Was our dynamism neutered?

Are we debating the wrong questions and why we make false choices? Should we pause for a moment and figure out if dynamism is foreign to us?

Consider our instincts: We are parochial and insular. We value hierarchy and paternalism and rely on political patronage and oligarchy that ours is a culture of impunity. In other words, they explain why we are backward- and inward-looking.

Recall Rizal’s assertion that we love tyranny, and he created the character of Padre Damaso. Did he confirm that we suffer in dynamism?

Why is the question crucial? First, we were the basket case of Asia. Then despite attaining annual growth in the 6%-7% range – that makes us one of the fastest-growing economies – we still find ourselves the regional laggard. If our neighbors are dynamic, we remain static.

Consider: “The Philippines continues to be among the laggards in East Asia in attracting more foreign direct investments (FDI). Data from the UN Conference on Trade and Development (UNCTAD) World Investment Report (WIR) show that our FDI inward stock, an indicator of cumulative foreign investments, was still below $90 billion in 2018 and only about 55% of that in Vietnam and Malaysia, 37% of that in Thailand.

“The only neighbors that we can ‘beat’ as having lower FDI stocks are Myanmar, Cambodia, Laos, and Brunei.” [PSA, PCC, and competition, Bienvenido S. Oplas, Jr., My Cup Of Liberty, BusinessWorld, 10th Feb 2020]

In other words, we have a challenge; that is, our inability to match our neighbors attract foreign direct investments. Moreover, while they have become industry-investment driven economies, ours is a service-consumption one.

Recall what Lee and Mahathir said to Deng, “Beg for Western money and technology.” Unsurprisingly, China followed the footsteps of the Asian Tigers, and, more recently, Vietnam did as well. Do they still talk about poverty as we do?

Or do they ever talk about their respective Constitutions and the fear of becoming second class citizens in their countries while attracting unbelievable levels of foreign direct investment? Can we name a neighbor where this “fear” that has consumed us for the longest time ever turned real? Should we examine how we conduct foreign relations? Recall the 1972 bestseller, “I’m OK — You’re OK.” See above our instincts. Are they behind our damaged culture?

If we think of Russia and China and how they managed to progress and develop, China embraced the free market while Russia kept to their politics. For example, Putin continues the aspiration of restoring the old glory that was the USSR with its satellite countries. Think of the conflicts they created in Georgia and Ukraine, to name just two and why the Baltics states, among others, are reaching out to the West.

The bottom line: While China has evolved into an economic power, Russia remains a developing country. Like the Philippines, it has kept crony capitalism and oligarchy with no industrial thrust – like that of China and the Asian Tigers – and heavily dependent on oil.

Are we in the Philippines debating the wrong questions that we make false choices? Should we pause for a moment and figure out if dynamism is foreign to us?

That is why the blog keeps teeing up Arangkada. Recall how Lee Kuan Yew ran Singapore, like a company or a business enterprise. And Mahathir and Deng, and Vietnam followed suit.

In other words, we ought to do something similar, map out an industrial-investment economic model that will aggressively drive national income, and not just be elated by a 6%-7% growth rate driven by a service-consumption economy. 

As well as by “pwede na ‘yan” – e.g., the OFW phenomenon, BPO industry, POGO – that as we know yields a meager per capita income. And that reveals a failure to reframe the challenge of poverty. For example, an industrial-investment economy will generate far more quality employment beyond vastly enlarging the economic pie and therefore address poverty more forcefully as demonstrated by our neighbors.

What to do? We can:

(a) start with the need to raise exports by over $100 billion to at least be like Thailand as defined by the DTI;

(b) be focused – via prototyping – on a couple of industries with products that have a market so we can rapidly gain experience and perceptive judgment; and as necessary, be equipped to upgrade future sector and product development efforts continually;

(c) that they generate the desired margins to make our farmers, for example, realize handsome returns.

We can then assemble and pull together the essential support elements like:

(a) infrastructure development;

(b) reinforced by investment and industrial biased Constitution;

(c) seek partner nations and enterprises that lead in the requisite technology, think of Vietnam becoming the regional hub for Samsung’s technology manufacturing in the region – and which won’t make us second class citizens in our own country.

In other words, we must not be bogged down by the chicken-and-egg debate. Think the Asian Tigers, China, and Vietnam versus Russia. 

Consider: Because of our failure to be ahead of the curve in infrastructure development, we are spending nine times more in the economic cost of Metro Manila traffic than on our flagship poverty program, the 4Ps, or conditional cash transfer.

Recall the comprehensive agrarian or land reform that was to deal four-square with rural poverty. Now we know it has undermined not just agriculture productivity but its competitiveness as well. 

The bottom line: A dynamic mindset as opposed to a static one will equip us to reframe the challenges we face, ask the right questions and look forward and outward – and, as necessary, be able to forward-think.

We are in the 21st century but still pulled into archaic thinking and concerns even when the world is into quantum computing and AI, among others.

As we seek to find our place in the sun, we must keep the dynamism of the universe in mind. For example, aristocracy, as in tyranny, is antiquated while diversity and pluralism leverage the best thinking of man. This world is not about perfection and permanence precisely because it is dynamic. It confirms man’s ability to respond to the challenges he continually faces.

For example, they call the America model as an experiment – and aspirational. And so, because of the lesson from WWI, Uncle Sam did not want to be part of WWII. He had to be convinced by allies and friends that it is in the best interest of the community of nations for the US to exert its influence. Otherwise, Hitler could have run over Europe and the rest of the world.

Today, America continues to evolve. It has never claimed perfection; we cannot think of them as stuck in the mindset of the past or why Trump’s support comes from the minority, not most Americans.

That is not to promote an ideology, but to recognize the milieu, this world we live it – it is dynamic and not static. In other words, we can’t keep our head in the sand with our parochial and insular bias; else we shall be like a fish out of water.

Our future is even bleaker with the state of higher education. Intellectual curiosity teaches the young:

(a) how to view the world;

(b) how to frame and reframe a problem;

(c) and how to forward-think.

Rank does not bestow this privilege. Experience does, as in perceptive judgment.

Practice. Practice. Practice. It is not about pulling rank.

Gising bayan!

“Why independence, if the slaves of today will be the tyrants of tomorrow? Moreover, 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]

“You have to have a dream, whether big or small. Then plan, focus, work hard, and be very determined to achieve your goals.” [Henry Sy Sr., Chairman Emeritus and Founder, SM Group (1924 - 2019)]

“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]