Pragmatism

Would we Pinoys want to relate more to the Italians than the Anglo-Saxons? “Don't expect logic from us, we're Italians!” Two recent articles though (from a Philippine daily) would infer that we are more pragmatic than that. “The PCCI study groups the local industries into three industries: Competitive, uncompetitive, and middle business. At the onset, there are those that cannot compete and we should forget, some we can let go because they are already competitive, but the bulk is in the middle and that is what we should really help . . . [T]hese industries, however, must have different interventions for them to become competitive [in ASEAN]. One intervention is through joint ventures with foreign firms . . .” [PCCI encourages foreign JVs with promising local companies, Bernie Magkilat, Manila Bulletin, 24th Apr 2014]

And from Fr. Bel R. San Luis, SVD: “On the national level, we as a nation should help save our country from the morass of poverty. Public officials, for instance, should shun corrupt practices like plundering the government coffers so that the funds can be used for much-needed social services . . . The Greek philosopher Plato once said: ‘Poverty consists not in the decrease of man’s possessions, but in the increase of one’s greed.’ Yes, Christ saved us. He is still helping us but He doesn’t work miracles to solve our own problems. We should save ourselves now.” [Christ saved us; let’s save ourselves, Manila Bulletin, 22nd Apr 2014]

Given the focus of this blog – to challenge Juan de la Cruz to revisit our assumptions and overcome PHL underdevelopment – I am reminded of three things that we Pinoys may be taking for granted: parochial, hierarchical and “kawawa.” And this came as I spent my first week at the new midtown Manhattan office of my Eastern European friends. Singapore (where they had their first office outside Europe) and New York – to be closer to the markets around them – are at the top tier in costs of doing business. But in the global competitiveness index, the specific metric is about “ease of doing business” – and costs are just one component. [Should we Pinoys then be surprised that we can’t attract FDIs as much as our neighbors do when infrastructure and good governance impact ease of doing business and mitigate costs, and are reflected in the efficiency and productivity that characterize preferred locations?]

How did they get this far in just eleven years, coming literally from the middle of nowhere, a mere cottage industry and housed in a dilapidated ex-communist facility? [And it was like yesterday when they said: “we are poor Bulgarians; we can only sell products at 50 euro cents!”] The simple answer is they had to think like an MNC – and which for decades we Pinoys just assumed was evil thus robbing ourselves of the option and the vision to become a nation of MNCs? Was ideology behind why we were “thinking small” instead of “thinking big”?

For example, did our businesses see virtue in making and selling low-priced products? “We are poor Pinoys and can’t afford high-priced goods!” And is it an expression of our being parochial? Even our biggest enterprises doing business overseas target Pinoys or OFWs. And beyond our parochial bias is respect for hierarchy? We are a poor, small country; we are not in the same league as big Western companies? We see everything through a prism – of parochialism and hierarchy – and, not surprisingly, we feel “kawawa”?

It is refreshing that the private sector is sounding more pragmatic in its efforts to respond to the challenges posed by the ASEAN economic community: “At the onset, there are those that cannot compete and we should forget, some we can let go because they are already competitive, but the bulk is in the middle and that is what we should really help.” But then again, how do we think like MNCs? First we have to stop assuming that we can only market to Pinoys – its smacks of parochialism? Then we have to stop believing that we are inferior like we are in the local hierarchy when we are not the masters? And if we are able to think big, we don’t have to feel “kawawa”?

How do we think like an MNC? [It is not about government although in fairness government must make amends by demonstrating an honest-to-goodness commitment to infrastructure and good governance. But am I not being pragmatic and resorting to wishful thinking – or should we demand our public servants to resign en masse? As my daughter’s friend commented, their contemporaries who are now in government are as corrupt as their elders! What now and where to, Philippines?] As this blog has discussed numerous times, to think like an MNC is to commit to: investment and technology and innovation as well as people, product and market development. But as my wife would always remind me, “We Pinoys aren’t predisposed to investing in the first place. We are ‘sigurista’ [loosely translates to “no guts”] and that is reinforced by our success models from our cacique masters and reflected in PHL being an oligopoly.” Does it explain why we don’t have inclusive growth? And are we not party to the folly?

Of course, we could always resort to prayers? “Yes, Christ saved us. He is still helping us but He doesn’t work miracles to solve our own problems. We should save ourselves now.”

Can Juan de la Cruz be pragmatic as the PCCI and Fr. San Luis implied?