“A well-educated citizenry is an economic and social necessity”

That’s lifted from the McKinsey & Company, Social Sector Report of September 2017: “How to improve student educational outcomes: New insights from data analytics,” Mona Mourshed, Marc Krawitz, and Emma Dorn.

“Policy makers, educators, and parents all over the world want students to understand and be able to apply their knowledge of math, reading, and science. Yet improving educational outcomes has proved elusive.”

In the case of the Philippines we took the leap to K-12. But is that what’s it about? The McKinsey report presents these two findings: (1) Having the right mindsets matters much more than socioeconomic background; (2) Students who receive a blend of teacher-directed and inquiry-based instruction have the best outcomes.

“Students with a ‘growth mindset’—those who believe they can succeed if they work hard—performed 9 to 17 percent better than those with a ‘fixed mindset’—those who believe their capabilities are static.

“There are two dominant types of teaching practices. The first is ‘teacher-directed instruction,’ in which the teacher explains and demonstrates ideas, considers questions, and leads classroom discussions. The second is ‘inquiry-based teaching,’ in which students are given a more prominent role in their own learning—for example, by developing their own hypotheses and experiments.”

Are we surprised we’re the regional laggard with its attendant poverty problems? Consider: We grew up “sheltered” and “fixated.” Sheltered and fixated? Think about our way of life: parochial and insular; hierarchal and paternalistic; political patronage and dynasties; and oligarchic.

Compare that to these lessons from Malaysia: “The successful Malaysian rural development strategy through managed land schemes provides lessons for the Philippines. The rural poverty incidence in Malaysia was 1.6 percent in 2014 down from 58.7 percent in 1970 … Compare these to the Philippines’ 30 percent in 2015.

“The father of Malaysian development, former Prime Minister Tun Abdul Razak, had espoused the use of modern plantation management for government land settlements to achieve high productivity and, in turn, reduce poverty. He advocated the idea of giving the best lands to those willing to work hard. There are six important lessons:

“1. Crop choice is critical for long-term income sustainability. Malaysia started with rubber as the main crop and later changed to labor-saving and more profitable oil palm. Rice, an exception for food security, was managed on mechanized estate basis; 2. Modern plantation management is key to achieving high productivity. Farm productivity in managed schemes must match that of commercial plantations; 3. Farm consolidation is crucial to achieving economies of scale in management pool, input supply, mechanization and marketing; 4. The leadership was focused on project implementation; 5. A professionalized civil service to draw project managers; 6. Commitment from the top is key to achieving results.

“The main project components were: (a) construction of irrigation canals and drains; (b) development of 6,400 ha of new land for rice irrigation; (c) rehabilitation of 3,700 ha of existing rice lands; (d) crop establishment of 8,400 ha of tree crops; (e) project main roads; and (f) palm oil mill.” [A visit to rural Malaysia, Rolando T. Dy, MAPPING THE FUTURE, inquirerdotnet, 11th Sep 2017]

In other words, it goes beyond giving small plots of land to farmers because landownership is the be-all and end-all – which is what PH land reform was about. There must be leadership, there must be a sense of community and the common good. But without foresight, we would not be able to imagine how such large-scale endeavors can come into being.

Sheltered and fixated must be undone before we can even be in the game. Put another way, why did we deserve a Marcos ... and today a Duterte? And tomorrow another Marcos?

Beyond the absence of foresight is our inability to benchmark our worldview against our neighbors. Perfection is not of this world. None of our neighbors were perfect. But they demonstrated how to figure out and traverse the journey from poverty to prosperity.

Sheltered and fixated means we don’t even have a fighting chance … Like ideologues we don’t truly problem-solve.

The writer is sitting in his client’s office in Sofia, Bulgaria as he writes. [As some would know, he came over to represent USAID as a volunteer, i.e., gratis. Does it explain why Trump is clueless about American exceptionalism? Or what about the Marshall Plan? But he’d rather be in bed with foreign oligarchy if not despots?] Over the last 14 years these ex-socialists (that grew up under communist rule) have called him their friend. They understood from him how even in the West higher education has been criticized by industry. And progressive enterprises took matters into their own hands. And the writer was part of the effort in his old-MNC company.

And two fundamental initiatives he has introduced to them are: (a) the primacy of a growth mindset; and (b) a dynamic in-house education and training program.

In other words, that they should not to be held back by being a losing, as opposed to a going, concern during the 8 years they had been in business. And to instead imagine and visualize that they will be a 100-million-dollar enterprise. [And today they’re beyond that milestone, by a mile.] It’s the only way for them to compete and win against Western global behemoths that have landed on their tiny nation of 7 million and, as important, to thrive as their country joined the EU.

To learn the business, they assumed the writer was going to spoon-feed them with rules. And they were “very angry” [their word] that he did not. There are no rules, only principles. And while in the classroom he would present critical theory inputs, the learning was mainly via group work designed to address specific business challenges. More to the point, they had to play a more prominent role in their own learning—for example, by developing their own hypotheses and experiments.

Today they are well respected by these Western behemoths, and have knocked on their doors a few times – offering to partner with them. If you can’t beat them, join them.

And to the writer’s surprise, his friends are not alone – in their journey to prosperity. In their hometown of 80,000, they have attained full-employment, with unemployment down to 2%. A complete turnaround from the time – not long ago – when locals would migrate to Western Europe if not the US to earn decent wages.

Five Western enterprises realized the potential of their location – being a mere 100km from the port of Varna via a well-built (read EU standard) highway – and erected manufacturing facilities. And the local government has done its part – putting up an economic development zone with all the requisite infrastructure and utilities, among others, to attract investment. A blow to the status quo. Consider: Once the writer’s friends had to wait months for the local government to approve the occupancy permit of a new production facility – delayed by the mandatory signature for their bigger power supply needs. It’s the kind of inefficiency cum tyranny they see as a carryover from the old communist regime when local commissars were the equivalent of local lords.

What a change … The new game for the writer’s friends is to be truly the preferred employer in their hometown – to ward off the competition for talent. And the writer could only smile. Like tech companies in Silicon Valley, they bus employees as far as 30km away as they widened their recruiting base beyond their town; and provide 5-star quality locker rooms to workers and fruits and beverages while at work. Wages? Up to as much as the 75th percentile in a universe that includes Western companies.

But let’s get back to PH. As the blog has pointed out, we can’t seem to shed off the reality that we are the mirror image of the status quo. Where to Philippines? The world will not wait for us to get our act together!

“39 countries worry about killings, climate of impunity in Philippines,” philstar.com, 29th Sep 2017. And they include countries that lived through the Soviet gulag system, and know impunity firsthand: Bulgaria, Czech Republic, Estonia, Georgia, Latvia, Lithuania, Macedonia, Moldova, Montenegro, Poland, Romania, Slovakia, Slovenia, Ukraine.

The writer has friends in these countries that couldn’t believe how a proud Christian nation like the Philippines has descended to what they consider inhuman. And it explains why we deserved a Marcos … today a Duterte … and tomorrow another Marcos …

“Why independence, if the slaves of today will be the tyrants of tomorrow? And that they will be such is not to be doubted, for he who submits to tyranny loves it.” [We are ruled by Rizal’s ‘tyrants of tomorrow,’ Editorial, The Manila Times, 29th Dec 2015]

“As a major component for the education and reorientation of our people, mainstream media – their reporters, writers, photographers, columnists and editors – have an obligation to this country . . .” [Era of documented irrelevance: Mainstream media, critics and protesters, Homobono A. Adaza, The Manila Times, 25th Nov 2015]

“National prosperity is created, not inherited. It does not grow out of a country’s natural endowments, its labor pool, its interest rates, or its currency’s value, as classical economics insists . . . A nation’s competitiveness depends on the capacity of its industry to innovate and upgrade.” [The Competitive Advantage of Nations, Michael E. Porter, Harvard Business Review, March–April 1990]

“Learning and innovation go hand in hand. The arrogance of success is to think that what you did yesterday will be sufficient for tomorrow.” [William Pollard, 1911-1989, physicist-priest, Manhattan Project]

“Development [is informed by a people’s] worldview, cognitive capacity, values, moral development, self-identity, spirituality, and leadership . . .” [Frederic Laloux, Reinventing organizations, Nelson Parker, 2014]

70 years of underdevelopment … history

That is over two generations of “que sera, sera” and translates to a vote of confidence for the status quo. Sadly, it comes instinctively to us and why cultures pass from one generation to the next.

Even sadder, because we’re way behind the times, the challenge of innovation and competitiveness remains at the intellectual level. And has yet to come down to the heart and the gut. And why a growth mindset eludes us. Growth is about living in the real world like tots learning to crawl and then walk. And in the process tripping and falling a few times. And how unreal is it to grow up sheltered?

While a culture can be akin to a vicious circle that gives us no break – it just goes on … and on and on … It does not open itself to be challenged like an ideology. And ideologues don’t truly problem-solve. Recall the scribes and the Pharisees. And why the blog references Padre Damaso time and again.

We’re in the 21st century where innovation doesn’t reside in hierarchy nor is it confined to an expertise. And why the blog brings up Design Thinking (developed at Stanford University) which is an iteration of brainstorming – where different disciplines are pulled together to tackle problems big and small, at the micro and macro levels.

From a more pragmatic standpoint, winning is about survival. [Dr. Walter B. Cannon, Harvard University, 1915.] Think back to tribal times … And winning is a habit; conversely, without transformation, losing is a habit as well. [Charles Duhigg, Pulitzer-prize winning author.] And tribes like winning teams can beat the odds. [the Roseto phenomenon; Roseto borough, Pennsylvania.] 

How can we be enlightened? Faith, with due respect to the Church, didn’t do it. Beyond being the regional laggard and poverty-stricken, ours is a culture of impunity.

Should we be surprised that the Dalai Lama goes beyond religion and into science? Because religion cannot be a barrier in the search for truth, as he would claim.

Science presupposes knowledge which comes from education. But we lag in university rankings … And what are we doing about it if what plays out in the media represents who and what we are? The status quo is our mirror image. 

If his Holiness the Dalai Lama is out to seek the truth, how does Juan de la Cruz recognize and acknowledge its import? What if we hear from a Franciscan priest, Richard Rohr, who comes out with his daily meditation like this one on 12th Sep 2017? “Prophets, by their very nature, cannot be at the center of any social structure. Rather, they are ‘on the edge of the inside.’ They cannot be fully insiders, but they cannot throw rocks from outside either.

“They must be educated inside the system, knowing and living the rules, before they can critique what is non-essential … Jesus did this masterfully (Matthew 5:17-48). This is what Martin Luther King, Jr. taught the United States, what Gandhi taught British-occupied India, and what Nelson Mandela taught South Africa.

“Only with great respect for and understanding of the rules can a prophet know how to properly break those very same rules—for the sake of a greater purpose and value. A prophet critiques a system by quoting its own documents, constitutions, heroes, and Scriptures against its present practice. This is their secret: systems are best unlocked from inside.

“After Christianity became the established religion of the Western Empire in the fourth century, the priestly mentality pretty much took over in both East and West, and prophets almost disappeared. When the Church held so much power, prophets were too threatening to the status quo. The clergy were at the top of the hierarchy in the full company of their patrons—kings and princes—and even began to dress like them. Emperors convened and presided over the first seven Councils of the Church. What does this tell us?

“St. Francis of Assisi saw this problem in the thirteenth century and called people to live on the edge—of the Church, of economy, of patriarchy, of the ‘system’—through universal solidarity and chosen simplicity. Pope Francis is evoking the same Gospel spirit … What a surprise that the ultimate establishment figure took the name of such a radical saint. It shocked the world because we do not expect prophecy from popes.”

On the other hand, why do we have to wait for 3 young people to die before we wake up to the folly of EJK? The death of thousands is acceptable? It is naked impunity! But then again, leader-dependency and hierarchy and subservience ... all are elements of our proud culture.

And so … we accepted the war on drugs as the key to development – and the war on poverty.

But then again, because of our parochial and insular bias, we take the rest of the world for granted. From the economic miracles of the Asian Tigers … to the UN Millennial Development Goals – and its latest version, the Sustainable Development Goals. Translation: The world owes us nothing and will not wait for us to get our act together.

And do we see a ray of hope?

“While President Duterte has expressed support for removing [the] economic restrictions in the Constitution, Constitutional change may take a long time. Fortunately, there is another initiative, supported by the administration, which included it in their priority legislative agenda, and that is to amend the Public Service Act and to let Congress define what the term ‘public utilities’ is under the Constitution that is subject to the 40% ownership limit to foreigners.

“If this bill also passes the Senate and becomes law, it will be the most significant and consequential economic legislation ever in the history of the Republic. It clarifies the distinction between ‘public services’ and ‘public utilities,’ which terms are often confused and makes ‘public utilities’ only a subset of ‘public services.’ It states that only the following industries may be deemed ‘public utilities’: electrical distribution, electrical transmission, water pipeline and sewerage distribution. For an industry to be classified a ‘public utility,’ it must pass a criteria, which includes being a natural monopoly, distribution to the public of a commodity or service through a network, the commodity or service must be necessary for the life and occupation of residents, and the commodity or service must be provided to the public on demand.

“A consequence of this amendment would be to remove telecommunications and transport from the list of “public utilities,” and therefore no longer subject to the Constitutional provision restricting ownership and operation to companies or entities with a majority Philippine ownership.

“The economic benefit will be huge. It will improve competition in ownership and operation of strategic industries; facilitate technology transfer; increase efficiency, reduce costs, and improve service of telecom and transport companies. Also, it will greatly improve the foreign investment climate. This would lead to increased foreign investments that will generate jobs, promote innovation, and more importantly, finance the growing current account deficit.

“It will also promote good corporate governance since the restrictions would no longer result in ‘adverse selection,’ wherein only those foreign investors willing to skirt the law, will come. (It’s an open secret that the telco duopoly are effectively owned and controlled by foreign companies using legal legerdemain.) Furthermore, those foreign companies that were scared to tie up with local companies because of their host countries’ strict foreign anti-corrupt practices laws, will finally come.” [Dismantling the Post-EDSA order, Calixto V. Chikiamco, Introspective, BusinessWorld, 11th Sep 2017]

While the writer keeps his fingers crossed [and why he is committed to maintain the blog] that the foregoing initiative will come to life, he has lived long enough to recognize how we bungle things. 

For example, we can’t seem to connect the rule of law amongst the dots in the journey from poverty to prosperity. Absent foresight, creativity has no prayer. And consequently, innovation and competitiveness – and winning – too.

Consider the milestone-decisions we made over decades just to name a few: import-substitution; the sugar industry; the coconut industry; the garment industry; OFWs deployment; the BPO industry; the once white elephant we call NAIA 3; etc.; etc. [And there is no doubt you can make your own list. For example, kicking out the occupants of Clark and Subic yet the US military remains despite our posturing toward China and Russia.]

What is their common denominator? Beyond national defense, the absence of foresight both in infrastructure development and industry. And with industry there are two parts to it: (a) rent-seeking by oligarchy; and (b) the inability to move up the value chain for the rest of industry. [See above re learning to crawl and then walk.]

And when we superimpose tyranny, we are not only shooting ourselves in the foot. Are we digging our own grave? Ask the folks of the three-young people that had to die that finally woke us up?

“Why independence, if the slaves of today will be the tyrants of tomorrow? And that they will be such is not to be doubted, for he who submits to tyranny loves it.” [We are ruled by Rizal’s ‘tyrants of tomorrow,’ Editorial, The Manila Times, 29th Dec 2015]

“As a major component for the education and reorientation of our people, mainstream media – their reporters, writers, photographers, columnists and editors – have an obligation to this country . . .” [Era of documented irrelevance: Mainstream media, critics and protesters, Homobono A. Adaza, The Manila Times, 25th Nov 2015]

“National prosperity is created, not inherited. It does not grow out of a country’s natural endowments, its labor pool, its interest rates, or its currency’s value, as classical economics insists . . . A nation’s competitiveness depends on the capacity of its industry to innovate and upgrade.” [The Competitive Advantage of Nations, Michael E. Porter, Harvard Business Review, March–April 1990]

“Learning and innovation go hand in hand. The arrogance of success is to think that what you did yesterday will be sufficient for tomorrow.” [William Pollard, 1911-1989, physicist-priest, Manhattan Project]

“Development [is informed by a people’s] worldview, cognitive capacity, values, moral development, self-identity, spirituality, and leadership . . .” [Frederic Laloux, Reinventing organizations, Nelson Parker, 2014]

Leadership, not analysis-paralysis

Can we paddle our own canoe? There is no free lunch, in case we have forgotten. But is our “kuro-kuro” culture akin to Washington DC punditry? And why one that many assumed had leadership – that he could create jobs being a businessperson – was elected president?

Leadership as the blog has argued was demonstrated by the likes of Lee, Mahathir and Deng. Did it matter whatever was happening elsewhere in the world? Not even ideology, in the case of Deng.

Recall that “The four Asian tigers have consistently maintained high levels of economic growth since the 1960s, fueled by exports and rapid industrialization, which enabled these economies to join the ranks of the world's richest nations.

“Hong Kong and Singapore are among the biggest financial centers worldwide, while South Korea and Taiwan are important hubs of global manufacturing in automobile and electronic components as well as information technology, respectively.” [Investopedia]

We can’t rationalize our underdevelopment – like a truant student. We must instead take the bull by the horn and press forward. We must challenge our mindset – aka “Pinoy abilidad” – and learn from others. The harsh reality we must accept is that we don’t have a track record in development.

For example, while the Neda’s Ambisyon Natin 2040 speaks to “where we want to be,” it does not stress “where we are”! We must first recognize and acknowledge our reality otherwise we fall into the trap of analysis-paralysis. It is not the first time the blog has raised Kurt Lewin’s ‘Force-field analysis.’ “Force-field analysis is an influential development in social science. It provides a framework for looking at the factors (forces) that influence a situation, originally social situations.

“It looks at forces that are either driving movement toward a goal (helping forces) or blocking movement toward a goal (hindering forces). The principle, developed by Kurt Lewin, is a significant contribution to the fields of social science, psychology, social psychology, community psychology, organizational development, process management, and change management … He used theory, mathematics, and common sense to define a force field, and hence to determine the causes of human and group behavior.” [Wikipedia]

A case in point: We can’t keep beating the Constitution black and blue if we don’t address the power of oligarchy to keep us away from any effort to amend it. Likewise, our inability to learn from the Asian Tigers speaks volumes, that of our parochial and insular instincts.

Consider: “The UN Millennium Development Goals (MDGs) sought to reduce poverty among UN member-states between 1990 and 2015. There were 10 MDGs. The most significant MDGs were the ‘halving’ of poverty and inequality levels by 2015.

“The Philippines failed to achieve both. The National Economic and Development Authority (Neda) admitted, in the Fifth MDG Progress Report (2014), that inequality barely changed—from 0.48 Gini coefficient in 1991 to 0.47 in 2012.  In fact, some commentators even assert that inequality has worsened, with some 40 richest Filipino families lording over a nation of over 100 million.

“Now the MDGs have been replaced by the Sustainable Development Goals (SDGs), as approved by the UN General Assembly in 2015. This time, the SDGs are more ambitious, with zero hunger and zero poverty targets by 2030. The SDGs are collectively called the ‘2030 Agenda for Sustainable Development.’

“However, one of the goals can also be an instrument for the realization of the other SDGs.  This is SDG 9, which commits nations to ‘build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.’

“According to Dr. Manuel Montes of the South Centre in Geneva, SDG 9 re-introduces industrialization as a goal in the UN development agenda (see Montes, “Industrialization, inequality and sustainability”, Policy Brief 44 of South Centre, August 2017).

“This requires pro-active industry policies and a revival of ‘state leadership over key economic actions’ … So, what kind of industrial policy is needed? First, industrial policy must create the economic space and means for new economic activities and livelihoods to grow. For example, it is not enough for a developing country to link its national growth to the export market by participating in the global value chains (GVCs) of the multinationals of developed countries … Developing countries, while participating in the GVCs and the global export market, must find ways to develop national technology, upgrade skills and diversify their economy.

“Second, industrial policy must nurture domestic innovation and productivity across all sectors—industry, agriculture and services. This includes growing new ‘industries’ in these sectors and looking for ways to grow these industries ... Third, industrial policy must address development questions related to the choice of appropriate technology and the efficient scale of production.

“Fourth, industrial policy must enable the rise of a strong domestic enterprise sector that can compete with foreign investors in a level playing field and supply the requirements of a growing domestic market … Fifth, industrial policy must promote policy coherence and coordination among different agencies.

“As amply articulated by Montes in the case of SDG 9, the SDGs can be a weapon for growth and sustainability. The point is how to fulfill the SDGs through a more pro-active and forward-looking national development program.” [SDG 9 commits PHL to ‘inclusive, sustainable industrialization,’ Rene E. Ofreneo, BusinessMirror, 30th Aug 2017]

It is worth repeating: “However, one of the goals can also be an instrument for the realization of the other SDGs. This is SDG 9, which commits nations to ‘build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.’”

In other words, infrastructure development, industrialization and innovation … will pave the way for the realization of the other goals. And they are all within our control except that we have yet to step up to the plate – while constantly engaged in analysis-paralysis?

It takes foresight to confidently map out and pursue infrastructure development. And the Metro Manila traffic we are screaming and kicking about mirrors our shortsightedness. Which also explains our inability to industrialize. Absent both these elements there is no way [Jose!] we could be in the game …  innovation- and competitiveness-wise.

Yet, we aren’t keen to learn from others? For example, the blog has discussed “From Poverty to Prosperity: Understanding Economic Development,” a program offered at Oxford University … Learn about the role of government and the key political, social, and economic processes that elevate any society from poverty to prosperity. [In case we miss that, it says “any society” – irrespective of what we seem to believe is our destiny.]

“The Program discusses and examines the following topics: The role of government and the key political, social and economic processes that affect development; Why societies need polities that are both centralized and inclusive, and the process by which these polities develop; The social factors that are necessary for development, including the importance of identities, norms, and narratives;

“The impact of economic processes on development, including discussion about how government policies can either promote or inhibit the exploitation of scale and specialization; The external conditions for development, including trade flows, capital flows, labor flows and international rules for governance.”

This body of knowledge acknowledges that even anarchy is not a barrier to development and that nations can progress from anarchy to a centralized state and on to inclusive states. The premise: “economic development needs alignment between power and identities.”

And that growth is achieved through urbanization and industrialization, i.e., economic development depends upon exploiting scale and specialization.

Sadly, “Pinoy abilidad” is too smart for our own good! At the end of the day, we can’t paddle our own canoe because of our way of life? Parochial and insular; hierarchical and paternalistic; political patronage and dynasties; and oligarchic. And why we have yet to produce a leadership like Lee or Mahathir or Deng.

And for AmBisyon to have a prayer, Neda must engage Juan de la Cruz on this gut-level issue, that is, our culture. A culture is not cast in stone given this world is best characterized by impermanence – as we learned from our faith and why we believe in the afterlife.

As well as there is a body of knowledge that recognizes the superiority of a growth mindset over intelligence that is undermined by a fixed mindset. Which we demonstrate in spades but have yet to acknowledge? If we would pause, hold our breath and scan the contents of local media?

“Why independence, if the slaves of today will be the tyrants of tomorrow? And that they will be such is not to be doubted, for he who submits to tyranny loves it.” [We are ruled by Rizal’s ‘tyrants of tomorrow,’ Editorial, The Manila Times, 29th Dec 2015]

“As a major component for the education and reorientation of our people, mainstream media – their reporters, writers, photographers, columnists and editors – have an obligation to this country . . .” [Era of documented irrelevance: Mainstream media, critics and protesters, Homobono A. Adaza, The Manila Times, 25th Nov 2015]

“National prosperity is created, not inherited. It does not grow out of a country’s natural endowments, its labor pool, its interest rates, or its currency’s value, as classical economics insists . . . A nation’s competitiveness depends on the capacity of its industry to innovate and upgrade.” [The Competitive Advantage of Nations, Michael E. Porter, Harvard Business Review, March–April 1990]

“Learning and innovation go hand in hand. The arrogance of success is to think that what you did yesterday will be sufficient for tomorrow.” [William Pollard, 1911-1989, physicist-priest, Manhattan Project]

“Development [is informed by a people’s] worldview, cognitive capacity, values, moral development, self-identity, spirituality, and leadership . . .” [Frederic Laloux, Reinventing organizations, Nelson Parker, 2014]