Creativity: You can only connect the dots going backward

[Why is ours a damaged culture? Then consider: We are too weak to face a pandemic and the 21st century. Beyond survive, how can we make Juan de la Cruz thrive?]

You can only connect the dots going backward, that is, with the benefit of experience. And that is how Steve Jobs defined creativity.

But we must first reject parochialism and insularity before we get to creativity. That is, to develop the instinct to look outward and forward. Because if we don’t, we won’t embrace the imperative to benchmark.

And it is when we are at home benchmarking will we gain the insights on how our neighbors figured out the North Star. And establishing the North Star – or defining nirvana – is the first step in the creative process. Without it, what is the object of the exercise in the first place?

In other words, we must pause and challenge Juan de la Cruz: Why is “the knee jerk” the “driving force” of this ship – we call the Philippines?

Consider: Marcos – with his “new society” – was to bring the old glory of this once “pearl of the orient.” “His economic counselor conceived and implemented (in the mid-70s) the historic dollar-remittance program for overseas Filipino workers worldwide.” [Wikipedia]

"Late in 1979, the Marcos government accelerated the launching of 11 major industrial projects: (1) Copper smelter; (2) Phosphate fertilizer; (3) Aluminum smelter; (4) Diesel engine manufacturing; (5) Cement industry expansion; (6) Coconut industry rationalization; (7) Integrated pulp and paper mill; (8) Petrochemical complex; (9) Heavy engineering industries; (10) Integrated steel project; (11) Alcogas." [https://www.csmonitor.com/1980/0919/091972.html]

These supposed major industrial projects will perhaps explain why Bongbong still claims his father was the greatest president.

How come the OFW phenomenon became the driver of the economy? And with the BPO industry, together they bring in foreign exchange to the tune of roughly $60 billion. Still, the CB governor crows about the $90 billion forex reserves, while none of the above-referenced major industrial projects can make the assertion.

It’s a misplaced boasting. Recall Donald Trump received $413 million from his father’s business empire, yet he declared bankruptcy six times. “No other banks would lend him except Deutsche Bank: $2 billion in loans and a wary board.” [https://www.nytimes.com/2019/03/18/business/deutsche-bank-donald-trump.html]

How does Trump do it? By undoing a great asset of his country, i.e., transparency as in checks and balances and the rule of law. In the meantime, he ensures his benefactors get their fair share of lowered taxes – plus a piece of the stimulus/relief package meant for those in need and embraced populism and voted him to the White House.

And he is fighting China for the latter to play it fair and square – from intellectual property rights to a lopsided trade balance to subsidizing favored industries to low regard for product quality and safety to playing games with forex. That will explain his reelection if it happens. Americans vote for the economy.

Is that what the country stands for? Because of polarization – aka dualism, the square-one of human development – presidential elections today are down to four swing states.

And surprise, surprise: Juan de la Cruz and Trump have something in common. They rely on “the knee jerk” – which Trump proudly turned into a book, “The Art of the Deal,” that the ghostwriter now regrets writing.

News item: “Rupert Murdoch called Trump a ‘f*cking idiot.’” And another: “Tillerson again refuses to deny he called Trump a ‘moron.’”

Those familiar with the blog will recall the writer doesn’t vote in US elections. The wife is a registered Republican, not surprising being a Wall Street family – i.e., invested in the market while the daughter and son-in-law are products of Wall Street. And the wife and writer pay a pair of city and state taxes plus federal. He also preaches “personal responsibility” as a free-enterprise practitioner and volunteer development worker.

If it is not apparent yet, the blog is demonstrating an approach to benchmarking, raising the question: What does America stand for? For example, people point to the pursuit of life, liberty, and happiness. Most nations may want to embrace that until they recognize that freedom demands a lot from its people, e.g., transparency and the rule of law and pluralism and diversity and personal responsibility, among others.

And they invoke Divine Providence, which brings us to the story of creation. And where dynamism and the virtuous circle are crucial elements. They explain Silicon Valley – San Francisco and San Jose – and Boston, San Diego, and Seattle, all innovation hubs.

In other words, America is not a static enterprise. It is a work in progress, aka the American experiment. Inherent in its dynamic character is the aspiration to be a perfect union. It doesn’t assume it will attain perfection and why it believes in second chances.

But those positives are just one side of the coin. For example, its Judeo-Christian heritage has been interpreted in absolute terms by the loudest segment of the country that polarization is the unmistakable outcome. And it includes “Build that wall.” That brings this once “beacon upon the hill” back to the square-one of human development, dualistic and absolute.

In more contemporary lingo, America needs a “uniter,” not a “divider." And it's history says it can right its ship.

The bottom line: Benchmarking doesn’t mean that the established benchmark is a model of perfection. The object is to find out what makes them tick. “Perfection” is not of this world. And in the case of the writer, he represents the desirable qualities of America by answering the call for volunteerism, paying taxes, investing in the market, but opting not to vote. Because freedom also means the freedom not to vote, as in to protest. Likewise, it is not absolute.

But let’s get back to the Philippines. Why can’t we be like Singapore, for instance? To us, a model must be perfect? And Singapore isn’t because Lee Kuan Yew was an autocrat? Again, benchmarking is picking and choosing what makes the established benchmark tick.

On the other hand, recall (a) the comprehensive agrarian and land reform program, (b) the 4Ps, and (c) the POGO spectacle, among others. And the absoluteness of a 6%-7% GDP growth rate.

With due respect to our economic managers, rationalizing taxation is not going to cut it. It will still take a generation before we see the light at the end of the tunnel, even before COVID-19.

In the meantime, we instinctively fall back on “the knee jerk.”

In fairness, there are (a) Arangkada, (b) AmBisyon, (c) the 42 industry road maps. And there is Tatak Pinoy. See above; the Marcos eleven major industrial projects.

What gives? Toss parochialism and insularity to learn to benchmark and figure out the North Star. Indeed, those are critical dots that are separate and eons apart and aren’t easy to connect.

That is why the blog ceaselessly speaks to Lee and Mahathir and Deng, begging for Western money and technology. There is no parochialism and insularity there. And they are the epitome of benchmarking – as in the West is the best practice model for development. But by no means is it a vote of absolute superiority.

On the other hand, Juan de la Cruz can’t walk away from his inward-looking bias. Benchmarking likewise gives insights on how to prioritize – as in Pareto. And more so, it reveals the North Star, the compass of advanced countries.

That brings us back to forward-thinking. Benchmarking demands, beyond analysis, analytics. And analytics can only be relevant if the exercise is in pursuit of a North Star; otherwise, it is an exercise in futility.

Sadly, we are way behind the curve, stuck in quick fixes and the crab mentality. And with a litany of must-dos. And where do we begin? See above, the Marcos eleven major industrial projects.

“My FEF friends had two Zoom discussions on a wide range of topics from finance to logistics to agriculture to transportation and anything else that could help us get going again. I only have space to focus on ‘Balik Probinsya.’ It is an all-encompassing proposal that’s not new, but covers several reform areas.” [Never waste a crisis, Boo Chanco, DEMAND AND SUPPLY, The Philippine Star, 1st May 2020]

Consider: How did China become the manufacturing hub of the world? Recall the Pearl River Delta Economic Development Zone. Or Singapore, in and of itself, is a model economic development zone being a tiny city-state. And Malaysia, where Mahathir prioritized KL over his hometown.

Why aren’t we benchmarking against these neighbors?

What must be our North Star? It is to be a developed, wealthy economy and nation. And that means figuring out and traversing the road from poverty to prosperity. Recall the pronouncement, “It is good” – which came from the Creator. While here we are, stuck on the war on poverty, especially in the rural areas. And as if our hands aren’t full, we added and applauded the war on drugs.

The story of creation is not about a quick fix; it took “seven days,” not a magic wand. It is a virtuous circle, i.e., sustainable, and manifested by the photosynthesis phenomenon.

Enter: COVID-19. Now we want to believe that the evolving rightist-nationalist sentiments in several countries that embraced populism will become the “new normal” – reinforced by the lockdown phenomenon?

But that is again an absolutist instinct.

Consider: “With much of the world still under a Covid-19 induced lockdown, the race is on to find a vaccine.  More than 100 are under development around the world, with six already undergoing clinical trials.

“In hopes of fast-tracking the process, the United Nations, several world leaders, and the Bill and Melinda Gates Foundation recently launched a global collaboration. Among them are governments, pharmaceutical companies, and other private sector actors to end the pandemic through more effective diagnostics, treatments, and, more importantly, a vaccine.

“Part of the initiative is a global pledging effort to raise $8.1 billion—roughly P411 billion—for medical research in these areas.

“We are already contributing to the global pandemic response in no small way. Our government is working so that clinical trials for Avigan—or the anti-influenza drug Favipiravir developed by Toyama Chemical Co. under Fujifilm Holdings—can be conducted here before the end of the month.” [Medical solutions to Covid-19, Sonny M. Angara, BETTER DAYS, BusinessMirror, 1st May 2020]

Consider: If that is how we thought before Samsung Vietnam came into being, would we have had the chance to host this significant foreign investment? Vietnam came after the Philippines in economic development, if we want to recall.

Creativity: You can only connect the dots going backward, so said Steve Jobs.

In other words, it is a function of experience. But how come the Vietnamese beat us to the draw with Samsung? Because they weren’t inward-looking and parochial, they benchmarked against their neighbors that had the best practice models in accelerating development. 

In the meantime, we are not gaining much experience, development-wise.

We don’t want Arangkada, AmBisyon, the 42 industry road maps, and Tatak Pinoy to go the way of the eleven Marcos industrial projects. What to do?

For example, the blog provided a simple definition of nirvana: We want an incremental GDP of $200 billion to put us ahead of Malaysia, Thailand, and Vietnam.

Where will these income streams come from, and how do we prioritize them? From Arangkada and Ambisyon and the 42 industry road maps and Tatak Pinoy. Can Finance Secretary Dominguez pull them into a collaborative group as in a small task force to answer such a question?

Forget about the war on poverty or Federalism or whatever for a moment.

There must be, in the small task force, a visionary and a tycoon like Mr. Ang of San Miguel, who has experienced doing business outside the Philippines. The group must be laser-like focused. For example, how do we replicate the Samsung Vietnam phenomenon?

Which industry must be the number one priority, not the ones favored by any of the tycoons? The task force must wear their Juan de la Cruz hat, not their business or vested interests. 

They must swear not to omertà but transparency because they shall commit to work for Juan de la Cruz, the principal equity ownership of the undertaking. 

Recall the hierarchy of his needs, beyond water and electricity and rapid infrastructure development, is to aspire to be a wealthy nation. We must not let our caste system perpetuate our blindness to human dignity.

Which foreign investor and technology can match the Samsung Vietnam model with the Philippines as the Asian partner? In other words, we must be looking at winning in the global arena, beyond the Philippines.

And what other two options must we consider – if there is not one single initiative that can do the trick?

Why must we do the exercise? Samsung Vietnam generates more than the combined revenues of our top eight listed companies in the Forbes list. And must be the benchmark.

What about dispersing industries outside Metro Manila? We must first learn how to win, win big, and at lightning speed. Think of the rapid prototyping model of Silicon Valley – to accelerate learning and be in continual learning mode.

Because what we want is to get on the road that we must traverse, from poverty to prosperity.

Can we see how the dots connect? From nirvana – of equaling the revenues of Samsung Vietnam – we must connect the dots going backward until we figure out the number one industry priority.

That is how Juan de la Cruz will learn how to prioritize and overcome the crab mentality. The exercise will get us a quarter of the way toward generating incremental GDP of $200 billion. Moreover, we would gain the experience of winning big and at lightning speed.

Creativity: You can only connect the dots going backward, that is with the benefit of experience.

The exercise will also reveal the location where we must erect such a significant undertaking as well as the support utility and infrastructure development it demands. Marcos failed because they did all eleven industrial projects all at once.

To be blind once is bad enough. To be blind eleven times is a ticket to hell. What more of 42 industries? In other words, they will open the door to greed, as in the unexplained wealth of Marcos and whoever else.

Gising bayan!

“True social reform has little to do with politics. To unmoor ourselves from the burdens of the past, we must be engaged in the act of continual and conscious self-renewal. All men are partially buried in the grave of custom. Even virtue is no longer such if it is stagnant.

“Change begins when we finally choose to examine critically and then recalibrate the ill-serving codes and conventions handed down to us, often unquestioned, by the past and its power structures. It is essentially an act of imagination first.” [David Henry Thoreau; American essayist, poet, and philosopher; 1817-1862]

“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]