Three speeches

January 16, 2008 by mlq3
Filed under Daily Dose

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I intend to devote a column to this topic, so this is as much for my reference as it is for sharing with you, the reader. In November, a speech was delivered which continues to make the e-mail rounds. Over the past few weeks, two other speeches were made that deserve, to my mind, dissemination and discussion. They cover three inter-related topics. The first involves entrepreneurship; the second, how political leaders determine, then advocate, policy; and the third, covers the challenges faced by the country when it comes to education, and in particular, scientific education.

The first speech was delivered by John Gokongwei at the Ad Congress on November 21, 2007.

The second speech was delivered at the11th FOCAP Conference on Prospects for the Philippines by Senator Manuel Roxas II on January 15.

The third speech was delivered today a Jaime V. Ongpin Lecture yesterday by Senator Edgardo Angara (I was supposed to be a reactor, but was ill this morning).

So before I go on to discussing the speeches, here they are.

I. Gokongwei’s speech

Before I begin, I want to say please bear with me, an 81-year-old man who just flew in from San Francisco 36 hours ago and is still suffering from jet lag. However, I hope I will be able to say what you want to hear.

Ladies and gentlemen, good evening. Thank you very much for having me here tonight to open the Ad Congress. I know how important this event is for our marketing and advertising colleagues. My people get very excited and go into a panic, every other year, at this time.

I would like to talk about my life, entrepreneurship, and globalization. I would like to talk about how we can become a great nation.

You may wonder how one is connected to the other, but I promise that, as there is truth in advertising, the connection will come.

Let me begin with a story I have told many times. My own.

I was born to a rich Chinese-Filipino family. I spent my childhood in Cebu where my father owned a chain of movie houses, including the first air-conditioned one outside Manila . I was the eldest of six children and lived in a big house in Cebu ’s Forbes Park .

A chauffeur drove me to school everyday as I went to San Carlos University , then and still one of the country’s top schools. I topped my classes and had many friends. I would bring them to watch movies for free at my father’s movie houses.

When I was 13, my father died suddenly of complications due to typhoid. Everything I enjoyed vanished instantly. My father’s empire was built on credit. When he died, we lost everything-our big house, our cars, our business-to the banks.

I felt angry at the world for taking away my father, and for taking away all that I enjoyed before. When the free movies disappeared, I also lost half my friends. On the day I had to walk two miles to school for the very first time, I cried to my mother, a widow at 32. But she said: “You should feel lucky. Some people have no shoes to walk to school. What can you do? Your father died with 10 centavos in his pocket.”

So, what can I do? I worked.

My mother sent my siblings to China where living standards were lower. She and I stayed in Cebu to work, and we sent them money regularly. My mother sold her jewelry. When that ran out, we sold roasted peanuts in the backyard of our much-smaller home. When that wasn’t enough, I opened a small stall in a palengke. I chose one among several palengkes a few miles outside the city because there were fewer goods available for the people there. I woke up at five o’clock every morning for the long bicycle ride to the palengke with my basket of goods.

There, I set up a table about three feet by two feet in size. I laid out my goods-soap, candles, and thread-and kept selling until everything was bought. Why these goods? Because these were hard times and this was a poor village, so people wanted and needed the basics-soap to keep them clean, candles to light the night, and thread to sew their clothes.

I was surrounded by other vendors, all of them much older. Many of them could be my grandparents. And they knew the ways of the palengke far more than a boy of 15, especially one who had never worked before.

But being young had its advantages. I did not tire as easily, and I moved more quickly. I was also more aggressive. After each day, I would make about 20 pesos in profit! There was enough to feed my siblings and still enough to pour back into the business. The pesos I made in the palengke were the pesos that went into building the business I have today.

After this experience, I told myself, “If I can compete with people so much older than me, if I can support my whole family at 15, I can do anything!”

Looking back, I wonder, what would have happened if my father had not left my family with nothing? Would I have become the man I am? Who knows?

The important thing to know is that life will always deal us a few bad cards. But we have to play those cards the best we can. And WE can play to win!

This was one lesson I picked up when I was a teenager. It has been my guiding principle ever since. And I have had 66 years to practice self-determination. When I wanted something, the best person to depend on was myself.

And so I continued to work. In 1943, I expanded and began trading goods between Cebu and Manila . From Cebu , I would transport tires on a small boat called a batel. After traveling for five days to Lucena, I would load them into a truck for the six- hour trip to Manila . I would end up sitting on top of my goods so they would not be stolen! In Manila , I would then purchase other goods from the earnings I made from the tires, to sell in Cebu .

Then, when WWII ended, I saw the opportunity for trading goods in post-war Philippines . I was 20 years old. With my brother Henry, I put up Amasia Trading which imported onions, flour, used clothing, old newspapers and magazines, and fruits from the United States . In 1948, my mother and I got my siblings back from China . I also converted a two-story building in Cebu to se rv e as our home, office, and warehouse all at the same time. The whole family began helping out with the business.

In 1957, at age 31, I spotted an opportunity in corn-starch manufacturing. But I was going to compete with Ludo and Luym, the richest group in Cebu and the biggest cornstarch manufacturers. I borrowed money to finance the project. The first bank I approached made me wait for two hours, only to refuse my loan. The second one, China Bank, approved a P500,000-peso clean loan for me. Years later, the banker who extended that loan, Dr. Albino Sycip said that he saw something special in me. Today, I still wonder what that was, but I still thank Dr. Sycip to this day.

Upon launching our first product, Panda corn starch, a price war ensued. After the smoke cleared, Universal Corn Products was still left standing. It is the foundation upon which JG Summit Holdings now stands.

Interestingly, the price war also forced the closure of a third cornstarch company, and one of their chemists was Lucio Tan, who always kids me that I caused him to lose his job. I always reply that if it were not for me, he will not be one of the richest men in the Philippines today.

When my business grew, and it was time for me to bring in more people- my family, the professionals, the consultants, more employees- I knew that I had to be there to teach them what I knew. When dad died at age 34, he did not leave a succession plan. From that, I learned that one must teach people to take over a business at any time. The values of hard work that I learned from my father, I taught to my children. They started doing jobs here and there even when they were still in high school. Six years ago, I announced my retirement and handed the reins to my youngest brother James and only son Lance. But my children tease me because I still go to the office every day and make myself useful. I just hired my first Executive Assistant and moved into a bigger and nicer office.

Building a business to the size of JG Summit was not easy. Many challenges were thrown my way. I could have walked away from them, keeping the business small, but safe. Instead, I chose to fight. But this did not mean I won each time.

By 1976, at age 50, we had built significant businesses in food products anchored by a branded coffee called Blend 45, and agro- industrial products under the Robina Farms brand. That year, I faced one of my biggest challenges, and lost. And my loss was highly publicized, too. But I still believe that this was one of my defining moments.

In that decade, not many business opportunities were available due to the political and economic environment. Many Filipinos were already sending their money out of the country. As a Filipino, I felt that our money must be invested here. I decided to purchase shares in San Miguel, then one of the Philippines ‘ biggest corporations. By 1976, I had acquired enough shares to sit on its board.

The media called me an upstart. “Who is Gokongwei and why is he doing all those terrible things to San Miguel?” ran one headline of the day. In another article, I was described as a pygmy going up against the powers-that- be. The San Miguel board of directors itself even aid for an ad in all the country’s top newspapers telling the public why I should not be on the board. On the day of reckoning, shareholders quickly filled up the auditorium to witness the battle. My brother James and I had prepared for many hours for this debate. We were ne rv ous and excited at the same time.

In the end, I did not get the board seat because of the Supreme Court Ruling. But I was able to prove to others-and to myself-that I was willing to put up a fight. I succeeded because I overcame my fear, and tried. I believe this battle helped define who I am today. In a twist to this story, I was invited to sit on the board of Anscor and San Miguel Hong Kong 5 years later. Lose some, win some.

Since then, I’ve become known as a serious player in the business world, but the challenges haven’t stopped coming.

Let me tell you about the three most recent challenges. In all three, conventional wisdom bet against us. See, we set up businesses against market Goliaths in very high-capital industries: airline, telecoms, and beverage.

Challenge No. 1: In 1996, we decided to start an airline. At the time, the dominant airline in the country was PAL, and if you wanted to travel cheaply, you did not fly. You went by sea or by land.

However, my son Lance and I had a vision for Cebu Pacific: We wanted every Filipino to fly.

Inspired by the low-cost carrier models in the United States , we believed that an airline based on the no-frills concept would work here. No hot meals. No newspaper. Mono-class seating. Operating with a single aircraft type. Faster turn around time. It all worked, thus enabling Cebu Pacific to pass on savings to the consumer.

How did we do this? By sticking to our philosophy of “low cost, great value.”

And we stick to that philosophy to this day. Cebu Pacific offers incentives. Customers can avail themselves of a tiered pricing scheme, with promotional seats for as low a P1. The earlier you book, the cheaper your ticket.

Cebu Pacific also made it convenient for passengers by making online booking available. This year, 1.25 million flights will be booked through our website. This reduced our distribution costs dramatically.

Low cost. Great value.

When we started 11 years ago, Cebu Pacific flew only 360,000 passengers, with 24 daily flights to 3 destinations. This year, we expect to fly more than five million passengers, with over 120 daily flights to 20 local destinations and 12 Asian cities. Today, we are the largest in terms of domestic flights, routes and destinations.

We also have the youngest fleet in the region after acquiring new Airbus 319s and 320s. In January, new ATR planes will arrive. These are smaller planes that can land on smaller air strips like those in Palawan and Caticlan. Now you don’t have to take a two-hour ride by mini-bus to get to the beach.

Largely because of Cebu Pacific, the average Filipino can now afford to fly. In 2005, 1 out of 12 Filipinos flew within a year. In 2012, by continuing to offer low fares, we hope to reduce that ratio to 1 out of 6. We want to see more and more Filipinos see their country and the world!

Challenge No. 2: In 2003, we established Digitel Mobile Philippines, Inc. and developed a brand for the mobile phone business called Sun Cellular. Prior to the launch of the brand, we were actually involved in a transaction to purchase PLDT shares of the majority shareholder.

The question in everyone’s mind was how we could measure up to the two telecom giants. They were entrenched and we were late by eight years! PLDT held the landline monopoly for quite a while, and was first in the mobile phone industry. Globe was a younger company, but it launched digital mobile technology here.

But being a late player had its advantages. We could now build our platform from a broader perspective. We worked with more advanced technologies and intelligent systems not available ten years ago. We chose our suppliers based on the most cost-efficient hardware and software. Being a Johnny-come- lately allowed us to create and launch more innovative products, more quickly.

All these provided us with the opportunity to give the consumers a choice that would rock their world. The concept was simple. We would offer Filipinos to call and text as much as they want for a fixed monthly fee. For P250 a month, they could get in touch with anyone within the Sun network at any time. This means great savings of as much as 2/3 of their regular phone bill! Suddenly, we gained traction. Within one year of its introduction, Sun hit one million customers.

Once again, the paradigm shifts – this time in the telecom industry. Sun’s 24/7 Call and Text unlimited changed the landscape of mobile- phone usage.

Today, we have over 4 million subscribers and 2000 cell sites around the archipelago. In a country where 97% of the market is pre-paid, we believe we have hit on the right strategy.

Sun Cellular is a Johnny-come- lately, but it’s doing all right. It is a third player, but a significant one, in an industry where Cassandras believed a third player would perish. And as we have done in the realm of air travel, so have we done in the telecom world: We have changed the marketplace.

In the end, it is all about making life better for the consumer by giving them choices.

Challenge No. 3: In 2004, we launched C2, the green tea drink that would change the face of the local beverage industry — then, a playground of cola companies. Iced tea was just a sugary brown drink se rv ed bottomless in restaurants. For many years, hardly was there any significant product innovation in the beverage business.

Admittedly, we had little experience in this area. Universal Robina Corporation is the leader in snack foods but our only background in beverage was instant coffee. Moreover, we would be entering the playground of huge multinationals. We decided to play anyway.

It all began when I was in China in 2003 and noticed the immense popularity of bottled iced tea. I thought that this product would have huge potential here. We knew that the Philippines was not a traditional tea-drinking country since more familiar to consumers were colas in returnable glass bottles. But precisely, this made the market ready for a different kind of beverage. One that refreshes yet gives the health benefits of green tea. We positioned it as a “spa” in a bottle. A drink that cools and cleans.thus, C2 was born.

C2 immediately caught on with consumers. When we launched C2 in 2004, we sold 100,000 bottles in the first month. Three years later, Filipinos drink around 30 million bottles of C2 per month. Indeed, C2 is in a good place.

With Cebu Pacific, Sun Cellular, and C2, the JG Summit team took control of its destiny. And we did so in industries where old giants had set the rules of the game. It’s not that we did not fear the giants. We knew we could have been crushed at the word go. So we just made sure we came prepared with great products and great strategies. We ended up changing the rules of the game instead.

There goes the principle of self-determination, again. I tell you, it works for individuals as it does for companies. And as I firmly believe, it works for nations.

I have always wondered, like many of us, why we Filipinos have not lived up to our potential. We have proven we can. Manny Pacquiao and Efren Bata Reyes in sports. Lea Salonga and the UP Madrigal Singers in performing arts. Monique Lhuillier and Rafe Totenco in fashion. And these are just the names made famous by the media. There are many more who may not be celebrities but who have gained respect on the world stage.

But to be a truly great nation, we must also excel as entrepreneurs before the world. We must create Filipino brands for the global market place.

If we want to be philosophical, we can say that, with a world-class brand, we create pride for our nation. If we want to be practical, we can say that, with brands that succeed in the world, we create more jobs for our people, right here.

Then, we are able to take part in what’s really important-giving our people a big opportunity to raise their standards of living, giving them a real chance to improve their lives.

We can do it. Our neighbors have done it. So can we. In the last 54 years, Korea worked hard to rebuild itself after a world war and a civil war destroyed it. From an agricultural economy in 1945, it shifted to light industry, consumer products, and heavy industry in the ’80s. At the turn of the 21st century, the Korean government focused on making Korea the world’s leading IT nation. It did this by grabbing market share in key sectors like semiconductors, robotics, and biotechnology.

Today, one remarkable Korean brand has made it to the list of Top 100 Global Brands: Samsung. Less then a decade ago, Samsung meant nothing to consumers. By focusing on quality, design, and innovation, Samsung improved its products and its image. Today, it has surpassed the Japanese brand Sony. Now another Korean brand, LG Collins, is following in the footsteps of Samsung. It has also broken into the Top 100 Global Brands list.

What about China ? Who would have thought that only 30 years after opening itself up to a market economy, China would become the world’s fourth largest economy? Goods made in China are still thought of as cheap. Yet many brands around the world outsource their manufacturing to this country. China ’s own brands-like Lenovo, Haier, Chery QQ, and Huawei-are fast gaining ground as well. I have no doubt they will be the next big electronics, technology and car brands in the world.

Lee Kwan Yu’s book “From Third World to First” captures Singapore’s aspiration to join the First World . According to the book, Singapore was a trading post that the British developed as a nodal point in its maritime empire. The racial riots there made its officials determined to build a “multiracial society that would give equality to all citizens, regardless of race, language or religion.”

When Singapore was asked to leave the Malaysian Federation of States in 1965, Lee Kwan Yew developed strategies that he executed with single-mindedness despite their being unpopular. He and his cabinet started to build a nation by establishing the basics: building infrastructure, establishing an army, WEEDING OUT CORRUPTION,providin g mass housing, building a financial center. Forty short years after, Singapore has been transformed into the richest South East Asian country today, with a per capita income of US$32,000.

These days, Singapore is transforming itself once more. This time it wants to be the creative hub in Asia , maybe even the world. More and more, it is attracting the best minds from all over the world in filmmaking, biotechnology, media, and finance. Meantime, Singaporeans have also created world-class brands: Banyan Tree in the hospitality industry, Singapore Airlines in the Airline industry and Singapore Telecoms in the telco industry.

I often wonder: Why can’t the Philippines , or a Filipino, do this?

Fifty years after independence, we have yet to create a truly global brand. We cannot say the Philippines is too small because it has 86 million people. Switzerland , with 9 million people, created Nestle. Sweden , also with 9 million people, created Ericsson. Finland, even smaller with five million people, created Nokia. All three are major global brands, among others.

Yes, our country is well-known for its labor, as we continue to export people around the world. And after India , we are grabbing a bigger chunk of the pie in the call-center and business-process- outsourcing industries. But by and large, the Philippines has no big industrial base, and Filipinos do not create world-class products.

We should not be afraid to try-even if we are laughed at. Japan, laughed at for its cars, produced Toyota . Korea , for its electronics, produced Samsung. Meanwhile, the Philippines ‘ biggest companies 50 years ago-majority of which are multinational corporations such as Coca- Cola, Procter and Gamble, and Unilever Philippines , for example-are still the biggest companies today. There are very few big, local challengers.

But already, hats off to Filipino entrepreneurs making strides to globalize their brands.

Goldilocks has had much success in the Unites States and Canada , where half of its customers are non-Filipinos. Coffee-chain Figaro may be a small player in the coffee world today, but it is making the leap to the big time. Two Filipinas, Bea Valdez and Tina Ocampo, are now selling their Philippine-made jewelry and bags all over the world. Their labels are now at Barney’s and Bergdorf’s in the U.S. and in many other high-end shops in Asia , Europe , and the Middle East .

When we started our own foray outside the Philippines 30 years ago, it wasn’t a walk in the park. We set up a small factory in Hong Kong to manufacture Jack and Jill potato chips there. Today, we are all over Asia . We have the number-one-potato- chips brand in Malaysia and Singapore . We are the leading biscuit manufacturer in Thailand , and a significant player in the candy market in Indonesia . Our Aces cereal brand is a market leader in many parts of China . C2 is now doing very well in Vietnam , selling over 3 million bottles a month there, after only 6 months in the market. Soon, we will launch C2 in other South East Asian markets.

I am 81 today. But I do not forget the little boy that I was in the palengke in Cebu . I still believe in family. I still want to make good. I still don’t mind going up against those older and better than me. I still believe hard work will not fail me. And I still believe in people willing to think the same way.

Through the years, the market place has expanded: between cities, between countries, between continents. I want to urge you all here to think bigger. Why se rv e 86 million when you can sell to four billion Asians? And that’s just to start you off. Because there is still the world beyond Asia . When you go back to your offices, think of ways to sell and market your products and se rv ices to the world. Create world-class brands.

You can if you really tried. I did. As a boy, I sold peanuts from my backyard. Today, I sell snacks to the world.

I want to see other Filipinos do the same.

Thank you and good evening once again.

II. Roxas’s speech

First of all Iâ€™d like to thank the FOCAP for giving me this opportunity to be with you this morning. Itâ€™s the start of the year, weâ€™ve just turned over our calendar, opened up brand new agenda books, and itâ€™s a good time for us to contemplate what lies ahead not just in the succeeding year but in the midterm as well. I hope that good stories, more than enough of it, will actually come out from this little talk of ours.

Which is not to say that many other interesting stories have not come about in the Philippines over the last several weeks. Who would have thought that a tank would be out at the Manila Peninsula Hotel only a few weeks ago? Or that Barack Obama would upset Hillary in Iowa, or for that matter that Hillary would have a nice comeback in New Hampshire just a few days after?

Todayâ€™s theme is â€˜Prospects for the Philippines,â€™ and Iâ€™m going to be careful about my words, particularly about the future, especially when addressing journalists, who, by the nature of their jobs and by duty, have to hold me to every one of these words.

So instead of crystal ball gazing, let me engage instead in a little bit of human intuition, walk through what I see are the drivers, and what the terrain will be like for us in the country over the next several years.

I ask you: What word comes to mind when thinking about the Philippines? As a hint, Iâ€™d like to tell you about a story that my counterpart Trade Minister from Russia told me about his country. He expressed it to me in the Russian language, which I forget now, but the essence of his story was that the Russians never miss an opportunity to miss an opportunity. And that same sentiment filled me when I contemplated our state as it were.

The Filipino word for it is: Sayang. I think itâ€™s a word that best describes our countryâ€™s condition. Its closest translation is the English â€œWhat a waste,â€ a word that connotes regret, forlornness, over what could be and might have been. As is always the case with language, the meanings and meaningfulness can so easily be lost in the translation. â€˜Sayangâ€™ is the word in Filipino that so captures the sentiment of the average person on the street.

When we see a people blessed by character and a spirit of excellence who have not been able to rise to their full potential, we sayâ€¦ Sayang.

When we hold the grandest of visions, yet fail in the endâ€¦ Sayang.

As the first colonial people to regain our freedom, we had a headstart in the race for development among the new nations.

At Independence, thanks to a comparatively benign American colonialism, our individual incomes were among the highest in Southeast Asia.

Then, after having led our neighbors in GDP growth in the post-Independence period, we soon started to lag behind.

Thailand passed us by in 1981. Now the average Thai has per capita income twice that of the average Filipino. Malaysians have per capita four times that of Filipinos. Singaporeans almost 20 times more than the average Filipino. Indonesia and Vietnam are breathing down our necks.

Sayang.

The day-to-day erosion of the peopleâ€™s trust in our institutions is that in an increasingly dysfunctional political system â€“ this, to me, is the most worrisome source of Sayang in our society today.

I am certain that many Filipinos agree with me about this, particularly this expanding cavity in our very souls, this sense of loss that all of us are feeling todayâ€¦ Sayang.

The latest surveys show public satisfaction for all top four government institutions significantly declining compared to the previous quarter.
From a net positive 32 rating in September, the Senate has declined 13 points, to a positive-19 as of year-end.

The House of Representatives’ net satisfaction score fell from positive 18 to only positive 3.

The Supreme Court dropped from positive 24 in September to a neutral net positive 5 in December. This is more glaring, given the fact that it has enjoyed double-digit positive approval ratings over the past four quarters.

The Cabinet went from a neutral net positive 1 to a negative 9, a steep plunge that reflects the Presidentâ€™s own negative trust ratings.

In light of the peopleâ€™s mistrust of governmental institutions, the media has become a more trusted repository of peopleâ€™s grievances and yearnings. But media cannot be government. To see the truth and to tell it like it is; these are noble duties, but the duties of government extend far beyond that.

The administration has very concrete and immediate opportunities to arrest this trend of mistrust and disillusionment.

How difficult would it be to appoint credible, qualified and eminent persons to the Comelec, the Civil Service Commission, or to the position of Chief of Staff of the Armed Forces of the Philippines? All these can be done in the next two months.

If not, maling-mali and sobrang Sayang!

A silver lining though is that business continues to exist and in some instances thrives in what is its own parallel universe.

Having jumpstarted its development when I was DTI secretary in 2000, I am happy to note that the BPO sector is scaling new heights. We have Oca Sanez here, who is now the president of BPAP, who recently arrived from the private sector pursuant to a plan to put together an entirely private-sector funded, retaining McKinsey to write up the industryâ€™s new five-year development plan.

A stronger peso and a shrinking pool of qualified workers could slow down the pace of growth in this sector. In spite of this, though, we continue to hope that this will remain a shining star of the Philippine economy.

From mere contact center and customer support services, it is poised to move up the value chain and increase specialization. We are seeing wave upon wave of offshore services opening shop: from stock brokerage, to animation and design, to content development. The opportunities and possibilities are boundless.

The service sector will continue to lead the way in terms of opportunity and employment particularly as tourism arrivals increase and as the OFW remittances likewise remain steady.

It is the governmentâ€™s job to ensure that these opportunities are not wasted â€“ ensuring an educated and motivated work force, delivering a focused promotion effort, providing a level playing field, dispensing timely, competent and above-board regulation are some of what government has to do in order that these potentialities are not squandered.

Kung hindi â€¦ Sayang!

Mining will continue to draw in foreign investors. As of September last year, investments in this sector reached more than $150 million, multiples of what it was for the entire 2006.

Demand and prices of metals in the world market is currently being driven by the appetite of China and other industrializing states.

We must take advantage of this, as our country is one of the most endowed in mineral resources: it is is 3rd in the world in terms of gold reserves, 4th in copper, 5th in nickel and 6th in chromite.

In order for mining to continue to be a viable and acceptable enterprise, though, the local communityâ€™s trust must be ensured.

And it is the governmentâ€™s job to ensure that trust: To guarantee that all environmental and health safeguards are in place, that the community is included and not estranged, that concerns are taken into consideration and not simply compensated; and that any windfall is not taken at the expense of environmental degradation.

Kung hindi â€¦ Sayang!

Agriculture has, and will continue to come to life as prices for basic foodstuffs have risen.

For once, the stars are aligned for the agriculture sector. The China dynamic that has driven up prices for minerals also is increasingly felt for food items. Government should realize this and invest heavily in agricultural modernization now! By being proactive, we can convert this China driven demand into real opportunities for greater productivity and incomes in the countryside.

Kung hindi â€¦ Sayang!

For sure, weâ€™ve come a long way over these last 20 years since we brought down the authoritarian Marcos regime. But, given the enormity of our economic problems, what weâ€™ve been able to do has been very little indeed.

Sayang.

For instance, Philippine competitiveness is still falling. Last year, our country ranked 49th out of 61 surveyed by the Swiss Institute for Management Development, whose local partner is the AIM (Asian Institute of Management).

In the World Bank Groupâ€™s most recent yearly survey of â€œease in doing business,â€ the Philippinesâ€™ ranking slipped by five notchesâ€”from 121stÂ in 2005 to 126th out of 175 countries in 2006.

In the same survey, countries in our neighborhood, Thailand ranked 18th, Malaysia 25th, Taiwan 47th. Even Vietnam is ranked 104th. Sayang!.

As result of these and so many Sayangs, many Filipinos have begun to lose hope in our countryâ€™s future.

Even well established professionals are migrating. A senior executive executive quit a major TV network the other day to move to Canada, he explained, â€œfor the sake of the children.â€

Everyday, nearly three thousand citizens leave the country to work abroad. More than a hundred Filipinos per hour are packing up and leaving to secure a brighter future for their families. They prefer two-year job contracts elsewhere than to face unemployment and underemployment here at home.

Young Filipinos have learned to plan their lives around self-contained exit plans as migrant workers, call center agents, telemarketers, freelance tutors, teachers, professionals, and self-made entrepreneurs.

Development and nation building is all about hope; â€œtake that hope away and the smart ones use their energies not to build their nation but to escape from itâ€.

This â€œescaping the default destinyâ€ is apparent in other societal engagements as well. The concept of collective empowerment through trade unions, sector-based movements, and cooperatives is on the wane.

Social networks thrive on the Internet, offering quick virtual escape and tenuous online alliances.

Technology has made it easier for new values and old principles to be dispersed and dispensed with: all this at lightning speed.

In the end, we see an empowered individual in an environment of declining political awareness and civic spiritedness, having dispersed interests and opinions, and a dissolved sense of belonging.

For sure, the government can do a lot more than it is doing right now. If it were performing as it should be, we would not be experiencing this much distrust and jadedness from the citizenry.

With the declining trust in our institutions, we see the phenomenon of individuals empowering themselves through their own initiative.

While I am proud of our people and their resilience and dogged determination to create opportunities for themselves, I am greatly saddened that they can only find these opportunities abroad.

What kind of a country have we become that we cannot even offer a future for our people, that Filipinos must move away to find decent futures for their children?

As for myself, I love this country: Iâ€™m here for life; and I intend to do all I can to try and help fix this situation.

Our peopleâ€™s estrangement from politics has made it easier for government â€“ as the most organized and powerful entity â€“ to do as it wishes, having long abandoned the need to have public opinion on its side.

And when Government no longer cares about public opinion, it begins to test the limits of abuse and malfeasance.

Jonas Burgos, son of one of the countryâ€™s staunchest defenders of democracy and free speech, has been missing for more than a hundred days. Scores of other activists, labor leaders, judges, and media men have either disappeared or been killed.

Corruption persists in almost all levels of the bureaucracy, as bribery becomes a tool to get foreign loans and local projects signed, and all these sealed and delivered even without public bidding.

Smugglingâ€”from onions to guns, from clothes to hot carsâ€”continues to undermine the viability of legitimate growers, planters, manufacturers, and factory-owners in our country.

Our country has become very polarized. We are in a sort of stasis â€“ a deadlock of forces that has forced our institutions and citizenry to work at less than maximum. Institutions and individuals have managed to exist for far too long with or without each otherâ€™s support and approval â€“ and the leadership that is supposed to connect the dots and ensure a web of trust is weighed down by compromise and patronage.

The truth is we have become incrementalists! A little bit here and a little bit over there. We seem unable to get ourselves out of this â€œminimizingâ€ dynamic.

No wonder we have fallen into a rut, unable to pull ourselves out of our misery.Â We want changeâ€¦ but not too much. We want order and more securityâ€¦ but not too muchâ€¦ better tax collectionâ€¦ but not too muchâ€¦ more traffic management and open sidewalksâ€¦ but not too muchâ€¦ and so on and so forth. The result: We growâ€¦ but not too much; we get byâ€¦ but not by too much.

Yet this is not a God-given condition, but a man-made social system that has brought us to where we are today.

During these next 10, 15 years, our country must complete our modernization â€“ or forever remain an economic and political backwater in East Asia.

For our country, industrialization must become the basic mode of economic modernization. And when I say industrialization, I say not so much in its traditional sense of manufacturing and basic industry but rather in its more modern sense of economic units acting with scale and being a part of the global supply chain. Even agriculture must â€œindusrializeâ€ or â€œmodernizeâ€ its systems and processes, if it is to contribute significantly to Philippine development.

Just to give an indication, about half or our GDP comes from services, about 30% comes from industry, and only about 15% comes from agriculture. But if one were to take a profileof the source of income, half our people take their income principally from agriculture.

We need this kind of economic modernization to be outward-looking and globally competitive.Â Our end-goal should be the modernization of our country â€“ of the economy, of our politics, of the whole national society.

We must stop being incrementalists, and invest real money to solve real problems. We can no longer afford to flit from one preoccupation to another. It never really completes any task; but in the process it wastes a great deal of energy, time, and money.

The single biggest challenge before us is the fraying of our society brought about by mass poverty. We cannot allow the masses of Filipino to continue passing down to their children only an inheritance of poverty.

Until now, roughly one in every five Filipino families lives in absolute poverty. The World Bank defines â€œabsolute povertyâ€ as subsisting on the equivalent of one dollar a day. At P40, thatâ€™s equivalent to one small hamburger.

My approach is two-fold: first, relief, and then second, a massive and focused investment in our people through education and health.

For relief, I recently offered one concrete and simple proposal.

I have, for the past several days, turned up the volume on a very specific issue: suspending the EVAT on oil.

I believe that the time has come for a fair and urgent step to give our people a break from high oil prices during these extraordinary times of high oil prices. As the citizenry tightens its belt, is it not only appropriate for the government to tighten its belt in turn?

I have proposed a moratorium on the 12% EVAT on oil during this extraordinary time of extremely high oil prices. This will result in P4 per liter savings for consumers of diesel, and more than P65 per tank of LPG (11kg).

The executive branch was quick to reject this proposal. Which is not at all surprising; how can they accept it, when the government has chosen to rely on oil revenue collections, an easy get, rather than closing the loopholes and performing more effectively by running after bigtime tax evaders and smugglers?

Let me put things in perspective:

When we imposed the EVAT, oil was at $30 a barrel, and the government annual deficit was in excess of P250 billion a year, and today is remarkable reversed. Government is in budget equality, and oil is at $100 per barrel.

By cutting EVAT on oil from 12% to zero, though, we put the money back in peopleâ€™s pockets. They get to have more money to spend on other needs, and we stimulate consumption; in this way we never really â€œloseâ€ the revenue.

Re-circulating the money by having the consumer spend as he answers the concern regarding his own needs. The money will be spent either way â€“ by the government, or through the individual.

I am not compromising my belief in market economics and a disciplined fiscal policy in serving the Filipinoâ€™s self-interest. The important thing is that we give the citizens a choice on how to spend their hard-earned cash at a time they need it most.

This is a reasonable and compassionate approach in light of contemporary economic conditions. The unprecedented global rise in energy prices is driving both the rethinking and practical modification of economic policy around the world. Why should we be any different?

China is advocating the imposition of strict price controls on energy and our neighbor Thailand has reduced some levies on fuel sales. Their energy minister is even advocating further excise tax reductions on oil products. Many other governments around both the developed and developing world are taking similar formal and informal actions to mitigate the high energy prices.

I specifically referred to China and Thailand because both nations have historically fueled their robust economic success by refusing to be the captive of an absolutist economic policy. Both nations pick and choose, modify and negotiate their economic path with as much flexibility as the interest and wellbeing of their citizens requires.

Here, sadly, our government refuses to look at the big picture and deliver the goods for the common welfare. Why are we so afraid of fighting for our own needs?

As for the massive, focused investment in our people, I have also filed a bill stipulating that a Peopleâ€™s Fund be created out of all EVAT revenues; this is so we can fully fund and thus solve our education and health crises.

Socially, the Filipino nation faces both nutritional and educational disasters. Six out of 10 children are malnourished to some degree. Less than half of all Grade 1 pupils ever get to finish high school.

We must recognize the gravity of the national crisis and our peopleâ€™s imperative need to cure the infirmities that have so weakened both our state and our economy.

At this point, I just want to diggress a little bit and bring to your attention a book that I was just finishing, â€˜The Bottom Billionâ€™ by Paul Collier a researcher for the World Bank. In it, one of his theses has to do with the wage productivity gap, and he accounts for the massive investments in East Asia in the â€˜80s as a result of the wage productivity gap as between the industrialized world and the industrializing world, the East Asian economies.

As for the Philippines, our wages are what they are, they are a fact of life. And so the only way the Philippines can make up, the only way the Philippines can be a part of this movement in capital is by improved productivity. The only way we can improve productivity is by investing in the people, hence education and health.

We must stabilize and strengthen the institutions and mechanisms of the Philippine State, to make them more efficient instruments of the national purpose.

At the same time, we must reject coups and mob violence as ways of removing elected governments from office.

We must reaffirm that it is through democratic politicsâ€”through conciliation and compromiseâ€”that the business of the State is best carried out, and that civil order maintained, and the national purpose served.

2008 could be 2007 all over again, unless the administration breaks the mold and decides to use its remaining time in power to build a real legacy and a real nation. If not, Sayang.

Sayang, because dapat sulitin at hindi sayangin ang galing ng Pilipino. The excellence of the Filipino should be utilized to its full potential. It should not be allowed to go to waste.

I believe that the Filipino was made for better things and deserves better than what they are getting.

I believe that for the Filipino to excel, in the same way that millions of OFWs do in fact excel in other countries, he needs a stable political environment where there is discipline, a purpose, and a meritocracy.

I believe the fate of nations is not pre-ordained. I reject the perception that the Philippines will never rise to its fullest potential.

I believe the behavior of government pales in comparison to the behavior of the Global Filipino: disciplined, punctual, competent, honest, compassionate, and patriotic.

I believe our problems are real and urgent, and we have to face them now as a country in the same way that the rest of the world has.

For this I believe. If we are to succeed in 2008, and beyond, the status quo in the Philippines today â€“ this perception of Sayangâ€”is simply unacceptable. If we are to rise as a nation, it cannot be business as usual; we must build from past regrets and begin to work with our eyes set on the future. Then, and only then, can real, meaningful change happen.

Thank you.

III. Angara’s speech

The world today is one of increasingly borderless exchange of goods, capital, and labor.Â More countries than everâ€”and from a broader spectrum of developmentâ€”are active participants in the global economy.Â This has brought about rapid technological change and competition among nations.

Intense global competition has driven the more able producers and entrepreneurs to expand and grow richÂ â€“ and the less able to be swept away.

Today, knowledge is the most important factor in economic development.Â It is not low-wage, unskilled labor that drives a countryâ€™s economic growth.Â The true key to prosperity in todayâ€™s world is a well-educated, technically-skilled workforce producing high-value added, knowledge-intensive goods and services, employed in private enterprises that have the capacity to find, adapt, and adopt modern, up-to-date technology and sell sophisticated goods and services in global markets.

But while a few of the worldâ€™s richest countries produce the majority of scientific and technological innovation and therefore create wealth, most of the developing world struggle to establish science and technology (S&T) as the driving force towards growth.

For the Philippines to strategically engage in the global economy, the Philippines must develop and adapt technologies to respond to local needs.Â In the process, the country will develop new competitive economic activities to serve not only local but also regional and global markets.Â All these must increase productivity, wealth and standards of living that lead to economic growth and poverty reduction.

Producing wealth and high value goods and services will require an intensive effort to raise our Science, Technology and Innovation (STI) capacity.

This lecture argues that science, technology, and innovation have the potential to contribute substantially to economic growth and poverty reduction.Â Basic to the realization of this potential is education.Â This is fundamental for a knowledge economy based on information technology and a countryâ€™s human capital.

This lecture is divided into four parts:

The first part describes the advances in STI around the globe.

The second part looks into other countriesâ€™ experiences in applying STI to spur economic growth and ease poverty.Â It distills the lessons learned from these countriesâ€™ experiences.

The third part discusses the state of STI as well as the direction, strategies and efforts currently undertaken in the country.

The fourth part identifies critical gaps in STI readiness and makes recommendations for government, policymakers, universities, research and development (R&D) institutes, and industries.

I. SCIENCE, TECHNOLOGY AND INNOVATION: TRENDS

Scientific and technological innovations developed as early as the 1980s are expected to change, even accelerate, at least until the first two to three decades of the 21st century.Â Such innovations will continue to fuel economic growth, especially in those countries that have given a high premium to science and technology.Â Robert Solow, one of the Nobel Prize winners in economics, estimated that more than 50 percent of the economic growth in the US since World War II has derived directly from technological innovation.

Countries that have catalyzed technological innovations have identified prospects in the horizon where they can accelerate and scale up processes that transform ideas to products.

Japan, for instance, identified rapid and intensive technological innovations in the areas of environment; electronics; life sciences; marine and earth science; production and machinery; communication; information; health, medical and welfare; agriculture, forestry and fisheries; and transportation.

South Korea forecasted materials; information, electronics and communication; medical care and health; production; life science; energy; environment and safety; transportation; agriculture, forestry and fisheries; and minerals, water resources, urbanization, construction and civil engineering as areas that will experience great leaps of progress.

In the coming decades, innovations in biotechnology, information, communication and technology (ICT), nanotechnology, and neurotechnology will continue to originate in other countries and fundamentally change the way we all live.Â Along with biotechnology and ICT, James Canton, a world-renowned futurist, foresees that nanotechnologyÂ and neurotechnologyÂ will be the four areas of radical innovation.Â Consequently, they will be the source of a huge chunk of the global wealth in the next five, ten, twenty years.Â And for developing countries, biotechnology and ICT have the greatest potential for improving the quality of lives and well-being of people.

Biotechnology refers to the use of microorganisms such as bacteria or biological substances such as enzymes, to perform industrial or manufacturing processes.

Biotechnology research focuses on gene manipulation and transfer, DNA typing and cloning and the much-debated genetically modified organisms (GMOs).

Biotechnology in agriculture and food can increase production and productivity and improve the quality of products, and is especially critical now.Â The World Bank calls for a dynamic agricultural development agenda to lift the close to 1 billion people across the globe from poverty.Â The Bank support this year to agriculture and rural development will reach US$3.1 billion.

In medicine, biotechnology will enable us to better diagnose diseases, promote the use of gene therapy, stem cell therapy and xenotransplantationÂ to prolong human life.

ICT is an umbrella term that includes any communication device or application, encompassing radio, television, cellular phones, computer and network hardware and software, satellite systems and so on, as well as the various services and applications associated with them, such as videoconferencing and distance learning.

The importance of ICTs lies less in the technology itself than in its ability to create greater access to information and communication in underserved populations.

Leveraging and harnessing the tools of ICT for education and development can result in widened access to knowledge and increase in opportunities and incomes.

Since the 1990s, there has been a steady ICT diffusion.Â More economies invest in ICT as they move towards a knowledge society.Â ICT will continue to grow, that by 2020 it will be worth US$7 trillion.

Nanotechnology is the science and technology of devices and materials constructed on extremely small scales, as small as individual atoms and molecules.

Nanotechnology embraces many different fields and specialties, including engineering, chemistry, electronics, and medicine, among others, but all are concerned with ultimately bringing existing technologies down to a very small scale, measured in nanometers.

For a product to be counted as nanotechnology, it is enough for some of the materials to have particles that may be only a few nanometers big â€“ a nanometer is a billionth of a meter or about 100,000th of the thickness of a sheet of paper.

These nanoparticles are incorporated into other materials that bestow on them useful properties.Â Silver nanoparticles, for instance, are found in food-preparation equipment.Â Titanium dioxide, ground into nanoparticles, are used in sunscreens and cosmetics.Â Carbon nanotubes have been embedded in materials like plastics for a long time now.

Nanotechnology has several important applications in agriculture, farming, public health, and the environment.Â For instance, with nanotechnology, precision farming through computers, global satellite positions systems, and remote sensing devices, determine if crops are growing at maximum efficiency.

Neurotechnology is a set of tools that can influence the human central nervous system, especially the brain.Â It will be used for therapeutic ends such as cures for Alzheimerâ€™s and will enable people to consciously improve emotional stability, enhance cognitive clarity, and extend sensory experiences.

Results of work in these areas are dramatically changing various dimensions of our lives, individually and collectively.Â Developed countries have made rapid advancements in the electronics and information field by creatively drawing from the physical sciences and engineering.Â They are now building on these innovations and working on the wide-ranging and life-changing possibilities of convergence between the life-sciences and engineering.

While these countries have boldly forged ahead in such new, exciting, and dynamic ventures, efforts in the Philippines seem to have stalled on the lower-end side of technology.Â This is not to belittle such efforts but rather to explore the reasons why the Philippines has not advanced as fast as Malaysia, Singapore, or Thailand and how this country can move ahead.

II. COUNTRY EXPERIENCES IN DEVELOPMENT THROUGH STI

Robert Reich, author of Super Capitalism, argued that technological advances led to innovations that heightened competition and created new sources of wealth.

These technological advances skyrocketed during the US-Soviet arms race, which propelled the two countries to step up public financing of infrastructures, education and research, all in the name of national defense.Â In the 1970s, the US underwrites 70% of the countryâ€™s research, many of which involve defense technology. (Table 1)

These technological discoveries have found their way to commercial markets through defense contractors, universities, and entrepreneurs, and have since then further propelled the US economy.Â Since the early 1970s, the US GDP tripled in size with productivity increasing by 80% in 2006.

Economic development of this sort, however, requires massive investments in infrastructure, human resources, as well as time. Poor countries do not have enough of these to start with. While they continue to work for economic growth through building their human capabilities and physical infrastructure, poor countries could leapfrog or adopt a new technology directly and skip over earlier, inferior versions of it that came before.

By far, the best-known example is that of mobile phones in the developing world. Fixed-line networks are poor or non-existent in many developing countries, so people have leapfrogged straight to mobile phones instead.

Another known example is the way Grameen Telecom in Bangladesh integrated new technologies in micro-credit lending. It deployed cellular wireless networks so that small-scale entrepreneurs can widely share mobile phones.

Strategies such as these will help a growing number of countries enjoy significant gains in economic productivity associated with a freer flow of information. One recent study of Africa claims that “a one percent increase in mobile penetration rates is associated with 0.5-0.6 percent higher rates of FDI/GDP.”

Technological leapfrogging has become the basis for various countriesâ€™ latecomer strategies for catching up with existing industrial leaders.

Harvard economics professor Alexander Gerschenkron, who fashioned the concept of latecomer development in the 1960s, suggested that a less developed economy can tap and use the technologies and practices of an advanced economy, and this in turn will let the developing countries skip several stages of development that the advanced economy had to go through.

Since then, Gerschenkronâ€™s concept has been expanded to include poor and latecomer countries to specifically use ICT to accelerate development, promote growth, and reduce poverty.

One of the most notable catch-up stories is that of South Korea, now known as the â€œMiracle of Han Riverâ€.Â Starting with virtually nothing after World War II and devastated in the 50s by a deadly war between the North and South, an impoverished South Korea managed to reach its current status as a developed country, with the third largest economy in Asia and the 11th largest in the world in terms of nominal GDP.Â If the recent Goldman Sachs report gets its predictions right, South Korea could be the 2nd richest country in the world by 2050, next only to the United States.

South Korea achieved its robust economic growth through investing heavily on infrastructure and education, ensuring stability especially in its financial system, and providing supportâ€”both through public financing and policy â€“ to research and development.

In particular, South Korea has introduced, internalized and renovated foreign technologies, similar to Gerschenkronâ€™s late comer advantages.Â The World Bank describes this as stagesÂ of imitation, internationalization, and generation.

At present, South Korea, like many other countries and noting that other late comers such as China are a threat to its economyâ€™s competitive advantage, has bolstered its R&D spending.Â (Table 2)Â The South Korean governmentâ€™s R&D spending has more than quadrupled over the last decade, from US$5billion in 1990 to US$24.2 billion in 2004.Â Currently, R&D public spending is 7% of Koreaâ€™s budget.

Another spectacular catch-up story is China.Â Goldman Sachs in its BRICÂ prediction foresees that China will emerge as one of the four new dominant economies by 2050.Â Already, China is ranked second in the world in terms of number of researchers, next only to the United States.Â Total R&D expenditure has dramatically increased, from $12.5 billion in 1991 to $94 billion in 2004.Â Chinaâ€™s patent applications are also increasing twofold every two years.Â China is now the worldâ€™s fourth largest economy, and if current trends continue, will soon become the worldâ€™s biggest exporter.

A crucial aspect to this growing productivity is the improvement of Chinaâ€™s education system , which raised the skills level of its labor force.Â Like South Korea, China first relied on importing foreign technology, adapted them to local needs and then later on developed its own indigenous innovation.

According to the Organization for Economic Cooperation and Development (OECD), China has mobilized resources for R&D at an unprecedented scale and speed, and has translated this to the socio-economic progress that China is experiencing for the last ten years.Â At the crux of its R&D initiatives is Chinaâ€™s National Innovation System (NIS), a conceptual framework for â€œanalyzing technological advances, which consists of innovation actors and their relationships.Â There were NIS for (a) educationÂ involved in linking universities that allowed them to set up their own enterprises (Table 3) with many enterprises involved in S&T. (Table 4); (b) business ; and (c) government.Â This structural reform led to massive state efforts at developing Chinaâ€™s science and technology system , formally institutionalized by 1985.

Economic reforms and S&T prioritization have encouraged the entry of FDIs, which are now major contributors to Chinaâ€™s R&D and innovation.Â Since then, more policy reforms designed to facilitate innovation have been implemented.Â

China is continuously reviewing its innovation policies, and is building an â€œenterprise-based innovation system,â€ aimed at developing more indigenous innovation for Chinese enterprises.

Like China, India rose from poverty and is also part of the BRIC prediction of Goldman Sachs.Â India is now the worldâ€™s eleventh richest country, its GDP amounting to US$430 billion.Â However, India ranks fourth to US, China and Japan in terms of purchasing power parity.

For most of Indiaâ€™s economic history, from the isolation and import-substitution phase of the 1960s to the economic liberalization of the 1980s, one thing remained almost constant: S&T has been a national priority.

Among its strategiesÂ to promote S&T are investments in basic and heavy technologies, creation of R&D promotion policies, integration of S&T planning to the overall planning process of government, technology transfers and strengthened linkages between industry, R&D institutions and financial institutions.

In January 2008, Indiaâ€™s Tata car company unveiled the Nano, the worldâ€™s cheapest car. It sells for about US$2,500 or P100,000 thus opening a huge potential market for the developing world. This car breaks technological ground. It has a rear-mounted two-cylinder engine, which both saves fuel and creates interior space. Tata said the company was able to keep the cost of the car low by putting the plant in an area that receives tax concessions and having the suppliers set up plants nearby to cut transportation costs.

Similarly rising from Third World to First World status, Singapore boasts of having one of the highest per capita GDP in the world.Â It first nurtured its small and medium enterprises and actively promoted the transfer of engineering technology.Â In 1991, it undertook a major policy turn, implementing successive steps towards cultivating STI in the country.

Singaporeâ€™s STI policy centered on increasing its number of technically-trained human resource.Â Its education system is biased towards S&T, with 62% of its university students enrolled in science- and technology-related subjects.Â Public spending in education has always been a priority, averaging at 22.4 percent of the national government budget.

Massive investments in education was complemented by Singaporeâ€™s initiatives in (1) establishing and improving physical technological infrastructure; (2) issuing fiscal incentives for S&T and R&D; (3) promoting techno-entrepreneurship and venture capital; and (4) increasing transfer of engineering technologies from foreign companies to local companies.

In turn, these efforts helped encouraged the 6,000 transnational companies already investing in Singapore to engage in R&D, thereby producing high value-added products and services.

Thailand, considered our closest competitor, has already moved ahead of the Philippines in pushing for a knowledge-based economy.Â Thailandâ€™s standing has been advancing since it embarked on a National Science and Technology Strategic Plan in 2004.

According to this plan, Thailand aims to achieve economic development by building its capability on four core technologies, namely, information and communications technology, biotechnology, material technology and nanotechnology.

To achieve its objective, Thailand has pursued the following activities:Â (1) develop clusters to support and improve targeted technologies and industries; (2) promote public awareness and support for S&T (3) produce more S&T skilled human resources; and (4) build infrastructures and establish institutions that stimulate and promote STI.

Since then, Thailandâ€™s indicators have been rising steadily.Â Already, its R&D expenditure has risen significantly, from 0.12 of GDP in 1996, to 0.5 of GDP in 2006.Â Patent applications are growing by 276% from .02 per 100,000 population in 1996 to .07 per 100,000 population in 2004.

South Africa follows a similar development model but has a different strategic approach.Â Foreign aid and financial grants have been shifting from traditional relief and rehabilitation activities to projects at the core of which is building its scientific and technological capacity.

Again, investments are concentrated on public infrastructure and human capital.Â Adequate infrastructure facilitates a countryâ€™s capability to harness science, technology and innovation for economic growth.Â Increasing a countryâ€™s stock of infrastructure by one percent increases the GDP by one percent, or more in some cases.

Combining physical infrastructure and human capital on one hand, and linking with STI capabilities of other countries in the African region on the other hand, is its strategic approach.Â The South Africa and Mozambique Maputo Corridor,Â a massive road, rail, ports and telecommunications project, illustrates how linkage with other countries in the region, and between industry and academe, can help build a countryâ€™s infrastructure.

Apart from physical infrastructure, an equally important investment made by South Africa and its neighboring countries is education and improvement of its human capital.Â An attempt to create its own Massachusetts Institute of Technology (MIT) in Africa through the African Institute for Science and Technology (AIST) is in the pipeline.Â AIST will serve as the Silicon Valley of South Africa and the whole African region.

Finally, another example of outstanding economic recovery through human capital development, Ireland rose from the 1973 and 1983 oil crises that devastated its economy to become the 2nd wealthiest country of the world, in terms of per capita income, next only to Japan.

Investment in higher education and R&D is a crucial factor to the economic boom of the â€œCeltic tigerâ€.Â This allowed Ireland to use its work forceâ€™s brainpower, productivity and flexibility to attract foreign investments.

Lessons learned from other countriesâ€™ experiences

Given these sample development models, there are at least five common factors for development underlying their STI efforts, namely:

â€¢ Governments invested heavily in the provision of basic public goods and services, road and ports, energy and communications, clean water, health and education services which raise the productive potential of firms and people.Â These investments served as the foundation for technological learning.

â€¢ Governments nurtured the development of small and medium-sized enterprises.Â Building these enterprises requires developing local operational, repair and maintenance expertise, and a pool of local technicians;

â€¢ Governments supported, funded and nurtured higher education institutions, as well as academies of engineering and technological sciences, professional engineering and technological associations, and industrial and trade associations;

â€¢ Governments established inter-institutional linkages among universities, industries, government agencies, and not-for-profit organizations.Â Further, they fostered inter-disciplinary collaboration that includes not only the sciences and engineering but also business, law, and ethics; and

â€¢ Â Governments adopted good governance: transparency and accountability in the use of public resources, fairness and the rule of law in social and business transactions, a level playing field for investment and competition, and reward for risk takers and entrepreneurs.

III. FILIPINNOVATION: SCIENCE, TECHNOLOGY AND INNOVATION IN THE PHILIPPINES

To assess the Filipinnovation potential, this section examines the state of STI and the present direction, strategies, and efforts in STI in the country.

I The state of STI in the Philippines

For the Philippines to ride the wave of technological breakthroughs and integrate itself into the global trend of innovation, three key issues must be addressed:Â a) the science and technology system, particularly science and technology education and research and development, is poor; b) the dearth of innovative ideas; and c) the slow or non-commercialization of inventions.

First, the science and technology system remains poor.Â Two extremely critical and related elements of this system are human resources and research and development.

A. On human resources skilled in science and technology:

Crucial to developing a talented and skilled pool of human resources in science and technology is the quality of basic and higher education that the country provides.Â It has been said much too often that our educational system has fundamental resource gaps.Â (Table 5)Â And such gaps have led to the lower-than-desirable levels of science and technology graduates that the country has.

Of the 430,102 college graduates last year, engineers and technology-related graduates constituted only about 13 % and IT 9.5% while business was about 21.5% and medicine and nursing had 19%.

The graduate level is even worse.Â Each time the country produces one graduate with a masterâ€™s degree, Vietnam produces six, Thailand produces 25 and Singapore produces 200.

This is not the entire picture.

College graduates are a product of the countryâ€™s primary and secondary educational systems.Â A good gauge of how our elementary and high school students are performing can be seen in the National Achievement Test (NAT) scores.

The latest NAT conducted among 1.6 million grade six students in March 2007 shows a mean percentage score (MPS) of 59.9 percent â€“ 5.28 percentage points increase over the MPS of the NAT 2006.Â The MPS means that for every ten items, a grade six student can correctly answer five items.Â A breakdown of the MPS, however, shows that the science score of these grade six students is about 51.58 percent.Â Â

The MPS for the 2006 NAT of fourth year high school students is 44.33 percent, 2.6 percentage points lower than the 2005 MPS.Â The science score is 37.98 percent which means that a fourth year high school student can answer only about 4 out of ten items correctly.

In the 2004 High School Readiness Test conducted among our grade six students, only 0.06 percent got a score within the range of 75 to 100, with 75 as the desired cut-off mark for passing.Â This means that of the 1.2 million grade six pupils who took the test in 2004, only about 8,043 pupils have mastered the basic competencies in Science, English, and Math and are ready to move on to high school.

This is hardly surprising.Â While other factors explain these poor performances, one critical factor â€“ the quality and number of teachers â€“ egregiously stands out.

There are more non-majors teaching science subjects than teachers with science degrees.Â For instance, 90 percent of physics teachers are not physics majors and 80 percent of chemistry teachers are not chemistry majors.Â (Table 6) And of the prospective teachers enrolled in BS Education degrees, only 1.5 percent chose mathematics and science majors.Â

The Department of Education (DepEd), however, is responding to these gaps by allocating a total of P24.3 billion from 2006 to 2008.Â The DepEd has increased the budget for the purchase of textbooks, hiring of teachers and construction of classrooms to address resource gaps in public schools.

The lack of classrooms is also managed by holding double shifts where there is excess student population especially in the urban areas, primarily due to in-migration.

Meanwhile, DepEd is in the process of upgrading the quality and increasing the quantity of textbooks per subject each year.Â Allocation was increased to P2.1 billion for 2007 to replace all English textbooks and the same amount for 2008 to replace all Science textbooks.

These resource gaps have resulted in larger class sizes.Â The officially approved size of 54 students in a class in 2001 has gone up to 60.Â High classroom-pupil ratio affects the studentsâ€™ capacity to learn, as teachers have a harder time teaching a larger class size.

Other countries have smaller class sizes.Â The latest study of the United Nations Educational, Scientific and Cultural Organization (UNESCO) Institute for Statistics in 2003 cited that the Philippines has a public elementary school average class size of 43.9 students as compared to Malaysiaâ€™s 31.7, Thailandâ€™s 22.9, and South Koreaâ€™s 34.7.Â In secondary school, the Philippines has an even higher average with 56.1, while Malaysiaâ€™s is 34, Thailandâ€™s is 41.5, and South Koreaâ€™s is 35.4.

These are just the basics.Â Data on ICT tools are worrisome.

As of 2006, there are only 464 personal computers catering to more than 13 million public elementary school students, or a ratio of 1:25,995.Â In high schools, five million students share among themselves 45,221 computers, or a ratio of 1:111.

Access to basic ICT tools is limited.Â Only 46 per 1,000 people own a computer.Â A study on Internet penetration in AsiaÂ showed that the Philippines ranked 12th among 14 Asian countries, with a 5.3% penetration rate.Â Compare these to South Korea with an Internet penetration level of 65.7%, Australia with 65.3%, Japan 58.7%, and Singapore with 55.8%.

The booming economies in Asia invest heavily in S&T education.Â China, which outnumbers much of the world in producing engineers, turns out 600,000 engineers annually and India has 401,000.Â When combined, this surpasses tenfold the number of engineering graduates produced by the US.Â Japanese and Korean engineering graduates increased by 42 percent and 140 percent, respectively, compared to twenty years ago.

B. On research and development in STI:

The budgetary support to R&D in STI has been erratic.Â In the past, it represented only 0.11% of the Gross Domestic Product (GDP), quite meager compared to Japan with 3.12% and Singapore with 2.15%.

Fortunately, this year, the countryâ€™s R&D allocation has been increased to 0.43% of the national budget, or from P2.7 billion to P3.6 billion.Â This is a paltry sum.Â Taiwanâ€™s expenditure in R&D increased from US$388 million in 1978 to US$2.4 billion in 1990 to US$14.9 billion in 2004.

In any case, this extra allocation will fund more R&D and scholarships for scientists, engineers, and students.Â It has trickled down to the Department of Agriculture (DA), better-performing State Universities and Colleges (SUCs), the Commission on Higher Education (CHED) and the University of the Philippines (UP), having received increased budget allocations for R&D.Â Which is just as well.Â As it is, the number of scientists and engineers in R&D in the countryÂ is only 152 per million population, less than half the ratio recommended by the UN for sustainable development.Â (Figure 1)Â It pales in comparison to Singapore, Korea and Malaysia.

This is truly unfortunate.

The Philippines is a major producer of IT-enabled services such as interaction services, animation, finance and accounting, shared services, medical transcription and architectural and engineering services.Â Further, the Philippines has a large pool of English-speaking and highly trainable graduates.Â Yet, support for R&D is very weak.

Private firms in the country have minimal R&D expenditures.Â This shows that foreign firms in the country do not improve on nor use the full capabilities of Science and Technology personnel they employ.Â In a real sense, technology transfer, as we know it, does not happen in this country.

Second, related to the above is the countryâ€™s lack of a culture that nurtures innovation and change.Â This has kept us in the backside of development.

This lack is reflected not only in the erratic budgetary allocations to STI in education and to R&D, as discussed earlier, but also in the absence of an overall coherent policy framework that would foster and underpin a culture supportive of STI.

In terms of enabling policies, there are laws that have not included inter-institutional linkages or laws that have been made irrelevant because of the current trends in globalization.

RA 8439Â or the Magna Carta for Scientists, Engineers, Researchers and other S&T personnel in government, for instance, provides a program of human resources development in science and technology.Â Yet, the country lacks guidelines, plans, and programs linking the Department of Science and Technology (DOST)â€™s promotion of innovation with the Department of Trade and Industry (DTI)â€™s fiscal incentive policies.Â DTIâ€™s incentive policies, on the other hand, have yet to include tangible support such as tax breaks for local or foreign investors who will bring in new and applicable technologies.Â And DTI has yet to balance such breaks with the requirement that foreign firms in the country must introduce new technologies.

With the entry of foreign investors and the globalization of the workplace, the labor market has drastically changed and our Labor Code is unable to adapt to these changes.Â The old standard of working eight hours a day for 40 hours a week has become obsolete.Â We now have a 24-hour, seven days-a-week schedule mostly employing IT personnel, while others work from home with flexible schedules.Â More women are also working at night in call centers and BPO companies, hence the prohibition against night work for women no longer makes sense.Â The Labor Code should be overhauled with a new set of flexible work arrangements and better security of tenure to further encourage new industries and income productivity.

The support for STI and R&D in other countries is almost palpable.Â Singapore, for instance, offers salaries competitive with the best US schools and Malaysia recently announced its goal to be an education hub with 100,000 foreign students by 2010.

In the US, the government allocated an additional US$5.9 billion in FY 2007 to increase investments in R&D, strengthen education and encourage entrepreneurship.Â The increase will go to biomedical research, studying the convergence of life sciences and engineering, advanced security technologies and research geared at producing marketable technologies.

The US is also opening up its doors to foreign students specializing in science and math with more lenient visa and immigration policies to attract experts to study, work and stay in the US.

INSEAD business school in France, for instance, allows its students to move between France and Singapore campuses, encouraging continuous exchange of ideas.Â In June last year, they launched an MBA Program in partnership with Chinaâ€™s Tsinghua University.

Leading universities have also increased math, science, and engineering degree offerings and have opened its doors to the influx of scientists and technologists from around the world.

Third, the commercialization of new products and inventions is almost non-existent.Â Transforming innovative ideas to products and services is extremely challenging. Universities and research institutions have a central role to play in these processes.

At its simplest, these processes include undertaking basic research.Â This has been challenged by the lack of skilled human resources as well as funds.Â Then there are the series of trials and tests, modifications and adaptations, that have to be undertaken, once again supported by unwavering commitments and funds.Â Further down the line, there needs to be these crucial linkages with industries and businesses.Â And all these ideally ought to be done in an atmosphere where networking, exchanges, and sharing are the norms.

As it is now in our country, our scientists have little or no incentive to innovate.Â Networking and exchanges are not easy; funds are always low, if they are available; transaction costs of doing business are exceedingly high; and there might not be a sizeable market for their inventions.Â Thus, others opt to showcase their innovation in foreign countries.Â The Philippines has one of the lowest patent applications in the region, explaining our low technological capacity.

Other than the basic scientific research, commercialization requires market research such as feasibility studies as to what invention fills a demand and what people will pay for.

For a largely agricultural country like the Philippines, thereâ€™s no question that science and technology in agriculture and fisheries must become priority.Â Support, especially to small and medium enterprise (SMEs), must be delivered because SMEs create around 90% of jobs and operate in mostly rural areas.

This points up the need to promote techno-entrepreneurs.Â Technology is not helpful unless we establish a critical mass of people who will put it to use.Â That way, they will gain meaningful employment and raise incomes.

II Direction, Strategies, and Efforts in STI

Current efforts at promoting STI in the country include government-initiated STI programs, budgetary allocations for agriculture R&D and higher education, and academic networking.

Government programs in STI

The Philippines envisions the country to become a significant S&T player in the region by 2010, and in the world by 2020.Â The DOST has outlined a development map through the NSTP 2002-2020, which includes a program on R&D, technology transfer, human resource development, S&T promotion, information dissemination, advocacy and linkages.

To improve our human resource capacity, the DOST gives scholarship and training grants in the fields related to the functional activities of the department and its attached agencies.Â It has also launched the Balik Scientist Program to encourage overseas Filipino scientists and technicians to return to the Philippines and share their expertise.

Another program, the DOST-Japan Society for the Promotion of Science (JSPS) Joint Scientific Cooperation Program , promotes scientific researches and exchanges through exchange of scientists, holding of scientific seminars and conduct of dissertation and degree researches under the joint guidance of Filipino and Japanese advisers.

The DOSTâ€™s support to SMEs is channeled through the Small Enterprise Technology Upgrading Program (SET-UP), a nationwide strategy to encourage and assist SMEs to adopt technological innovations to improve their operations and boost productivity.Â The program encourages technology transfer and technological interventions through better product and HR development, cost minimization, waste management and other operations activities.Â

The Philippine Research, Education, and Government Information Network (PREGINET)Â was created in 2007 with the objective of learning from best practices in developed countries.Â PREGINET is a research and education network for collaborative R&D among government, academe and research institutions.Â It allows the country to participate and engage in joint projects with research institutions globally

Recently, the government released 200 million pesos for post-baccalaureate engineering and science scholarships, 100 million pesos to be administered by CHED and the other 100 million pesos by DOST.

Other scholarships and infrastructure development programs in engineering have already been approved and appropriated for.

Academic Networking

Special support to upland agriculture is given through the creation of a research consortium among six SUCs in the Cordillera Administrative Region (CAR).Â This research consortium will focus on conserving national agricultural heritage such as the rice terraces, the native textile industry and wood-based arts and crafts; improving the variety of rice and vegetables in the uplands; introducing organic farming; and creating a joint program on fish breeding.

The six CAR institutions include Abra State Institute of Science and Technology, Apayao State College, Benguet State University, Ifugao State College of Agriculture and Forestry, Kalinga-Apayao State College, and Mountain Province State Polytechnic College.

A far more ranging program entitled Engineering Research and Development for Technology Consortium (ERDT) is in place and will become operational. It aims to upgrade the quality of S&T graduates and colleges, increase the number of MS and PhD graduates in S&T and improve R&D infrastructure.Â (Table 7)

The ERDT Consortium consists of seven universities with the capacity to absorb and produce MS and PhD graduates in engineering and computer science.Â Apart from UP, other participating universities are De la Salle University, Mapua Insitute of Technology, Ateneo de Manila University, Mindanao State University-Iligan Institute of Technology, University of San Carlos, and Central Luzon State University.

Budgetary allocations

In the 2008 national budget, a bigger amount for R&D has been allocated to key government research agencies such as DOST, DA, CHED and SUCs.

For DOST and DA, the money will be used in the implementation of various agricultural research projectÂ and government-academe partnerships.

Additional funds are channeled towards more undergraduate scholarships and student financial assistance.Â The CHED scholarship programsÂ and the Higher Education Development Fund (HEDF)Â are restructured for a clearer focus on development and research and a more efficient use of funds.
Some outstanding SUCs were given additional allocation.Â These include the Mariano Marcos State University, Central Luzon State University, Leyte State University, Aklan State University, University of Southern Philippines, which are notable for their R&D, international linkages and the commercialization of their inventions.Â (Table
The University of the Philippines 2008 budget contains an allotment of P161 million for scholarships, P200 million for research and development projects through DOST, and P838 million for infrastructure through the UP budget.Â The UP engineering complex will serve as the national hub for generation and application of new scientific knowledge.

CONCLUSION: WHAT NEEDS TO BE DONE?

In a global economy where knowledge and innovation determine a countryâ€™s economic future, the Philippinesâ€™ path to development must be based on a strong foundation of new science and technology.

Our countryâ€™s development depends on the importance we place on innovation.Â Developing a culture of innovation requires enabling conditions brought about by the concerted effort of government, policymakers, educational institutions, R&D institutes, the media and industry.

These conditions are continued increases in investments in education, research and development; improvements in science and mathematics education at all levels; and inter-institutional collaboration among universities and research institutes, government, and business.

Upgrade science and mathematics education

Undertaking serious reforms in science and mathematics education is the first step.Â And it should take place at all levels, starting from basic and secondary up to higher levels of education.Â Our grade school children should be able to posses much more scientific and mathematical literacy than what they have now.Â They should be enthusiastic and excited about science and mathematics.Â And they can be if their teachers are competent and qualified.

The quality of undergraduate science education directly affects both the number of scientists and the capabilities of students who eventually become engineers, researchers and teachers.Â Improving this level of education is important.Â But once again â€“ and this lecture emphasizes this strongly — there is an urgent need to strengthen the preparatory science and mathematics that start in primary and secondary education.

Invest in education, research and development

Basic research, generation of new knowledge, and the creation of an educated workforce are essential to innovation and economic growth.Â Without sufficient investment in education and research and development, innovation is not possible.

There must be advocacy that consistently calls for increases in public and private investments in R&D.Â This is possible only when government prioritizes innovations in science and technology and ensures that such innovations move from the laboratories to the marketplace.Â The R&D agenda should focus on helping entrepreneurs utilize and apply technological changes so that even so-called â€œlow techâ€ activities â€“ like fishing and farming, for example â€“ become more innovative and generate more domestic value added.

Such investments in R&D should support the development needs of the country whose population is estimated to be 100 million in a period of three years.Â There is a great future in this.Â There is a compelling need to address issues that have enduring impact on the Filipinos.Â These include innovative technologies in pharmaceuticals, agriculture, food, forestry, fishing, medicine and public health.

There are exciting prospects in R&D that are happening and that need to be continuously supported.Â Incubation parks have been established.
The 22-hectare Diliman Science Complex and Technology Incubation Park at the UP Diliman campus hopes to be the Philippinesâ€™ version of Stanford University-Silicon Valley and Hsinchu Science Park in Taiwan â€“ a high-technology hub close to a research university.

The Park currently hosts the National Institutes of Natural Science, Geological Sciences, Marine Science, Physics, Molecular Biology and Biotechnology, Biology, Chemistry, Environmental Science and Meteorology, and the Mathematics department.

It will serve as the national center for the generation (R&D) and application (innovation) of new knowledge in the natural and applied sciences, and mathematics.Â It will enable our PhDs to pursue R&D, and make it possible for us to reinforce the training of our next generation of MS and PhD students in the sciences and engineering.Â It will also establish linkages with other state and private institutions of higher learning as well as other techno-incubation parks.

Following this lead, we must set up and maintain more regional S&T parks that can provide institutional facilities, including advanced laboratories, and a nurturing environment that will sustain R&D.

Promote Industry-Academe-Government linkages

There is a need to strategically engage foreign and local business enterprises and draw in their capacity to finance R&D investments.Â Companies like Intel, Nokia and Microsoft are capable of supporting R&D centers, equipping laboratories and must therefore become active components in the overall national S&T effort.Â And so are local business firms like United Laboratories, JG Summit and San Miguel Corporation.

Likewise, local SMEs, which represent 90 percent of all businesses registered in the country, play a crucial role in the pursuit of R&D.Â SMEs, accounting for a third of the country’s GDP, should pursue R&D thru active government intervention especially in the areas of agriculture and fisheries production, manufacturing and food processing, and trading and other retail services.

We should improve our capability to transfer technology.Â Government should help enhance the private sectorâ€™s ability to acquire existing technology, improve and adapt it for the particular needs of local enterprises, and incorporate it into local production processes.Â In other words, government should focus on helping the private sector absorb and utilize technology that is already in use elsewhere in the world.

A yet untapped resource for technology transfer is the overseas Filipinos.Â Filipino workers overseas â€“ especially those involved in science, technology and engineering â€“ are an excellent conduit for harnessing networks for development and competitiveness.

Apart from the billions of dollars-worth of remittances they bring in to the country, we should focus on the knowledge and expertise they have learned, and try to apply it to our local industries.Â They can help bridge the technology gap in the country if we provide them enough incentives to practice their profession in the Philippines.

Transform innovative ideas to high-value products and services

One of the most dynamic repercussions of effective inter-institutional linkages is the translation of innovative ideas to high-value products and services. Such linkages drive technological research and development.

With technological R&D, the country will not only be end-users of ICT tools and work as contract assemblers of electronic and semiconductor products but also be creators of systems and chips that run cellular phones or computers, for instance.

Right now, the countryâ€™s 30-billion dollar electronics industry consists mostly of assembly, packaging and testing. These activities account for only 5 percent of value added in the global semiconductor industry.

Thus, if we are able to dive deep into the technology and develop systems and chips, for instance, that Nokia, Sony Ericsson, and other technological giants would license from us, we would see our products in every mobile phone and base station that these giants sell and deploy worldwide.

Then, we will be able to secure a larger slice of the global ICT revenue pie. Apart from this, the country will be seen as a significant player in the ICT field.

It is worth noting that while revenues of our ICT companies such as Globe, PLDT and Smart are at record highs, they are still top importers of foreign technology in the form of boxed solutions. On the part of these service providers, there seems to be little impetus to study technology and undertake research in depth with the objective of creating innovation through local development of high value blocks. The bottom line, for them, is already high and the need for R&D is not felt.

This must definitely change or we will continue to be end-users of technology, not its developers. We would all benefit from a Bell Labs — where fundamental advances and breakthroughs in communications and information theory have been discovered, formulated, and translated into useful products that have made â€“ and continue to make — life easier for all of us.

But this is possible only if research and development into fundamental ICT theory and tools is carried out as part of the R&D agenda of inter-institutional linkages. Such an agenda would contribute to the development of cutting-edge hardware and software for the ICT industry and their applications. And these would translate into export winners for the country.

Create an enabling environment through public policy

Public policy must foster an ecosystem that would make our S&T system thrive. STI must be integrated in policies on education, agriculture, health, environment, public works, and trade and industry.

For this reason, the 13th Congress had to establish the Congressional Commission on Science, Technology and Engineering (COMSTE).Â The Commission is mandated to look into the countryâ€™s science, engineering and technology development.Â Among its tasks is to undertake a thorough review of science education in public and private schools, particularly at the graduate level.

COMSTE has six priority areas â€“ sectors that provide opportunities to improve competitiveness through identification of S&T input, human resources and infrastructure.Â These six areas are energy and environment; electronics and semiconductors; IT and IT-enable industries; agriculture and food; health sciences; and science education and R&D.

COMSTE intends to respond to our waning competitiveness and build public support for making the wealth-generating fields of science, technology, engineering a national priority.

In the process, COMSTE hopes to revitalize an S&T ecosystem that will generate knowledge and innovation.

Conclusion:Â creating the future

Our goals are to pour massive investments in upgrading science, mathematics, and engineering education at all levels and to unceasingly foster a culture that vigorously supports research and development in science, technology and innovation.Â The ultimate aim of all these is to uplift the living standards of Filipinos.

National and local governments, policymakers, educational and research institutions, media, industries, and the private sector have to forge strong and functional partnerships to bolster our competitiveness.Â No one individual or institution can do this job.Â Collaboration cannot be dispensed with and all must do their share.

Creating the future through science and technology is exciting but difficult work.Â It will take vision, leadership, and sustained commitment to achieve our strategic mandate – to create a future where our people can enjoy a better life.Â That objective is within our reach.

Here is the PDF version of the speech, which includes the notes, links, charts, etc.:

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Comments

173 Comments on "Three speeches"

anthony scalia on Wed, 16th Jan 2008 1:18 pm

in sports – from SEA Games over-all champion to 6th place ang Philippines.

imagine, Singapore placed higher than the Philippines in the gold medal tally of the recent SEA Games! Singapore!

di bale, as long as the basketball gold is with us

Acda on Wed, 16th Jan 2008 1:32 pm

As Vietnam surpasses us, the old logic of blaming the USA, Spain, World Bank, etc. for “holding us back” needs to be put to rest. Maybe its time, as Benign0 says, to “get real”.

UP n student on Wed, 16th Jan 2008 1:41 pm

anthony scalia: So did you know that Dennis Rodman’s dad was/is in Olongapo? This is an opportunity calling. What the Philippines can do, in order to continue to do well (and in fact to do better) in sports especially basketball is to import black athletes and have them father more sons and daughters among Filipinos, would you not agree? Then a taller stronger more athletic breed of Filipino athletes can carry the Philippine Flag during the SEA Games twenty years from now. Someone better tell Manuel Gallego III to make an addendum to his prescription for “Compulsory sterilization and elimination of voting rights of parents of street children”.

mlq3 on Wed, 16th Jan 2008 1:41 pm

in general, the only ones holding ourselves back, after 1946, would be ourselves.

anthony scalia on Wed, 16th Jan 2008 1:59 pm

UP n student,

yes, that was reported during Rodman’s first season with the Chicago Bulls in 1995-96.

the siring is already taking place in the US. the fil-ams are the ones going here. they have been winning golds for the country since the 1980s

trivia – in the 1981 Jones Cup, the Philippine team won the championship, defeating a US team. The only ‘indios’ in that team were Jayvee Yango and Frankie Lim. The rest, like Ricardo Brown are whites and blacks! a very interesting (and amusing) sight!

but the ‘indios’ proved that more of them can do the same job. in 1985, with only three imports, the Philippine team won the Jones Cup again, beating a US team. The Pinoys in that team include Allan Caidic, Samboy Lim, Hector Calma, Yves Dignadice, and Tonichi Yturri.

anthony scalia on Wed, 16th Jan 2008 2:07 pm

Acda,

Vietnam’s ascent is understandable.

There is stability in that country – no opposition, no rallies, no people power, no free press, no free expression, no ‘its-out-turn’ politicians, no trillanic and guingonic Vietnamese, no ‘patalsikin na now na’

Its government is free to focus on improving the economy, and no time devoted to firefighting

Its also an inspiration that a country need not suck up to the US to improve.

cvj on Wed, 16th Jan 2008 2:32 pm

Its also an inspiration that a country need not suck up to the US to improve – Anthony Scalia

That’s right! In fact, they did the opposite. They set-up a communist government, implemented land reform and kicked-out the Americans from the south. There must be a lesson there somewhere.

Silent Waters on Wed, 16th Jan 2008 2:42 pm

CVJ

Lumabas na ang totoo! It’s really a communist state that CVJ wants to have in our country.

cvj on Wed, 16th Jan 2008 2:53 pm

Silent Waters, wouldn’t you agree that Vietnam is an up and coming economic success story worthy of being emulated?

mlq3 on Wed, 16th Jan 2008 3:04 pm

cjv, only if you’ve never spoken to a south vietnamese refugee.

cvj on Wed, 16th Jan 2008 3:34 pm

mlq3, yes. i guess they would have something to say about that as well. Silent Waters seems to empathize.

Arbet on Wed, 16th Jan 2008 3:57 pm

Sarcasm has never been a Filipino skill…..

BrianB on Wed, 16th Jan 2008 4:49 pm

Angara is wrong. It’s not just government but the private sector which should prioritize innovation.

Currently, the conglomerates are living like parasites on OFW remittance.

Madonna on Wed, 16th Jan 2008 5:05 pm

Hi folks, esp. our compatriots working abroad. Check this site out: OneFilipino.net.

Here’s the welcome message of that site to give you an idea what it’s all about:

“Believing in the growth potential of the Philippine Service Industries, OneFilipino.Net in collaboration with local industry associations carries meaningful discussions and information on what the Filipino can do to promote growth by sharing market feedback and experiences, and joining intelligent discussions of issues that impact progress. By bringing the combined power and ideas of many, we aim to create a new Philippines â€“ one that attracts investments, and one that creates an environment that will not only welcome our compatriots back home, but provide them reasons and opportunities to stay in the country.”

benign0 on Wed, 16th Jan 2008 5:20 pm

“There is stability in that country – no opposition, no rallies, no people power, no free press, no free expression, no â€˜its-out-turnâ€™ politicians, no trillanic and guingonic Vietnamese, no â€˜patalsikin na now naâ€™”

Giving democracy to Filipinos is like giving a blowtorch to an 8-year-old to play with. Wielding a blowtorch affords one lots of power but requires maturity, steady hands, and brains to use wisely.

Not surprisingly, Pinoys see democracy as nothing more than a toy — used to organise ocho-ocho rallies and host a sensationalist substance-challenged media and entertainment industry.

Galing talaga ng Pinoy.

Manila Bay Watch on Wed, 16th Jan 2008 7:05 pm

“Not surprisingly, Pinoys see democracy as nothing more than a toy â€” used to organise ocho-ocho rallies and host a sensationalist substance-challenged media and entertainment industry.” — Benigno

I take it you’re one of them “…Pinoys see democracy, etc, etc…”

With or without you, not all Pinoys Benigno, not all…

benign0 on Wed, 16th Jan 2008 7:09 pm

“With or without you, not all Pinoys Benigno, not allâ€¦”

That simply highlights the TRAGEDY that is the Philippines. “Not all” Pinoys, I agree. But for every one such Pinoy, for every one of even the smallest glimmer of intelligent thinking, for every one who GENUINELY achieves, there’ll be a thousand — no, TENS of thousands — of hollow-heads that will undermine.

There’s a phrase that describes this pathetic situation — The Tyranny of the Masses.

Manila Bay Watch on Wed, 16th Jan 2008 7:23 pm

“I still donâ€™t mind going up against those older and better than me.” — Mr Gokongwei

Sound and potent advice indeed.

cvj on Wed, 16th Jan 2008 7:23 pm

Thereâ€™s a phrase that describes this pathetic situation â€” The Tyranny of the Masses. – benign0

…which is why Manuel Gallego III of Get Real Philippines recommends the “Compulsory sterilization and elimination of voting rights of parents of street children” (among other things) – to eliminate the ‘tyranny of the masses’.

Silent Waters on Wed, 16th Jan 2008 7:51 pm

MLQ3, CVJ

I think I am sort of somebody who thinks in the middle ground. I am not saying I am right nor am I wrong. I do believe, as I have been saying before, that we have a perverted form of democracy and so, to some extent, what CVJ advocates may make sense. We need some sort of regulation or maybe some sort of societal reconstruction to try and benefit EVERYBODY. On the other hand, I do believe that the communist idea of “from each according to his abilities and to each according to his needs” runs smack against man’s basic instinct of being rewarded for one’s efforts. So what does make sense? We have seen all sorts of governmental models all over the world and none of them are perfect. Even in present day China, the CHina CVJ so admires, new oligarchs are springing up. When they get strong enough, do we kill them off again? The idea that there is a middle class in China forgets that around 800M people are still living in hovels. Just because around 200M Chinese are now living more prosperously belabors the point, that there are 800M people still not enjoying the benefits of a resurgent China.

The point is, nothing will ever be perfect. The best we can do is to try to make any system work.

Manila Bay Watch on Wed, 16th Jan 2008 7:56 pm

cvj,

Gallego’s “â€œCompulsory sterilization and elimination of voting rights of parents of street childrenâ€

Without or without compulsory sterilization and whatever of their voting rights, there is a strong likelihood that their rights have already been tampered with, so that advocacy by Gallego is useless.

Why, even the dead have voting rights and “are voting” – strange that my Dad’s name who’s been dead these last 10 years was still in the 2004 voters’ list! Of course he was not a father to street children (just to HIGHLIGHT the futility of Gallego’s advocacy…)

cvj on Wed, 16th Jan 2008 8:12 pm

Even in present day China, the CHina CVJ so admires, new oligarchs are springing up. When they get strong enough, do we kill them off again? – Silent Waters

Inequality is a natural consequence of fast economic growth but is by no means its only source. Here in the Philippines, inequality has been brought about and is being sustained by rent-seeking oligarchs and their political allies. That’s the same kind of inequality China and Vietnam had before their communist revolutions decisively addressed this issue. This allowed them to move on to the next stage which is industrialization and market reforms that eventually led to economic takeoff. By contrast, we haven’t even gone beyond the first step in addressing our inequality which is why i don’t see the point in worrying about inequality in China. That’s not our problem (though i wish it were).

nash on Wed, 16th Jan 2008 8:20 pm

1. We can’t all be entrepreneurs, we need consumers to buy whatever it is those entrepreneurs are selling.

2. I think those who express surprise about Vietnam’s “ascent” forget history. It had an advance civilization long before the Spaniards started looking for spices for paella and got stranded here. This ascent was only stunted by the garlic-infused frogs legs eating French and the American occupation. On the other hand, being razed to the ground with agent orange means they have the benefit of starting again from scratch.

3.Industry-academe linkage. Sus, sinibukan na namin yan noon (me on the industry side). The problem is the bureaucratic hurdle. Apparently, in UP to get anything started, you need 120 signatures and ‘approvals’ from people who never show up in the office. But this was 3 years ago. Maybe now the process is streamlined and it is now easy to set things up. Kudos to them then.

4. Math Science curriculum. Didn’t Chiz Escudero want to eliminate these subjects? According to him he used ‘geometry’ only for ‘billiards’. Look at him now, he is a senator…….

4. Imagine yourself in a Roxas presidency…..ew! The thought of Korina Sanchez as first lady!!!! Shock Horror!

DuckVader on Wed, 16th Jan 2008 9:44 pm

CVJ:

“Here in the Philippines, inequality has been brought about and is being sustained by rent-seeking oligarchs and their political allies.”

CVJ, taking this a step further, the inequality then leads to unequal opportunities. The oligarchs support the policies that benefit them but prejudice the nation. The priorities of the budget are set based on the priorities of the oligarchs and the institutions are shaped in a similar way. Obviously this creates a situation where we are at a disadvantage because the oligarchs will be better equipped to perpetuate this situation. The question is: How do we, as a relatively small middle class intervene?

UP n student on Wed, 16th Jan 2008 10:30 pm

DuckVader: One way for a middle-class person to intervene is to do a Manny Villar. Get rich, young duck, get rich!!!! And if you don’t want to get rich, then do what the oligarchs do and insinuate yourself into the political process, then convince the politicians how it benefits their re-election chances when these politicians work for your benefit.
Another — you go overseas, earn a higher salary and send money to your cousins so your cousins get a better education.

cvj on Wed, 16th Jan 2008 10:36 pm

Duckvader, i agree. To top it all, there are those who conspire to take away (or at least rendering moot) one-man one-vote, about the only remaining area in which the common man is on equal terms with the oligarch. I think we, as a relatively small middle class can intervene first of all by not taking the side of the oligarchs. For example, it was largely masa’s vote that was disrespected by Hello Garci. If we stand up for them, then they will know that we mean well. Then building on this reciprocity and mutual trust, maybe masa and middle class working together can finally compel the oligarchs to do what is good for the country as a whole.

DuckVader on Wed, 16th Jan 2008 10:56 pm

UP n student:

Not to belittle my capabilities as I am firmly in the middle or even upper middle class, but I doubt I have the risk-taking behavior of Manny Villar that is needed to build that kind of fortune. As for education, I agree that a better education will eventually benefit everybody, but sending money to my cousin is an act that will work only in the long-run. There’s too much inequity and suffering in our country for me to wait that long. And I’ve personally known of the experience of people like Rene Banez, Dinky Soliman to know that changing the system from within is too worn a path; you think you’re changing thing s when in reality you’re only being manipulated.

CVJ: Color me cynical, but the whole system is rigged against building this grassroots/middle class movement for change. Politicians and oligarchs buy the media, bribe the voters, and manipulate the political institutions that are supposed to protect our rights (the courts, military, police, election officials). Is this a fair fight? To paraphrase Sean Connery in the untouchables, we’re bringing knives to a gunfight.

cvj on Wed, 16th Jan 2008 11:43 pm

Duckvader, i can’t say i blame you for being cynical. I don’t think things are hopeless though since things don’t necessarily happen in linear fashion.

manuelbuencamino on Thu, 17th Jan 2008 12:07 am

Manny Villar’s risk taking.

He IPOed his VistaLand and then unloaded his shares immediately. He raked in a humonguos profit that he will now use for his run at the presidency.

Note: Normally there is a holding period for the shares of stock of owners of companies going public. The holding period was waived for Villar.

Carl on Thu, 17th Jan 2008 12:38 am

On Angara’s speech, we have these institutions in Diliman (eg. National Institutes of Natural Science, Geological Sciences, Marine Science, Physics, Molecular Biology … etc) for decades! But my friend who used to teach in Diliman’s engineering college lamented that university production of quality research in the sciences and engineering is insignificant because of inadequate funding. R&D is just too expensive.

With more pressing problems, this administration took the pragmatic approach: build classrooms, hire more teachers, produce more textbooks, etc.

What the Roxas and Angara failed to identify as a major cause of our problems is our runaway f*cking population. So here’s to Roxas: SAYANG!

supremo on Thu, 17th Jan 2008 12:52 am

‘The holding period was waived for Villar.’

There is really nothing wrong as long as it was in the lock-up agreement.

“The lock-up is a commitment by a substantial shareholder or a cornerstone investor to the banks arranging the deal not to sell any shares for a certain period after the IPO. If the banks agree to relieve the shareholder of this commitment before the set time, the shareholder is free to sell.”

hvrds on Thu, 17th Jan 2008 1:55 am

Where the Philippines is vs. just one transnational company in terms of productive capacity. (Human ingenuity)
We are after all still evolving simians. Some at a higher level than others.

This is from a financial analyst who is involved in the financial markets. The financial markets are a rich treasure trove on information on how the giants of capitalism operate. J.P. Morgan fired Edison from the board of G.E. and he organized G.E. together with U.S. Steel and to this day they dominate the world in strategic advanced technology.

It is interesting to note that it is a wonder that our leaders have just discovered the secret to sustained economic development -Market Capitalism- Others called it the Industrial Revolution. J.P. Morgan laid the foundation for the establishment of money center banks and for the establishment of national central banks by introducing the actual process for its operation. He disdained free market competition and thought it inefficient. He actually showed governments how a country could monetize its credit system. Governments responded in the crisis of the times and established the Federal Reserve system to provide the circulatory system of of the economy.

Financial technology merged with scientific technology to create modern societies.

Today science and technology has multiplied the yield of seeds in agriculture from 5-10 times to 40 to 50 times the yield per acre in the more advanced industrialized economies.

The major cause of the imbalances or inequality in the world stems from that scientific and technological gap.

How does one bridge the gap? Our solution is the VIVA Hot Babes, SEX BOMB dancers and Wowwowwee.

Putting the Green in Green By Byron King

General Electric is an American icon. Founded by the prolific American inventor Thomas Edison, GE embodies the spirit of American ingenuity. And at the dawn of the 21st century, the legacy of Thomas Edison endures, as GE re-
invents itself into a forward-looking, world-leading innovator.

Today’s GE is a vast worldwide company that includes 14 major business units.These GE business units include several sectors with a direct bearing on our
interests in energy and natural resources. In fact, if you were looking for a great mutual fund that focused on energy and resource technology, you could not do much better than a set of holdings that looks a lot like GE.
Specifically, GE is a major player in power generation and electrical distribution, lighting, oil and gas, railways and water.

These diverse operations have powered GE’s 35% earnings growth over the last three years. And yet, the stock is no higher than it was three years ago. Maybe GE’s shares deserve a little more credit. Let’s take a closer peek…

Power Generation

GE has been a leader in power generation systems since the dawn of the Electric Age. GE is a manufacturer of systems for coal-fired steam turbines, as well as hydropower systems, and has been doing this for nearly a century.
GE is also a leader in the manufacture of gas turbine systems, as well as nuclear power generation systems.

There are, for example, over 90 GE-designed nuclear boiling water reactor (BWR) systems installed worldwide today, about one-third of the total installed nuclear power base in the U.S. alone. According to its Web site,
“GE is the last remaining U.S. vendor of light water reactor (LWR) technology owned by a U.S. company.” Furthermore, GE has the world’s most current
ongoing nuclear plant construction experience and is “construction ready,” based on its foreign experience in recent years.

Wind Power

But GE is also “construction ready” with a broad range of “environmentally advantageous” energy solutions. For example, GE is one of the world’s leading manufacturers of windmill systems. Over the past 20 years, the company has
supplied and installed over 7,500 wind turbine installations worldwide,comprising more than 9,800 megawatts of capacity. By way of comparison, there are about 40,000 megawatts of windmill systems installed worldwide, so GE has provided almost 25% of the world’s installed base. GE has windmill manufacturing and assembly facilities in Germany, Spain, China, Canada and the U.S., where it fabricates wind turbines with rated capacities ranging from 1.5-3.6 megawatts.

GE’s impressive wind division (not to be confused with its PR division)reflects the company’s commitment to a process it calls “ecomagination.” This somewhat corny slogan, according to GE’s Web site, refers to the company’s
“commitment to imagine and build innovative technologies that help customers address their environmental and financial needs and help GE grow…GE’s portfolio of energy efficient and environmentally advantageous products and services [totals] 45.”

Electrical Distribution

But even while pursuing “ecomaginative” ventures, GE does not neglect its traditional businesses. When it comes to electrical distribution products and systems, for example, the entire field is synonymous with GE. GE holds
literally tens of thousands of patents on critical technologies within the electrical distribution field. GE also has great depth in the design,installation and maintenance of entire distribution systems, with a history
that goes back to creating the electrical systems that powered the Panama Canal when it opened in 1914. The U.S., as well as much of the rest of the world, has already embarked on an energy system reconstruction effort that
will carry through the next several decades. GE will surely be in the thick of things, providing critical components, assemblies and services to the endless array of projects.

Oil and Gas

GE is a leading manufacturer of capital equipment for the global oil and gas industry. GE products include both rotating and stationary equipment, such as LNG compression trains, pumping systems, re-injection equipment for natural gas, safety equipment for oil and gas pipelines and subsea equipment for the production of oil and gas.

Among the many names in the GE lineup is Vetco Gray, a leading provider of equipment for both onshore and offshore oil and gas development. GE acquired Vetco Gray earlier in 2007. GE/Vetco Gray offers customers and clients large- scale capital drilling equipment for deepwater work, floating production systems, shore-based and offshore drilling and completion systems and subsea
production systems. These latter items are among the most technically challenging, highest-margin and highest-profit items in the resource extraction business today.

Railway Systems

GE has manufactured more than 15,000 locomotives for railroads around the world. This sector has become a fast-growing winner for GE because the worldwide commodity boom requires railway equipment to haul carloads of
everything from coal to iron ore, grain to petrochemicals. According to recently released earnings information, the GE locomotive segment has been the most profitable business unit of all of GE’s holdings.

GE’s locomotive lineup includes the new “Evolution” series. These locomotives are the product of six years of research and design and an investment of over
$250 million. The end result, according to GE’s Web site, is “the most technologically advanced, fuel-efficient and environmentally compatible diesel locomotive in history.” The Evolution locomotive consumes about 10% less fuel than the competition and emits between 60-80% less air pollution, especially particulate matter. GE’s backlog for these locomotives is growing fast, so the business will be solid for at least the next four years.

GE does not make money just when it sells the locomotive, however. GE offers its customers a satellite-linked tracking and control service that sends diagnostic data back to a GE facility in Erie, Pa. There, GE technicians can track the status of GE-built locomotives and determine in advance if wear or failure is affecting one or more parts or systems. Then, the GE technicians can contact the railway operator and consult over what action to take. This includes ordering parts in advance to preventive maintenance or taking a locomotive out of service to avoid further damage. This monitoring and preventive maintenance service is highly profitable for GE.

Water

Water scarcity and shortages are becoming acute in many regions of the world. So water-related industries are growth sectors. We believe that moving and treating water will, in the future, typically carry high profit margins. GE
Water & Process Technologies is a fast-growing business unit that provides system-based solutions to problems concerning water and wastewater treatment and related water processes. GE has had a long history as an industrial manufacturer, in which the company had to deal with its own wastewater and other pollution issues. (Remember PCBs in the Hudson River?) Now GE can
capitalize on its own internal corporate experience by offering water-related services to commercial and industrial users.

GE water systems include desalination equipment, membrane filtration and industrial pollution control. One of GE’s major water-related efforts is with the government of Alberta, concerning treatment for wastewater coming out of
the immense tar sands development projects. GE will provide both research and consulting services to the Alberta government in an effort to mitigate the large amounts of contamination to Alberta waters, as well as to lessen the impact of corrosion on the vast pipeline systems that crisscross that Canadian province.

So as we look ahead to the energy and natural resource issues that confront the U.S. and other parts of the world, GE will likely to play a key role in providing solutions. GE is positioned for long-term, large-scale growth in the energy and natural resource field, and GE is also positioned to profit from it.

supremo on Thu, 17th Jan 2008 2:26 am

But Villar should really take a risk and invest that money in industries that generate jobs. Election spending is not one of them.

UP n student on Thu, 17th Jan 2008 2:46 am

DuckVader: Maybe you should do a Mother Teresa, not allowing doubts that maybe her movement makes no dent to reduce Indian poverty and continue to pour efforts that benefit at least a few Indians. The operative word is action. Mother Teresa acted, not surrendered. [That, plus a willingness to play politics with the likes of Doc Duvalier.]
So Duck, even if you already have enough money, you may still want to work an extra 10% (as opposed to feel depressed), then give the extra salaries to fund scholarships for 3 or 5 budding teachers at Philippine Normal University. [And maybe the scholar you fund becomes the next Dinky.]

UP n student on Thu, 17th Jan 2008 3:00 am

hvrds: Man, what’s the point of your blogpost?

anino on Thu, 17th Jan 2008 3:09 am

We celebrate and admire some exceptional individuals who made it to the top despite the circumstances, but without us the poor, lower middle class and middle class to collectively patronize their â€œproductsâ€ they could not have been that successful..and there are some who by luck of sheer physical build and a little practice with that round ball called â€˜basketballâ€™, squeeze it and put it down the net, could be just as wealthy and successful and they are more in numbers.

The Philippine have quite many of them. The Lucio Tans, the Lopezes and many more With Billions and Billions among them, but wonder of wonder, where are all the profits of their enterprises went? And taking a second look at all the People who had labored for them, have they
got a fair share of their successes? And so did the State in the form of Taxes? Just asking a few questions because with all the Mega Success of these Mega Businessmen and Women, the Only very Few who benefitted most are Themselves…

supremo on Thu, 17th Jan 2008 3:10 am

Offer scholarships and tell your scholars to wipe your behind for 5 years after graduation to repay the scholarship. What a rip off!

The government should encourage banks to offer student loans or at least expand the study now pay later program.

supremo on Thu, 17th Jan 2008 3:17 am

UP n student,

This is hvrds’ point.

‘Where the Philippines is vs. just one transnational company in terms of productive capacity. (Human ingenuity)’

vic on Thu, 17th Jan 2008 4:12 am

I’ll take it one more step further Supremo. Our Government here Taxed us to subsidized Universities and Colleges and make Student Assistance Loans available to All, where Government pays the interest while the students complete their studies and they can start paying the low interest loans as soon as they are gainfully employed..or paid off if they can’t (bankruptcy release)..

hawaiianguy on Thu, 17th Jan 2008 4:22 am

I admire John Gokongwei’s advocacy for “success” through successful entrepreneurship: “work hard, do your best (even against all odds), imagine, innovate and learn from others.” Quite marvelous feat, indeed, for someone who grew up in a tradition of networks and familism, where alliance seems to define one’s place in society. He is still lucky in a sense, he came from a rich family.

But one thing he didn’t tell us is, how he acquired those virtues, or what is in that “ability” of his that makes him do it whereas others have miserably failed. Call it “risk taking,” but I see it more like the “ability to sing,” which is rare and quite difficult to learn. (Much as I would like to sing, I can do it only in a bathroom.) Risk taking is difficult to teach, what makes one gutsy or smart is not something one learns from reading or emulating others.

It makes me think now that Gokongwei is probably not quintessential of Chinese taipans. His case is a story befitting that of Horatio Algerâ€™s, of how individual efforts are rewarded by upward movement in society. (Horatio Alger is a popular writer of â€œrags-to-richesâ€ story that chronicles how hard work, determination and motivation lead to success.)

Question now is not â€œIf I can do it, so too you canâ€ but how many Filipinos actually can, or are able to do, a Gokongwei? Angaraâ€™s S&T/R&D tandem has been lying down there since Marcos time, and nothing happened. Didnâ€™t some fellow UPians (e.g., Roger Posadas) point that out decades ago as an opportunity that we always missed? And for Roxas? Maybe, I will consider voting for him as the next president.

supremo on Thu, 17th Jan 2008 4:52 am

‘Question now is not â€œIf I can do it, so too you canâ€ but how many Filipinos actually can, or are able to do, a Gokongwei?’

If only Filipino teachers stop telling their pupils to ‘KEEP QUITE!’ while in class then more Filipinos actually can, or are able to do, a Gokongwei.

UP n student on Thu, 17th Jan 2008 5:25 am

supremo: If that is hvrds’ point (that GE(corporate) is superior to Philippine(country)) what does he suggest? Is hvrds another Manuel Gallego III proposing that newly-born Filipinos get tested for genetic-acceptability or motor-skills before they are given the right to be called Filipino-citizen? That the one-man one-vote get replaced by the bigger-the-bank-account-balance, the more-the-vote? GE subscribes to cult-of-the-market and survival-of-the-fittest more than to talangka; those who don’t contribute to the GE bottom-line get fired; GE is not a democracy.

hawaiianguy on Thu, 17th Jan 2008 5:29 am

supremo,

Are you suggesting that Filipino teachers are the “problem” there? (authoritarianism inhibits expression of individualism?) Or a defect in RP’s educational system?

UP n student on Thu, 17th Jan 2008 5:52 am

supremo: GE has a philosophy — it only stays in business segments where it can be either number one or number two — segments in which it has established some measure of competitive advantage. A Philippines run like GE would probably have a million more Filipino seamen now. A Philippines run like GE would have abandoned its agriculture-sector many years ago.

supremo on Thu, 17th Jan 2008 6:03 am

hawaiianguy,

Parents are to blame too. How many here, when they were kids, can reason out with their parents without getting a broomstick in their behind? Not enough. Couple that with a yaya to turn to after the whacking and you got yourself a very confuse Filipino kid.

The Ca t on Thu, 17th Jan 2008 6:08 am

Angara wrote about the third world education of the phils.

There are more non-majors teaching science subjects than teachers with science degrees. For instance, 90 percent of physics teachers are not physics majors and 80 percent of chemistry teachers are not chemistry majors. (Table 6) And of the prospective teachers enrolled in BS Education degrees, only 1.5 percent chose mathematics and science majors.

Alan Greenspan wrote about the US education:

One of the skills too many high school graduates lack in proficiency in math…
…complain thatt he math teachers of my childhood were replaced with teachers with degrees in education but much too often with no math or science degree or competence on the subject.In 2000, nearly 2/5 ths of public secondary achool math teachers did not have a major or minor in math.

Ca t writes:

GUESS WHERE US RECRUITED THESE MATH AND SCIENCE TEACHERS BEGINNING yr 2001?

From the PHILIPPINES.

hawaiianguy on Thu, 17th Jan 2008 6:23 am

Ca t, Good comparison! May I know your point there? (The OFW bandwagon has also attracted math/sci pinoy teachers.) What does that say about the Philippines, politically, economically or educationally? Just curious.

The Ca t on Thu, 17th Jan 2008 7:21 am

but the essence of his story was that the Russians never miss an opportunity to miss an opportunity. And that same sentiment filled me when I contemplated our state as it were.

For those who are not aware that Russian’s economy collapsed in 1998 which led to its default on its loans, may believe Roxas.

So far, the Philippines hads not defaulted on its financial obligations. Sheesh.

The Ca t on Thu, 17th Jan 2008 7:30 am

Ca t, Good comparison! May I know your point there? (The OFW bandwagon has also attracted math/sci pinoy teachers.) What does that say about the Philippines, politically, economically or educationally? Just curious.

The point is we have very low regard in our educational system when this system is supplying the world with world class teachers/skilled workers.

It is not joining the bandwagon because they just want to work abroad. This is an opportunity that arose because of the problem in education in the first world economy.

The solution came from a third world country. Get the message?

ramrod on Thu, 17th Jan 2008 7:37 am

I have learned, that if one advances confidently in the direction of his dreams, and endeavors to live the life he has imagined, he will meet with a success unexpected in common hours. – Henry David Thoreau

Manolo, thanks for the Gokongwei article, it’s an encouragement hearing/reading about a fellow Carolinian.
There is one important event that I really enjoy going home to my hometown every time and that is the reenactment of the BATTLE OF MACTAN. More so when I got older, as I learned to appreciate its meaning in my life. Near naked natives (savages, we’d like to call ourselves when we we’re young and taking part in it) armed with bolos and spears defeating an armor-clad, armed with guns and cannons Spanish supermen. Lately, no organizer will take us in even if we paid money to participate, they say it will not look good for native warriors with pot-bellies, running around in g-strings, and falling all over the place, the Spanish soldiers will die laughing.
Overwhelming odds can only overwhelm those who allow themselves to be. If we focus too much on our weaknesses and be paralyzed or slowed down by insecurity and self-pity, we are done for, for sure, and all the Six Sigma, MBO, Organizational Development, Steven Covey, John Maxwell, Peter Drucker, etc. concepts will not be able to help us. Instead, WE MUST FOCUS ON OUR GOALS, all the rest are just minor setbacks that we can manage along the way, maybe even ignore. I’m sure many of us have our own personal goals, and some are even very good at meeting corporate goals. Come to think of it, do we have a NATIONAL GOAL at all? I believe that should be made clear to everyone.
We all have our jobs to do, we OFWs know ours (keep sending money to the folks back home), the activists fighting for good government, the decent public officials working on public administration, the local entrepreneurs provide employment, teachers, plumbers, and Malabanan Sanitary Engineers also. Individually, we may have to do our jobs better than anyone else. In the meantime, we do what we have been doing all this time, feed the hungry, enlighten the oblivious, and strengthen those who weaken, while being aware of the consequences of whats going on around us. I truly believe that inspite of our apparent misgivings, we will persevere until such time we reach our goals, we just need to be clear of what they are.
THE FILIPINO WILL PREVAIL.

The Ca t on Thu, 17th Jan 2008 7:50 am

Silent Waters, wouldnâ€™t you agree that Vietnam is an up and coming economic success story worthy of being emulated?

What is there to emulate? Vietnam progress economically when it adopted some democratic principles such as adoption and protection of property rights.

Before, an individual can not own the house that he bought from his own money. When he dies, it reverts back to the State. Everything was owned by the communist government.

Who would want to invest in a country to create wealth when you can not even own this wealth?

Even China’s standard of living started to rise when the government introduced the diluted ownerhip of farms, that means, they can claim rights of ownership to the farms they till.

Since year 2000 the rate of migration of farm workers to the export-oriented provinces cause the shift from centrally planned workers diminishing the control of state to its labor force.

Bottomline is these Communist countries did not progress because they were communists and they have dictatorial governments. Dictatorial government does not necessarily eliminate corruption. It just confines corruption to a few powerful people.

mlq3 on Thu, 17th Jan 2008 7:51 am

cat, i think it’s fairer to point out we’re underestimating our basic skills. we are exporting basic math, science, etc. teachers, for gradeschool and high school. we are not exporting university professors to teach college and post-graduate and doctorate courses. that would be “world class.” we are filling the vacuum in basic, public, education for the united states. now if the decreasing scores and capability of american kids in reading, math, english and science begin to be reversed, particularly in places with a heavy filipino teaching presence, then, indeed, we’re world class. if the deterioration continues, then we simply filled a vacuum but not spectacularly competently so.

ramrod on Thu, 17th Jan 2008 8:12 am

In my book, fulfilling a need is something laudable. If our teachers are needed in the US, let them go there and be rewarded for their efforts. At the very least, these teachers will also be exporting our culture, and in doing their jobs they help mold the minds of these students to be better neighbors to the Filipinos. We have more where they came from, a pool of 80million or so. One thing we must do is to make this sacrifice work to our advantage, use the funds generated by these OFWs to improve our educational system. It sure beats treating Filipinos as cannon fodder.

The Ca t on Thu, 17th Jan 2008 8:17 am

I like to read speeches. I like to read marketing strategies. But there are sure-fire marketing strategies that are not and can not be published. They are unethical business practices which makes top companies stay on top.

Example, getting the government as primary buyer of the goods produced.

Payment is assured even with ghost deliveries and overpricing is easy.

What are the products that can be sold to the government ?

1. veterinary products and fertilizers
2. medicines that are about to expire
3. textbooks that are outdated (and therefore are rotting in the storage of DEped. Last count from the news was millions of them).
4. construction materials
5. expensive and unncessary medical equipment in dilapidated provincial hospitals
etc.

And how do the corporations get to supply the government.

They too dance the tango.

Another example is bullying or buying small businesses that have potentials to become competitors.

So why do you think there is monopoly of some products in the market. like beer? or ice cream? soft drinks?

ramrod on Thu, 17th Jan 2008 8:22 am

Communist countries or not, they have something we want (Vietnam, China, etc) We may not have to COPY them completely, I believe we only need to take some lessons from them. Lets ask ourselves WHAT HAVE WE BEEN DOING WRONG? WHAT DID THEY DO RIGHT?
Perhaps its time to have a mindset that focuses on CONTRIBUTION and ACTION rather than CONTINOUSLY BE CONTRARY to anything just for the sake of BEING CONTRARY, its counter productive. Its impact is worst than corruption and more destabilizing than any coup. Say LETS DO IT not WE CAN’T DO IT. Something like AHA, SO THATS HOW THEY DID IT! not NAH, THEY WERE ABLE TO DO THAT BECAUSE OF EVIL, DESPICABLE MEANS.

ramrod on Thu, 17th Jan 2008 8:27 am

the Cat,

Now that you’ve proven yourself to be a proponent of the CRAB MENTALITY. Do you have any ideas for the benefit of the Filipino people, or to humanity for that matter? Or are you just content in your dark, lonely, stinky corner somewhere, coming up with all sorts of crap to bring down the Filipino? Don’t tell me, you’re one of those THANK YOU SUH, MAY I HAVE ANUTHA imitation Americans who think they are better than anyone else?
Do something helpful for a change, you’re not getting any younger.

ramrod on Thu, 17th Jan 2008 8:29 am

the Cat,

Are you one of us OFWs who religiously send money back home or are you living off somebody’s welfare checks? Hmmmm….

anthony scalia on Thu, 17th Jan 2008 8:58 am

There’s a reason why GE chose the ‘its-either-number-two-at- the-worst-or-get-out-of-that-business’.

Its a publicly listed company. That strategy had produced the figures so loved by Wall Street. Now GE is one of the biggest listed companies in terms of shareholder value.

cvj on Thu, 17th Jan 2008 9:06 am

What is there to emulate? Vietnam progress economically when it adopted some democratic principles such as adoption and protection of property rights…
Even Chinaâ€™s standard of living started to rise when the government introduced the diluted ownerhip of farms, that means, they can claim rights of ownership to the farms they till. – Ca T

True. The respective economic takeoffs of Vietnam and China happened when they implemented market-oriented reforms. However, we would need to ask why here in the Philippines, where we already have property rights and market mechanisms in place for a relatively longer time, haven’t experienced a similar takeoff. This is because for Vietnam and China, these market reforms were adopted at the point when their society was more equal. Unlike here in the Philippines, there were no big landlords or rent seekers holding back the rest. The value of their communist revolutions was to eliminate this layer of society. E

ven our non-communist neighbors did something similar. They addressed the problem of equity first. After that, inequality no longer became a stumbling block to economic growth.

Bottomline is these Communist countries did not progress because they were communists and they have dictatorial governments. Dictatorial government does not necessarily eliminate corruption. It just confines corruption to a few powerful people. – Ca T

I agree. Even popular dictatorships may eventually create its own entrenched elite. Besides, dictatorship vs. democracy deals with the question of how, not what. If we are able to arrive at the answer of what to do democratically, then that would be the best possible combination.

cvj on Thu, 17th Jan 2008 9:26 am

In learning from other countries’ examples, we should pay attention to the context, timing and sequence of reforms that they adopted. In China for example, the sequence was (to my knowledge):

1. 1949 – elimination of warlorlds and oligarchs
2. 1949 to 1978 – collectivization of farms and state ownership (and failed experiments at industrialization); build up of infrastructure by the state.
3. 1978 – two-tier approach where farmers are able to sell their surplus to the market after fulfilling state quotas.
4. 1978 to mid-1990’s – industrialization and economic activity led by Township-village enterprises (TVE’s) which are hybrid state/private owned entities as well as joint ventures of local firms with foreign investors.
5. mid-1990’s to present – further market reforms, China joins WTO.

Context (especially the constraints) and timing matters.

hawaiianguy on Thu, 17th Jan 2008 9:31 am

Ca t: “The solution came from a third world country. Get the message?” I hope I do, unless I misread what others say (e.g., Angara), or seem to suggest, that we still lag behind educationally, esp. in S&T. So, when our math/sci teachers leave, does that not make our situation “worse” because we solve other people’s problems before we do on ours? Of course, the other consequence could be a “gain”, as what others point out.

“This is an opportunity that arose because of the problem in education in the first world economy.” Or, you can also think of the opposite, it’s a lost opportunity for RP.

Like you, I don’t look at Phil. education with condescending eyes. But what I see in Angara’s piece is not a problem of value (we degrade our own educ) but a question of quantity (not much resources are put to S&T) or action (we are not doing much about it), which are entirely different things.

DinaPinoy on Thu, 17th Jan 2008 9:56 am

math and science? quality education? saan pumupunta ang overwhelming majority of bright, talented and the well educated pinoys? palabas ng pilipinas. ang dapat idagdag sa curriculum ay ang pagtuturo ng tamang asal – good manners and right conduct ika nga. magaling ka nga sa math pero ginagamit mo naman sa pang o-onse, wala ring magyayari sa pilipinas. hindi aasenso ang pinas kung hindi magbabago ang pinoy. ang ugali ng pinoy ay parang lansangan ng maynila. kanya-kanya. kailangang makaungos ang sasakyan mo kung gusto mong makarating sa pupuntahan mo. ang pula ay berde. ang stop ay pwedeng ‘go’. to survive in PI, you have to play the game. sigurado ako, in one way or another, gokongwei ‘played’ the game. kung tumira ka sa pinas, you ‘played’ the game too.

tama si gokongwei though. ‘work hard, do your best’ – it’s universal.

benign0 on Thu, 17th Jan 2008 10:05 am

Equality is nice. And I take the point from cvj than market reforms were introduced in Vietnam and China at a time when relative social equality was already in place.

But how’s this for some food for thought whenever we are faced with this comparison between China/Vietnam and the Philippines:

What if equality was somehow achieved in the Philippines but then instead of creating an egalitatian society of entrepeneurial people (such as we see in China and Vietnam), we instead create an egaliatrian society of starstruck ignoramuses?

Think of it. China and Vietnam purged their societies (back in their commie hardline days) of their bourgieoisie and were fortunate enough to have been left with a majority population of enterprising people. If Pinoys manage to purge its own society of the decadent elite we love to revile, how sure are we that the majority population that remains will be as enterprising and as industrious as our Chinese and Vietnamese neighbours?

Jeg on Thu, 17th Jan 2008 11:34 am

Ba-da-boom.

Amadeo on Thu, 17th Jan 2008 11:55 am

GE (General Electric) deserves all the glowing commentaries articulated above, but like any human institution it has feet of clay, too. It now has to defend itself from potentially disastrous charges that it continues to have business dealings with the Ben Ladin family and its business relationships with Iran are as strong as ever. And one wonders if even the golden touch of ex-CEO Jack Welch would buoy up the dismal performance of one of its media companies, NBC.

And a 10-year review of its stock performance shows that GE has gone a long way down from its highs at the turn of the century, and is appearing to move sideways.

cvj on Thu, 17th Jan 2008 1:57 pm

Benign0, that would be a concern if you believe that there’s something inherently wrong with the Filipino (either culturally or genetically). However, if you look back at earlier accounts, the same cultural defects that you attribute to Filipinos was also attached to the Japanese, Koreans and Chinese (more often than not by Westerners). I’m more concerned with the full potential of our people not being harnessed because of the existing inequalities.

benign0 on Thu, 17th Jan 2008 2:22 pm

cvj dude,

Firstly, my entire thesis in http://www.getrealphilippines.com is about the hypothesis that there is something inherently wrong with Filipinos culturally.

Secondly, you are basing your claim that Pinoys share “cultural defects” with the Japanese, Koreans and Chinese on the historical perception of mostly Westerners. History has proven those “accounts” to be wrong. Those three Confucian societies you cited are far FAR different from Pinoys culturally, and these differences have manifest themselves in the STARK difference in the way they and us have risen to the challenge of achieving prosperity.

Whilst Japan and Korea rebuilt from devastating wars and China recovers from a tragic “cultural revolution”, they have more than adequately demonstrated their capabilities to the world.

what have Pinoys ACHIEVED since 1946 that can be compared to what these societies have achieved?

Silent Waters on Thu, 17th Jan 2008 3:18 pm

IN the Chinese community, the Gokongwei’s are known to pay their suppliers in the slowest possible way. I do admire them for being able to get away with it….

ramrod on Thu, 17th Jan 2008 3:31 pm

benigno,

If what we all agree that your analysis of the Filipino culture is a LANDMARK ACHIEVEMENT in Anthropology or Human Evolution, etc. then hey, we’re so proud of you man! Then again, ask yourself what have you done for your country thats worthwhile? Or have you ever thought about going beyond yourself and did something for the good of humanity for that matter? If you’re thesis is something that can be used as a jump-off point for the blueprint for Philippine progress, WOW!

“IN the Chinese community, the Gokongweiâ€™s are known to pay their suppliers in the slowest possible way. I do admire them for being able to get away with itâ€¦ – Silent Waters”

Yes. I’m aware of this, I was a salesman assigned to some URC accounts, its just a matter of managing your collectibles and knowing who to follow up, 60 days is an achievement, but it can be done.

ramrod on Thu, 17th Jan 2008 3:35 pm

The Filipino will achieve prosperity inspite of government and inspite of your condescending attitude. Even if we didn’t have the same past or cultural advantage as the other developing asian countries, we’ll just wing it – IDADAAN NA LANG NAMIN SA SIPAG AT TIYAGA.

The Ca t on Thu, 17th Jan 2008 3:46 pm

Now that youâ€™ve proven yourself to be a proponent of the CRAB MENTALITY.

Mababa IQ ko, pakiessplain which among my comments made you conclude that i am a proponent of crab mentality.

The Ca t on Thu, 17th Jan 2008 3:48 pm

the Cat,

Are you one of us OFWs who religiously send money back home or are you living off somebodyâ€™s welfare checks? Hmmmmâ€¦.

What does this has to do with my comments? Did you bother to check my blog to find out who I am?

mlwnag on Thu, 17th Jan 2008 4:10 pm

benign0>

Phil-Am war 1902-1916 which is not written in history books was far devastating as 12 years old males and above were killed. There was a genocide!!!

holyfather on Thu, 17th Jan 2008 4:26 pm

The Ca t raises important points. Hirap sa atin mga Pinoy masyadong manipis ang ating balat. Kaunting katotohanan, crab mentality na kaagad. E ano ngayon kung sa mga Inchik ‘kamo mabagal magbayad ang mga Gokongwei? Kasama sa pagnenegosyo ito, hindi naman ito katumbas ng walang-hiyang pag-IPO ni Senate President Villar.

The Ca t on Thu, 17th Jan 2008 4:27 pm

now if the decreasing scores and capability of american kids in reading, math, english and science begin to be reversed, particularly in places with a heavy filipino teaching presence, then, indeed, weâ€™re world class.

The fact is evaluating the school’s performance based on the presence of the Filipino math and science teachers is a hard thing to do.

Ratio of Filipino teachers to non-Filipino is still low.

But based on the blogs of the teachers I have been reading and the success stories that I have been hearing when I was still in SF, the Filipino teachers are doing great in their performance evaluation–the results of the exams of their students.

This is a blog entry of my fellow blogkadahan, a math and science teacher from the Philippines.

I received a commendation from my principal saying that 100% of my special education students passed the summer state exams. And perhaps because of this, the principal granted my request for a higher level class. Perseverance paid off in August.

The Ca t on Thu, 17th Jan 2008 4:42 pm

IN the Chinese community, the Gokongweiâ€™s are known to pay their suppliers in the slowest possible way. I do admire them for being able to get away with itâ€¦.

If the crab mentality that one commenter here wrote has something to do with the facts about unethical business practices that I enumerated,it just goes to show that the commenter is ignorant of these life’s facts.

Frankly I don’t give a damn to the success stories of business tycoons who employ people on the seasonal/casual basis to avoid paying benefits and worse paying them minimum wage.

These payroll savings from depriving these workers what’s due them make them richer. That’s for me exploitation.

The Ca t on Thu, 17th Jan 2008 5:07 pm

we are not exporting university professors to teach college and post-graduate and doctorate courses. that would be â€œworld class.

But don’t you know that we actually do. In fact that is one of the basis for criteria in granting green card–having exceptional academic qualifications.

Should I remind you about Sheila Coronel who now heads Toni Stabile Center for Investigative Journalism of the Columbia Universityâ€™s Graduate School of Journalism?

I couldn’t mention other names here but there are people in the academe in the Philippines who have taught in the universities here in the US but decided to retire in the Philippines.

Silent Waters on Thu, 17th Jan 2008 5:10 pm

Guys guys

It was just a comment I made to counter the discussion on the other people’s admiration for the Gokongwei’s. I never intended to accuse somebody of having a crab mentality.

Point being, there are reasons why these people are as successful as they are. They have the market clout to basically take their time paying their suppliers.

As for holyfather, masakit sa tenga ang marinig ang term na “Inchik”. In the same way you guys don’t want to be called “Filipino monkeys” and “flips”. Especially in the context you wrote it.

I, for the most part, agree a lot with C at’s opinions.

cvj on Thu, 17th Jan 2008 5:11 pm

three Confucian societies you cited are far FAR different from Pinoys culturally, and these differences have manifest themselves in the STARK difference in the way they and us have risen to the challenge of achieving prosperity. – Benign0

At the time when China was still poor, some observers also used Confucianism as the reason for their being poor. The thing is, that variable did not change. China is a Confucian society then, as it is now. The variables that changed are social structure, leadership and economic policies.

At one point early in the 19th century, even the Germans were accused of being inefficient by their more progressive neighbors. It was only after they developed that they got the reputation for efficiency.

We do have our flaws as a people, but the same can be said of other countries. As one Singaporean executive said (in the context of our BPO sector), we are a ‘diamond in the rough’.

benign0 on Thu, 17th Jan 2008 5:26 pm

“We do have our flaws as a people, but the same can be said of other countries.”

And yet they are prosperous and WE continue to be the bunghole of the Far East.

manuelbuencamino on Thu, 17th Jan 2008 6:10 pm

Supremo,

Holding period comes from SEC. Lock up is a pribate arrangement between Villar and his banks/underwriters.

Point is – If there was a public announcement that Villar would unloadhis shares immediately after their listing, do you think investors will buy his IPO?

If not, then Billar, the SEC and the underwriters colluded to fool the market about Villar’s intentions.

That’s a big minus if he ever runs for president

nash on Thu, 17th Jan 2008 6:53 pm

I think we should definitely add a Flipinoy equivalent to “Godwin’s law!”

I think we should call it “Pinoy Crustacean Logic” which refers to the Pinoy tendency to drop the words “crab mentality” into every argument.

For example:

Statement: “Henry Sy does not pay treat his employees well”
Retort: “Oh that’s just crab mentality”

Statement: “Gokongwei department stores pay their suppliers very late”
Retort: “Oh that’s just crab mentality”…

You see, it’s a fool proof, watertight piece of reasoning that should be thought in every debating class.

What you say MLQ3? (Or you have a better name for this…”

cheers

holyfather on Thu, 17th Jan 2008 6:55 pm

Silent Water, tumahimik ka na nga lang. Sige, tawagin mo akong “monkey” o “flip”, ano ngayon? Check-in ka na nga lang sa Ospital ng mga maninipis ang balat.

The Ca t on Thu, 17th Jan 2008 7:57 pm

It was just a comment I made to counter the discussion on the other peopleâ€™s admiration for the Gokongweiâ€™s. I never intended to accuse somebody of having a crab mentality.

What you mention is not a crab mentality issue.

In fact that is one of the many reasons why small suppliers to these big conglomerates never succeed in business.

The big businesses are using their goods without payment for a number of days. If the term is 60 days and they pay their accounts after this term, practically, the suppliers are financing their business for the same number of days.

But why do they continue supplying them? Because they order by volume .

So how does the business make money from other people’s capital?

Take for example the restaurant business . The chains of these restaurant do not get their supply of chicken from the big chicken farms. Not a good business strategy since the chicken farms dictate their terms.

So they maintain a group of small suppliers to be assured of supply in case one fails to deliver. The terms also range from 30 to 60 days.

Chicken supplied for the day are cooked and consumed within a week. Transactions in restaurants are mostly in cash basis or credit card.

The restaurants have not only used the chicken but also the capital of the small suppliers.

UP n student on Thu, 17th Jan 2008 8:18 pm

Ca T: This 30-to-60-days term is standard practice and there is nothing predatory about it. What the supplier usually does (or should do) is to to mark the prices charged customers reflect the cost to finance the goods sold on credit, then offer a discount IF payments are made sooner. [Hey, that's how I "price" the rentals I have. The higher face-amount on the rental lease also helps me get tenants with higher cash-flow.]

The Ca t on Thu, 17th Jan 2008 8:55 pm

UPn,
I agree with you. This is in fact a financing strategy common to businesses especially the big ones.

What is wrong is when the Accounting Department of the big business takes time to process the check. I will give it another week. Clearing of check takes another few days.
SO if it is 60 days, most likely it stretches to another 10 days top.

So you can imagine if these big businesses set a term of 120 days. It may not be illegal but don’t you think it is exploitative in nature.

DevilsAdvc8 on Thu, 17th Jan 2008 9:23 pm

How difficult would it be to appoint credible, qualified and eminent persons to the Comelec, the Civil Service Commission, or to the position of Chief of Staff of the Armed Forces of the Philippines? All these can be done in the next two months.

a point i was trying to make in the last thread. an awesome power of the executive, appointing, misused to foolish ends by this admin. this is what makes a country’s bureaucracy working well, or better yet, working great. it’s the foremost power of the executive which clearly has the best and immediate effect in improving people’s lives. that’s why in the US, every appointment goes through the people’s eye of the needle before passing through. expect dubious appointments to draw a lot of flak, and the US Pres. forced to back down when pressure gets too much.

in the end, that’s all a good president can ever hope to do to become great. governing is not all abt micro managing as gloria purports to be. governing is all abt finding the right and brightest people with unimpeachable integrity to support you in your programs. a president has to look in the mirror, and admit to themselves that it is impossible to do everything and monitor everyone. the best leaders are those that know how to delegate and has the uncanny ability to find the right people to do those things they need delegating.

that’s why refusal for a cabinet revamp is an obstinate foolishness of this pretender. when everything goes wrong with a department, you cut off its head. unless you want to go further up, upon which you have nowhere to go to but yourself (if you are the pres)

the power to appoint and dismiss is all the difference a president needs to make a “difference.” you don’t reward a crappy job with a reappointment to another post (hello Angie?), you punish the inutile with lifetime ban to any govt position. likewise you don’t reward a successful appointee by moving them to another post (even if it’s highly coveted) simply bcoz they succeeded in the previous post, you reward them by giving them more of your trust. allowing them greater reins in the department they’re already handling. in other words, why fix what aint broke? if they’re already doing well in that job, why move them elsewhere? oppose to moving them and prolly depriving the previous dept with a great leader to providing the next dept with a new head that may or may not be great in this dept this time.

lastly, governing is all abt listening to the people. they may not always be right, but every bit of talk that comes from the street has some bit of wisdom in it. for a president to be able to truly succeed in transforming their country, they must be able to get the people to support them wholeheartedly. not 100% of the population. just enough so that the minority left will in the end, follow along.

so that includes never blithely disregarding public opinion. if a president truly believes a policy that needs to be pushed through, having a dialogue is still the best way to get the people’s support.

not CPR, EO whatsits, or threats of media arrests.

DevilsAdvc8 on Thu, 17th Jan 2008 9:28 pm

which reminds me, a president who can make the church change it’s stand on contraception or who can at least push this campaign successfully even w/o church support would help the next president a lot. it’s a lasting legacy. better than an automated election.

DevilsAdvc8 on Thu, 17th Jan 2008 9:29 pm

what i meant by that was a successful population control program. and not the one advocated by whatshisname? the sterilization churva…

DevilsAdvc8 on Thu, 17th Jan 2008 9:46 pm

a commentary by Felicito Payumo in today’s PDI

The response from the government is, unfortunately, a tepid one–a one-percent reduction of the tariff on fuel imports by oil companies at certain trigger prices. Not only does it come too little, too late–it is misdirected. It is the oil companies who will benefit from the tariff reduction, as a militant labor group observed, so much so that President Macapagal-Arroyo will have to tell them to pass on the savings to the consumers

it’s precisely that. oil cartel and manang gloria colluding to increase profits for the oil companies. as if the strengthening peso isn’t enough for the greedy bastards!

and another thing to note, the appointment of the next comelec chairman and all the secrecy behind it. read the PDI’s editorial today and look up at the above-mentioned observation and you will see exactly, that manang gloria and her admin has no interest whatsoever in bettering our lives.

it’s all about more power, and more profits.

UP n student on Thu, 17th Jan 2008 10:01 pm

Ca T: The next strategy, which I’m sure you’ve encountered, is factoring. [You sell your receivables for 95-or-less-cents on the dollar to get the cash now and the factoring-company collects from the original buyer.]
—
I have a friend who was selling his independent-consulting hours to WorldCom. WorldCom paid 180-days!
So my friend exchanged bad-cash-flow/high-dollars into steady-cash-flow/lower-dollars. He signed onto CapGemini but still worked on the same WorldCom project. CapGemini paid him 30 days; CapGemini (a whole lot bigger credit line than my friend) worried about the collections and life goes on.

DuckVader on Thu, 17th Jan 2008 10:16 pm

benigno,

assuming you’re correct, what is the reason for the differences in culture, as you call it?

The Equalizer on Thu, 17th Jan 2008 10:37 pm

Having worked with John for some time,I think the 3 secrets of his success :

1)He strongly believes that his business must not stand still:progress or retrogress.That’s why he is willing to put some “seed money “on any new idea that catches his attention.

2)He hires good executives,usually recently retired ones from multinationals here and abroad and tells them”he wants to see the business through their eyes”.

3)He will not reinvent the wheel or rediscover fire.BUT,he
will copy an idea and for sure produceat lower cost and sell it cheaper.

That man is a truly legendary!

Manila Bay Watch on Thu, 17th Jan 2008 10:38 pm

Re: “So you can imagine if these big businesses set a term of 120 days. It may not be illegal but donâ€™t you think it is exploitative in nature.”

Why not put a cap to all that — penalty fee for the client that witholds payment after 60 day payment agreement. Works here, why not there?

The Equalizer on Thu, 17th Jan 2008 10:48 pm

ANA:Supplier’s credit is interest free!

ramrod on Thu, 17th Jan 2008 10:58 pm

the cat,

Apparently, you and some others totally missed the point of Gokongwei’s message or why his speech was quoted. These success stories are meant to inspire people to dream, to go beyond their perceived limitations, to rise above. If you’re the corporate big shot that you say you are, you should relate to this? Have you ever heard of MOTIVATION? Have you ever tried motivating other people lesser than yourself to reach for their dreams or better yet actualize their potential?

These businessmen are operating under certain conditions that necessitate some form of creativity in order to maintain sustainability. Suppliers, only need to fine tune the way they operate. I for one in my younger years just have the invoices countered as soon as possible so that the payment will be processed on time, of course it helps if you have some rapport with the customer also.

What do you call it when some people just take it upon themselves to find something negative when reading or hearing about another person’s success story? Maybe you can call it ENVY, or SOUR GRAPING, but those are colonial concepts, we have CRAB MENTALITY – the obsessive desire to pull down anyone who gets a leg up. Thats precisely the reason why the average Filipino is the shy, silent type, who is afraid of asserting himself and would rather work in quiet resentment rather than ask for a raise.

And I don’t have to see your blog, your attitude towards your fellow man reflects your capability of achieving anything beyond your current pay grade scale. You remind me of John Maxwell’s LAW OF THE LID. And if you want to play my company is bigger than yours, you have to be prepared to think in EUROS.

The Equalizer on Thu, 17th Jan 2008 11:19 pm

ramrod:I agree with you.We are always so cynical about other people’s success(“oh,they must have done something illegal to succeed”).

Gokongwei and Hentry Sy ,warts and all, are truly legendary and we ordinary mortals, can learn a thing or two from them.They built their business empires literally from scratch!

I admire them more than the “Filipino-Spanish”
business clans who started with great advantage …inherited wealth passed from one generation to another.

UP n student on Thu, 17th Jan 2008 11:27 pm

but ramrod, many Filipinos raise their lids by partnering with Americans who establish BPO’s in Makati or that chip-plant in the Baguio Export Zone, and you’re proposal is to kick the Americans out. Double-talk???

cvj on Thu, 17th Jan 2008 11:42 pm

youâ€™re proposal is to kick the Americans out. Double-talk??? – UPn Student

I don’t see any ‘double-talk’. The rapidly progressing Vietnamese ‘kicked the Americans out‘ before let them in again, this time on their own terms. Truly worthy of emulation.

ramrod on Thu, 17th Jan 2008 11:48 pm

The cat,

I apologize for what I posted earlier. I understand now that it was uncalled for. Some things just donâ€™t go well with me especially if it involves MORALE issues with Filipinos. I have probably dedicated half of my life training and motivating people that it pisses me off when someone belittles us in any way.

Frankly, I donâ€™t give much thought to Gokongwei or Lucio Tan, or Donald Trump, etc. What Iâ€™m always interested in is the way they actualized themselves, their frame of mind, their attitude, fortitude, creativity, and where or how they get the strength to move on inspite of obstacles. This also goes with other developed countries. Bottomline, hoping that we can learn vicariously from them. I have always believed in a CAN DO attitude, and doing something concrete rather than complain about things. Iâ€™m pretty sure you believe in something similar.

Anyway, PEACEâ€¦

ramrod on Thu, 17th Jan 2008 11:52 pm

“The rapidly progressing Vietnamese â€˜kicked the Americans outâ€˜ before let them in again, this time on their own terms. Truly worthy of emulation. – CVJ”

Precisely my point, unless we learn to move away from the SERVILE mold and assert ourselves, we’ll just do what some rape victims do – LIE DOWN AND PRETEND TO ENJOY IT.

The Equalizer on Thu, 17th Jan 2008 11:58 pm

weâ€™ll just do what some rape victims do – LIE DOWN AND PRETEND TO ENJOY IT.ramrod

You are sounding like that cruel Raul Manglapus when he gave that advice to Filipinas in Iraq.

cvj on Fri, 18th Jan 2008 12:02 am

One hundred and one comments and no one has brought up the snake in the basement. I take it as a good sign.

The Equalizer on Fri, 18th Jan 2008 12:04 am

cvj:that was just a stupid,ugly rumor started by a competitor.That was a cruel joke.

UP n student on Fri, 18th Jan 2008 12:13 am

ramrod and cvj: You may not understand this, but many Filipinos do consider themselves the equal to Americans. SERVILE is a word that comes from your mouth; I doubt that Lance ever thought of the word even when during his MBA student days at U-of-Pn’s Wharton School.

ramrod on Fri, 18th Jan 2008 12:14 am

Equalizer,

I knew I got that from somewhere, you posted that some time ago last year? Sorry, I should’ve given credit to Manglapus. Was he serious when he said that? I thought it was a joke, did he really say that?

ramrod on Fri, 18th Jan 2008 12:18 am

UP n student,

Look up Al Mcoy’s “Closer than Brothers” on what the Americans described Filipinos, there’s also another word they used having the same meaning to EFFEMINATE.

hvrds on Fri, 18th Jan 2008 12:18 am

“Natural selection is the mechanism that drives genetic evolution.” Richard Dawkins.

Anyone who suggests that the markets alone is responsible for sustainable economic development is totally clueless about the history of economic and political development.

Thomas Jefferson and Andrew Jackson were both kindred spirits in their thesis that the American experiment would be based on an agricultural republic. (Adam Smiths world of farming communities)

They both did not trust the ideas of a federal government supporting their manufacturing sector as a means for gaining comeptitive advantage over their European competitors. Crony capitalism with benefits for the country.

That precipitated the Civil War. Free land and slave labor had made the U.S. the bread basket of Europe. Cotton and the invention of the cotton gin drove the industrial revolution in England and gave the South untold riches. The Northern part of the U.S. was slowly industrializing and they wanted no part of English free trade policies.

The dichotomy in U.S. politics then was established by that split – Republican (Hamiltons economic nationalism) vs. Jefferson’s/Jacksons Democratic party. it was that ideological battle between Jackson and the public chartering of the Bank of the United States. (the forerunner of the Federal Reserve and the initial introduction of paper money then.

The early stages of monetarism which is a necesary strategic ingredient of economic development (industrialization). Financial technology evolving.

G.E. is an abstract human being. However it recruits the best and the brightest and it is that collective human effort that is the driving force that drives innovation.

Look at Citigroup. Robert Reed and the present head of the bank are engineers. John Thain formerly of Goldman Sachs and now Merril Lynch is also an engineer. The collective leadership of the former Soveit Uunion and the present leadership of China are all engineers.

Here unfortunately we are run by ideological equlibrium economists who believe themselves to be scientists akin to physicists.

Would everyone wish to go back to living in an agricultural economy? What the country has of its industrial capacity is imported and almost always foreign owned. The energy industry here is almost totally dependent on foreign know how and foreign capital. Check how many patents and copyrights the Philippine businesses have rights to. You can pay for it you know. That is what the Japanese do. Before the war (second) they just reversed engineered it just like what the Chinese are doing today.

But all that requires a collective consciousness that we do have a country and would like to buildup a modern state.

The more modern states did not have a clue of where they were going but they did have dreamers who thought of possibilities of bettering themselves. We stand on their shoulders today.

The invention of the Bessemer process that made steel cheap to mass produce came about as a result of the British finding ways to produce a more efficient cannon. The application gave us turbines to fly jets and produce electricity and build skyscrappers and bridges.

Andrew Carnegie sold his rights to property in Titusville, Pennsylvania to fund his venture into steel production. Titusville is the birthplace of the oil industry in the States and in the world. That is where the Rockfellers built their empire. Carnegie started out as a telegraph operator for the railroad company. He set out and built up what was to become U.S. steel.

Once again the financial engineer J.P.Morgan married U.S. steel and G.E.

The government very recently released the share of households (17 million) in the Philippine formal economy. The total is Php 3 trillion. We can safely assume that the share of the overseas worker is ($15 billion) @ Php 45 – $1 Php 675 billion.
Take into consideration the net export of goods and services on top of this at ($10 billion) @ Php 45 – $1
Php 450 billion. (This figure will have to be divided between families, businesses and government)

That would mean that one third of family income is dependent on the global marketpalce. However it would be safe to assume more than half of families have a lifeline from overseas labor.

Plus that labor income is denominated in foreign currency and it allows us to import our strategic needs.

That in essence is Philippine economic policy. If it ain’t broken why fix it.

Carl on Fri, 18th Jan 2008 12:20 am

Too lazy to post the exact URL but check this news report in http://www.inquirer.net:

Doctors oppose generics rule in cheap medicines bill

Sobrang palusot. By removing their power to prescribe without the medicine’s generic name, the bill will drastically reduce pharmeceuticals’ marketing expense (which could rack up to 40% of their revenue!). This means no financial/travel/material incentives for doctors.

cvj on Fri, 18th Jan 2008 12:22 am

Equalizer, perhaps, but considering the current topic, no discussion would be complete without that matter being brought up.

ramrod on Fri, 18th Jan 2008 12:24 am

“You may not understand this, but many Filipinos do consider themselves the equal to Americans. – Up n student”

I know, and I know you don’t consider yourselves inferior to Americans either, and so do many people in this blog. But thats us, just take a look at the average Filipino. Try molding fresh graduates (not from UP, La Salle, or Ateneo, or any high-end schools) into salesmen and you’ll see that you have to dedicate a whole module just for SELF-CONFIDENCE building.

ramrod on Fri, 18th Jan 2008 12:30 am

“By removing their power to prescribe without the medicineâ€™s generic name, the bill will drastically reduce pharmeceuticalsâ€™ marketing expense (which could rack up to 40% of their revenue!). This means no financial/travel/material incentives for doctors. – carl”

Carl, you’re too considerate, instead of material incentives just say cars, aircons for their clinics/houses, television, refrigerator, videoke VIP rooms, spas, and more if the medrep is creative.

ramrod on Fri, 18th Jan 2008 12:32 am

cvj,

Re “snake in the basement” you heard about that too? I thought it was just a joke I heard as a salesman in Cebu a long, long time ago?

supremo on Fri, 18th Jan 2008 12:39 am

‘dedicate a whole module just for SELF-CONFIDENCE building.’

Why not include this in every school’s curriculum?

cvj on Fri, 18th Jan 2008 12:40 am

Ramrod, that story has become an Urban Legend along with the worm-burgers rumor of another fast-food franchise.

The Ca t on Fri, 18th Jan 2008 1:11 am

Ca T: The next strategy, which Iâ€™m sure youâ€™ve encountered, is factoring. [You sell your receivables for 95-or-less-cents on the dollar to get the cash now and the factoring-company collects from the original buyer.]
â€”
I have a friend who was selling his independent-consulting hours to WorldCom. WorldCom paid 180-days!

Sure, but 95 per cent is too high for receivable factoring. I myself do not resort to factoring not unless the age of the receivables is 180 days up.

World.com is dead. Hurray.

What others do not understand is that the banking system work the same way with their receivables. They grant the loans and they sell these loans receivables to other banks.

Thus the sub-mortgage crisis and the mortgage default in the US heavily impacted Europe and other financial system.

US sneezes and the world gets the flu.

cvj on Fri, 18th Jan 2008 1:32 am

Thus the sub-mortgage crisis and the mortgage default in the US heavily impacted Europe and other financial system.

US sneezes and the world gets the flu. – Ca T

This time around, the US banks are being rescued by cash infusions from the State Investment arms of Abu Dhabi, Kuwait, Singapore and China.

When the China Investment Corp. pumps in $5 billion to Morgan Stanley, we are not witnessing the triumph of state capitalism, but rather, the embarrassing, humiliating failure of Reagan-Thatcher style unregulated capitalism. So now the U.S. buys Chinese toys at Wal-Mart, and China uses the resulting cash to buy American banks. Hey, anything’s fair in love and war and free markets. – Jeffrey Garten, How Wall Street Broke the Free Market

http://www.salon.com/tech/htww/2008/01/15/sovereign_wealth_funds/index.html

So much for reliance on market forces.

The Ca t on Fri, 18th Jan 2008 1:35 am

These success stories are meant to inspire people to dream, to go beyond their perceived limitations, to rise above. If youâ€™re the corporate big shot that you say you are, you should relate to this? Have you ever heard of MOTIVATION? Have you ever tried motivating other people lesser than yourself to reach for their dreams or better yet actualize their potential?

Read the background of the success stories of the US robber barons and you will find out that without the unfair and and anti-competitive business practices that they adopted, they could not have become billionaires.

I used to read success stories to motivate me. One of the stories was about an ordinary lady accounting clerk who rose to become the President of a bank.

Only to find out later that the position was courtesy of the lover who had a clout in the banking industry.

Bill Gates was rumored to be a college drop-out and yet he made it big. What the people did not know was, he was studying when he decided to stop schooling to pursue a project. Then he married an MBA graduate.

He went back to College and also pursued post graduate studies.

If one is going to read up to the point when he was touted to be a high school drop-out who made it big, then the youth will be motivated not to pursue college.

The Ca t on Fri, 18th Jan 2008 1:45 am

I apologize for what I posted earlier. I understand now that it was uncalled for. Some things just donâ€™t go well with me especially if it involves MORALE issues with Filipinos. I have probably dedicated half of my life training and motivating people that it pisses me off when someone belittles us in any way.

If you’ve read the collections of my anecdotes about my life as an ofw (am not promoting it btw)and my career development, you will find out my motivation to succeed.

UP n student on Fri, 18th Jan 2008 1:45 am

hvrds: Did you really write down in your blogpost that
“…in essence (the) Philippine economic policy… ainâ€™t broken why fix it”?
—-
cvj: I know one of your notes urged all to read and learn from hvrds’ blogpost entries, do you agree with his “… ain’t broken” message?

cvj on Fri, 18th Jan 2008 1:50 am

UPn Student, i think that last sentence of hvrds’ comment that you refer to is a description, not a prescription.

vic on Fri, 18th Jan 2008 1:57 am

Doctors oppose generics rule in cheap medicines bill

Agree with you there Carl. If proper screening is done the doctor will find out that Generic Brand will cause adverse effect on his/her patients and can make a notation in the RX of no substitution if it does.

Actually, we have a few Generic Manufacturers here and the Pharmacist will dispense the Chemical Name of the Prescribed Medication for whichever Generic Brand available in stock..And my Doc will note no Substitution for Particular Branded Medications..

UP n student on Fri, 18th Jan 2008 1:58 am

The Philippine economy ain’t broken????

cvj on Fri, 18th Jan 2008 2:01 am

The Philippine economy ainâ€™t broken???? – UPn Student

What i think he meant was that the guiding philosophy of our economic policy makers is “If it ainâ€™t broken why fix it“.

supremo on Fri, 18th Jan 2008 3:02 am

UP n student,

I second cvj’s interpretation of what hvrds said. This INQ article validats it.

‘Roadshows launched to inform OFWs of financial instruments’

hawaiianguy on Fri, 18th Jan 2008 3:36 am

ramrod,

I got the impression that you are into training and motivating people, and that as you claim, you believe in the “can do” dictum. Sorry to hear the exchanges between you and cat, which partly began with my asking her that later got somewhat nasty.

May I ask what you been training people for? and what motivational module do you use?

Tell you, I was into entrepreneurial training for many years, starting at UP, with a team. But we didn’t have the illusion of producing another Gokongwei, a Tan, a Sy or a Villar. Just small or medium type of business-minded and motivated takers. The program went well in the beginning, despite all odds. Many success stories were told, but the problems of startup (more so of sustainability) just proved too difficult to overcome. One major problem is the political, or partly what Nash calls “bureaucratic hurdle”. One can’t do much when leaders (local or national) themselves find it hard to match their rhetorics with action. Still, many are drowned by the means (rules) losing sight of the ends (results), while the usual kurakots insinuate “meron ba tayo diyan?”. At the end of the day, Mr (Ms) 10 percent spoils it all. Like it or not, thatâ€™s part of the environment one has to realistically contend with.

Cat,

â€œI used to read success stories to motivate me. One of the stories was about an ordinary lady accounting clerk who rose to become the President of a bank.â€ Many already know who that guy is. But I salute you for motivating yourself. I think youâ€™re an entrepreneurâ€™s entrepreneur. And oh, I like your brief â€œFilipino monkeyâ€ thread.

UP n student on Fri, 18th Jan 2008 3:41 am

supremo / cvj : I won’t argue if you say that hvrds said that “….the guiding philosophy of our economic policy makers is â€œIf it ainâ€™t broken why fix itâ€œ.
—And if you say that you are in awe of the breadth of the concepts that hvrds brings to his blog entries, so be it. But I will tell you that that to me, hvrds does not have focus and that hvrds writes poorly.

supremo on Fri, 18th Jan 2008 4:15 am

UP n student,

I’m not really ‘in awe of the breadth of the concepts that hvrds brings to his blog entries’. I can probably read those concepts in an organize manner somewhere else. hvrds should have his own blog so he won’t ‘clutter’ mlq3’s blog with kilometric entries.

DevilsAdvc8 on Fri, 18th Jan 2008 5:03 am

i personally like hvrds’ posts, so no, i don’t hate kilometric entries. hell, i read through the 3 speeches didn’t i?

and what abt manolo’s entire blog, comments included?

DevilsAdvc8 on Fri, 18th Jan 2008 5:43 am

abt the announced doctors’ strike, it’s one big bull for the doctors and one more hurrah for greediness.

pharmaceutical companies keep these doctors happy so long as they prescribe the brand of the companies. you name it, they’ll offer it. it’s all within the medrep’s imagination. so this outcry of reduced efficacy vs generic meds doesn’t stick.

it’s chemistry 101. what is NaCl will still be NaCl brand or no. actually, all pharmacies are required to give out the generic brands so long as the customer asks for it. it’s jz that most people don’t know this, or for that matter don’t know that generic meds are cheaper or that it has the same effect as the branded ones. some who even know this still purchase branded meds simply bcoz of the fear that disobeying doctor’s orders(that’s the prescribed med for you) will have dire consequences. that’s why the bill is being pursued. among other things (parallel importation included), making it illegal for doctors to prescribe brand meds will help a lot in the fight for cheaper meds. what this will do is give people the knowledge that they have a CHOICE and basically hit hard an entire profession, medrep. it’ll make life harder for medreps. not impossible, but harder. even if doctors can’t prescribe it, they’ll still be able to “suggest” the brand meds verbally, and still stock up on the meds in their own clinic (correct me if im wrong on this one. or if there is a provision in the bill covering these loopholes)

and if there is one hard rule in pharmaceuticals, its this: people hardly switch brands once they’ve started on a particular one. brand switching only happens of the previous brand was ineffective, or gave downright ill sideffects. that’s why doctors are bribed, err, given so much incentives by the giant pharmaceuticals to prescribe their meds. few patients will ever veer off from what the doctor prescribed. expensive or not. esp pinoys. we’ll sell everything we have so long as we buy that med we need.

DevilsAdvc8 on Fri, 18th Jan 2008 5:49 am

so if you know of a doctor joining the strike, then you can safely include him/her in your “doctors not to be trusted” list. just switch doctors who’ll willingly give you the generic brand, bill or no. then if you’re rich enough, just go around the round of drug stores and ask for the most expensive brand of that generic med if you really want brand meds.

hawaiianguy on Fri, 18th Jan 2008 5:49 am

DevilsAdv, “itâ€™s all about more power, and more profits.” Bull’s eye! Meanwhile, as Manang Gloria’s govt wants more of them, it also loses some, as RP’s democracy “sliding down”?

(“Just as concerning, countries that had made progress towards freedom in recent years took significant steps backwards. In Asia, Bangladesh, Sri Lanka, and the Philippines all saw declines in their ratings,” http://www.freedomhouse.org/template.cfm?page=70&release=612.)

hvrds on Fri, 18th Jan 2008 6:07 am

Some people sometimes are still no read and no write. The U.S. Civil war was started by a Republican President who believed that the American Republican experiment was one worth dying for based on moving forward.

In essence bringing to fore what was American policy for a basically agricultural economy moving into the industrial age. He broke the system to fix it. He did not abolish slavery until well into the war. He imposed nationalist economic policies and went against the precepts of free trade.

He said it quite clearly – why build a railroad entirely made in England and set out to build one built from the a U.S. steel mill. We will create our own railroad and our own steel mills. It was Carnegie who learned of the switch from iron rails to steel and he quickly brought the Bessemer process into the U.S. and this served as his ace in the hole in creating U.S. Steel. Small effect. Admiral Deweys steel hulled ships blasted Montojo’s ships in Manila Bay.

Another case study is the Tata family in India. They established the first steel mills in India over a hundred years ago and so naturally they are the main producers of trucks and cars in India.

If economic policies and political systems work for a while it is because they have not caused widespread problems. The Philippine colonial experience gave us a system where we can operate in first world countries but not in our country which is primarily still third world. Just follow what we do to our shit and sewage systems. In some parts of the industrialized West they recycle it and drink it.

Economic and political institutions are borne out of major periods of extreme crisis.

The same is true of the Philippines.

I believe that the issues of hunger and shelter were solved rather quickly in the more temperate climates due to the fact that the weather plays a major role in physical survival. Man adapted to the cold while in tropical climates men went around almost naked.

Look at Australia. When Captain Cook arrived the indigenous people were stark naked. The white man brought the slaves from Africa to work the fields in tropical countries since they could not survive the sweltering heat.

Why no slaves or plantations in the North. Why are people now moving to the Southern and South Western part of the States. Cheap energy and air conditioning.

The emergence of India and China in the last 50 years have shocked many in the West but this is part of the natural process of change.

But the top of the pyramid in the Philippines have always thought themselves to be on par with Europe and the U.S.

That is precisely the colonial mindset.

They do not even realize that once you make the dollar the basis of your official reserve system in a fractional reserve banking system you put yourself under U.S. monetary policy. But that concept is hard for locals to comprehend. There is no formal state.

Boy Mejorada on Fri, 18th Jan 2008 6:09 am

One hindrance to our growth and development is our distorted sense of values. That’s probably because we don’t understand our traditions and history. Most of our youth don’t even know the heroes who sacrificed their own lives in the name of freedom.
In Japan, Korea, and Vietnam, the names of centuries-old legendary figures are passed from one generation to the next, building a sense of pride and identity for the entire nation. Traditions that began hundreds of years ago are practiced even in this modern world.
It’s really true that one big fault of our people is that we tend to forget easilly. As a result, we become confused as to who we really are.

hvrds on Fri, 18th Jan 2008 6:25 am

http://www.nytimes.com/2008/01/20/magazine/20Ben-Bernanke-t.html?hp

What precipitated the move away from the gold exchange standard in 1972. Read and learn.

“Martin ran into even tougher pressure from Lyndon B. Johnson, who tried to browbeat him into easing rates. One version of what occurred, according to Richard Fisher, the current head of the Dallas Fed, who has studied the history, is that â€œLyndon took Martin to his ranch and asked the Secret Service to leave the room. And he physically beat him, he slammed him against the wall, and said, â€˜Martin, my boys are dying in Vietnam, and you wonâ€™t print the money I need.â€™ â€ Martin ultimately caved. By the time he retired, in 1970, inflation was a worrisome 6 percent. Soon after, President Nixon told Burns to promote maximum employment. In fairness to Burns, he was laboring under the unforgiving strictures of an academic model known as the Phillips curve, which held that low inflation and economic growth were incompatible opposites. If you wanted to raise employment, you had to permit more inflation. And thatâ€™s what Burns did.”

hawaiianguy on Fri, 18th Jan 2008 7:07 am

hrvds:

“That is precisely the colonial mindset.
“They do not even realize that once you make the dollar the basis of your official reserve system in a fractional reserve banking system you put yourself under U.S. monetary policy. But that concept is hard for locals to comprehend. There is no formal state.”

This is also what I drive at when the country mindlessly goes global and gets tangled in the borrowing business from WB/IMF. Borrowing per se is good, esp. for a country with little or no surplus. It gets bad when the borrower unconditionally accept the lender’s terms and conditionalities, many of which are inimical to further economic growth.

One problem that I see is that, RP is coming from a position of weakness, not strength. The more it borrows, the more it goes deep into the quagmire that, sadly, dooms succeeding administrations. They call that situation the debt trap.

nash on Fri, 18th Jan 2008 7:22 am

“… then the youth will be motivated not to pursue college.”

I got two words Ingvar Kamprad.

Maybe another two: Alan Sugar.

Maybe another two words: Winston Churchill (or John Major perhaps)

Not everyone can/should/is cut out for college. It can actually give one false hopes. Of course, in an overpopulated country like ours, education may be a stepping stone but it’s NOT the only way (and one must be aware that diploma mills exist to propagate this illusion).

Of course the quality and what crap we get taught in High School is also a problem. We graduate high school with no qualifications at all (as compared to UK or Austria). And this is perhaps the main reason why university education in our neck of the woods is much over-valued.

Imagine, we actually have to spend so much time and money for college to become bank tellers, call centre agents, semiconductor industry operators. (Well, one might actually not mind spending time in college just to get such jobs in a place where the supply is far greater than demand.)

Instead, apprenticeships in industry should also be promoted…

College is over-rated.

nash on Fri, 18th Jan 2008 7:24 am

ps….I’d like to point out that I am not disparaging the said jobs I mentioned. Rather, these are jobs that can be taken under apprenticeship…

inodoro ni emilie on Fri, 18th Jan 2008 10:35 am

I can probably read those concepts in an organize manner somewhere else. hvrds should have his own blog so he wonâ€™t â€˜clutterâ€™ mlq3â€™s blog with kilometric entries

the solution is easy: skip. personally, hvrds’s commentaries are more worthwhile and enlightening to read than a resume masking as opinion.

ramrod on Fri, 18th Jan 2008 12:28 pm

Children Learn What They Live

If a child lives with criticism, they learn to condemn.
If a child lives with hostility, they learn to fight.
If children live with fear, they learn to be apprehensive,
If children live with pity, they learn to feel sorry for themselves,
If a child lives with ridicule, he learns to be shy.
But do not despair …
If a child lives with tolerance, they learn to be patient.
If a child lives with encouragement, they learn confidence.
If a child lives with praise, they learn to appreciate.
If a child lives with fairness, they live with justice.
If a child lives with security, they live to have faith.
If a child lives with approval, they learn to like himself.
If a child lives with acceptance and friendship.
they learn to find love in the world.

â€” Dorothy Law Nolte

The Philippines is a child compared to other developed countries, its still wobbling about, trying to get its bearings, its focus, and in some ways its identity. How do we guide a child’s growth, by continously finding fault in him?

ramrod on Fri, 18th Jan 2008 12:37 pm

Agree, hrvds kilometric posts makes me gasp for breath most of the time, but honestly I copy most of them for my reports to management.
Sorry, HRVDS I believe I owe you dinner somewhere.

ramrod on Fri, 18th Jan 2008 12:40 pm

hg,

I mostly come in for the salesmanship part of the whole training program but my experience is that we have a lot of insecure graduates out there (except from the exclusive schools). I wonder why, is this the way we are brought up?

UP n student on Fri, 18th Jan 2008 11:13 pm

ramrod: It is tempting to say that a key source of the insecurity of many Filipino students (and graduates) is their lack of experience with the English language — many Filipinos are acutely aware (hence become shy) that they truly are not as good in presenting their thoughts in a formal setting and that if challenged, that they can not hold their ground during an intellectual argument. They know that their vocabulary is lacking. They can say XYZ is wrong, but when asked “how wrong is she?”, they are stumped because they miss the finer differences between {inappropriate, sinful, perverted, biased, illegal, unholy, immoral, unjustifiable, misguided, reprehensible or salacious}. Having something to say is not enough — one has to have the vocabulary and use words that precisely match the thought. One has to have content.

UP n student on Sat, 19th Jan 2008 12:31 am

It is tempting to say poor English skills, but I think that is wrong. Reason: I have met many foreigners (I met one again just last night — she’s Polish, she mixes her tenses and pronouns and did not know the English words for red, onion, and forty-eight) who will wade into discussions with their broken English knowing that they contribute and that they deserve to be listened to. But the foreigners I met have confidence from “content”, e.g. Chinese/Indian/Algerian programmers with masters degrees and super-fluent in C or C++, and the Polish from last night is also fluent in Russian, Hungarian, Czech and Italian. And they are just confident and know how to hold conversations and discussions.

ramrod on Sat, 19th Jan 2008 12:54 am

Up n student,

I believe its not just language skills, its our innate compulsion for conformity, we are afraid to stand out, to look “mayabang,” so mostly we just “don’t rock the boat” and stay AVERAGE. I admire schools like UP, La Salle, UST, Ateneo, etc. for they have managed to take away this innate fear…

Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light , not our darkness, that most frightens us. We ask ourselves, who am I to be brilliant, gorgeous, talented and fabulous?

Actually, who are you not to be?

You are a child of god. Your playing small doesn’t serve the world. There’s nothing enlightened about shrinking so that other people won’t feel insecure around you.

We were born to make and manifest the glory of god that is within us. It’s not just in some of us; it’s in everyone. And as we let our own light shine, we unconsciously give other people permission to do the same. As we are liberated from our own fear, our presence automatically liberates others.

Marianne Williamson

ramrod on Sat, 19th Jan 2008 1:39 am

“even if doctors canâ€™t prescribe it, theyâ€™ll still be able to â€œsuggestâ€ the brand meds verbally, and still stock up on the meds in their own clinic (correct me if im wrong on this one. or if there is a provision in the bill covering these loopholes) ” – devils

I don’t think they’ve seen this loophole yet, but kudos for seeing it! They are called DISPENSING PHYSICIANS. With 5+1 deals which are normally channeled to Chinese wholesalers at higher proportions, like with a doctor’s deal of 5+1, the salesman/medrep will take an order from the wholesaler for 1000+200, the deal is closed with cash before delivery so this gives the wholesaler 2% prompt payment discount. The rep then remits the collection, gets the invoice from the branch and connives with the delivery guy to deliver to the wholesaler (not to the doctor’s address) and whala – sales target + collection target hit with one stone! Nothing appears on the aging of accounts because its cash transaction, so no collectibles, no problematic accounts, no audit. Some really good reps can close millions actually.

UP n student on Sat, 19th Jan 2008 2:28 am

ramrod: A clinical psychologist, looking at the timidity/lack of self-confidence of majority of filipino college students and recent graduates, may conclude that these Filipino youth are raised poorly (with blame falling on the parents and teachers). One study identifies four major points related to the young growing into a self-assured adult. The four basic needs are (1) teenagers need acceptance, (2) teenagers have a basic need to give affection and to receive it; (3) teenagers need to experiment and to seek out new experiences; (4) teenagers need safe boundaries.

The first item — acceptance — is particularly where a parent or a teacher can crush the spirit and self-assurance of the young. I suppose it really is all in the training. If a young teenager has been receiving consistent signals from his parents or his teacher that he is an adult already, then self-assurance is nurtured. So it may require sophistication, effort and some changes for an adult to demonstrate acceptance and respect for the younger because the “QUIET, just do what I say!!” approach will be ill-advised. It may still end with “my-house/my-rules” conclusion, but the adult should continue to show respect for the youth. Most important, the adult must demonstrate willingness to listen (The youth must have his 15-minutes (or an entire-evening’s worth of minutes) to present his point of view) Then, the adult must acknowledge that people with differing opinions can still co-exist.
And then, of course, there is also a number of life-skills that the adult needs to share with the youth, e.g. negotiations and conversations-based-on-issues.
————–
After age-25 though (give or take a few years) the blame-the-teacher/parent game has to stop and self-responsibility has to kick in. One can learn to be more assertive and self-assured.

Chona on Sat, 19th Jan 2008 3:37 am

UP n, but “Quiet! Just do what I say!” is so efficient!!!

ramrod, Mary Ann Williamson’s words suggests to me that she is a Presbyterian. “child of god… to be brilliant and fabulous” as birthright. That is not the Roman Catholic message. Roman Catholics get the message of unworthiness. “Sinner! sinner!You are an unworthy sinner.” Attach to this the “… greed is bad” and “money is root of all evil” and Roman Catholics, especially brown-skinned ones, are especially depressed and repressed.

chris on Sat, 19th Jan 2008 12:47 pm

everyone seems to forget Singapore is not free.
and economic growth is not worth 2 years of my life in a defacto prison camp (Lee Kwan Yew’s so called National Service_

Fanny Barnham-Smythe on Sat, 19th Jan 2008 6:36 pm

Once when I was enroute to Paris(first class! of course )
dear,the flight stopped in MNL to onload passengers or more correctly rabble! well I was NOT amused,i nearly choked on my gin and tonic!,an unsightly gaggle of what can only be described as “overseas workers” took it upon themselves to push,shove and overloaded with packages caused a display of uncouthness( unrivalled in my travel experience)through the first class cabin enroute to cattle class where they rightly belong dear.
Well one elderly “lola”(dressesd in a cheap polyester dress,what was she thinking!) had the GALL to seat herself in a first class seat and refuse to move!! well I was not amused and feverishly called for her prompt dispatch back to be with the rest of the low rent.
Well dear I can tell you that after that disply the Gin and Tonics went down very quick !!

cvj on Sat, 19th Jan 2008 6:45 pm

agent-provocateur

nash on Sat, 19th Jan 2008 7:33 pm

Fanny, don’t attempt satire if your grammar and spelling is vile (It’s so obviously state-school sponsored). Somehow, the joke falls flat.

Fanny Barnham-Smythe on Sat, 19th Jan 2008 7:51 pm

excuse me ! if one has had a few g and t’s then one cant help but slip up here and there now can one,please dear dont try and rise above your station ,I can assure you I have never set foot in a state school ,pretending to be above ones station in life when one is merely a kareoke singing pleb from from paranaque is so unbecoming!

anino on Sat, 19th Jan 2008 11:08 pm

Queen E II is not so amused with your “fanny” satire, but if you have your own private plane or charter one, you should not have to drink your gin and tonic so quickly but savour them with all time on your sweet fanny. Next trip let me know and I’ll lend you my private Bombardier as long as you can fly it yourself..Pilots so expensive, you know…

vic on Sat, 19th Jan 2008 11:25 pm

To counter the Doctor’s prescribed Branded Brand with Generic equivalent (quality control requires that generic equivalent is exactly the same as the Brand name chemical components)the ministry of Health give Pharmacies “commission” or Bonus for Dispensing Generic Brand for Government Covered Medications..for those covered by extended care of their employers, it’s your choice..Doctors may prescribed brand name or chemical name, pharmacists may dispense name of brand or equivalent generic…both know what they are doing…

vic on Sat, 19th Jan 2008 11:28 pm

I meant doctors may prescribed Brand or Generic names…

dispensed medications always show Chemical composition or “chemical names”

Bencard on Sat, 19th Jan 2008 11:48 pm

the guy must be imbibing “markang bulaklak”. i bet he is blind too, mistaking the tail-end lavatory as “first class” cabin.

Bencard on Sun, 20th Jan 2008 12:11 am

btw, i understand (from my “kanto boy” days) that markang bulaklak causes blindness.

ramrod on Sun, 20th Jan 2008 12:48 am

“btw, i understand (from my â€œkanto boyâ€ days) that markang bulaklak causes blindness.” – bencard

hahaha! Yes its almost the same composition as rubbing alcohol!
Fanny, you must be tired of getting kicked around wherever you go, sometimes dropped, and at times sent to the wrong destination – it was the baggage compartment you went into not the 1st class area! Serves you right for drinking rubbing alcohol!

Lester Cavestany on Sun, 20th Jan 2008 1:55 am

Trivia: Indonesians also use the word “sayang” and it means the exact same thing in Tagalog. It can also mean “sweetheart” in their language.

I hope that when we use “sayang” to describe our progress in a few years, we’ll use the latter definition and say, “O my sweet nation, look how far you’ve come!”

nash on Sun, 20th Jan 2008 2:11 am

I am surprised that Madame Fanny knows a lot about Paranaque (where is that) Karaoke bars. Is that where she gets her rent boys?

Fanny Barnham-Smythe on Sun, 20th Jan 2008 6:17 am

Really dear!! its quite sad that some people here who will never fly first class or taste champagne(the real deal not the generic swill you are used to)resort to cheap childish insults befitting their stature and station in life dear.
You may be used to drinking rubbing alcohol and cheap plastic setting but I can assure you I am of solid upper class British stock,btw my knowledge of Manila comes from when my husband had business dealings with the then fine Governor Singson.

UP n student on Sun, 20th Jan 2008 6:59 am

Fanny: No worries! You are convincing in your own way about your fine taste and that indeed, you are of solid upper class British stock. Paris is great, a most grand city. By the way, you should, if you can, get in touch with Anna de Brux. I suspect you and her will enjoy each others company. Or maybe not, but that’s for you to find out. I do know if you chat with her, she can tell you a few things about sailing. And I dare say many of us on this blogsite will be most interested who between the two of you can hold her gin and tonic better, and how the conversation goes after the first three rounds.

nash on Sun, 20th Jan 2008 8:13 am

Dear Fanny,

I heard Inday is being maltreated by the Montemayors. Maybe you can give her better employment.

Incidentally, did you merely inherit your wealth or did you open your legs wide? Either way, I’m loving you already. I think my social mountaineering skills will be hard pressed to be on your good side. Pray, do tell, without using Google, what is your favourite champagne house?

UP n student on Sun, 20th Jan 2008 10:00 am

Fanny: Is Penelope with you? She well or she got sozzled during your flight ?

Fanny Barnham-Smythe on Sun, 20th Jan 2008 12:46 pm

In answer to your crude and lewd question the Barnham women have NEVER lowered themselves to common sexual favours ,that may be how you get ahead in Life but I can assure you that I was indeed born with a silver spoon in my mouth(gulps GIN,rings bell for refill)
Dear ..I do find “champagne houses” these days nothing more than low rent imitations of more sophisticated and glory days gone by ,now they are frequented by bored middle class houswives in cheap (made in China) imitation chanel suits and husbands called Derrick who have the intellect and breeding of a common housefly! no dear we prefer garden parties these days where one is catered to by my lovely servant Maria originally from Marakina and nowesiding in Fendalton.
Penelope got herself into bit of a pickle in New York recently involving a Taxi driver ,after a all night soiree in Park avenue ,it was all very seedy and immigration were not to happy on her arrival home .

UP n student on Sun, 20th Jan 2008 1:10 pm

ramrod on Sun, 20th Jan 2008 1:45 pm

Fanny,
Whatever you do, don’t choke on the lemon. Do you spit or swallow? Anyway, I’ll tell your amigas in Airforce One that you sent your regards!

UP n student on Sun, 20th Jan 2008 1:46 pm

And I hope neither you nor Penelope are the ones the Maoris are on the warpath for. They’re on the hunt for some space cadet drunkard who, staggering out of Mona Vale, stepped on and killed one of the very few remaining takahe birds.

nash on Sun, 20th Jan 2008 6:34 pm

Dear Fanny,

Ay sayang, you merely inherited your wealth pala. Your parents must be unlike the Hiltons and the Gates who disinherited their children and gave to the peasants. Are you physically disabled so as to be unable to make money on your own?

love.

Fanny Barnham-Smythe on Sun, 20th Jan 2008 6:59 pm

No dear Nash,I can assure you I have all my faculties intact(spits out lemon pip) dear the Barnhams are akin to royalty in that we look after our own (sans the trout face!) dear a woman of my stature has and will never lower oneself to menial tasks(except for pouring gin) thats what Maria is for .
And no dear I was not responsible for the takahe incident that was Helen(clark) dear apparently she had been on the Rum all day!…she has become so low rent even Gloria refuses to answer her calls

nash on Sun, 20th Jan 2008 8:06 pm

Fanny we need to make a blog of your exploits. That blogniinday is making too much noise that I fear the peasantry and servants think they are above fabulous people like you.

love.

EMDY DANANSON on Tue, 29th Jan 2008 7:31 am

IT WILL BE AN UNDER STATEMENT TO SAY THAT YOUR ARTICLE IS AN EYE OPENER TO ANY READER IN ANY PART OF THIS WORLD,ESPECIALLY NIGERIA MY MOTHER -LAND.

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