Thursday, November 5, 2020

Juan de la Cruz has very slim – to none – a chance to change?

But why is the blog still around after almost a dozen years of falling on deaf ears?

David defeated Goliath. Isn’t that enough?

The blog discussed Vietnam even before the World Bank confirmed that it would be wealthier than the Philippines because Vietnam brings the Asian Tigers to mind.

The writer’s first foreign trip was to Singapore – a Christmas and birthday gift to himself. In his early 20s, he was not even in the third year of his professional life – still wet behind the ears.

The last batch of British soldiers was still around. And the writer witnessed Lee Kuan Yew’s hands-on leadership style as he directed work in the Singapore Zoo.

Orchard Road was not as lush as it is today. They were in the process of greening this city-state.

Who would know that Singapore will surpass the US in competitiveness?

Who would think Vietnam can outdo even Singapore? Or from rice importers following the Vietnam War, they will be a top rice exporter – exporting even to the Philippines?

Sadly, Juan de la Cruz won’t imagine how people and nations can excel as our neighbors do? 

The writer covered the region and saw up close and personal these “Asian miracles” come about, including the AEC’s regionalization efforts. And it became clear that the Philippines would lose out in the process.

Let’s hold it right there. 

Juan de la Cruz isn’t the only one challenged. 

Everyone has to paddle his or her canoe. That is why the blog often speaks to Adam and Eve’s banishment and humankind's migration from Africa.

The dynamism of the universe is not new. It is as old as the universe itself.

When his old MNC-company moved him to New York, it was also the heyday of Japan, Inc., and corporate America was scrambling to regain its manufacturing prowess.

But the world was accelerating at warp speed that both Japan and the US would lose out to China as the post-industrialization era came to these wealthy nations.

The era must have come too soon because corporate America realized that US higher education didn’t hold the keys to the future. And several Fortune 500 companies confronted the challenge by pursuing full-blown education and training initiatives. 

They wanted answers to the question: Why doesn’t higher education see beyond the present? And the writer got deeply involved as his old MNC-company tapped educators as partners in its efforts to leapfrog the challenge. The outcome is an extensive curriculum integral to its people’s training and development, including its succession planning program.

Inherent in the company’s culture is ensuring people reach their potentials and feed the management pool necessary to manage over 200 markets or countries. It preempts tyranny better than nations manage their affairs. It is diversified. It is consistent with the American values of fairness, team spirit, and interdependence, aka the common good's commitment. [Of the three CEOs the writer worked with, two were not Americans; and only one of the three country managers were Americans in the Philippines. And while in New York, beyond negotiating the China JV, he tapped the Philippine country head, his former boss, to lead the new China venture, given his extensive Asian experience and cultural sensitivity.]

And, of course, personal responsibility. There is no free lunch. It is not for everyone.

Should readers wonder why the writer has no respect for Trump? Or for American politics, for that matter? The good news is the State of Maine introduced an innovation in the election process – “ranked-choice voting,” discussed by the blog several postings ago – to ensure that the “majority” rules. It is a long shot to expect that it becomes universal, given the federal system. But it is an excellent first step.

Consider: Trump has the support of less than half of the Americans and is the anthesis of American values, i.e., he undermines the rule of law, taking America down to a “banana republic.” That is why he finds friendships with tyrants and despots; yet shuts out partner-nations. And extinguishes the beacon of America, the “beacon of hope.”

Beyond the challenge of the post-industrialization era, in wealthy nations, were the EU initiative and NAFTA. And from a technology standpoint, there is Silicon Valley. And change isn’t slowing down.

Who would imagine AI and quantum computing would come about in this lifetime?

And so, despite Asia putting poverty to bed, poverty has resurrected as progress saw winners distancing themselves and leaving losers behind. And no one country appears able to lead the way as a hegemon.

“Make America Great Again,” says Trump. Translation: America must become parochial and insular.

But the real translation is otherwise. The business – real estate development – Trump inherited from his father is an essential emerging economy industry. Why he plays ball with foreign tyrants and oligarchs, i.e., homeownership is a fundamental metric that differentiates wealthy nations from poorer ones.

In other words, he can’t figure out, much less harness, the post-industrialization era for the benefit of wealthy nations like the US. Unsurprisingly, he is stuck with “the Rockefeller era,” i.e., fossil fuel, yet hypocritical about big tech. He takes advantage when it suits his selfish interests – as in social media –  yet maligns innovators for their forward-looking instincts. The operative word is “harness.” [See below; human needs demand continual innovation.]

As Lee Kuan Yew recognized, the smaller countries’ stability hinges on the major ones’ stability. That is why there is JICA or USAID, for example. Very recently, Germany committed to hegemony in Europe to give the US greater leverage in Asia and ensure the Western values of freedom, democracy, and interdependence migrate far and wide for the greater good of the global community.

When the automobile first hit the road, people protested because of the risk to public safety. The writer did not see much to that piece of history until after the Soviet empire’s collapse. That was when the EU took into its fold former Soviet satellite states and paved the way for their rapid infrastructure development.

Long story short, with their spanking new European-standard highways, these young member-nations endured elevated highway-related fatalities. The EU responded by enacting a Union-wide road-convention statute. And that arrested the spike in road accidents.

There is no free lunch. Every action has a corresponding equal and opposite reaction. And the response can be as simple as road courtesy, for example.

Recall what democracy entails, i.e., self-government, personal responsibility, and the commitment to the common good.

Attempts to move back the hands of time through efforts as rightist populism appear out-of-step, given how technology has given humankind a peek into the future. For example, nations can’t sweep aside the imperative of interdependence.

Take the race to develop the vaccine for Covid-19. Humankind, like its history, says, must adapt accordingly, for the common good.

Think of generic drugs that are available to everyone, rich and developing nations alike. And its impact on the human lifespan. That is because patents aren’t perpetual.

At the writer’s old MNC-company, they have a pharma subsidiary that supports its main technology center. The former develops professional products, while the latter focuses on consumer products. 

The writer supervised the pharma unit and experienced firsthand humankind’s need for continual innovation. R&D is not an isolated undertaking and must be integral to human development.

The common good is not some esoteric notion. 

Consider: The writer, at the request of an Ivy professor-friend, hosted a group of Koreans at their technology center. That was before Samsung and LG became household names. The Koreans were doing their homework. Why not enroll in an Ivy for a course that included a peek into how the West does R&D? Knowledge can’t be parochial; otherwise, it undermines the pursuit of the common good. As a global enterprise, the writer’s old MNC-company keeps a worldwide network, so knowledge migrates beyond the developed world and benefits humankind.

And what is happening in Wuhan? China is showing the rest of the world that economies will rebound after the bout with the pandemic.

Predicting the future is not a productive exercise given all the above.

Yet, the Asia Tigers – and Silicon Valley – demonstrated forward-thinking.

“Vietnam’s recipe for success is the very same one that was ridden by the East Asian miracle economies: the East Asian model. In the wake of the 1998 Asian Financial Crisis, western pundits and the Western thinking-dominated multilateral organizations, notably the IMF and the World Bank, silently rejoicing at the stumble of East Asian exceptionalism, had declared it dead.

“Now, multinational corporations of every stripe and color are flocking to Vietnam’s export processing zones. Chinese multinational corporations (MNCs) — fleeing both the higher labor cost and US trade sanctions on China — have joined the frenzy. Ironic that Chinese MNCs are hardly a presence in the Philippines after all Xi’s courting by MalacaƱang.

“Vietnam knows China is the template, which means going big on slipstream industrialization as an export platform. On average, Vietnam’s exports grew 16% a year for decades now, twice the growth of Philippine exports of 8.6%.” [Vietnam rising: Does being a ‘currency manipulator’ matter (?), Raul V. Fabella, Introspective, BusinessWorld, 25th Oct 2020]

Vietnam is not reinventing the wheel. All it is doing is replicate the East Asian model, a carryover of the “Asian miracles” of Japan, Taiwan, South Korea, and China.

And where is the nation, the Philippines?

Here’s a quote from a prior posting: “Parochialism: the eye of our perfect storm. Parochialism lulled us into believing we are the center of the universe. And it is manifested by our caste system.  

“Why disturb the apple cart when hierarchy comes with paternalism? Unsurprisingly, we never understood dynamism and consequently remained an underdeveloped economy and nation. Our worldview is so ingrained that our ‘reality’ continually shrinks."

Let’s reprise the posting’s hypothesis: Juan de la Cruz has a very slim – to none – a chance to change?

Consider: “The challenge is that individuals cannot change the overall context in which they live and work, except by moving elsewhere. The improvements needed to raise an entire economy’s productivity require coordinated, collective action.

“Unfortunately, the need for coordination rarely features in the current productivity debate. Instead, the discussion — whether of why output per worker hour has been virtually flatlining in many OECD countries since the mid-2000s or of which targeted policies might help to revitalize left-behind towns or regions—has focused on numerous potential contributory factors, rather than the need for coordinated action.

“For example, policymakers typically undertake cost-benefit appraisals of potential infrastructure investments on a project-by-project basis. But the returns to any project will be affected by other decisions, both private and public.

“If a new railway line opens, will local bus timetables change to coordinate people’s journeys? Will developers build houses nearby, and will other government agencies open schools in the area?

“Absent coordinated decision-making, investing in new projects where more of the other pieces are already in place will generally look like the better value-for-money option. Unfortunately, government agencies appraising projects aren’t mandated to conduct a holistic survey of the policy landscape.

“Economists need to connect their analysis with an understanding of the political potential for change, the sociology of organizations, and the psychology of decision-making. Simply urging regions to ‘be more like Silicon Valley’ is useless.

“The challenge for researchers and policymakers is to understand—in each specific context—precisely the prescribed coordination to increase productivity, and what actions (and by whom) can achieve this.

“Vast inequalities between places, and therefore in people’s life chances, are a critical political issue almost everywhere, as election upsets and increasing polarization in recent years indicate.

“Moreover, the COVID-19 pandemic, the likelihood of economic turmoil owing to extreme weather or civil conflict, the existential requirement of shifting to a zero-carbon economy, and widespread digital disruption will make delivering broad-based prosperity an even more pressing imperative.

“Although the obstacles to increased productivity are nearly universal, the solutions will be specific to each place and reflect its asset legacy, industrial history, location, and local politics. There is no science—yet—on the kinds of decisions at different government levels or how to coordinate choices across departmental silos and budgets.

“Nobody would be surprised that the factors contributing to low or stagnant productivity include lack of investment in physical and intangible assets, skills shortages, inadequate infrastructure, poor management, and a weak macroeconomic environment.

“More surprising is the lack of attention paid so far to find a recipe that addresses these problems in tandem. Economists and policymakers must begin to rectify this without delay.” [The key to the productivity puzzle, Diane Coyle, WORLD VIEW, Project Syndicate, Philippine Daily Inquirer, 25th Oct 2020.]

Recall these quotes from prior postings:

“Forward-think, think “ecosystem.” [That is what the above article expounded.]

“Let’s start with national leadership. We never had one like those of the Asian Tigers.

“Yet, that is not surprising when we recognize that the leaders we’ve elected reflected the worldview of Juan de la Cruz: 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.

“We must create an ecosystem that will negate these instincts. Recall the demands of democracy, i.e., self-government, personal responsibility, and the common good.

“How do we make AmBisyon Natin 2040 more dynamic?

“The aim is to turn Malaysia into a fully industrialized country and to quadruple per capita income by the year 2020.”

“Like a broken record, the blog repeatedly raised the imperative to traverse poverty to prosperity. And given we’re a service/consumption economy, we must move up to an industrial/investment economy.

“Let’s continue with the vision of Malaysia: “To be industrialized requires the country to continue ascending the technological ‘ladder,’ i.e., from low- to high-tech types of industrial production, with a corresponding increase in the intensity of capital investment and more excellent retention of value-added (i.e., the value added to raw materials in the production process) by Malaysian producers.”

“How to do that? Consider what Mahathir said to us Filipinos. ‘He stressed the importance of industrializing. Industrialization became necessary because agriculture could not create enough jobs for the growing population.

“Government must welcome more foreign direct investments, and help businesses. ‘When newly-independent countries were nationalizing foreign-owned industries and businesses, we decided to invite foreigners, including the former colonial masters, to come back and invest in industries in Malaysia.’

“Let’s get back to Vietnam and how they surprised the rest of the world, no different from the Asian Tigers before them.

“That is why the blog teed up two concrete initiatives for the Philippines to consider.

“Since our most significant exports are similar to those of Vietnam (a) to lure the most significant global brand in electronic devices and offer an aggressive tax regime, and (b) to mirror the development of the Pearl River Delta Economic development zone. [It represents an “ecosystem” more profoundly than the export processing zones we have in the Philippines.]

“That is how we get the biggest bang for the buck. We have been kicking around lots of the ‘trivial many’ that we miss the ‘vital few.’

“And that is a function of the lack of human development experience.

“The answer to ‘inequality’ is not paternalism but the commitment to the common good.”

“The Asian Tigers’ leaders engaged big nations while we wanted to burn bridges and disengage from the US because we’re still at the dualism level? But did the South China Sea imbroglio wake us up?

“Have we learned the lesson? The acid test will be: To demonstrate that we can forward-think and create for this beloved nation, the ecosystem that will mirror the soul of creation. Think of the photosynthesis phenomenon.”

But why is the blog still around after almost a dozen years of falling on deaf ears?

David defeated Goliath. Isn’t that enough?

Gising bayan!

Saturday, October 31, 2020

Parochialism: the eye of our perfect storm

Parochialism lulled us into believing we are the center of the universe. And it is manifested by our caste system.  

Why disturb the apple cart when hierarchy comes with paternalism? Unsurprisingly, we never understood dynamism and remained an “adolescent” – i.e., an underdeveloped economy and nation. Our worldview is so ingrained that our “reality” continually shrinks.

“The individual who feels secure and comfortable with the status quo sees no need for change.” [Fr. George Gorospe, SJ]

Here’s a breath of fresh air: “Reforming, rebuilding and recalibrating;” Gerardo P. Sicat, CROSSROADS TOWARD PHILIPPINE ECONOMIC AND SOCIAL PROGRESS, The Philippine Star, 21st Oct 2020.

“We must recognize the mistakes or inadequacies of the past and tackle them with a fresh approach.

“There is no substitute for a more direct assault on the issue of reducing constitutional impediments to foreign investors if the country wants to move faster on the subject of foreign investment attraction. Such an effort will give substance to recalibrating the country's desire to be competitive with neighbors.

“Therefore, the nation’s leaders must find a way to address the issue of this ‘original sin’ in the investment laws through an amendment that softens or transfers the specifics of restrictions to national-law making.

“In short, the subject ought to enter the realm of parliamentary legislation, not constitutional prescriptions. It is the best expression of intent to simplify many foreign investment rules in the country.”

Understandably, our economic managers must assure us that we are doing the right thing to deal with the pandemic’s economic impact.

We know that we remain a service-consumption economy and getting a free lunch courtesy of over 10 million OFWs. The status quo is not good enough. We must rapidly move up to an industrial-investment economy. Even our neighbors have shown concern that they want us to heed their advice and examples.

Those familiar with the blog know it often speaks to the Asian Tigers. And that Lee and Mahathir advised Deng to beg for Western money and technology. The writer was a regional manager when this was all happening and himself, representing his old MNC-company, negotiated JVs in these countries, including China and Vietnam.

“When the coronavirus pandemic fades, I expect the Philippines to be an economic champion, outperforming other emerging economies in its class.

“But we are not out of the woods yet,” the BSP chief cautions.” [A better economy, Tony Lopez, Virtual Reality, manilastandard.net, 23rd Oct 2020]

With due respect to the BSP chief, we have been an emerging economy for the longest time. Our neighbors have left us behind. We cannot take our eyes away from the ball.

Consider: “Myron Scholes is the co-originator of the Black-Scholes options pricing model. He was a key player in the collapse of Long-Term Capital Management, one of the biggest hedge fund disasters in history — just after he and Robert Merton won the 1997 Nobel Prize in Economics for their work on options pricing.” [Myron S. Scholes, by Will Kenton, Investopedia, 7th Jun 2018]

Perfection is not of this world. The Markov model comes to mind every time the writer hears predictive exercises. It is an excellent model. But there is always a caveat. And that is how he guided the Ph.D. candidate in her dissertation. She does not disappoint, navigating the real world, rapidly ascending the corporate ladder, managing one of the world’s most popular brands.

This universe is dynamic, not static.

“When we think of problem solvers, many of us tend to picture a poised and brilliant engineer. We may imagine a mastermind who knows what she’s doing and approaches a problem with purpose.

“The reality is that most good problem solving has a lot of trial and error; it’s more like the apparent randomness of rugby than the precision of linear programming.

“We form hypotheses, porpoise into the data, and then surface and refine (or throw out) our initial guess at the answer.

“They require an embrace of imperfection and a tolerance for ambiguity—and a gambler's sense of probabilities.

“The real world is highly uncertain. Reality unfolds as the complex product of stochastic events and human reactions.” [Six problem-solving mindsets for very uncertain times, Charles Conn and Robert McLean, McKinsey Quarterly, 15th Sep 2020]

Sadly, beyond the challenges of a dynamic universe, we like to shoot ourselves in the foot.

Consider: “A 42-year-old man with hardly any experience in any national government heading the House intrigues. Or a Prez without just sending a messenger to tell Allan, Alan and All: ‘The Prez wants this,’ and hears, ‘Oo, and what else can I do for him (or Mayor Sara; in one speculation,’ the new speaker is her choice).

“When I was still in grade and high schools, those in government, politicians, judges, the military, and other civil servants were professionals. The Marcoses managed to harm, minimize, or ruin our values, institutions, and processes in 20 years. I don’t know if and when we can recover, but how the House resolved the speakership issue is unpromising.

“The House, as an independent body, can pick a speaker any time. The President has no business openly flaunting whom his choices are without caponizing the House.” [Savagery, civilization, decay; Rene Saguisag, The Manila Times, 23rd Oct 2020]

But let’s get back to dynamism.

And here is a question to us in the chattering classes: Why are we not promoting big time the imperative to move up to an industrial-investment economy? Why did we drop the ball on Arangkada, for example?

“The proper medicine to redirect the issue of Philippine human resources going abroad for work is to build an economy based on labor prosperity right at home, where domestic and foreign capital add to the economy’s productivity. Such policies would have a higher multiplier impact on the domestic economy than workers finding jobs in other countries.

“If we attract foreign capital more into our shores and make them more substantial here in our country, domestic investments will also prosper since the economy would be enlarging. Such is the story of progress in many East Asian success stories. It is not the original fear that foreign capital would displace domestic capital.

“In such a midst, many success stories in Asia consist of the founding of domestic businesses flourishing within the prosperity built by an open economy. In this way, quality jobs are made at home to absorb the available domestic labor in employment.

“Taking a close look at our political system, the country’s decision-making from administration to administration has produced little to lift us out of our problems. In the course of our almost eight decades of independence, here is what it has achieved for us:

“At the birth of our independence – as the world awoke from the destruction of World War II – we were ‘the most likely to succeed among many developing countries in the East Asia region.’

“For decades, we have struggled to keep pace with some of the more prosperous economies in the region. And lately, we are still being surpassed by latecomers to the development game.

“We were among the first democracies in the region. Today, because of our economic experience, we are still struggling to become a better democracy, while some of us suspect our democracy is failing us.” [Sicat, op. cit.]

That’s the macro view. What about the micro, e.g., MSMEs?

Those familiar with the blog will recall that the writer’s presence in Eastern Europe, arranged by USAID, assists MSMEs. While his career in a Fortune 500 company equipped him for the challenge, what it boils down to is the size of an enterprise does not alone explain why MSMEs, especially in the Philippines, cannot pull their weight.

Consider: ‘Most people never call and ask. And that’s what sometimes separates the people who do things from those who dream about them. You got to act. You got to be willing to fail. You got to be willing to crash and burn. If you’re afraid you’ll fail, you won’t get very far.’

“That was Steve Jobs in a 1994 taped interview.

“He’s right. The fear of failing can paralyze us – cause us to do nothing and keep us from getting very far. Some causes include:

“A reluctance to experiment with new ideas and try new things.

“Procrastination. You fear failing, so you avoid following through with goals.

“Low self-esteem or self-confidence. Example: ‘I’ll never find success, so I may as well go back and get a real job,’ or ‘I’m not smart enough to start a business.’

“The good thing about the fear of failure is that it’s entirely up to us to decide how to look at it. Perspective matters. We can choose to see ‘failure’ as the worst-case scenario and toss in the towel, or as a learning experience that helps us bounce back, grow, and become even better.

“1 sure way to reduce your fear of failing. Facing failure head-on and embracing it is pretty courageous. But if you’re not quite ready to make that leap, there is one sure way you can reduce the fear of failing: Squashing the negative dialogue in your head.

“To quiet the voice of criticism, doubt, or fear, you have to catch negative thinking. Blaming yourself or believing you won’t succeed is a recipe for passivity and depression.

“So, challenge the inner monologue in your head by reframing. For example, write down three alternative ways of viewing a situation. Go to work tomorrow and act as if at least one of those alternatives is correct.

“Happiness and success are ignited when our internal environment is free from negative assumptions. Countering destructive thoughts makes us better friends to ourselves and more desirable partners, colleagues, and coworkers.” [Steve Jobs: 1 Thing in Life Separates the People Who Do Things from Those Who Dream About Them; Marcel Schwantes, inc.com, 24th Oct 2020]

Let’s get back to parochialism.

The blog often speaks to forward-thinking. In today’s globalized world, that means even if one starts an MSME, to succeed means to be prepared to take on all comers, including Western giants.

The starting point is not to whine that there is no access to financing. That is precisely what Steve Jobs shot down in the above interview.

The writer chose the challenge to help his Eastern European friends because they had very little capital in a small market (of less than 10 million) yet facing competition from global behemoths.

And they had lost money for eight years. After the writer arrived, they still lost money for three more years. But with the writer, they developed a game plan to become a one-hundred-million-dollar enterprise. And they did and why the EU recognized them as a model.

Today they are far more prominent – being themselves an MNC – and matching Fortune 500 companies in profitability, despite the pandemic. They are a more formidable competitor to these Western giants because of the innovation culture, investing aggressively in capital expenditure, including robotics, and marketing and paying factory people in the 75th percentile of comparable companies, including MNCs.

Recall what the blog keeps saying, “inequality” is not addressed by paternalism but by the commitment to the common good. 

Forward-think, think “ecosystem.” 

But first, recognize our mistakes and inadequacies. 

Then act!

“Most people never call and ask. And that’s what sometimes separates the people who do things from those who dream about them. You got to act. You got to be willing to fail. You got to be willing to crash and burn. If you’re afraid you’ll fail, you won’t get very far.”

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]

Tuesday, October 27, 2020

Forward-think, think “ecosystem.”

Were Lee and Mahathir engaging Deng in forward-thinking when they advised him to beg for Western money and technology? Were they likewise manifesting they had moved up in human development that they’re beyond dualism – either/or – and into relativism?

Consider: “Lee skillfully navigated Singapore among the world’s great powers. He recognized that in this globalized, interdependent world, small countries’ survival relied on big ones’ stability. With China rapidly rising into a significant regional power, the traditional power division between the US and China is losing balance and has become Southeast Asia's biggest concern.

“Lee took the lead in negotiating between China and America, in the best interest of his country as well as regional security.” [Lee Kuan Yew’s Legacy for China-Singapore Relations, Chen Nahui, and Xue Li, The Diplomat, 5th Dec 2016]

Lee’s worldview engendered his ability to forward-think and recognize this globalized, interdependent world.

Let’s stop right there.

Will we Filipinos ever figure out that we are not the center of the world? We are a subset of a more significant set, aka divine oneness. And if we believe in the Creator, it was meant to be.

That is why the blog speaks to the dynamism of creation, and nature manifests it 24/7 via the photosynthesis phenomenon. It is the heart of human development and why people and nations move up from dualism – either/or – to relativism.

And humankind is equipped accordingly, as in the hierarchy of human needs. And it is central to the 21st century’s demands of innovation. But that is why Padre Damaso is a pariah.

Are we surprised why innovation and global competitiveness elude us?

From Lee, let’s go to Mahathir. Consider what he said to us Filipinos. “He stressed the importance of industrializing. Industrialization became necessary because agriculture could not create enough jobs for the growing population.

“Government must welcome more foreign direct investments, and help businesses. ‘At a time when newly-independent countries were nationalizing foreign-owned industries and businesses, we decided to invite foreigners, including the former colonial masters to come back and invest in industries in Malaysia.’” [Mahathir questions Filipino-style democracy, RG Cruz, ABS-CBN News, 11th Jul 2012]

These Asian leaders weren’t parochial and insular.

Let’s take Deng and Zhou Enlai. “Here in Paris, it is impossible for any China observer not to reflect on Deng Xiaoping and his student years in France, a period which marked him, and thus China’s history, with immeasurable impact.

“It is a bedrock portion of Deng Xiaoping’s apocryphal story that he studied in France, and was deeply impacted, both personally and ideologically, by the experience.

“Lesser emphasized outside of China is that Zhou Enlai, Mao Zedong’s enigmatic yet charismatic premier and minister of foreign affairs, who played the pivotal role in the negotiations that led to the rapprochement of relations between the People’s Republic and the United States, was also a student in France.” [How Post-WWI France Helped Shape Revolutionary China, Bonnie Girard, The Diplomat, 22nd Jan 2019]

These Asian leaders engaged big nations while we wanted to burn bridges and disengage from the US because we’re still at the dualism level? But did the South China Sea imbroglio wake us up?

The acid test will be: To demonstrate that we can forward-think and create for this beloved nation, the ecosystem that will mirror the soul of creation. Think of the photosynthesis phenomenon.

Sadly, Padre Damaso consigned us to blind obedience. 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.

Unsurprisingly, forward-thinking is not our cup of tea.

Here’s Lee again: “One of the most important lessons which he drew from the British – and one which, sadly, is seldom recalled today – is that independence neither required a complete break with the old colonial power nor was an automatic ticket to prosperity.

“British sense of fair play and Britain’s openness to foreigners were qualities that Mr. Lee always praised about the British. Yet, he had an irresistible desire – to criticize the British whenever he thought they were erring.” [Mr. Lee Kuan Yew had close ties with Britain, but was never a ‘colonial nostalgic,’ Jonathan Eyal, The Straits Times, 27th Mar 2015]

Do we see the similarities in worldviews between Lee and Mahathir? And do we wonder why our neighbors left us in the dust?

Consider: “AmBisyon Natin, 2040. By 2040, Filipinos enjoy a strongly rooted, comfortable, and secure life. In 2040, we will all enjoy a stable and comfortable lifestyle, secure in the knowledge that we have enough for our daily needs and unexpected expenses, that we can plan and prepare for our own and our children's future. Our family lives together in a place of our own, and we have the freedom to go where we desire, protected, and enabled by a clean, efficient, and fair government.”

Compare our vision of the future against how Malaysia expressed theirs: “Vision 2020. The aim is to turn Malaysia into a fully industrialized country and quadruple per capita income by 2020. That will require the country to continue ascending the technological ‘ladder’ from low- to high-tech types of industrial production, with a corresponding increase in the intensity of capital investment and more excellent retention of value-added (i.e., the value added to raw materials in the production process) by Malaysian producers.” [http://factsanddetails.com/southeast-asia/Malaysia/sub5_4a/entry-3627.html]

Unmistakably, Malaysia’s vision is much far-reaching and better mirrors the photosynthesis phenomenon.

Forward-think, think “ecosystem.”

Do we recognize the folly of celebrating the OFW phenomenon? 

What about paternalism? Does it mirror an ecosystem?

“Lee admired Britain’s National Health Service, the prototype of a state-funded welfare system copied by most other industrial nations, and recounted his surprise when, during his Cambridge days, he received a pair of spectacles and dental treatments for free.

“But concluded that the system is unaffordable and that it discourages economic enterprise. Britain’s political experiments inspired him, yet also served as a warning.” [Eyal, op. cit.]

In other words, there’s no free lunch. The answer to “inequality” is not “paternalism” but the commitment to the common good. That’s a quote from an earlier posting.

So, where are we?

“Vietnamese set to get richer than Filipinos this year — IMF,” Ian Nicolas Cigaral, Philstar.com, 14th Oct 2020. “Acting Socioeconomic Planning Secretary Karl Kendrick Chua did not respond to request for comment.”

Will we ever want to learn from others? How come to benchmark is Greek to us?

Consider: “According to Bill Gates, Asking These 2 Questions Will Make You a Better Leader,” Jason Aten, inc.com, 18th Oct 2020.

“Ever since I was a teenager, I’ve tackled every big new problem the same way: by starting with two questions. I used this technique at Microsoft, and I still use it today.

“Here they are: Who has dealt with this problem well? And what can we learn from them?”

“It’s reasonable to acknowledge that Bill Gates has figured some stuff out. The company he started, Microsoft, is one of the three most valuable in the world. His foundation has donated billions to public health research, among other things, eradicate polio and fund vaccines for Covid-19. You don’t typically think of him as someone who has to look elsewhere for answers, but he does. More important, he’s not afraid to say that he does.

“Which is maybe the most significant indicator of the quality of someone’s leadership – their willingness to ask those two questions. Here’s why I think they are so powerful:

“First, it requires you to acknowledge that you don’t have it all figured out. Regardless of what you are building, there’s a pretty good chance someone else has information that would be helpful to you. There’s a good chance that someone else has already had success in that area, and the smartest thing you can do is figure out who they are.

“Second, ask yourself what they’ve done that you can learn. Take the best of what has been accomplished and improve on it. Instead of inventing something, you can devote your resources to innovating and refining what has already worked and made it your own.

“The two most important aspects of leadership are setting the direction and influencing people to work in that direction. Those two questions make you better at both since it gives you a better sense of which direction will give you the best chance of success, and the information and experience you need to get there.”

The challenge Juan de la Cruz faces seems to be above his head? See above; Vietnamese set to be more prosperous.

Let’s start with national leadership. We never had one like the Asian leaders referenced above.

Yet, that is not surprising when we recognize that the leaders we’ve elected reflected the worldview of Juan de la Cruz: 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.

We must create an ecosystem that will negate these instincts. Recall the demands of democracy, i.e., self-government, personal responsibility, and the common good.

How do we make AmBisyon Natin 2040 more dynamic?

Consider: “The aim is to turn Malaysia into a fully industrialized country and to quadruple per capita income by the year 2020.”

Like a broken record, the blog repeatedly raised the imperative to traverse poverty to prosperity. And given we’re a service/consumption economy, we must move up to an industrial/investment economy.

Let’s continue with the vision of Malaysia: “To be industrialized requires the country to continue ascending the technological ‘ladder,’ i.e., from low- to high-tech types of industrial production, with a corresponding increase in the intensity of capital investment and more excellent retention of value-added (i.e., the value added to raw materials in the production process) by Malaysian producers.”

How to do that? Consider what Mahathir said to us Filipinos. “He stressed the importance of industrializing. Industrialization became necessary because agriculture could not create enough jobs for the growing population.

“Government must welcome more foreign direct investments, and help businesses. ‘At a time when newly-independent countries were nationalizing foreign-owned industries and businesses, we decided to invite foreigners, including the former colonial masters to come back and invest in industries in Malaysia.’”

And here’s again a quote from an earlier posting: “Let’s get back to Vietnam and how they surprised the rest of the world, no different from the Asian Tigers before them.

“That is why the blog teed up two concrete initiatives for the Philippines to consider.

“Since our most significant exports are similar to those of Vietnam (a) to lure the most significant global brand in electronic devices and offer an aggressive tax regime, and (b) to mirror the development of the Pearl River Delta Economic development zone.

“That is how we get the biggest bang for the buck. We have been kicking around lots of the ‘trivial many’ that we miss the ‘vital few.’

“And that is a function of the lack of human development experience.

“The answer to ‘inequality’ is not paternalism but the commitment to the common good.”

See above; “the Asian leaders referenced engaged big nations while we wanted to burn bridges and disengage from the US because we’re still at the dualism level? But did the South China Sea imbroglio wake us up?

“Have we learned the lesson? The acid test will be: To demonstrate that we can forward-think and create for this beloved nation, the ecosystem that will mirror the soul of creation. Think of the photosynthesis phenomenon.”

Do we recognize that we struggle to forward-think?

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]