Ignore our instincts at our peril

And we’re pushing the envelope with “pwede na ‘yan” and “Pinoy abilidad.”

It is unsurprising given the stages of dealing with pain: (1) Denial; (2) Pleading, Bargaining, and Desperation; (3) Anger; (4) Anxiety and Depression; (5) Loss of Self and Confusion; (6) Re-evaluation of Life, Roles, and Goals; (7) Acceptance. [“The seven psychological stages of chronic pain,” Jennifer Martin; Elizabeth Kubler-Ross’s five stages of grief]

Sadly, we’re still in the “denial” stage. And it explains the hubris, especially from us in the Philippine elite class.

We are the worst in the inequality index and per capita income in the region.

Consider: Amid a “culture of impunity,” we created the Philippine Competition Commission supposedly to match the competitive playing fields of the Asian Tigers, and China, and Vietnam. 

In other words, we hedged with “pwede na ‘yan” and employed “Pinoy abilidad” under the guise of addressing a pain – aka “denial.”

We know we cannot attract foreign money and technology for a reason. Yet, wear the blinder of denial – that comes from our instincts, which is how we define patriotism – and peter with “activity” while missing the “desired outcome.”

Here’s a quote the blog often raises: “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 the 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.”

In other words, “The Philippines should focus on creating high-quality jobs per the policy brief released by the United Nations in the Philippines.” [BusinessWorld, 6th Aug 2021]

“It must diversify its economy to produce more competitive products. 

“It has failed to respond to the fast-changing environment and has struggled to compete.

“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.

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

How damning can that be on top of our other failings — take education, for instance?

Ignore our instincts at our peril.

The bottom line: With due respect to our economic managers and legislators, we must move beyond “analysis” into “analytics” — and address the entire methodology. See below; connect the dots from this “universe” to our “culture of impunity.”

Consider: The blog, over the last dozen years, has said the same thing repeatedly. In other words, unless we reinvent ourselves, we have zero chance to turn over a new leaf. 

Let’s hold it right there.

The forgoing also explains our problem with Philippine education. “The failure of Philippine education is to develop the ability to think, meet new situations, and solve problems one encounters in real life.”

Here’s another quote from a previous posting: “Our caste system puts us in pigeonholes. Did we not applaud Duterte’s actions because our reason for being is our national interests?

“Aptly said, except that it reveals a myopic value system.

“Can we connect the dots from this ‘universe’ to our ‘culture of impunity? That the universe’s character is one of dynamism and interdependence. And it is what freedom and democracy and the egalitarian ethos represent. These building blocks of nationhood are a product of experiential education – i.e., to educate our youth, they must live out the education process.”

Translation: It takes a village to educate our youth. Because in the classroom, the best students can do is engage in small-group discussions – geared to problem-solving.

Still, the exercise allows them to pursue the “common good,” which presupposes that they debate how to define the object of the activity. And, as necessary, experience the egalitarian ethos.

Let’s digress a bit and speak to a nephew, barely 30 – and those familiar with the blog may recall him; he had sought my advice but very infrequently – interviewed by Tatler:

“Lampara is currently on self-preservation mode – as are other restaurants, I'm sure. Earlier this year, we were supposed to push through with other projects, like opening different dining concepts. But the ever-changing policies and lockdowns not only lagged us but ultimately stifled our plans to pursue any significant undertakings.

“Honestly, it’s tough to look too far ahead nowadays because you get all excited and motivated to launch something new and revolutionary, then the next day, another lockdown is announced. So, we keep in our back pocket the next steps we conceptualized.

“The pandemic stirred alarming anxiety for us [as owners of Lampara], but also the rest of the team. Every decision, every move we make has to consider the ever-changing guidelines from the government. In our neighborhood, there are just a few of us establishments left. And even if you follow the guidelines [you can still end up being closed down].

“At the moment, it feels like Mad Max. Many establishments around the area have closed, either due to the pandemic or for other reasons. Ironically, parking spots are also harder to find. Road renovations are taking months to finish, and at times would commence at quite inconvenient hours. The service we provide our customers isn’t limited to what happens inside Lampara; and must include how they arrive and leave our restaurant – it’s the whole experience. Being unable to help out our customers concerning parking is something very troubling.

“We adapted to the pandemic by launching our weekly meal plan brand. It kept us afloat during lockdowns, and we’ve even had subscribers stay with the subscription the whole time. We are truly grateful to them because, without them, we would probably be closed by now. We experimented with something a bit off-brand with that one, outside Filipino Food – we incorporated different cuisines to keep it interesting. We also noticed that many Filipino restaurants are not performing well in take-out operations because of the mentality that you can cook it at home.

“We were able to explore new products and dishes, and we received offers for some collaborative projects too. The ‘tres leches’ resulted from the lockdown, which we have since adapted to our regular menu, and it has been a strong player ever before.

“It made us more creative; we were able to experiment with other techniques and cuisines that we have now integrated into our current menu. Through Lampara Lite, we explored different cuisines and developed some feasible concepts even if another lockdown takes place.

“I still don’t think I deserve the title of Chef because it takes years of experience to earn that designation – I’ve just started. The responsibilities and duties of a chef do not end in the kitchen. It’s all around. I’m still learning. As is the case with many people, the pandemic is a challenging road that we all need to walk, but we will come out stronger in the end. Still, that does not mean that you have completely overcome those challenges, but it does make you stronger. I’m probably still in the process of overcoming these challenges myself. It has been problem after problem, and every time you feel like you have that moment of peace, another issue immediately presents itself, and you have to greet it with rationale and a clear mind as much as possible.” [https://ph.asiatatler.com/dining/coping-with-change-lampara-poblacion-interview]

Recall the GPS model: Where are we; Where do we want to be; How do we get there.

Unfortunately, our students live out our instincts once outside the classroom: 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 after reading the Tatler interview, I told my nephew that he exhibits the 3C’s of the “hardy mindset” to a T: (1) Challenge; (2) Commitment; (3) Control. He embraced and committed to an immense challenge, recognizing he controls only himself. He either swims or sinks.

Recall Fr. George Gorospe questioning our perception of reality. He laments that even if in the classroom students are introduced to the dynamism of “reality,” once they step out, they are back to our reality.

We respect the private sector; supporting teachers’ training – amid the above setting – is an exercise in futility.

See above; we created the Philippine Competition Commission subsumed in our culture of impunity.

Consider: “How we balance the health [of Juan de la Cruz], 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]

Then recall what Mahathir said to us: “You don’t have to love your former colonizer. But beg for money and technology. We are poor nations. We cannot go it alone.”

And that is the trade-off we refuse to accept because of our instincts. It is a false choice. And it reveals we are inward-looking and not outward- and forward-looking. And it explains why we have the worst inequality index and income per capita.

And why tens of millions of Filipinos are undernourished, beyond the insidious poverty that we can’t arrest. 

But why can’t we figure out if we’re coming or going? 

Recall the challenge of cognitive development. We must move away from binary and closer to relative thinking. 

If we fail, we are confirming that we are the present-day Padre Damaso.

Consider: Mahathir demonstrated that the art of strategy versus the theory is: a practitioner is both strategic and tactical. He zoomed in and prioritized KL over his hometown and zoomed out to the big picture: to relentlessly drive Malaysia’s growth and development.  

And where is our head?

Consider: “Now is the time to actively invite foreign direct investors, especially from South Korea, Japan, Taiwan, Spain, Germany, Italy, and the United States, to team up with local investors in establishing these Industry 2.0 sectors.

“The good news today is that thanks to Filipinos’ preference for big families, our population has swelled to four or five times its level in the 1950s. Like countries such as China, India, and Indonesia, our economy does not have to be dependent on exports (such as our neighbors Singapore, Taiwan, Malaysia, and even Thailand) for long-term economic growth.” [“Understanding the four industrial revolutions,” Bernardo M. Villegas, Human Side of Economics, BusinessWorld, 3rd Aug 2021]

See above; we hedge with “pwede na ‘yan” and employ “Pinoy abilidad” under the guise of addressing a pain – aka “denial.”

In other words, our instincts will always get in the way. Simply put, how and when will a market of over 100 million Filipinos generate the economic output comparable to the region, if not the world?

Consider: “Immediate impact of AFTA. With a free trade agreement forged, the region’s countries extend their economic market reach by creating a collective market. It is simply aggregating all country markets into one big market. More extensive trade creation is the most likely result, and in the ASEAN case, this was the outcome.

“This is game-changing for all participants. There are enormous economic implications for all countries. For instance, from a Philippine viewpoint, the ‘domestic’ market expands almost seven-fold from a country with close to 100 million people to one with 670 million.

“Mindset change. This surge in potential market multiplies the possibilities for any country in terms of possible expansion. A mindset change is required to maximize the gains derived from an enlarged free trade area; if a country begins from a background of protectionism and high-tariff and nontariff regimes.

“Philippine companies now have a much larger field of economic vision. It means that enterprises of other nations seeking new economic opportunities see larger market possibilities for their activities. When the enterprises of different nations seek economic and investment opportunities in one large market, it is inevitable that the degree of competition increases.” [“PH in AFTA: Moving forward in 2015,” Gerardo P. Sicat, Philippine Daily Inquirer, 25th Jul 2014]

How do our instincts get in the way?

“I received this e-mail from a senior Korean business executive who was reacting to a column I wrote on Vietnam and how it overtook us in economic growth.

‘Your column on 12th Feb was quite instructive for me. I’ve been thinking it over, and I suggest you write another column on ‘Why Samsung Electronics went to Vietnam.’

‘In 2008, the big boss of Samsung was here in the Philippines to evaluate the business conditions on which country is the best for them. But finally, Samsung chose Vietnam. Not the Philippines.

‘This is quite an interesting story because the Philippines still has the same way of thinking as in 2008. There are many restrictions and limitations on foreign investors here in the Philippines. Under these restrictions, I am sure no significant Korean investments will come.

‘None of the other countries in the region have such restrictions on foreign investors. Every country is willing to give special incentives and benefits to foreign investors. Would you mind studying why Samsung went to Vietnam in 2008?

‘Now, the biggest investors in Vietnam are Korean. More than 9000 Korean companies are in Vietnam. (Here, only a few hundred). Whenever I talk to officials of the government, I think they don’t know this story.’

“Unfortunately, the Senate may continue to be a hindrance to foreign investments.” [“Filipino last (?),” Boo Chanco, DEMAND AND SUPPLY, The Philippine Star, 7th Jun 2021]

Are we pushing the envelope with “pwede na ‘yan” and “Pinoy abilidad”?

Ignore our instincts at our peril.

Gising bayan!

We must come out of our pigeonholes.

Else, we will perpetually witness “the blind leading the blind.” That’s how we created a Marcos and a Duterte.

“Mr. Duterte does not have much to show for letting China trample his country’s rights. Only three of the planned 14 Chinese-financed infrastructure projects have broken ground. Of $15bn-worth of promised investment, only $3.2bn made it in 2016-20. And although soft loans and grants from China have risen from $1.6m in 2016 to $590m in 2019, America provided almost as much; Japan’s aid totaled $8.5bn. Unusually for a South-East Asian country, the Philippines still makes more trade with Japan and America than China.

“Nor has the friendly approach restrained China’s maritime expansionism. In March some 200 of its fishing boats—or, as some called them, maritime militias—staged one of the biggest and longest-lasting incursions into Philippine waters.’” [“How not to deal with China,” The Economist, 31st Jul 2021]

In other words, our caste system puts us in pigeonholes. Did we not applaud Duterte’s actions because our reason for being is our national interests?

Aptly said, except that it reveals a myopic value system.

Can we connect the dots from this “universe” to our “culture of impunity”? That the universe’s character is one of dynamism and interdependence. And it is what freedom and democracy and the egalitarian ethos represent. These building blocks of nationhood are a product of experiential education – i.e., to educate our youth, they must live out the education process.

Consider: “The failure of Philippine education is to develop the ability to think, meet new situations, and solve problems one encounters in real life.”

Put another way; nationhood is beyond narrowly defined systems – that are merely human constructs – i.e., they are at the root of tribalism. 

And the best example is US politics. Recall that I have no respect for US politics — and chose not to exercise the right to vote. Why? Padre Damaso is why, i.e., even the Philippine Catholic Church doesn’t identify with him. And Rizal had to pay the price.

Unsurprisingly, tribalism explains the inability of America to attain herd immunity in the fight against the pandemic. And red states account for the rise in Covid-19 cases even much more significant than previous records.

In other words, US dynamism — reflected in the rapid development of the vaccine — suffers from tribalism — as in undermining interdependence. Ergo: the common good comes from the character of creation and the universe, e.g., the photosynthesis phenomenon.

Recall Vice-President Gore demonstrated the “common good” by subordinating his political ambitions to the Supreme Court. On the other hand, Trump and the GOP – after losing scores of cases they filed to overturn the 2020 election – are still perpetuating the big lie.

The bottom line: The character of creation and the universe teed up the value of freedom – as in dynamism and interdependence. Not tyranny — e.g., the tyranny of the minority — manifested in the “big lie” and pandemic hotspots in the US.

Let’s get back to the Philippines. 

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

Question: Why aren’t we outward-looking? And forward-looking?

Consider too: Why do we have a fixed mindset and not a growth mindset? Why are we closer to binary than relative thinking?

Because we are a poor nation – our first need is survival? How come Mahathir knew otherwise? “You don't have to love your former colonizer but beg for money and technology. We are poor nations. We cannot go it alone.”

But we are proud Christians! Unsurprisingly, Fr. Bulatao’s research revealed our “split-level” Christianity. And Fr. Gorospe questioned our perception of reality.

Recall the quote from an earlier posting: “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]

“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.”

How poor are we? (1) 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); and (2) The worst GDP per capita.

Even Vietnam generates more economic output per capita in USD. Ours is 8.908 (2019). Compare that to Malaysia = 28,364; Thailand = 18,460; Indonesia = 11,812.

Here’s a quote from an earlier posting: “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 the 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.’

Sadly, that is way out of our logical yet linear thinking mode.

But then again, it is not new. Recall the comprehensive agrarian reform program and our celebration of the OFW phenomenon. And the tons of money (take $600-million loan) for the 4Ps. And from the private sector, Gawad Kalinga. It doesn’t end there. Think of the LGU initiatives that have gone even further – into devolution.

See above; our pathetic GDP per capita. Wittingly or not, we keep slicing an already slim salami.

Let’s hold it right there.

And how do we free ourselves from la-la land?

We must overcome a myopic value system; recognize the character of creation and the universe — dynamism, and interdependence.

And come out of our pigeonholes. 

Else, we will perpetually witness “the blind leading the blind.” That’s how we created a Marcos and a Duterte.

Gising bayan!

When will we get off our high horse?

Think of the tens of millions of malnourished Filipinos – despite the tons of money we borrow for the 4Ps – to insidious poverty, especially in the rural areas. And the failure of Philippine education is to develop the ability to think, meet new situations, and solve problems one encounters in real life. Shouldn’t we have gotten off our high horse – like yesterday?

“The truth is we have been on this long journey to nowhere for some time now. Things do not just develop overnight and suddenly happen.” [“World Bank apology,” Ramon J. Farolan, REVEILLE, Philippine Daily Inquirer, 19th Jul 2021]

Let’s hold it right there.

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.

Enter: Rizal. He saw through our instincts (1) of parochialism and insularity; (2) our value of hierarchy and paternalism; and (3) reliance on political patronage and oligarchy. And why we submit to tyranny.

What Mahathir told us is not rocket science. But have we confused “patriotism” with our instincts? And why do we talk about a damaged culture?

After decades of missing the beat, can we acknowledge that we are a poor nation — and cannot go it alone? 

Consider: Today, we have a much steeper climb, this being the 21st century — with its imperatives: innovation and global competitiveness.

Those familiar with the blog know I am a development worker in Eastern Europe, not Mongolia or the Philippines. And these countries are not as poor as we are — GDP per capita-wise. 

Why does it matter? I have lived and worked in different parts of the world, and the experience taught me to recognize people’s instincts. They can either hinder or drive change — especially in raising their well-being.

But that is not new, and why the blog has often referenced Kurt Lewin’s “forcefield theory.” That to succeed in a change effort, one must exploit the drivers and fix the barriers. That’s why this world, this universe is not for Juan Tamad or Bondying. There is no free lunch.

For example, my Eastern European friends recognized that they need technology, too, beyond money. And these people pleaded for me to stay well after the USAID’s commitment ended. Because they believed they couldn’t go it alone.

But they’re not alone in recognizing their instincts. See below; my 200-year-old MNC company. When they faced an acquisition threat, they hired “change agents” in the top 10 subsidiaries. And the Philippines was one of them.

Let’s get back to the Philippines.

Our failure to move beyond “analysis” into “analytics” to address the “entire methodology” explains why we can’t successfully deliver against complex undertakings.

In other words, we don’t have a track record — enough of the hubris?

Let’s pause and ponder.

And that must be our starting point, not to keep to prescribing cures invoking “Pinoy abilidad.”

Recall that the blog discusses Steve Jobs often. In the patents that Apple obtained from their innovations, it is not only his name that appears, but every member of the team also appeared.

Why? He had a brusque personality yet didn’t have a fixed mindset. He had a growth mindset. And he would stretch his people’s minds too with thoughts beyond the obvious. He would then parrot what members of the team said in contradiction of him.

He personified the 3C’s of the hardy mindset: (1) Challenge; (2) Commitment; (3) Control. He set himself the challenge of making a dent in the universe. And he demonstrated his commitment, knowing full well that he controls only himself – no one else. That is why he could take contradictory views.

Consider: We have an almost century-old problem in Philippine education. How many of us in the Philippine elite class and chattering classes will take that? How often did the blog discuss that in the 80s corporate America had to deal with the shortcomings of US higher education?

And why did we create a Marcos and a Duterte? And why our caste system is so entrenched. We value hierarchy and paternalism – and they nourish tyranny.

How often did the blog discuss that our top companies combined can’t match the performance of one Vietnam enterprise?

Did we solve such basics as water and electricity despite the hallelujah we sang to our top companies?

And why the blog introduced the science of “thinking.”

We must accept the reality that only a handful – hence the one-percent phenomenon, e.g., Einstein, Beethoven, Rembrandt, da Vinci, Newton, Jobs, among a select few – can claim great intellect.

Still, that is not surprising given that the chamber of the brain responsible for lateral and creative thinking is not well-developed in humankind because day-to-day life requires logic and incremental thinking.

How do we mere mortals overcome the above challenge? In an ever-increasingly complex world – not a surprise; it is the character of this universe – we face multifaceted problems. They demand multidimensional solutions. That’s why the blog often discusses “design thinking.”

It is a human-centered approach to innovation and recognizes the hierarchy of human needs. It is this hierarchy of needs that makes humanity thrive in this dynamic universe. And inherent in this challenge is interdependence – as mirrored by the ecosystem.

Design thinking was at the core of Jobs’ magic. He relied on a team of people he picked from different parts of the world and disciplines. Recall that he tapped a Japanese technology in creating the iPod and moved the world from analog to digital.

How often did the blog discuss my Eastern European friends – born and raised as socialists under Soviet rule? “The free market is not about rules but principles.”

For example, these people did not just sit to hear me deliver a lecture. And they had to live through it: Education is experiential. 

They had to form breakout groups across functions – and problem-solve. And the practice is now inherent in how they respond to challenges.

And what are they gaining from the exercise? They internalize the value of freedom and pluralism and an egalitarian ethos instead of a hierarchical and tyrannical one.

Can we connect the dots from the “universe” to dynamism and interdependence, then to freedom and democracy through experiential education, and to the ethos of pluralism instead of tyranny — and a culture of impunity?

Let’s again pause and ponder.

Recall that the blog raised that when Sen. Manny Villar was in the Senate, he acknowledged oligarchy as a stumbling block to FDIs. And in more ways than one, it explains why FDIs would instead go to our neighbors. And a dozen years ago, when the blog came into being, Vietnam had already taken a very healthy share of FDIs against the drop in the bucket that we get. 

Foreign investors (see above; what Mahathir told us about foreign money and technology) won’t come to a skewed playing field. 

Then relate our failure to move beyond “analysis” and into “analytics” — to address the entire methodology — and created the Philippine Competition Commission. And our inability to solve the basics of water and electricity despite EPIRA and the privatization of these utilities.

Do we appreciate why human undertakings are a subset of larger sets? And why we can’t deliver against complex undertakings?

And why, despite staying with the US model of focusing on fiscal and monetary interventions and yielding the ideal 6%-7% GDP growth rate, do we remain the regional laggard with a GDP per capita at a pathetic fraction of Malaysia?

Recall that at a 200-year-old MNC company, they let a foreigner from a small developing country change its planning and budgeting system. Despite a thousand scientists at its technology center, they obtained state-of-the-art technology from a small entrepreneurial laboratory. And this same foreigner decided for himself. “What are we waiting for?” That was my response to the CEO of the pharma unit.

And not to mention that I had contradicted the company president, then tapped as a resource for similar issues.

It is what freedom is and what tyranny is not. “One who submits to tyranny loves it,” said Rizal.

Here’s another quote from an earlier posting: “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.”

Think of the tens of millions of malnourished Filipinos – despite the tons of money we borrow for the 4Ps – to insidious poverty, especially in the rural areas. And our inability to develop the ability to think, meet new situations, and solve the kinds of problems one encounters in real life, shouldn’t we have gotten off our high horse – like yesterday?

Gising bayan!

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!