale-wise compared to the regional and global market? Of course, to many local businesses and MNCs in the Philippines, 100 million is a big market. But that’s precisely the blind spot. We view ourselves – and are viewed by MNCs, too – as a market as opposed to a regional if not global resource, with the exception of BPOs and semiconductors and a few others? That is why our local economy is a lot bigger than our export economy?

To overcome this local bias we need in short order to be competitive? And that is a challenge to our creativity and ability to generate funds for investments? Our local bias would explain why oligarchy is alive and strong. And we are complicit [driven by respect for hierarchy?] for turning a blind eye on transparency and political patronage? For decades we accepted a phone monopoly, and a system from the dark ages? What about coconut? The resurrection of these debates is a reflection of our inability to turn from the past? Innovation and investments are available in a globalized economy and the key is to leverage them? And that means we have to get the basics right – e.g., an international airport, power, water, roads, bridges, Ro-Ro ports, etc.? And ensuring that to do business with us isn’t perceived by foreign investors like pulling teeth – because until we do, we will insanely be putting a square peg in a round hole?

Problem-solving is a discipline, not an expression of one’s culture or faith? Given our holistic perspective we tend to bring our cultural biases in our problem-solving – and also our faith? Culture and faith matter. But we can’t feed 100 million people . . . because our income as a nation is deficient – and so to problem-solve means we have to figure out how to raise our income? 10 million OFWs have figured it out – with a family income insufficient to make both ends meet, they had to go take jobs overseas?

And as a nation, we have to move from simply being a market to being a regional if not a global resource – and we should be debating how to make it happen more than debating whether to use condoms or not? Beyond individual upward mobility – which may be a function of education – is the challenge of the common good – which is a function of economic development? We’re critical of Western individualism – but have yet to be different?