We can’t be more aristocratic than the British monarchy

We aren’t, but how entrenched is our caste system?

Let’s get straight to the point: We have the worst GINI index coefficient – the degree of inequality in the distribution of family income in a country – among our neighbors (Malaysia, Indonesia, Thailand, Vietnam.)

Not only. We also have the worst GDP per capita.

Unsurprisingly, we don’t want to talk about GDP. But we like to dissect the defects of capitalism, precisely, inequality.

Let’s hold it right there.

Because we keep falling into the trap of binary thinking, we frame our assumptions as Philippine GDP growth is wrong, and thus charity-giving is primordial. See below; World Bank approves a $600-million loan for the PHL 4Ps program.

What are we missing? Recall the fixed versus the growth mindset. The latter is an expression of dynamism. In short, our instincts carry neither “dynamism” nor the “growth mindset.” That comes from our caste system where — for us in the hierarchy — preserving the status quo is a given.

Yet, while consistent with the US model, Philippine GDP growth miserably fails compared to our neighbors. In other words, we are in la-la land.

The bottom line: Our reality holds that we cannot be more aristocratic than the British monarchy.

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

Does our caste system undermine our reality?

Here’s a quote from an earlier posting: “Recall George, Fr. George Gorospe: ‘No human formulation of ‘reality,’ no philosophical explanation of human experience can say: ‘I have grasped its entirety and meaning.’ Reality is too rich and is continuously changing; it can’t fall under a set of categories. [Does that bring the spectrum of binary to relative thinking, i.e., cognitive development, into mind? What about the tribalism and polarization of US politics – which translates to an assault of democracy that Fitch is mulling, lowering the credit rating of America?]

“Hence, there is a need today of a more dynamic and more existential philosophy inspired by the Neo-Thomist revival of the authentic thought of St. Thomas, i.e., it is not a ‘closed system’ but remains ‘open’ to the valid insights of other philosophies. For example, to the contribution of contemporary phenomenology and existentialism.” [Christian Renewal of Filipino Values, Vitaliano R. Gorospe; Philippine Studies vol. 14, no. 2, 1966; Ateneo de Manila University]

Let’s borrow a bit of Franciscan theology: “Jesus reimagines and expands, inviting an alternative and often innovative reading of Jewish tradition. 

“When we translate Jesus’ words in Aramaic (instead of Greek), they will read like this: ‘Get up, go ahead, do something, move, you who are hungry and thirsty for justice, for you shall be satisfied.’” [Richard Rohr's Daily Meditation, Center for Action and Contemplation, 24th Jul 2021]

See below; the 3C’s of the science of “hardy mindset.” This universe is not a place for Juan Tamad or Bondying.

Beyond our caste system, we have a more practical challenge.

The longer we sustain the status quo, the more our neighbors will leave us in the dust. 

One more time with feeling: The longer we sustain the status quo, the more our neighbors, will leave us in the dust.

And our lack of experience in development will widen the gap between them and us.

That is not an opinion. It is from the laws of big and small numbers. That’s why the blog speaks to the 6%-7% GDP growth rates we crow about – that is comparable to the ideal for the US, with a staggering GDP of over $20 trillion.

In other words, the Asian Tigers – and then China, and most recently, Vietnam – became economic miracles by blowing past these GDP yardsticks. And they were not constrained by fiscal and monetary policies. Instead, they begged for foreign money and technology.

On the other hand, we like to talk about trickle-down economics – to explain our inequality.

We are yet to grasp the positive aspect of trickle-down economics – aka “multiplier effect” in Economics 101 – that we can be innovative and globally competitive – demanded by the 21st century – via interdependence, i.e., begging for foreign money and technology. Not parochialism and insularity.

The evidence? Our top companies – combined – can’t match the performance of Samsung Vietnam precisely because political patronage and oligarchy – aka rent-seeking – explains why we failed in innovation and global competitiveness.

And beyond interdependence is the imperative of dynamism. See above; George Gorospe re the need for a dynamic and existential philosophy.

Yet, we in the Philippine elite class and chattering classes see charity-giving as primordial.

Charity-giving is not wrong per se. But it is not a license to lord it over Juan de la Cruz, which the GINI index says.

Consider: “World Bank approves $600-million loan for PHL 4Ps program,” Beatrice M. Laforga, BusinessWorld, 30th Sep 2020.

On the other hand, “64.25% of Filipinos cannot afford a healthy diet. That means that out of the total 105.2 million Filipinos (1917), 67.57 million had limited to no access to a set of dietary recommendations intended to provide nutrient adequacy and long-term health.” [“Study says most Filipinos can’t afford to eat ‘healthy,’” Cristina Eloisa Baclig, INQUIRER.net, 11th Jul 2021]

Let’s hold it right there.

What has to give – if not 67.57 million malnourished Filipinos – to nudge us forward? Or do we know how?

Here’s a quote from an earlier posting re Philippine education: “We neglect the development of the ability to think, meet new situations, and solve the kinds of problems one meets in real life.”

And we in the Philippine elite class and chattering classes are from the same Philippine education. Many of us have gone to the West too. And as the blog has raised, when my old MNC-company moved the family to New York, corporate America had to deal with the shortcomings of US education too. Perfection is not of this world.

That is why this world, this universe, demands dynamism and interdependence.

Consider too: “Gawad Kalinga’s plan, called GK 777, spread over three ‘phases.’ Every seven years, it will move towards a goal to ultimately ‘un-squat’ the poorest of the poor, heal their woundedness, regain their trust, build their confidence, make them think and act as a community and to share the joy of a country rising from poverty.

“On 25th Feb 2006, GK launched the Isang Milyong Bayani (‘One Million Heroes,’ also known as GK1MB) program, where volunteers from various nations would donate 4 hours of work per month to assist in GK communities.

“The final phase spans from 2018 to 2024 and is envisioned as a time of Social Progress. This phase seeks to achieve scale and sustainability by developing the grassroots economy and expanding the reach and influence of GK to 5 million families with support from key sectors of society in the Philippines and partners abroad. GK seeks to relieve poverty by providing an environment in which Filipinos may work and be productive.” [Wikipedia]

Question: Why can’t we arrest poverty?

It is not about giving fish but teaching Juan de la Cruz how to fish.

This blindness has gone on for decades, but we can’t get over it because of our caste system.

So, where are we?

“How we balance the health and the economy is crucial in the next few months. As Sec. Karl so aptly puts it: We have two economic principles to memorize, dream about, and apply: Nothing is free from heaven, and everything is a trade-off.”  ["Recovery," Boo Chanco, DEMAND AND SUPPLY, The Philippine Star, 23rd Jul 2021]

With due respect, that is traditional motherhood.

That is why the blog introduced the science of “thinking.” That human undertakings are subsets of larger sets.

We must walk and chew gum simultaneously – i.e., zoom in and zoom out.

In other words, the art of strategy versus the theory is: a practitioner is both strategic and tactical. See above; cognitive development is the spectrum of binary to relative thinking. 

Consider: Mahathir prioritized KL (zoomed in) over his hometown as he relentlessly drove Malaysia’s growth and development (zoomed out). Today, their GDP per capita is three times ours, while our poverty rate is three times theirs.

Would you please think of how Lee, Mahathir, and Deng successfully got their countries to traverse poverty to prosperity?

And recall what Mahathir said to us Pinoys: You don’t have to love your former colonizer, but beg for money and technology. We are poor nations. We cannot go it alone.

The challenges we face are beyond logical yet linear thinking – i.e., forward and lateral or creative thinking.

Translation: Where do we want to be? We want to traverse poverty to prosperity.

How? Not by making charity-giving primordial. Instead, to leapfrog the 6%-7% GDP growth rate yardsticks.

Here’s a quote from an earlier posting: “Philippine GDP is a pathetic fraction of the US, Germany, Denmark, Finland, Norway, and Sweden. These countries are indeed wealthy. They can speak to wealth inequality.

“While our GDP is that of an underdeveloped nation, and we are the regional laggard to boot.

“Let’s hold it right there.

“We must generate much more economic output. 

“And we need it in a hurry, like yesterday. That is why the blog has raised the imperative to raise Philippine GDP by $200 billion rapidly. That is what IRR for CREATE and SIPP must deliver.

“Why? To leapfrog the economic output of our neighbors — which is why they were able to put poverty in the rearview mirror.”

Question: Do we have to amend the Constitution to leverage CREATE and SIPP to (1) put us on equal footing with our neighbors; (2) attract the suitable foreign money and technology; (3) that will aggressively drive our export receipts – i.e., benchmark against Samsung Vietnam because Vietnam arrested poverty?

That must be the debate amongst our economic managers and legislators, not to keep to a 6%-7% GDP growth rate.

Here’s another quote from a previous posting: “We are true ‘insanity’ defined – per Einstein.

“And the blog has been raising it for over a dozen years. And why it introduced the science of ‘thinking.’

“For example, to forward-think, beyond logical yet linear — i.e., lateral and creative thinking.”

“We will have zero chance to overcome our well-ingrained instincts if we don’t reinvent ourselves.

“Those familiar with the blog will recall the 3C’s of the science of “hardy mindset”: (1) Challenge, (2) Commitment, (3) Control. 

“A strong mindset accepts challenges, even daunting ones. In other words, this universe is not a place for Juan Tamad or Bondying. They are not defeatists and instead embrace their commitments knowing full well that they control only themselves.”

Consider: Why we can’t get over such a crisis as the basics of water and electricity. We created EPIRA and privatized water and electricity, yet Juan de la Cruz would still yell “tubig” and “kuryente.”

And we think the private sector is the answer when our top companies, combined, can’t match the performance of one Vietnam enterprise?

That comes from our lack of experience in development and why we’re closer to binary than relative thinking.

In other words, beyond “analysis” is “analytics” – to address the “entire methodology.”

Recall that the blog often speaks to the ecosystem that makes organisms thrive. It is a subset of this universe.

And our failure to move beyond analyses explains why we can’t successfully deliver against complex undertakings.

The bottom line: Rank comes with privileges. We are not accountable to Juan de la Cruz even though we control much of the nation’s wealth. See above; we have the worst GINI index coefficient – the degree of inequality in the distribution of family income in a country.

But is it hubris? 

And we would instead solve wealthy nations’ problems and the world order when we can’t put our own house in order? See above; we want to leapfrog the 6%-7% GDP growth rate yardsticks. And not to make charity-giving primordial. Nor debate isms and motherhoods. They are a pointless exercise for 67.57 million malnourished Filipinos.

We can’t be more aristocratic than the British monarchy.

Gising bayan!