Our cognitive challenge

To lift Juan de la Cruz from abject poverty demands a new – absolute and complete – mindset.

And that is our cognitive challenge.

It starts with tossing “pwede na ‘yan.”

Recall that Arangkada set an FDI target of $75 billion. And after two administrations – Aquino and Duterte – we’re still nowhere near the mindset that demands.

“Trade department pursuing 250 leads from potential foreign investors,” BusinessWorld, 5th Apr 2022.

“Some of the leads can generate expected investment of about P450 billion ($9 billion.)

“The most substantial leads involve electronics projects from MinebeaMitsumi, Inc.,  Brother Industries Co. Ltd., US automotive electronics supplier Amphenol Corp., data center equipment supplier Positronic, contract electronics manufacturer Foxconn Technology Group; as well as an expansion by Toyota Motor Corp. and the previously-reported entry of Space Exploration Technologies Corp. (SpaceX).

“In 2022, PEZA hopes to post 7-8% growth in approved investments, while the BOI targets P1 trillion ($20 billion) worth of investment approvals.”

In fairness, we have a ‘Stronger foundation of economic growth,’ The Philippine Star, 6th Apr 2022.

“Through our joint efforts, we will continue to build a market-friendly policy environment that reflects the shared vision and aspiration of the business, youth, and civil society sector.”

Let’s hold it right there.

We are playing catch-up.

When the going gets tough, the tough get going, not sit on their laurels.

Where does “pwede na ‘yan” come from?

Try our caste system where rank has its privileges – and we value hierarchy and paternalism.

In other words, we want the status quo. And that puts us “out of sync” with this universe.

This universe is about dynamism and interdependence. And that explains why we’re not even in the game.

We know that Vietnam has left us in the dust.

And we won’t be in the game if we can’t think beyond “pwede na ‘yan.”

We now know that a 6%-7% GDP growth rate isn’t satisfactory even over ten years.

It is insane to beat it black and blue when something does not work.

Those familiar with the blog are tired of hearing “forward, lateral, and creative thinking.”

We want to be a developed, first-world nation. There is nothing terrible about that.

We don’t like the pursuit of life, liberty, and happiness? But we want to lift Juan de la Cruz from abject poverty. That means we want to be a developed, first-world nation.

But that demands pulling our collective thinking together. And that is the reason, despite sounding immodest, the blog shares my encounters with the real world.

I did not overcome those challenges by my lonesome self but instead shared forward, lateral, and creative thinking with those around me.

To be able to craft the way forward for the Philippines, we must embrace an altogether different mindset.

For example, we must toss the 6%-7% metric out the window. Instead, we want to raise GDP by an incremental $200 billion – because our GDP per person is less than half of Thailand’s and not even a third of Malaysia’s.

That’s how our minds can create a new paradigm.

And then we can benchmark against Vietnam, for example.

Consider: Samsung has already invested over $17.5 billion in Vietnam, and they put in another $920 million. On the other hand, they made $3.8 billion in 2020 from exports of over $50 billion – which revs up the Vietnam economy.

If we can’t define and fathom dynamism and interdependence, isn’t the above an excellent example?

Then see above; what we are celebrating. From 250 leads, we expect a potential FDI of $9 billion, while the BOI is targeting $20 billion worth of investment approvals.

Given our 6%-7% GDP growth metric, those potential FDIs are good enough.

But, and it’s a big but, if we want an incremental GDP of $200 billion, they are not good enough. When the going gets tough, the tough get going, not sit on their laurels.

That’s why we need to hear from Tim Cone.

Whatever monetary and fiscal interventions we create must be building blocks to attain our North Star – a developed, first-world nation.

We are playing catch-up. But then again, we in the Philippine elite and chattering classes don’t mind the status quo.

We can’t sit on our laurels.

To lift Juan de la Cruz from abject poverty demands a new – absolute and complete – mindset.

And that is our cognitive challenge.

Gising bayan!