Friday, August 28, 2020

A young man shows “us” how to look in the mirror

Who is us? We in the elite class?

“So, what if I don’t want to be a Filipino anymore (?),” Paul David Cruz, YOUNGBLOOD, Philippine Daily Inquirer, 18th Aug 2020; Cruz is 29, works as a communications officer in the IT industry.

“I hate that I was born Filipino. There, I said it. Let’s get this straight: This isn’t that kind of piece where I state negative things after negative things only to flip them on their heads after and come out with a positive message. No, this isn’t a cutesy post.

“Like a lot of Filipinos, I have had it with the unfairness of this country. Take the blatant disregard by its ‘leaders’ for the necessary services their constituents rightly deserve, of the incessant and indefatigable corruption permeating every corner of the rank stench of hopelessness wafting from dead dreams and expectations, caused by the motherland’s very own children.

“I don't want to be a Filipino anymore. And so, what if you disagree?

‘I also don’t care if you’re going to burst into song about why you’re proud to be Pinoy despite everything. Please drop the pretentiousness. You are either from a privileged background with your safety nets to catch you when the ‘crap’ hits the fan, or far worse, a person who’s deluding himself into thinking everything’s okay even when your home is in flames.

“You think it’s okay to continue reading about elected primates guzzling taxpayers’ hard-earned money down the drain, without even the tiniest bit of remorse while doing it? Go ahead.

“You don’t feel anything when the youth and the marginalized take to the streets despite a pandemic to voice their concerns about how we are being exploited, calling out for others like us to join their cause and amplify our collective voice, to stop being apathetic? No problem.

“You would rather all of us continue accepting every morsel and crumb that keeps being thrown at us derisively, mockingly. You don’t think we can criticize elected leaders, because darn it, they’re just human and trying their best and are all good at heart deep down? ‘Okey dokey!’

“Who cares, right? Surely you don’t mind, that’s why you’re still proud to be Filipino.

“I hate to break it to you, but not everyone thinks as you do. Not everyone is as deluded and willfully blind as you are. Not everyone is willing to use the only chance to live just to be bogged down by ineptitude, ignorance, and self-serving agendas.

“So yeah, so what if I don’t want to be a Filipino any longer? It’s not as if the people who should care about this sentiment will.”

The young man reminds the writer of a niece, a millennial, who says that today’s youth are different. They won’t swallow handed down preconceptions hook, line, and sinker.

“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]

That must be why Rizal said, “The youth is the hope of the fatherland.” Will we, in the elite class, examine critically handed down conventions?

“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]

That is why the blog continually raises our instincts, i.e., to challenge them: We are parochial and insular. We value hierarchy and paternalism that we rely on political patronage and oligarchy that ours is a culture of impunity.

Our structures – economic, political, and civic – are dysfunctional compared to our neighbors.

Unsurprisingly, we can’t seem to get a good handle on the critical levers of development. We are all over the board – “sabog” in the vernacular.

It goes back to a fundamental challenge we can’t seem to overcome, the inability to forward-think. When we can’t visualize the road from poverty to prosperity, we will be hard-pressed to prioritize and focus.

And it is a function of our lack of experience in development, as the blog continually raises – like a broken record. It explains why we see poverty as an enormous challenge – i.e., the obvious and the present – that we can’t distinguish between cause and effect. We’re stuck in dualism and are yet to move up to relativism.

And why our world view is inward-looking. And why the nuances between imperialism and hegemony and sovereignty and impunity confound us.

That beyond family and nation are the community and the common good, including the community of nations.

Consider: “It’s indeed likely that most of us have shifted a large part of our usual purchases to informal sellers, with a corresponding reduction in purchases from formal business establishments. My colleague could be right: Much of the measured decline in economic activity might well reflect a widespread shift away from formally recorded transactions in favor of informal ones below the radar.

“It’s not because there was a dramatic decline in our purchases. It’s more because the informal economic activities are not directly recorded, hence largely escape the (gross domestic product) GDP measurement.” [Overstated decline (?), Cielito F. Habito, NO FREE LUNCH, Philippine Daily Inquirer, 18th Aug 2020]

Do we wonder why the young man referenced above is at the end of his rope?

Recall these simple questions the blog continually raises: “Where are we? Where do we want to be? How do we get there?

If we can’t look in the mirror, how do we square the circle on “Where are we”?

“UA&P economist Bernardo Villegas said the country’s long-term fundamentals have remained intact. These include the country’s young and growing English-speaking population. Its location is in the most dynamic economic region in the world, Asia and the Pacific.

“The country’s membership in the Association of Southeast Asian Nations (ASEAN) is a significant consideration in the country’s long-term prospects. The region is one of the fastest-growing areas of the world.

“The country’s abundant natural resources will ensure its long-term growth and development, especially for tourism.

“And on the administration’s Build, Build, Build (BBB) program, at least two more Presidents will likely sustain them after President Duterte.

“Likewise, the growth corridors outside of the National Capital Region (NCR), where investors could relocate and grow their businesses. Among these is the Bicol region, which has been growing fast, and in terms of provinces, Iloilo and Davao.

“Sunset industries moving forward are agriculture; health and wellness; computers or the technological industries; and education.

“These will allow for a faster and V-shaped recovery for the Philippines.

“However, long-term challenges for the Philippine economy include low agricultural productivity, obstacles to doing business – especially foreign direct investors, e.g., shortage of technical skills. They include high electricity rates, corruption, and poor governance, and a high frequency of natural calamities.” [https://avalanches.com/]

Consider: The above longish list of positives include elements that we have trumpeted for years. 

We must then distinguish the “drivers” from the “enablers.” 

Why? We must put the drivers front and center, as in the products and services that will give us a quantum leap in exports. Why exports? Our local consumption economy is reasonably large. It is in “exports” that we lag our neighbors.

Think Samsung Vietnam and Apple AirPods Vietnam – and potentially iPhone Vietnam. They are actively lobbying Apple on this.

Forget how we view things for a moment. It is high time we question and challenge our thinking. Recall metacognition. It is how to move up in human development.

We, in the chattering classes, have discussed big data and analytics a few times. And “analytics” must be distinguished from “analysis.” The former demands forward-thinking because the object of the exercise is to create a virtuous circle.

Consider: We have our top exports. The principle of the vital few (or Pareto) says that must be the starting point of our “analytics exercise,” not the 42 industry road maps we’ve been kicking around. 

And we cannot fall back on the mindset that failed us in the 20th century. We must challenge our thinking. And the place to start will be our neighbors. For example, Messrs. Dominguez and Ang can replicate the wonder that is Samsung Vietnam. And it demands benchmarking or learning as much as we can from their experience.

What about the enablers? Our membership in the ASEAN is an enabler, but not a driver, given our neighbors are members. We cannot own this “positive” by ourselves. Even abundant natural resources are not unique to us. For instance, we are not dominant in tourism.

The BBB program is a catch-up effort and, again, not a driver. We are decades behind. 

Ditto for the growth corridors outside NCR. We continue to entertain the notion of imperial Manila. Recall how we looked at the Davao of Duterte and concluded that it was a model for the nation? What we call imperial Manila falls in the same classification as our economy, the regional laggard amongst the major cities in the region.

If we look outward, China, for example, focused on developing the regions of Guangzhou, Shanghai, and Beijing – all on the eastside – to world-class levels before venturing west. 

But we can’t internalize that because the crab mentality is a dominant trait in Juan de la Cruz.

Let’s get back to the enablers: The obstacles to doing business – especially foreign direct investors, e.g., shortage of technical skills – include high electricity rates, corruption, and poor governance.

What to do? We need to pull the enablers together to be a coherent whole and be a subset of the virtuous circle we must create if we are to figure out the road from poverty to prosperity.

The bottom line: We are the regional laggard – because the two drivers of the economy remain OFW remittances and BPO revenues.

We continue to gloss over our failure to industrialize. We are the rookies in the big league dominated by our neighbors – and why our eight most significant enterprises can’t match the output of one Vietnam enterprise.

Try dynamism. And beyond “dynamism,” to forward-think – to see beyond the obvious and the present – and create a virtuous circle.

Here’s a simple test: “Individualistic economic teaching held that economic life is free and independent of public authority. The principle of self-direction governs it, i.e., free competition, while justified and useful – in certain limits – cannot curb itself. Social justice and social charity must govern it firmly and fully.” [Introduction to Catholic Social Teaching, Elfren S. Cruz, BREAKTHROUGH, The Philippine Star, 20th Aug 2020]

And here’s the hypothesis: “Social justice and charity – firmly and fully – demand that we enact a comprehensive agrarian reform program.”

Why is our agribusiness pathetic? We don’t see beyond the obvious and the present, as in a virtuous circle. 

Why does the blog continually reference Padre Damaso – and the tribalism that stalled the greatness and exceptionalism of America? Recall the photosynthesis phenomenon.

Let’s try another one. Social justice and charity – firmly and fully – demand that we champion the OFW phenomenon. But that is why we can’t own up our failure to industrialize. 

Social justice and charity – firmly and fully – demand that we tee up 42 industry road maps. But that’s why Samsung Vietnam, single-handedly, turned the efforts of our eight top companies into a feeble exercise.

Benchmark. Benchmark. Benchmark.

Until we recognize what is behind the success stories of the Asian Tigers and China, and, more recently, Vietnam, we will always be behind the curve. 

Simply put, they figured out and traversed the road from poverty to prosperity.

That is the acid test of social justice. 

Poverty in the Philippines is the effect of underdevelopment. Recall it is about teaching how to fish, not giving fish. 

But are we more socialist that the writer’s Eastern European friends? In other words, people born and raised as socialists can move up in human development that they are today beyond dualism and into relativism.

See above; we can’t seem to get a good handle on the levers of development. We are all over the place, as in “sabog.”

Or have we given up on a prosperous and wealthy Philippines? Is that why AmBisyon Natin: 2040 about a comfortable and stable life for our families and children? That smacks of static energy. Aren’t we a subset of the spirit of creation?

Is dynamism beyond Juan de la Cruz? Which brings us back to our instincts: We are parochial and insular. We value hierarchy and paternalism that we rely on political patronage and oligarchy that ours is a culture of impunity.

Here’s a quote from a prior posting: “The Economist summarized the critical factors shared by the Best in Class economies: (1) stunning investment and trade levels; (2) higher levels of education and government effectiveness; (3) score highly with exports that are both eclectic and exclusive, as in higher value-added, that few other countries export.

“Among our neighbors, they include (1) Myanmar, (2) Vietnam, (3) China, (4) India, (5) Sri Lanka, (6) Thailand, (7) Malaysia.

“The rest rounding out the top performers are (1) Albania, (2) Romania, (3) Panama, (4) Bulgaria, (5) Poland, (6) Turkey, (7) Hungary, (8) Chile, (9) Iraq.”

Where are we?

We cannot keep to our elite class hubris if we want to understand why there is a chasm between the young man that is the subject of the posting and us.

He has made a call to action.

We cannot be the caricature of Padre Damaso, Juan Tamad, and Bondying rolled into one.

Gising bayan!

“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.]

“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]

“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]

“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]

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]

Saturday, August 22, 2020

An awful year? The best in class.

Shrinking our mind altogether - as in inward-looking - is why we won't belong to this group of 16 emerging economies that The Economist [15th Aug 2020] calls “the best in class.”

Among our neighbors, they include (1) Myanmar, (2) Vietnam, (3) China, (4) India, (5) Sri Lanka, (6) Thailand, (7) Malaysia.

The rest rounding out the top performers are (1) Albania, (2) Romania, (3) Panama, (4) Bulgaria, (5) Poland, (6) Turkey, (7) Hungary, (8) Chile, (9 ) Iraq.

“THIS AWFUL year could, paradoxically, be a good one for what economists call convergence. That normally occurs when poor economies grow faster than rich ones, narrowing the income gap between them. This year will be a bit different. Few emerging markets will grow at all. But because advanced economies will probably retreat even faster, the gap between them will narrow. ” [The Economist, op. cit.]

And they're the best in class.

Dynamism. That is one word the blog often discusses. And here's an online Tagalog translation: “ Dinamísmo. This word is from the Spanish language. Dynamism: being active or dynamic; active: acting; works. ” [https://www.tagaloglang.com/dinamismo/]

It appears there is no precise word in Tagalog for dynamism.

Recall the blog speaks to the universe being a 24/7, dynamic phenomenon. In other words, we are not living in a static world.

“The universe is expanding faster than the speed of light. Also, the universe is accelerating in its expansion. All in all, the Hubble Space Telescope reveals an estimated 100 billion galaxies in the universe. Still, this number is likely to increase to about 200 billion as telescope technology in space improves. ” [Space.com]

The galaxies revealed by Hubble are way beyond what scientists call our “observable universe,” ie, much farther away from our Milky Way, or what we thought was the totality of the galaxy. Yet the dynamism of the universe is visible to humankind.

Take the photosynthesis phenomenon. The writer dates back to his [parochial] grade school days when the teacher asked the pupils to plant mung beans and water them every day. And report back how long it took for them to sprout. Three days, that was how fast it was.

Here's how Britannica Kids explains Photosynthesis:  “It is the process in which green plants use sunlight to make their“ own ”food. Photosynthesis is necessary for life on Earth. Without it, there would be no green plants, and without green plants, there would be no animals.  

“Photosynthesis requires sunlight, chlorophyll, water, and carbon dioxide gas. Chlorophyll is a substance in all green plants, especially in the leaves. Plants take in water from the soil and carbon dioxide from the air.

“Photosynthesis starts when chlorophyll absorbs energy from sunlight. Green plants use this light energy to change water and carbon dioxide into oxygen and nutrients called sugars. The plants use some of the sugars and store the rest. The oxygen emits into the air.  

“Photosynthesis is essential because almost all living things depend on plants for food. Photosynthesis is also important because of the oxygen it produces. Humans and other animals need to breathe in oxygen to survive. ” [Britannica Kids]

And that brings us to what an ecosystem is. And why the blog stresses that it represents a virtuous circle. The opposite being a vicious circle, as in a perfect storm.

Consider our instincts and why we are the regional laggard: We are parochial and insular. We value hierarchy and paternalism that we rely on political patronage and oligarchy that ours is a culture of impunity.

On the other hand, here is how The Economist summarized the critical factors shared by the Best in Class economies: (1) stunning investment and trade levels; (2) higher levels of education and government effectiveness; (3) score highly with exports that are both eclectic and exclusive, as in higher value-added, that few other countries export.

Note that these top performers are not defined by a universal “ism” (nor population size) but by their dynamism. Take China, for example. Again, from The Economist: the “Xi Jinping thought on socialism with Chinese characteristics for a new era” explains the continued success of China.

"The trend reflects China's new reality. The Communist Party has greater control over all aspects of life, and Mr. Xi has greater control over the party. That does not just mean it is a good idea for companies to butter him up. It means that he is in a position to reshape the economy within which they prosper or fail. What is he doing with it?

“Nothing good, say critics at home and abroad. He has brought reforms that liberalized the economy to a halt and smothered market forces, returning to a top-heavy state-dominated growth model that looks distinctly creaky. Private companies have rushed to set up party committees with an increasing say over strategy. Their once-swashbuckling bosses have adopted lower profiles. The title of a recent book by Nicholas Lardy of the Peterson Institute, an American think-tank, sums up the worries: 'The State Strikes Back.'

“Those observations are right. The conclusion is misleadingly wrong, encouraging a complacent and dangerous underestimate of China's potential trajectory. Mr. Xi is not simply inflating the state at the expense of the private sector. Instead, he presides over what he hopes will be a more muscular form of state capitalism.

“The idea is for state-owned companies to get more market discipline and private enterprises to get more party discipline, the better to achieve China's great collective mission. It is a project full of internal contradictions. But progress is already evident in some areas.

“Mr. Xi announced his agenda in 2013, vowing that China would 'let the market play a decisive role in allocating resources,' while reinforcing 'the leading role of the state-owned sector.' When domestic stocks crashed in 2015, the government's focus shifted to recapitalizing its banks, tightening controls on cross-border cash transfers, and taming the wildest corners of its financial system. But the party now thinks it has won this 'battle against financial risks' and is getting Mr. Xi's agenda back on track in a new, bolder form. ”

What insights can we glean from this dynamism of China? For example, state capitalism should bring memories of Lee Kuan Yew, who ran Singapore like a company. And Xi's state capitalism is the latest iteration of the Lee model.

And that can likewise be said of the Asian Tigers and, more recently, Vietnam.

And we in the Philippines can pursue state capitalism too. That is why the blog challenged (1) Messrs. Dominguez and Ang to replicate the marvel of Samsung Vietnam and (2) to replicate the Pearl River Delta Economic Zone - right in Central Luzon - being an outstanding model of a virtuous circle, way beyond the attributes of the Philippine version. 

Why? What challenges must we hurdle? To get us toward an incremental GDP of $ 200 billion and beat the hell out of Malaysia, Thailand, and Vietnam.

Recall the blog has stressed how the 21st century defined itself, ie, by innovation and global competition. And that “innovation” is not a matter of choice. It is the expression of how humankind responds to the dynamism of the universe, ie, by the hierarchy of human needs.

They are higher-level needs - beyond oxygen and food - and mere existence. Unsurprisingly, Apple may soon be a two-trillion-dollar enterprise. They will be more valuable than many economies and nations. And they are a model of diversity - as opposed to hierarchy - at the very top. "Don't ask me what I will do, do what is right," said Jobs to Cook, the successor. Those familiar with the blog may recall how the writer responded to his new Eastern European friends that wanted to know the rules of the free market, "There are no rules, only principles."

Imagine if humankind chose to stay put in Africa or the over 10 million OFWs did not pursue overseas employment. 

What is the point? That is to demonstrate what parochialism and insularity represent.

For example, we are again talking about the gray or underground economy because it undercounts the Philippines' real GDP.

"In a recent group chat with my Ateneo Economics faculty colleagues, someone mused that perhaps the reported decline in the economy partly reflects how most purchases are now in the informal sector." [Overstated decline (?), Cielito F. Habito  , NO FREE LUNCH, Philippine Daily Inquirer, 18th Aug 2020]

But then again, that is to miss the vital few for the trivial many. We are yet to leverage Pareto. As necessary, Juan de la Cruz must learn to forward-think and prioritize. Unsurprisingly, we are the regional laggard.

"In the pandemic, like a 400m race, the laurels go to whoever slows down at least," says The Economist. In other words, despite our informal economy, we still won't make it "best in class" - because even our neighbors have them. Sadly, human as we are, we won't get over nit-picking the successes of others.

The underground economy is an old topic. Boo Chanco wrote about it many years ago. " Underground economy dragging us down (?)," Boo Chanco, Philstar.com, 23rd Jun 2004.

“New studies indicate that the informal sector is not that benign. It could be a substantial factor in keeping the broader economy from moving on to the take-off stage.

“The McKinsey study points out why the underground market is bad news. 'Informality stifles economic growth and productivity in two ways. First, the powerful incentives and dynamics that tie companies to the gray economy keep them subscale and unproductive. Second, the cost advantages of avoiding taxes and regulations help informal companies take market share from bigger, more productive formal competitors. '

"Most significant is the study's conclusion that an economy with a large informal sector (ours is about 40 percent of GDP) gets caught in a 'low-productivity trap.' McKinsey's research indicates' informal companies become trapped in a self-reinforcing dynamic that confines them to subscale, inefficient, low-productivity work. Around the world, this research shows, they operate at just half the average productivity level of formal companies in the same sectors and at a small fraction of the productivity of the best companies. ”

The blog keeps plugging Vietnam. Consider: The trivial many we like to dwell on should have been put to bed if we only pause and ponder: How can one Vietnam enterprise deliver lots more economic impact to Vietnam than our eight most significant companies in the Philippines?

And with Samsung Vietnam plus AirPods Vietnam poised to bring over $ 80 billion in exports, how much will that dwarf the combined receipts we enjoy from OFW remittances and BPO revenues? And with far higher margins, to boot. What poverty? We can be in for another surprise with Vietnam gearing up to take on iPhone manufacturing too. 

That's why the blog wants us to look beyond our shores and up to the heavens. 

The humankind is a subset of the universe and the story of creation, as in the ecosystem. And why human undertakings cannot thrive in a vacuum.

What has stalled the greatness and the exceptionalism of America, for example? It is the tribalism reflected in polarized people. It is incongruous to the spirit of creation - or the universal law of divine oneness, or interconnectedness espoused by Franciscan Christian theology.

The welcome news is that conservatives are bailing out on Trump. " On Being a Biden Conservative: It's about upholding your principles at the expense of your politics;" Bret Stephens , The New York Times, 17th Aug 2020. 

The domestic issue of our time is not the size of government. It's the unity of the country. We are living through the most severe social unrest in 50 years. We have a president who sparks division by nature and stokes it by design.

"Whatever else he does, Biden won't expend his political capital belittling, demeaning and humiliating other Americans. He won't treat opponents as enemies, or subordinates as toadies, or take supporters for fools. Joe Biden is the Democratic equivalent of George HW Bush - another ambitious vice president who believed in loyalty and decency more than in any particular set of ideas. History remembers the senior Bush's presidency well.

" I came of age as a conservative when the great foreign policy issue of the time was the survival and unity of what used to be called 'the free world.' That was a world that believed in more-open borders, more free trade, greater unity among the democratic powers, greater resolve against the totalitarian forces of the day. ”

Let's get back to Juan de la Cruz. Padre Damaso and EJKs are likewise incongruous to the spirit of creation.

To quote from a prior posting, “And that is why the nuances between imperialism and hegemony and sovereignty and impunity confound us.

"Beyond family and nation are the community and the common good, including the community of nations."

Recall the skills to thrive in the 21st century: (1) Critical thinking, (2) Creativity, (3) Collaboration, (4) Communication.

And so, beyond the ecosystem and the photosynthesis phenomenon, we have to teach our kids the skills that will make them thrive in this century.

But how do we, when our higher education, like the economy, is the regional laggard?

I Started Khan Academy. We Can Still Avoid an Education Catastrophe; ” Sal Khan, The New York Times, 13th Aug 2020. 

“To ensure that kids keep progressing on both the academic and social-emotional fronts, it’s critical that educators provide live teacher-led video conference sessions. They must optimize both 'academic' coverage and social interaction. A baseline would be two or three 30-to-45-minute sessions in each of the core academic subjects each week. These should not be broadcast lectures, which are not particularly engaging even in person, much less over Zoom.

“These sessions need to drive conversations between students and teachers and among the students themselves. Teachers should do cold calling to ensure students are on their toes and pull them out of their screens. Teachers need to continually ask students to work on questions together and share their thinking. Ideally, virtual breakout sessions will allow students to debate and help each other.

“Finally, distance learning has made it much more difficult to ensure that students are doing their work. To avoid a situation where students either get credit for knowledge they don't have or vice versa, educators need simple mechanics to authenticate student work. For example, teachers could ask students to submit recordings of themselves thinking out loud while taking an exam. ”

In other words, we have to introduce our kids to metacognition - ie, to think about thinking or to challenge how they “think.” But then again, we must show them how.

We cannot always hide behind “Pinoy Kasi.”

We do not live in a static universe where we can preserve hierarchy or seek paternalism. There is no free lunch. We cannot be the caricature of Padre Damaso, Juan Tamad, and Bondying rolled into one.

Human undertakings cannot thrive in a vacuum - as in parochialism and insularity. It's high time we relearn what a virtuous circle is - as in an ecosystem, eg, photosynthesis. The knee-jerk is not what it is.

Think of how badly we fared in agribusiness given our mistaken notion that a comprehensive agrarian reform program was the be-all and end-all. Or that the OFW phenomenon and the BPO industry that followed will compensate for our failure to industrialize. Nor is teeing up 42 industry road maps is the answer. Neither is the gray or underground economy.

If we cannot visualize a virtuous circle - as in connecting the dots - chances are we will fail again. 

Like “Pinoy Kasi,” we must toss “Pinoy ability.”

Awake town!

“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.]

“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]

“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]

“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]

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]

Monday, August 17, 2020

Speak truth to power

Let’s start with us in the elite class and speak to ourselves.

We cannot play dumb to the reality that the region, if not the world, left us behind. That explains our continuing concern for poverty. But worry doesn't solve the problem of Juan de la Cruz.

We blew it! That’s the long and the short of it.

We cannot keep looking and pointing away from ourselves.

We are well-traveled and know, for instance, the palaces of Catherine and Peter the Great, and why their subjects revolted. If that is not enough, the Kremlin’s Diamond Museum is nauseating – and gives a quick lesson in avarice and rapacity.

And in the Malacañang Palace, what the Marcos family left behind told a similar story.

New York likes to be proud of its museums, but The Hermitage is stunning, next only to the Louvre in total area. And the Mariinsky Theater preceded the Carnegie Hall by a generation, 31 years.

And we know autocracy created – by conscripted peasants – the magnificent city of St. Petersburg. How did Imelda learn her ways?

The sad news is that Russia remains a developing country to this day. Only taking revenge doesn’t solve a problem either. And Filipinos know that from the “People Power” experience. In the meantime, Marcos’s unexplained wealth remains unexplained.

Sadder still is beyond Marcos, given our culture of impunity, there is more unexplained wealth in our midst. Did we say we are concerned about poverty?

Consider our instincts: We are parochial and insular. We value hierarchy and paternalism that we rely on political patronage and oligarchy that ours is a culture of impunity. 

Poverty is just the tip of the iceberg. Because of our caste system, we can’t look in the mirror?

“Pray as though everything depended on God; act as though everything depended on you.”

Let’s pause right there.

The mindset that failed Juan de la Cruz in the 20th century cannot succeed in the 21st. Recall Einstein’s “We can’t solve problems by using the same thinking we used when we created them.”

Recall too the skills to thrive in the 21st century: (1) Critical thinking; (2) Creativity; (3) Collaboration; (4) Communication. 

There is no free lunch. To wish comfort and stability for our families, and children won’t come like manna from heaven. That is why the blog often speaks to the banishment from the garden.

When eight – or the top Philippine companies – can’t be better than one, that speaks volumes. We know who the eight are and also the one, i.e., Samsung Vietnam.

Let’s try another one.

When we invoke sovereignty given our parochial and insular prism, we employ the same kind of thinking that gave us Marcos. It speaks volumes. The Vietnamese figured out what hegemony is, embracing America to distance itself from China – whom they fought for a thousand years.

When we applauded the departure of the Marcos family for Hawaii, that was because of hegemony.

It is no different from advanced Western countries that led [the community of] nations and treated us as a pariah – for championing the war on drugs and the EJKs that came with it.

If we can cry American imperialism, so can the Vietnamese? How much bombardment did these people suffer from the US military?

Or recall “The battle for Manila. It was the first and fiercest urban fighting in the entire Pacific War. Few battles in the closing months of World War II exceeded the destruction and brutality of the massacres and savagery of Manila’s fighting.” [Wikipedia] 

Consider: From the Straits Times, 13th Jan 2017, “PM Abe visits President Duterte’s modest Davao home for breakfast, bedroom tour.

Unsurprisingly, cannibals get over their past too.

How can God-fearing Juan de la Cruz even contemplate EJKs? Are we the present-day Padre Damaso?

EJKs are a non-starter. But that is why the nuances between imperialism and hegemony and sovereignty and impunity confound us.

But then again, it’s from our lack of experience in development. We are yet to move up to relativism – from dualism. And precisely because of the lack of experience, we struggle with the concept. [See below; internalizing the distinctions between linear and lateral thinking.]

Recall this article: “ASEAN at 53: Transition and recovery,” Võ Trí Thành, Philippine Daily Inquirer, 8th Aug 2020.

“From a less-developed region, ASEAN has become much more prosperous and dynamic. [W]e have a firm foundation to believe that its central role and position in shaping the wider region’s future would be maintained.”

The writer, representing an American business interest, negotiated a JV with a Vietnamese couple and read them the riot act – aka the Foreign Corrupt Practices Act. If you cannot toss this double-bookkeeping practice, this JV is dead.

And with his new Eastern European friends, it was a different version but meant the same thing. If you want me around, there is one rule you must observe. And that is transparency. Otherwise, I’m out the door.

Let’s pause right there.

Beyond family and nation are the community and the common good, including the community of nations. We struggle to look outward and forward because of our inward-looking bias.

Says St. Ignatius, “I consider it an error to trust and hope in any means or efforts in themselves alone, nor do I consider it a safe path to trust the whole matter to God our Lord without desiring to help myself by what he has given me.”

How do we interpret “any means or efforts in themselves alone”? For example, we think Western-style democracy is not suited for Juan de la Cruz? Let’s try socialism or federalism or whatever?

Our caste system makes us look and point away from ourselves? That hierarchy and paternalism is the elixir?

That’s abdication. We have the grace to help ourselves. That’s why the blog often speaks to Juan Tamad and Bondying.

We cannot stay on as a young nation. Nor can we thrive in the 21st century if we take its demands for granted. There is no free lunch.

Even Eden wasn’t to be manna from heaven. No matter how blessed this country is, we can’t take it as manna from heaven.

For example, we talk about climate change yet ignore the reality that we denuded our forests. Why don’t we start there, for example?

Recall the blog spoke to the Swedish tree farming industry – because it is self-sustaining and a great source of their economic wealth because of its global reach. Or the Danish pig industry. We have to stop talking and begin acting.

Vietnam did not merely embrace the Americans, given their experience with China. They replicated the manufacturing marvel of China and why they are now poised to overtake Singapore.

The Americans have been around for decades. Why was it Vietnam that attracted Apple AirPods, not us? The AirPods are on pace to surpass the revenues of the iPods at their peak. 

Between Samsung Vietnam and AirPods Vietnam, they are looking at exports of over $80 billion, much more than we get from OFW remittances and BPO revenues, with a lot higher margins to boot – and why Vietnam has broken the back of poverty.

We talk American imperialism like an adolescent instead of behaving like an adult, as the Vietnamese are doing. And all we can see is the worldwide economic slowdown because of the pandemic.

Aren’t we smarter than supposedly more impoverished Vietnam?

Consider the most recent quarterly earnings call from Apple and why Vietnam played smart in attracting Apple AirPods: “Apple saw a quarter of outstanding results, demonstrating our products’ vital role in our customers’ lives. We set a June (2020) quarter record with revenue of $59.7 billion, up 11% from a year ago.

“Both products and Services set June quarter records and grew double digits, and revenue increased in each of our geographic segments, reflecting the broad base of this success.

“Building on powerful new features built into WatchOS 7 and AirPods Pro announced this quarter, makes us very excited about the many opportunities in front of us for this product category. These strong results helped drive our installed base of active devices to new records across our product categories.” 

Let’s pause once more. 

Where are we? We have CREATE, and 42 industry road maps that we can’t get off the ground?

Where is the disconnect, and why the widening gap with Vietnam?

Firstly, it comes from our very narrow playing field courtesy of our parochialism and insularity. Instead of helping ourselves, we value hierarchy and paternalism. And we rely on political patronage and oligarchy that nets us a culture of impunity.

We must recognize this humongous barrier we created. Then we can practice forward-thinking. And prioritize and leverage Pareto. In other words, we must practice analytics beyond merely doing analysis, and we will appreciate how much the crab mentality gives us a narrow perspective.

For example, given our top exports are in the same product category as Samsung, and how the Vietnamese leveraged Pareto, we must rethink why we are teeing up 42 industry road maps.

It also relates to internalizing the distinctions between linear and lateral thinking. The latter is counter-intuitive, where one plus one is not two but more, as in synergy.

Similarly, focusing on Central Luzon and replicating the Pearl River Delta Economic Zone will leapfrog our economic development efforts.  

Consider what dominates our conversations.

“The industrial protectionists are using the global backlash against China and China-made products in bringing back to their home countries businesses and jobs that their MNCs distributed around the world in the name of globalization. Economic nationalism is on the rise. 

“But is this not an opportunity for the Philippines to also create jobs at home by building up new industries that can produce all the essential goods needed by a ‘quarantined’ population, e.g., health care materials, food packages, home products, and various community needs? After all, this is what several developed and developing countries are now doing.

“For a country that has stumbled very badly in its march towards full industrialization due to bad industrial policies in the past, the Covid-19 pandemic can turn out to be the surprise industrial savior for a de-industrialized Philippines.” [Philippine participation in the GVC system, Rene E. Ofreneo, BusinessMirror, 6th Aug 2020]

What about agriculture?

“The DA is looking already at contributing to economic growth in the next two quarters, an optimism that is scarce during these pandemic times. Perhaps, we should trust our agriculture bureaucrats this time around – because we increasingly realize we have fewer options left.” [No second chances: We have fewer options, Rey Gamboa, BIZLINKS, The Philippine Star, 11th Aug 2020]

Indeed, we have fewer options. Why? See above, while Vietnam continues to step up its forward- and outward-looking world view, we have all but given up except on our knee-jerk fixes. They will all but reinforce our parochialism and insularity while Vietnam conquers the world.

Consider: Vietnam has an excellent export base in Samsung. However, because Samsung does not match the explosive growth trends of Apple, it took on the Apple AirPods.

If we can’t visualize what forward-thinking can be like, that is a great example. The Vietnamese don’t see a world that is shrinking in economic opportunities. Sadly, we never understood the dynamism of the Asian Tigers, then China, now Vietnam. We blew it before. Do we wish to blow it again?

Forward-thinking demands we think outside the box and toss linear thinking. That is why the blog starts with an incremental GDP number of $200 billion that will put us ahead of Malaysia, Thailand, and Vietnam. It is not to tee up 42 industry road maps, which is classic inside the box thinking. But it does not help prioritize and leverage Pareto that will give the biggest bang for the buck.

And that is why the blog zeros in on our top exports, which are in the same product category as Samsung Vietnam and Apple AirPods Vietnam. Because we don’t have the experience like the Vietnamese have, we won’t figure out that beyond Samsung smartphones are the Apple AirPods. And between the two, Vietnam is looking at exports of over $80 billion. That is more than our total 2019 exports of $70.3.

That is why we must do our homework. Beyond the AirPods, what devices and brands are significant global players? For example, are there one or two that can bring us incremental exports of $50 billion? 

Add 50 to 70, and they will give us exports of $120 billion. What about taxes? How do we attract the right FDI and still yield higher tax revenues? 

At $70.3 billion in exports, if taxes are 20%, our take is $14.06 billion. While at $120 billion, even at a lower 18% tax rate, we generate $21.6 billion in revenues.

Recall these simple questions: Where are we? Where do we want to be? How do we get there?

The 6%-6.5% GDP growth rates we celebrated will take a generation to see the light at the end of the tunnel.

We all have the gift to help ourselves. “Pray as though everything depended on God; act as though everything depended on you.”

The mindset that failed Juan de la Cruz in the 20th century cannot succeed in the 21st.

“We can’t solve problems by using the same thinking we used when we created them.”

Gising bayan!

“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.]

“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]

“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]

“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]

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]