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Monday, July 21, 2008

 
BEYOND THE BUZZWORDS
By Reylito A.H. Elbo
Competitiveness:
Why Krugman is wrong

 
PAUL Krugman, an op-ed columnist of The New York Times and a professor of economics at the Massachusetts Institute of Technology has disputed the theory of “competitiveness” for some time now.

According to this famous economist, the doctrine of competitiveness is “flatly wrong” if and when we view nations compete against each other like what big corporations are doing against one another.

Krugman says “leading nations” are not, to any degree, in economic competition with each other. That’s it. How about those countries that are not “leading” the way, like the Philippines, for instance?

Somehow Krugman’s thoughts pushed me to attend the 2008 National Conference on the State of Philippine Competitiveness at the SMX Convention Center on July 15. Why not? This comparison of competitiveness between nations has emerged to become the new paradigm in economic development despite Krugman.

It allows us—yes, including Filipinos, to capture the imagination and reality of global competition and the strengths and weaknesses of each country.

I’m happy to note that the Philippines is now trying to resurrect itself with a reasonable 5-point jump to number 40 ranking from its 2007 record. To continue with this momentum, AIM says the country must hurdle several challenges if it’s really serious in getting at least 5 points on an annual basis.

According to AIM’s Federico Macaranas, these challenges include “how” to: 1) innovate in advancing the country’s creative human capital, 2) mitigate the impact of food, energy and climate security issues, 3) accelerate the completion of priority infrastructure projects, 4) pursue education policies that help develop a globally competitive workforce, and 5) intensify public-private sector partnerships to fast track political and economic reforms.

These are legitimate concerns. And so how do we measure?

First, let’s innovate fast enough to protect our 88 million human capital now being threatened by Sulpicio Lines. I must tell you, if this company starts exhibiting again any behavior incompatible with humanity, then let’s lock its executives in Congress and force them to watch a videotape of Animal Planet until they commit in writing to rejoin a decent society.

Second, food, energy, and climate security issues are real threats to us. I heard these issues when I was in high school as I wooed a girl named Cecille some 40 years back. Telling the same issues all over again wasn’t even interesting then but not now when the government started giving dole-outs and calling the poor every 24 hours for that hellish administrative experience which is far more complex than our peace talks with the MILF.

Third, complete the priority infrastructure projects. But, first things first—let’s decentralize the selling of MRT and LRT tickets to avoid choking the queue lines. One practical approach is to co-brand ticket selling with Mini Stop or 7-11. In the meantime, could we ask Unilever to sell its deodorants at the best possible price to the commuters?

Fourth, our education policies must be geared towards shaping a globally competitive workforce. So let’s move back Secretary Neri to CHED where he can do the least damage to SSS members. I bet when incorrigible Neri was a baby and his grandparents took him from the crib, they told him: “My boy, someday, you’re going to grow up to protect your president.”

Fifth and last is the public-private sector partnership. Surely, it must be done that way to the exclusion of other major sectors, like those from the cinema industry. Enough is enough. There’s nothing wrong with their looks but what’s really important here is brain and lots of it.

On balance, though, I’m glad I went to attend that conference. I understand that this government has found a rationale way, although belatedly in 2006, of fast-tracking the country’s growth and survival with the creation of the National Competitiveness Council.

At the center, of course, is our beloved President. Contrary to what the surveys are saying, many bad things happen when Gloria Glue is on top. Like for instance, why we can’t see many things behind those business deals involving other governments from East Asia?

___

Rey Elbo is a business consultant specializing in human resources and total quality management as a fused specialty. Reader’s feedback may be sent to kairoshq@info.com.ph

  
 

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