VI. Opportunities & Reforms
Several sectors hold promise for the country, but all of Philippine progress requires a much improved educational system as well as a competent, fair dealing, and public-serving government.
Over 95% of public schools have failed in advancing the interests of the next generation. Private schools are monetarily prohibitive to lower classes and to many of the struggling middle classes. For children belonging to families in the higher income bracket, some private schools are nothing more than for-profit diploma factories with an interest in maximizing investor cash flow rather than in maximizing educational output of the nation’s future workers and professionals.
For the more rigorous private schools, many graduates leave for greener pastures abroad. Even for these elevated school systems, many have failed to keep up with the drastic changes in global technologies that have radically shaped mediums for informational exchanges. Except for the most elite universities, virtually all Philippine high schools and colleges do not have the imagination, daring, funding, and will to execute entrepreneurial and personal finance programs that serve as job creators for the economy.
The Filipino citizen, under its present educational system, is not taught accurate history of his own homeland. Many are ignorant of their own roots. Its school system encourages him to be a laborer, a worker – not an entrepreneur, not a capital-accumulating businessman – not a job creator in a radically different global marketplace. Many “teachers” are nothing more than paycheck collectors who let children play in the playground, let children play video games on computer monitors. For the teachers who are dedicated to impart knowledge and wisdom for their students, many are stifled by bureaucrats who often implement a monarchical system resembling a kingdom – where loyalty (not effectiveness) is rewarded with raises and promotions, not a meritocratic system of higher learning.
There is a lack of aggressive prioritization for the sciences, mathematics, literature, and related subjects that serve as the foundation for advanced degrees.
Children who must drop out in order to help their families on the farm or tend to small businesses typically do not have reliable “flex schedule” elementary or high school equivalency programs so that they can still secure an education.
In Asia, China and India serve as benchmarks in the delivery of educational services. The former’s economic growth rate have approached a staggering 10% for several years. Each country graduates millions of engineers that can design innovative products and services for a 6+ billion market. Many lead successful businesses in these countries or at prestigious settings such as Silicon Valley in California. Many undergraduate Chinese engineers are superior to American engineers, and most Chinese find their curriculum easier than their American counterparts.
China and India – with over 2 billion mouths to feed – are dead serious about success. They are crystal clear in what they want, and how to get it. By far, the Chinese and Indians succeed at American colleges and universities than any other ethnic group. Discipline is of immense priority. They are hungry for a better life. Most citizens in these countries have a vested interest in the overall success of their nation. The Filipino voter must choose national leaders who can instill a sense of urgency in the Philippines, where many bureaucrats have a “me-first” fatalistic attitude; who can restore national pride; who can galvanize the whiners and complainers; who can effect justice given the normalcy of theft of national coffers; who can instill an expectation of success – and communicate why individual and national success is the battle cry for current and future generations.
Texts have been infected by political forces; history is not being accurately taught. Former dictator Ferdinand Marcos is portrayed in a positive light in historical context. Critical details of Spanish, American, and Japanese occupation are left out. The Filipino does not understand the political structures of his own country, and the various financial and military commitments to international organizations and Western countries. This mass ignorance shapes a political culture of “populist politics” where movie stars, basketball players, and singers are elected to national office – for looks, not for talent.
The impoverished masses mortgage their entire future, and their children’s futures, for the price of $4 at the voting polls, and some free t-shirts and wristbands. Local town captains have a price of $2,000 each per three-year local election cycle in order to steer – and harass – voters to certain candidates. Congressional aspirants spend over $2 million per election with a few years to recuperate the upfront political expense from future, yearly “pork barrel” funds handed out by the President and Congress – a political annual income stream that can be withheld for lack of loyalty to the new governing administration.
Inadequate roads litter the landscape, biomass resources are left untouched, power generators are left insufficient, classrooms rot, foreign investors take their capital to Vietnam or South Korea. Natural resources – like precious metals and natural gas – are left in the ground. Brothers and sisters leave for Canada, Saudi Arabia, Japan, or the United States.
A never-ending cycle ensues. On weekends, many of the populace attend concerts and live music bands. There is a hypnotic aspect to the traditionally jovial nature of the islands – in the contemporary new economy, it is an escape from harsh realities. There is too much pain, dishonesty, self-serving agendas, cynicism, and defeatism. VII. Final Commentary
The Filipino voter gets to choose national and local leaders who will hold up an accurate mirror to reflect a non-sugar coated reality for the nation’s citizens. Failed policies might be masked with parties, but when people drink and laugh – those that are truly hungry for individual and national success, the neighboring Chinese and Indians, are studying, are working their tails off, are planning new ventures, are designing innovative products and services. They are training, learning, building, designing, scheming, plotting, and getting stronger. They are further strengthening that indomitable spirit that MacArthur alluded to in the days of Bataan and Corregidor.
In these settings, there are no expectations of handouts – a cancerous flaw in psychology, and a frailty in human motivation. The Chinese do not beg. They are the ones lending hundreds of billions of dollars to the U.S. federal government. Sectors >
In industry, several sectors hold promise that can drive job growth for the next administration. Natural resources and agricultural products have long been reliable export plays. A global population approaching seven billion is placing pressure on natural resources. The Philippines’ deposit of precious metals are revenue-generating opportunities as these are required for building infratructure.
If government agencies can deal with companies and investors in a fair and appropriate manner, especially those contemplating making a foreign direct investment (FDI), the pharmaceutical sector can have a boon given the country’s rich bio-diversity. If illegal logging can be curtailed and urban sprawl properly designed by city planners, bio-diversity – both land and marine based – will lead to new medicines for global markets. FDI and productivity are the country’s two most critical variables for improving economic growth in the short term. And partnership with pharmaceutical giants have potential long-term footprints. If there is bureaucratic common sense that is. If.
The Filipino voter can choose national leaders that can further strengthen Philippine capital markets. That includes appropriate controls to prevent insider trading – practices that sap domestic and foreign investor confidence. By having strong local capital markets, citizens can save and invest for the future. The average Filipino can be a capital accumulator – an investor. Collectively, more Filipinos would then be able to provide capital for local companies, empowering them to make investments, to thrive and compete in a global economy.
Traditionally, many industrial sectors in the Philippines – such as telecommunications, food and beverage, power – were products of an oligarchic system; byproducts of dictatorial rewards; manned by inept management; offering inferior products and services; and uncompetitive with foreign competition. With strong capital markets, tens of millions will have an equity stake to ensure a strong and thriving economy. Having such a fluid infrastructure in place encourages behaviors that fight corruption, that remove inept officials, that encourage growth. Because people would suffer from continued stupidity.
Specialty chemicals – such as adhesives, specialty paints, and niche applications – is a thriving sector that offers comparatively higher margins. Jobs from these sector require professionalized management, Filipino chemists and engineers that can compete with Chinese, Indian, Western, and Japanese engineers and technocrats.
The country can continue to fill its niche in the electronics and semiconductor space, as countries like the U.S. continue to outsource certain functions in the production process (such as packaging) to Asian countries.
The Filipino voter can choose national leaders who understand the motivations of large multinational corporations. Growth from Fortune 100 companies, such as General Electric, will come from Asia. Therefore, in their production processes, it often does not make sense to outsource to Central or South American countries. They would like to partner with reliable countries close to where the customers are. And Asia has three billion customers. Can the Philippines be reliable? Or will it continue to manufacture the very rope by which it hangs itself? Filipinos have a choice.
Hydrocarbon products – oil, natural gas – continue to be bullish sectors. The world’s energy demands are going through the roof – there is not enough traditional sources of energy. Aside from oil deposits, the Philippines perhaps has as much as 10 trillion cubic feet of natural gas reserves beneath its oceans. It is economical to build liquefaction facilities (producing liquefied natural gas – LNG) at three to five trillion cubic feet.
The government is unwilling to spend the $10 billion or so to build a complete natural gas infrastructure – something that neighbors like Vietnam (even Egypt) are doing. The argument is no money. Too much corruption. Too technical. The government is essentially saying that it is too stupid, too inept, too corrupt, too mismanaged, to lead a critical initiative when Vietnam and Egypt have the daring and urgency to partner with energy companies with the know-how to produce cheap energy. The result? Natural gas vehicles in these countries can be fueld for about half the price. The other half results in direct savings to consumers – adds hundreds, if not thousands, of dollars each year to a commuter’s wallet. With the multiplier effect of money, other basic commodity and service prices drop. Things are affordable for the ordinary family. By using resources already in their homeland, or those imported from nearby marine deposits. Not in the Philippines. The Filipino voter must choose.
As it is said, history is a chronicle of replacement. Officials are replaceable. More important is who replaces them. Just the same official wearing a different mask? On May 10, the Filipino voter cannot escape the influence of his choices. In his collective decisions lay his destiny.
