What to do?

[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?]

“Here is a land in which a few are spectacularly rich while the masses remain abjectly poor. And where freedom and its blessings are a reality for a minority and an illusion for the many. Here is a land consecrated to democracy but run by an entrenched plutocracy, dedicated to equality but mired in an archaic system of caste. 

“But the fault was chiefly their own. Filipinos profess the love of country, but love themselves – individually – more.” [Ninoy Aquino, Foreign Affairs magazine, July 1968; Stanley Karnow, New York Times Magazine, “Cory Aquino’s Downhill Slide,” 19th Aug 1990.]

What to do?

If we take off our caste system’s mask, we will stop to think we are a poor, underdeveloped country – that will struggle post-COVID-19. The pandemic created a level playing field of sorts. Even America is vulnerable.

Recall the writer’s Eastern European friends kicked the butts of Western giants post the 2008 Global Recession. They have the playbook and just dusted it off to gear up for COVID-19. But they also doubled profitability last year. Simply put, they have a year’s profitability to burn – to fight and again come out the more robust post this crisis.

That means they can access raw materials, bite the bullet assuming prices are rising, keep the factories running – they do individual checks of workers twice a day and tests as often as necessary. How did they do it? They showed the local government how to manage the pandemic and led the business community in funding the campaign. The town did not get a surge like the major metro areas.

They do dynamic quarterly production and sales planning while the writer is a lockdown in suburban New York. Yet, he enjoys the “view” from his laptop – how Big Data plays out – and does his analytics. And he gets his feedback to people in different parts of the world. Take Ukraine or Romanian or the New York metro area market, for example.

Ships are still sailing from Europe to North America. In other words, Pareto is a dynamic phenomenon, like photosynthesis. One market may be slow, but when a business has a portfolio of products, there will be those that will defy the odds. Think of how toilet paper and sanitizers are always out of stock in retail stores in the West – but not only.

Recall these friends’ mindset is to create a virtuous circle. They are in continual learning mode, developing new products, conscious of the hierarchy of human needs, and respect for human dignity – they are a perpetual fountain of innovation. Unsurprisingly, their business and profitability are getting more robust year after year.

We in the Philippines must start somewhere. In an earlier posting, the blog presented how we can prioritize the initiatives from Arangkada, AmBisyon, the 42 DTI’s industry road maps, and Tatak Pinoy.

What can we do as individuals to get Juan de la Cruz out of his stupor? This crisis is not a joke. It will get worse before it gets better as we know it.

Who has access to Sec. Dominguez or Mr. Ang of San Miguel? To make them revisit how we are pursuing the growth, progress, and development of this country? Or, more precisely, how can we embrace a dynamic world view so that we are in sync with this dynamic universe?

The good news is that the West is as vulnerable as everyone.

Consider these “brands that may not survive COVID-19: (1) Neiman Marcus; (2) JCPenney; (3) AMC Theatres; (4) Sears; (5) J. Crew; (6) Bed Bath & Beyond; (7) Hertz; (8) Steak ‘n Shake; (9) Nordstrom; (10) GNC; (11) Ruby Tuesday; (12) Gold’s Gym; (13) Norwegian Cruise Line; (14) Party City; (15) Modell’s Sporting Goods; (16) Best Buy.” [USA Today, 12th May 2020]

That’s why the blog had raised the question of whether Vietnam is more impoverished than we are and can partner with Samsung to generate more revenues than our eight top enterprises in the Forbes list combined, why can’t we?

And that should be challenging enough for Messrs. Dominguez and Ang to pause and ponder.

If we aren’t held back by our caste system, we won’t be intimidated by competition, whomever they may be, and wherever they are. 

Or we would not have kicked out the US military. How shortsighted do we want to be? Why do we engage in self-flagellation? Trump may be an idiot and a moron – even a tyrant – so said those who knew him. Yet, the institutions in this pluralistic and diverse culture will find its bearings as history demonstrated time and again.

But how do we undo idiocy in the Philippines unless we upend our caste system? We mirror ourselves when we define who our friends are, which is not a virtuous model for betting our future.

We must learn to die with our ego-self to give room for our true-self, so says Franciscan theology. The true-self is what the Creator pronounced as “good.” It seeks the virtuous circle, not the vicious one. 

Let’s get back to Vietnam to appreciate how we can replicate a virtuous circle. Consider these characteristics that now define Vietnam and why the international institutions see them on track to overtake even Singapore. Beyond Samsung, they also successfully partnered with Apple recently to manufacture the AirPods. And we’re still stuck doing chips.

Vietnam’s exports (2019) are over $300 billion or more than four times ours. They can pay the universal base income (UBI), and we cannot, so our poverty rate is almost three times theirs. Why? Our employment comes mostly from MSMEs, about two-thirds, and they cannot generate revenues like Vietnam’s exports, which are higher-margin businesses, to boot. 

That is not rocket science but simple arithmetic. Yet, it may sound Greek to Juan de la Cruz, given our parochial and insular instincts. For example, we had experts behind several inward-looking interventions like the comprehensive agrarian reform program, the 4Ps, the BPO industry, among others. Indeed, we had experts too behind EPIRA and the water distribution privatization. How come we can’t provide the basics of water and electricity?

Recall the levels in human development, and the square-one is absolutism. It is not that expertise is wrong, but absolutism is folly. And why undertakings mustn’t overlook dynamism. Sadly, our caste system will always stand in the way. Moreover, unlike in advanced countries where expertise is in great abundance, we encounter fewer of them at home. That is why the blog often references supposed gold standards, yet upended because this universe is a 24/7 dynamic phenomenon, e.g., Apple over IBM.

But let’s resume the above analogy. The two drivers of the Philippine economy (a) OFW remittances and (b) the BPO industry generate roughly $60 billion but are nowhere near the over $300 billion Vietnam has under their belt because of exports.

Are POGOs the answer or the 4Ps? Or even tax rationalization? In the world of corporate America, that’s called financial mumbo jumbo, i.e., we are way behind the curve!

A virtuous circle is a product of dynamism and forward-thinking, not misplaced compassion. We cannot squeeze blood out of a stone. That is why we must seek the virtuous circle.

But can Juan de la Cruz embrace a dynamic and growth mindset and be a functioning element of this dynamic universe?

Can we, in our respective circles, get the rest moving in that direction? Boo Chanco shared the Zoom discussions with his FEF friends. Can they switch the topic next time?

What about the virtual classrooms that have become the COVID-19 normal? How can we get young people likewise to develop a dynamic and growth mindset?

Same old, same old will guarantee that we sink deeper into the abyss.

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]