Common good. Good governance. Forward-looking

“If democracy again dies in the Philippines, critics will likely blame the ignorant masses for failing either to elect leaders of proven competence and unquestioned integrity or to hold them accountable when they betray public trust. But the leadership elite—in politics and the professions, in the church and civil society, in the bureaucracy and business—will bear the heavier burden for its death.” [Development, democracy, dictatorship and RevGov, Edilberto C. de Jesus, BUSINESS MATTERS, Philippine Daily Inquirer, 2nd Dec 2017; de Jesus is professor emeritus at the Asian Institute of Management]

The writer couldn’t say it better than that. Surprisingly, we appear to be in good company. “The world looks on in fear and astonishment, with the overpowering sense that America has become a danger to itself and the world, shortsighted, deeply divided and unwilling to consider the common good.

“The analyses by the Congressional Budget Office, the Joint Tax Committee and almost all independent experts come to the same conclusion. The tax cuts will have large effects on the budget deficit and negative effects for low-income Americans. The CBO has found that healthcare measures in the bill would reduce health coverage by 13 million Americans in 2027. The Joint Tax Committee has found that the growth effects are tiny and perhaps negative in the long term, once various short-term tax incentives are phased out and the public debt increases over time.

“I am writing from Beijing, China, where forward-looking policies in infrastructure, technology and diplomacy have fueled rapid economic growth and even more remarkable technological advancement. By the mid-2020s, China will most likely lead the world in key technologies for low-carbon energy, robotics and advanced transportation, among other areas targeted in China's long-term development strategy.

“In this context, the vacuity of US economic policy is especially poignant. President Donald Trump and Republican congressional leaders are rushing to spend a trillion dollars or more on unaffordable tax cuts for the richest Americans in a stunning monument to brainlessness.” [The GOP's rush to tax cuts was brainless, Jeffrey Sachs, CNN, 3rd Dec 2017; Sachs is a professor and director of the Center for Sustainable Development at Columbia University]

Being a Fil-Am, the writer can’t complain that he isn’t learning – in spades – about the common good, and about good governance and what it means to be forward-thinking and forward-looking. And especially since he covered China – and Asia and witnessed the Asian Tigers – including experiencing firsthand how the Chinese translated Deng’s mantra, “I don’t care if the cat is black of white, so long as it catches mice,” undoing Mao’s Great Leap Forward.

“The great pragmatist” is how The Guardian called Deng back in December 2008. “Though he stood at about 5ft (152cm), Deng Xiaoping was a towering figure who ended China's isolation and built an economic powerhouse.

“He opened the country to the outside world, building diplomatic ties and backing economic reforms – from the break-up of communes to the creation of special economic zones – which often seized on local initiatives.

“In 1992, Deng launched what was to be his last major initiative, embarking on his ‘southern tour’ of China to promote economic reform and entrepreneurship … He died five years later, aged 92, with the country set firmly on its capitalist course.”

The Philippines can’t change because it is proud of its culture? If China, one of the oldest civilizations can shift courses, what are we to do? Christianity and the common good and good governance shouldn’t be incompatible? Nor is to be forward-looking anathema to our faith given we believe in the afterlife?

Culture and faith have defined us. And that is why the blog does not shy away from dissecting them. And development is the law of nature. Did we not stand up against RH claiming that it goes against the law of nature? How could we rationalize the underdevelopment of Juan de la Cruz?

What gives? Sadly, we have no track record in development that we can only intellectualize what it’s about. Consider: we are playing catch up big time.

Yet … “When the senators realized that their pet insertions had reduced the expected revenues of the tax reform, they scrambled to add more revenue-raising provisions. And so you had a doubling of the documentary stamps tax, a doubling of the minerals excise tax, a tax on coal 10 to 30 times its present rate. Is that good? No. No one bothered to check what the overall impact would be. As a colleague described it: all whimsical or arbitrary, all without the benefit of complete staff work.” [‘Papa Bear,’ ‘Mama Bear,’ ‘Ice Queen,’ Solita Collas-Monsod, Get Real, Philippine Daily Inquirer, 2nd Dec 2017]

See above re we're in good company. America is a danger to itself and the world, is shortsighted, deeply divided and unwilling to consider the common good.

On the other hand, given our instincts … We remain parochial and insular. We defer to hierarchy and expect paternalism in return. We very much value and rely on political patronage and dynasties, and oligarchy. More to the point, our instincts go against development, against the law of nature.

At the end of the day, we don’t want to personify Darwin’s treatise – i.e., organisms that fail to adapt go extinct. We’re the regional laggard, if no longer the sick man of Asia. And that is no comfort.

For example, can we be like China, shift courses and embrace economic reform and entrepreneurship? Not if we hold our instincts sacred? It explains why “economic reform” to Juan de la Cruz is but a broken record.

But what about entrepreneurship? Why do the Chinoys control the economy? Think deference to hierarchy and expectation of paternalism. Think value and reliance on political patronage and dynasties, and oligarchy.

Of course, over 95% of PH registered enterprises are MSMEs. But they are more livelihood undertakings that they don’t make a dent on total national income. The writer just completed his critique of the planning and budget process of his Eastern European friends.

Over the 14 years he has guided them, they have developed 9 multimillion-dollar brands and have a dozen more that are in the pipeline. Not all will be homeruns but they’re likely to have a handful of hundred-million-dollar brands on top of the multimillion-dollar ones. Their market is not local but regional, if not global. Talk about innovation and competitiveness. The latest manufacturing facility is being automated as in robotics. Yet because of constant product development and expanding global market, they have more facilities and more employees today.

They are more like our Chinoys with their entrepreneurial mindset. What is an entrepreneur anyway? “Someone who exercises initiative by organizing a venture to take benefit of an opportunity and, as the decision maker, decides what, how, and how much of a good or service will be produced … An entrepreneur supplies risk capital as a risk taker, and monitors and controls the business activities.

“The economist Joseph Alois Schumpeter (1883-1950) discovered that entrepreneurs: (1) greatly value self-reliance; (2) strive for distinction through excellence; (3) are highly optimistic (otherwise nothing would be undertaken) and (4) always favor challenges of medium risk (neither too easy, nor ruinous).” [Business Dictionary]

Think of our MSMEs and our oligarchy too. The latter thrives on rent-seeking and the former are inward-looking. Do we realize why the Chinoys control PH economy?

Think the common good … good governance … forward-thinking and forward-looking.

But think building-blocks first and not conflate the problems of the world with our inability to accelerate infrastructure development. Focus on infrastructure development not EJKs. Learn from Portugal.

On industrialization, don’t reinvent the wheel, build on the JFC’s efforts. For example, given agribusiness is critical, with the coconut industry affecting the greatest number and contributes roughly half of agriculture exports, we must make it world-class – and overcome its dark past, served political patronage not the farmers and the nation.

On innovation and competitiveness, get a handful of industries, like the top exports, turned into models ... not bite more than we can chew.

Unwittingly, our definition of “inclusive” perpetuates “crab mentality.” Prioritize. Prioritize. Prioritize. The “vital few” over the “trivial many.” Or simply, Pareto!

“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]

“Now I know why Paul dared to speak of ‘the curse of the law’ (Galatians 3:13). Law reigns and discernment is unnecessary, which means there is little growth or change in such people. When you do not grow, you remain an infant.” [Faith and Science, Open to Change, Richard Rohr’s Daily Meditation, 23rd Oct 2017]

“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]