Juan de la Cruz must seek to define and forge a “common good.”

Let’s establish that as the predicate – of the challenge we face, especially the Philippine elite and chattering classes – because we have been overtaken by our neighbors counting decades.

And we are in the best position to spark “Eureka” in Juan de la Cruz. 

But why?

Isn’t it high time we put meaning to – not merely mouth – “nation-building”?

Can we then stipulate and define the challenge as “to traverse poverty to prosperity rapidly”?

With that as the backdrop, consider these two articles: (1) Aspiring for high-income status, and (2) Dominguez says PHL can’t be a ‘trailblazer’ on deficit spending.

“The Philippines was one of the fastest-growing emerging markets during the last decade, averaging an annual GDP growth rate of 6.4% from 2011 to 2019, slowing down only as one of the numerous victims of the COVID-19 pandemic in 2020.

“The extended period when among the best professionals were appointed to economic agencies most involved in delivering economic growth accounts for the vital institutions that we now have that can guarantee long-term growth.

“Among our neighbors, such as Singapore, Taiwan, and even South Korea, this institution-building took a much shorter time with crony capitalism held in check. In a future article in this series, I will discuss the special case of South Korea.” [“Aspiring for high-income status,” Bernardo M. Villegas, Human Side Of Economics, BusinessWorld, 7th Sep 2021]

“FINANCE Secretary Carlos G. Dominguez III said the Philippines must remain in the ‘middle of the pack’ in terms of deficit spending and cannot be a ‘trailblazer,’ in an apparent rebuff to calls for more economic stimulus.

‘The Philippines cannot be the trailblazers here. My goal always has been to land somewhere in the middle of the pack. I don’t want to be too far ahead; I don’t want to be far behind when you come to those ratios. So far, we’re just about there.’ Mr. Dominguez said in a budget hearing at the Senate Thursday.

“His presentation indicated that the National Government’s outstanding debt was equivalent to 54.6% of gross domestic product (GDP) in 2020, versus 49% for Thailand and 48% for Vietnam. The Philippine deficit is roughly comparable to Poland’s 57.7%

“The ratio grew to 60.4% in the first half of 2021 as the government continued to borrow to address the budget deficit.” [“Dominguez says PHL can’t be ‘trailblazer’ on deficit spending,” Beatrice M. Laforga, BusinessWorld, 9th Sep 2021

Let’s pause – and digest the above articles.

Then recall the problem of Philippine education. But before we do, remember first that the blog has spoken to the shortcomings of US higher education at the height of Japan Inc.

That was when my MNC-company relocated the family to New York. And I participated in crafting the company’s initiative to ensure the continual development and competitiveness of its global organization and workforce. 

In other words, education is not a cakewalk –  because it must not cease.

And it brings me back to my grade 6 graduation-day rehearsals – at our parochial school in Balic-Balic, Sampaloc. The homeroom teacher’s words have stuck with me. “You will note in the printed program the word ‘commencement.’ Your graduation is not the end of your education. It is the beginning, the commencement.”

Enter: 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.”

It’s not an American who postulated the above. Those familiar with the blog will recall George, Fr. George Gorospe, a Filipino Jesuit from Ateneo de Manila. It took ages for me to internalize George’s message – despite being close and personal during our “Friday Club’s” cocktails.

And that confirms our problem in education: “The failure of Philippine education is to develop the ability to think, meet new situations, and solve problems one encounters in real life.” [Thanks to historian Ambeth Ocampo for reminding us: how little we’ve changed for almost a century. Note: the blog has repeatedly cited the quote because of its enduring relevance.]

Let’s pause right there once more.

If reality – and education – is dynamic, how can we play catch up as a people and nation?

Consider: “Philippines slumps to lowest competitiveness ranking in 5 years,” Jenina P. Ibañez, BusinessWorld, 18th Jun 2021.

“Switzerland-based business school International Institute for Management Development’s (IMD) 2021 World Competitiveness Report ranked the Philippines 52nd out of 64 countries, down seven spots from 45th last year. This year’s ranking is the Philippines’ lowest in five years.

“The country still lags in the region, as it ranked 13th out of 14 Asia-Pacific economies. At the 60th spot, Mongolia was the only Asia-Pacific economy behind the Philippines.”

“The government can no longer rely on the protectionist instruments of the past and must now muster more positive, enabling measures.

“The focus on industrial catch-up is motivated by the prolonged stagnation of the Philippine industry and its profound impact on the country’s labor market.

“Unlike developed countries whose workers have primarily transitioned away from agriculture to industrial and high-skilled services employment, workers in developing countries such as the Philippines have been moving out of low-productivity agriculture towards low-skilled jobs.

“The services sector account for 61% of gross domestic product and six out of 10 workers, but a third in low-paying jobs.

“Meanwhile, elements of its exports sector with a competitive advantage and the number of exporting companies have been declining, making the Philippines a ‘market of consumer goods rather than a hub for manufacturing exports.’

“The country can explore several paths towards economic diversification and upgrading, which includes ‘leapfrogging’ to high-productivity and aiming for more sophisticated goods by adopting high technology over the medium to long term.” [Diversification, Jobs and the COVID-19 Recovery.pdf (un.org)]

Can we look in the mirror and see where we are?

If reality – and education – is dynamic, how can we play catch up as a people and nation?

That’s why the blog often speaks to fundamental givens for over a dozen years via the postings.

For example, the growth mindset versus the fixed mindset, reinforced by neuroscience via the 3C’s of the “hardy mindset”: Commitment, Challenge, Control.

And then by behavioral economics courtesy of Daniel Kahneman; the brain has two operating systems (1) automatic and (2) conscious.

And that is consistent with the character of creation and the universe. They are dynamism and interdependence, best exemplified by the photosynthesis phenomenon.

And in response came Maslow’s hierarchy of human needs – that equips humankind to thrive in this dynamic universe.

And why the hierarchy of needs is central to innovation – i.e., it is beyond technology per se.

And that forward- and lateral thinking follows beyond logical yet linear and incremental thinking – the foundation of higher education and why its shortcomings.

And the enviable instincts of Steve Jobs – of forward- and lateral thinking; and why he defined creativity simply as “connecting the dots.”

And how Jobs would become the driving force – in moving the world from analog to digital – for America to return the favor to the Japanese – that had earlier taken down the US manufacturing prowess. And that South Korea – and then China pushed the US and Japan behind.

And the Pareto principle – which is consistent with the laws of Physics, can relate to the Great Commandments.

And cognitive development, i.e., beyond binary or dualistic thinking, is relativism – demonstrated via Christ’s battles with the scribes and Pharisees.

Let’s get back to Juan de la Cruz.

Juan de la Cruz must seek to define and forge a “common good.”

Let’s establish that as the predicate – of the challenge we face, especially the Philippine elite and chattering classes – because we have been overtaken by our neighbors counting decades.

And we are in the best position to spark “Eureka” in Juan de la Cruz. 

But why?

Isn’t it high time we put meaning to – not merely mouth – “nation-building”?

Consider: “How the ‘Bobos’ [bourgeois bohemians] Broke America.” [David Brooks, The Atlantic, Sep 2021]

“The bobos didn’t set out to be an elite, dominating class. We just fit ourselves into a system that rewarded a certain type of achievement and then gave our children the resources that would allow them to prosper in that system too. But blind to our power, we have created enormous inequalities—financial inequalities and more painful inequalities of respect. The task before us is to dismantle the system that raised us.”

In other words, we in the Philippine elite and chattering classes may think we are doing Juan de la Cruz a favor by cherry-picking our positives.

But it is not surprising given our caste system – that informs our instincts: We are parochial and insular. We value hierarchy and paternalism and rely on political patronage and oligarchy that ours is a culture of impunity.

That’s why the blog has raised the question, are we the present-day Padre Damaso?

Consider what the Catholic Church has represented: “In the winter of 1848, a 26-year-old Prussian pathologist, upon the authorities' instructions, named Rudolf Virchow, investigated a typhus epidemic raging in Upper Silesia, in what is now mainly Poland.

“After three weeks of meticulous observation of the stricken populace — during which he carefully counted typhus cases and deaths by age, sex, occupation, and social class — he returned with a 190-page report that ultimately blamed poverty and social exclusion for the epidemic and deemed it an unnecessary crisis. ‘I am convinced that the epidemic would not recur if you changed these conditions,’ he wrote.

“Dr. Virchow was only a few years out of medical school, but his report became the foundational document of the new discipline of social medicine. His vision for health went far beyond individuals and the pathogens lurking inside them: He pioneered the careful epidemiological examination of social conditions such as housing, education, diet, and lifestyle, and he denounced the rigid social stratification perpetuated at the time by the Catholic Church.” [“Science Alone Can’t Heal a Sick Society,” Jay S. Kaufman, The New York Times, 10th Sep 2021; Dr. Kaufman is a professor of epidemiology at McGill University. He was recently the president of the Society for Epidemiologic Research.]

In other words, where does Juan de la Cruz figure in our conversation? Our, meaning, us in the Philippine elite and chattering classes?

“The National Government’s outstanding debt was equivalent to 54.6% of gross domestic product (GDP) in 2020, versus 49% for Thailand and 48% for Vietnam. The Philippine deficit is roughly comparable to Poland's 57.7%. The ratio grew to 60.4% in the first half of 2021 as the government continued to borrow to address the budget deficit.” [Laforga, op. cit.]

In other words, our outstanding debt is already the worst compared to Thailand and Vietnam. We cannot afford any more stimulus.

As the blog has consistently argued, our challenge is beyond the pandemic.

And we continue to fall into the trap of correct analysis but miss the analytics, the big picture: Where are we; Where do we want to be; How do we get there.

Why is our debt worst when compared to Thailand and Vietnam?

It is not only our debt that is worst. 

Consider: We have the worst GDP per capita, the most negligible exports, the least FDI, and the worst poverty rate – confirmed by the worst GINI index (that measures the degree of inequality in the distribution of family income in a country.)

“The government can no longer rely on the protectionist instruments of the past and must now muster more positive, enabling measures,” per the UN.

But let’s push the envelope further.

Juan de la Cruz must seek to define and forge a “common good.” In other words, the common good is beyond the management of debt ratios.

And it is beyond appointing competent economic managers.

And we cannot merely keep talking about South Korea and the rest of our neighbors. We must benchmark and reinvent ourselves, not embrace our instincts because they are what we are – as in “Pinoy kasi.”

Here’s a quote from an earlier posting: “What’s staring us in the face? 

“Tens of millions of Filipinos are undernourished and, worse, suffer from abject poverty. And to keep Juan de la Cruz’s body and soul together, we must borrow tons of money for the 4Ps.

“And over 10 million chose to be OFWs despite the heavy social price it brings – to them and the nation.

“Yet, to add insult to injury, we celebrate that our GDP growth has attained the Western laudable metric of 6%-7%. And the economy created a handful of dollar billionaires.

“And instead of falling into the trap of relying on political patronage and oligarchy, he must follow the footsteps of Mahathir.

“Consider: We already have a good income source from OFW remittances and the BPO industry. Our instincts will again be to rely on our economic managers to craft the response to nation-building.

“Let’s call a spade a spade. We have many talents to manage the Central Bank or Department of Finance, or even Treasury – especially given the windfalls from the above two sources.

“We need another source — a much more transformative source as in a Samsung Vietnam or Apple AirPods Vietnam. [That is a simple exercise in lateral thinking given our crying need for a more substantial income stream, with our eight top companies combined unable to match the economic contributions of one Vietnam enterprise.]

“So, Mayor Isko, if not president-to-be, can assemble a task force to advise him. Take Bill Gates. And also the CEO of Apple and the CEO of Samsung. He can add Warren Buffett too.

‘I want the Philippines to leapfrog our Asian neighbors. But I would be grateful if you could guide me. [Translation: It is an exercise in forward-thinking.] So that you would yourself want to invest in the Philippines as heavily as you would elsewhere.’

“The devil is in the detail. But Mayor Isko must first set the tone. And tap the right people instead of the Philippine oligarchy.

“It is long past the time for us to undo our reality and define and forge a common good.

“We will continue borrowing tons of money for the 4Ps, infrastructure, supporting OFWs, and the BPO industry. Our top companies will continue to do their thing.

“But this universe is characterized by dynamism and interdependence.

“We need a brand new playing field that we haven’t had for the longest time. Let’s not pretend we know how to build it.

“Let’s call a spade a spade.”

Juan de la Cruz must seek to define and forge a “common good.”

Let’s establish that as the predicate – of the challenge we face, especially the Philippine elite and chattering classes – because we have been overtaken by our neighbors counting decades.

And we are in the best position to spark “Eureka” in Juan de la Cruz.

But why?

Isn’t it high time we put meaning to – not merely mouth – “nation-building”?

Gising bayan!