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Filipino First is Necessary Because Filipinos Are Bad in Business?!

I wrote a post discussing that it's certainly not more fun discussing business and economics in the Philippines. I confess that it's such a headache doing so. I can start talking about why we need for FDI. The answer will be typical like, "But only they will get rich if you let them invest in the Philippines." All the while, the same person indulges in a luxurious lifestyle. That's why I wrote that such people may be confusing revenues for profits. Some people may say, "The Philippines isn't Taiwan, isn't Vietnam, isn't China, isn't Singapore, isn't Malaysia, isn't Indonesia! It's the Philippines! Filipinos aren't good at business! That's why we have the Filipino First Policy!"

The Filipino First Policy is spoken by Carlos P. Garcia as follows:

THE ā€œFILPINO FIRSTā€ POLICY

The ā€Filipino Firstā€ policy of this administration reĀ­ceived a resounding popular indorsement in the last election. Politically we became independent since 1946, but economĀ­ically we are still semi-colonial. This is especially true in our foreign trade. This policy is therefore designed to regain economic independence. It is a national effort to the end that Filipinos obtain major and dominant participaĀ­tion in their own national economy. This we will achieve with malice towards none and with fairness to all. We will accomplish this with full understanding of our interĀ­national obligations towards our friends of the Free World. We will carry this out within the framework of our special relations with the United States to whose citizens we granted until 1974, by Constitutional provision, equal rights as Filipinos in the exploitation of our natural resources and public utilities, and to whom we also granted trading parity rights under the Laurel-Langley Agreement. Under this policy we will welcome friendly and understanding foreign capital willing to collaborate with us in the exploitation of our vast natural resources preferably on joint venture basis.

It is my hope that legislations under this orientation will be enacted this year.

Article XII of the 1987 Constitution of the Philippines also says this:

Section 1. The goals of the national economy are a more equitable distribution of opportunities, income, and wealth; a sustained increase in the amount of goods and services produced by the nation for the benefit of the people; and an expanding productivity as the key to raising the quality of life for all, especially the underprivileged.

The State shall promote industrialization and full employment based on sound agricultural development and agrarian reform, through industries that make full and efficient use of human and natural resources, and which are competitive in both domestic and foreign markets. However, the State shall protect Filipino enterprises against unfair foreign competition and trade practices.

In the pursuit of these goals, all sectors of the economy and all regions of the country shall be given optimum opportunity to develop. Private enterprises, including corporations, cooperatives, and similar collective organizations, shall be encouraged to broaden the base of their ownership.

However, there's a big difference between (1) the Philippine state protecting Filipino enterprises against unfair foreign competition and trade practices and (2) babying Filipino enterprises through unreasonable restrictions against FDI. I'm sorry in advance but I need to say this--Israel's so-called restrictive economy doesn't have equity restrictions in it (read here)! It's possible not to implement rules against unfair foreign competition and trade practices, without having the lousy 60-40 policy! 

Even worse, some people are still citing Atty. Hilario G. Davide Jr. (read here) or the Monsod couple as a source. I would often be shamed by such people because I'm using Blogger (then again, I don't expect them to respect me if I do get a paid domain or a PhD) or any free domain. I could move to WordPress tomorrow and such people will still look down at me. I took an MBA back then hoping to get massive respect. It turns out that some people are just plain arrogant and will only listen to what's convenient to them. That may be why they cite Davide or the Monsods.  

I must ask, "If we're going to continue the Filipino First Policy then when Filipinos learn to be better in business?" The answer is often said, "We can't allow foreigners to do business in the Philippines until Filipinos get better in business." I could raise Jollibee opening up as a global MNC. However, some racist Filipinos might cite that Tony Tancaktiong is Chinese by blood and that I'm only after the interests of China. Please, how many years has Jollibee been advertised at, "At home with the Filipino"? I was in the 1990s and some people didn't like Chinese, not knowing that Jollibee was ran by a Chinese Filipino. It might be time to restudy history and note that those originally called Filipinos were Spaniards residing in the Philippines. Eventually, the term Filipino got implemented to all citizens regardless of their ethnic background. Plus, who's to say that they're purely Filipino? Also, one of the architects of the Filipino First Policy had Chinese descent, like Manuel Lim (though I can't get his full name) and one of Garcia's apologists was Alejandro Lichauco--another Chinese Filipino!

That kind of thinking was blasted by Lee Kuan Yew. It's easy to blast LKY because of Flor Contemplacion. I'm sorry to say but the Singaporean justice system is far more competent than the Philippines. The Philippine justice system's notorious mishandlings of the Vizconde Massacre and the Chiong Sisters Case should be a scary thing. Where are the true perpetrators of the crime? Back to Singapore, LKY wrote these words on page 66 of his book From Third World to First:

Our job was to plan the broad economic objectives and the target periods within which to achieve them. We reviewed these plans regularly and adjusted them as new realities changed the outlook. Infrastructure and the training and education of workers to meet the needs of employers had to be planned years in advance. We did not have a group of readymade entrepreneurs such as Hong Kong gained in the Chinese industrialists and bankers who came fleeing from Shanghai, Canton, and other cities when the communists took over. Had we waited for our traders to learn to be industrialists we would have starved. It is absurd for critics to suggest in the 1990s that had we grown our own entrepreneurs, we would have been less at the mercy of the rootless MNCs. Even with the experienced talent Hong Kong received in Chinese refugees, its manufacturing technology level is not in the same class as that of the MNCs in Singapore. 

Did Singapore wait for the Singaporeans to become industrialists? No! Reading more of it, one can also think of Vietnam's rise to power. To say that Vietnam progressed by isolation and self-industrialization is a lie. Instead, Nguyen Duy Cong aka Do Muoi met with LKY. LKY also provided this insight on page 317 of From Third World to First:

In fact, the Vietnamese had made progress. As a result of more contacts with foreigners and greater information on the market economy, ministers and officials had a better understanding of the workings of the free market. Greater street activity, more shops, foreign businesspeople, hotels--those were all signs of prosperity in Ho Chi Minh City and Hanoi.

LKY never told the Vietnamese, "You must wait until all the Vietnamese become industrialists." Instead, Do Muoi decided to follow LKY's advice. Did LKY wait until all Singaporean businessmen become better at business? Neither did Do Muoi do the same for the Vietnamese. If Filipinos aren't good at business then where will Filipinos get better services, if the country keeps discouraging FDI through the equity restrictions? 

Instead, most Filipinos are bad at business because they have been babied for too long. Why would a business want to do better if there was barely any competition? Why would I want to improve my writing skills if there aren't other people better than me? Why would I want to give my all if I keep facing off against lousy opponents? There's no growth in the comfort zone. Instead, Filipino First Policy is what made most Filipinos bad in business. 

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