The Asian Manager, Centennial Issue by Sherbet Manalili

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SAIM THEASIAN MANAGER Publishedbimonthlv. exceptfor threedoubleissues-March-April,z May-June 1997,July-August/September-October I a O 7a. n dN o v e m b e r - D e c e m1Q b ea r7' J a n u a r y February 1998-by the AsianInstituteof Mana g e m e n tI.M I T A ( P ] 1 9 6 / 1 0 / 9 5 K D N P P ( S l 1076/3/97ISSN0116-77901 EditorialandAdvertisingOffice:AsianInstituteof Management, 123 Paseode Roxas,Makati City, Philippines. Tel:(632)892 4011-25;892 0435-43;893334 I F a x : 1 6 3 2B)l 7 9 2 4 0 , Internet Address:tam@aim.edu.ph Selectionsfrom past and current issuesfound in http:,//www.aim.edu.ph CopyrightO1998 TheAsianManager.All rights resetved. Reproduction in anymannerin whole or in partin Englishor otherlanguages without priof written permissionprohibited.Printedby TimesPrintersPte.Ltd.,Singapore. Eorroru.lrBomo: Chairman:JesusG. Gallegos Jr. Members: ReneT. Domingo,MctorS.Limlingan, PaficiaL. Lontoc.Eduardo A. Moratd. AshokK. Nath EurorulL Dppantunn: Editor-in-Chief:PatriciaL. Lontoc Editorial Directof: GertieAmpil Tirona ManagingEditor: JocellndeJesus FeatutesEditor:Peaches S.Castillo Art Editor:BeanyS.de losSantos ContributingArtists: Sahsah M. Villalba MannyL. Espinola Busnrsss Drpmfl\lrNr: Publisher:FelipeB. Alfonso Co-publisher:Patricia L. Lontoc OperationsDirector: Miliie C. Ferrer Marketing Manager:EdytheL. Bautista Advertising Officer: Vanessa M. Jaballas Circulation Officer: EdenS. Cardeflas Mrorl RrpnrssNrerrvs Orncrs: Philippines: DeliaGutierrez,1632)894 4809 AlumniAssociation of AIM Inc. (632)BS37408 HongKong:Pameia Choy,(852)8345980 Singapore:TeddyTan,165)440 8760 Indonesia:RamaSlamet,(6221)7992090 3784 162211797 Malaysia:ConnieNg, (603)717 5370 India Subcontinent MediaSouthAsia(P)Ltd. 336 19771)227 Pakistan:S.l.Salahuddin, \9221)5682271 Korea:Y.K. Chun.(02)7387970 Japan:TokujiNiinuma,(813135 829 104 (662)3319303 Thailand:Dr.AnthonySharma, UniGd Kingdom: BrianTaplinAssociation {0442)246034 France:Stdphane de R6musat, {331)39896341

ManagingNatioils, BrandingNations

rand-creation, a businessman once said,is what nationalism is about. Marlcsand Spencerhasno factory and doesnot need it. IBM approaches a sovereign state.In the same way, nationalgovernments worth their cilizenswill haveno needfor publicbu reaucracies and territoryif they find the key to brand1oya1ty. Are we enteringan governments", etaof "ce11ular maturing, soit seems, ftom the functionalanddivi sionalbureauclacies, matrix and networkedadhocracies, coilaborating with changingand enlargingstakeholders as situations deemfit?Arewe seeing $impses into new formsof leadership andpublic service.or is thisonlva season afterAsian caesars, and historysha1lfind a way to rpnaet itcplf2

"Youcannotdenyit. Youaremeasuredandthe numberscompared against other countries..And this is how other nationsandothersectors of theglobalsocietywill relatetoyou."PaulKennedywas no still,smallvoicewhenhe cameto the Management Forumco-sponsored by the MakatiBusiness Club,Business Weekand the AsianInstituteof Management. Author of RiseandFallof the GreatPowers, and PreparingFor the Twenty-FirstCentury, Kennedywas poisedto providea litanyof trendsandhow-to's.Whatstuck out wete his enumerated statisticsand rankings: theUnitedNations'Human DevelopmentIndex,the World Economic Forum'sCompetitiveness scores, TransparencyInternational's rankingsof corrupt countries.Themapfor actionis staringat our faces.A Uendin itself,the apparent

proliferation of quantitative andqualitative measures, bringsonebackto the old adyoucan't age,"whatyoucan't measure, manage." But civic responsibiiity is what you can deny.Accountability, what you can ignore.Transparency, whatyoucanrefuse. Reformand revolution,what you can reject.Loyalty,what you can withhoid. populistagepresents Thedemocratic, to us real choices.The numbers,merely residues of choices made,of management decisions. In thisCentennial issueof TheAsian Manager,we look at managingnations, not managed nations,juxtaposing an appreciationof the Philippinerepublic's apparentstayingpower with thoseof neighboring nailons.We takeyou into an odyssey of processes of choice,fromWashingtonSyCip'sreflections on globalization and governance to Nationalfutist Nick Joaquin's musingsabout the twelve greatest eventsin Philippinehistory;from theinnersanctumof Philippinepresident Aguinaldoto millennarianrituals in Philippinecaves;from Ahmad Sarji's Malaysianpublic service to Viroj Phufakul'steadingof Thailand's financial tailspin;fromXiaoLeiZuo'sanalysis of the Erapvictoryand its signalsto Chinaand Indonesia to our tributeto YabTunIsmail Bin Mohd Ali as an exemplaryAsian manager. If, in the end,you find thewriling on your wall, your own senseof civic duty weighedandfoundwanting,thencentennialcelebrations mayhavesucceeded halfwayin brand-crealing, afterall.

f"tr{*} AssociateDean Lontoc teachesprioatimtion. and international relations in MBM and CDM. EmaiI : <plontoc@a i m.edu.ph>.

Centennial Issue I TheAsianManaser

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&&&hIAGKK" VOL.XI, NO.3

1998Centennial Issue

eov€R s-r'OFil€s Managing a Nation at the Turn of the Century D,, t'-^.r:^

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"intcrvier'v" r'r'ith Creative historiography aIlorn'san Gen. Enrilio Aguinalclo, the first Asian managc-r of a nation

Why Erap Won BtlXiaoLeiZott,AIM

i'resident Joseph E. Estracla captured the imagrnation-and 'notes-of the poor thnrugh a dolvn-to-earth economic platform

$N$€LrelF{Ts covER s"1-(3sqY Managing Public Service in Malaysia By Ahmad Sarji,AIM

Tlie ideal of the vear 2U(X)is for Malavsia "electronic government" to be a pioneer

Cavite ca.199 By Gertie Anpil Tirrtna,AIM

"green" inclr-rstrialisnr I)EZA sets the ptrce for in Cavite-a centurv after the Revolution

Fgi&?t-,FqK$ Globalization, Governance and Management Education By WasltinqtonStlCip,AIM Sclf-interest is ir thing of the past; thr' time.scall for interclependence

The Tiouble with Thailand By Viroj Pltutrttkul,AIM

Rcflcctions on the costly lesson Thailand learned from the financial crisis-and a rt'av out

gh*s'{3*"*T" The Future of Managing in the Private and Public Sectors AIM Bt1Akirn Tsnsako, l)ril'atc Participation in itrtrastructurc opcns a ne.n rvindor,r' to public-privatc partnerships

TheAsianManager Centenniallssue

To influence management thought and practice in Asla from theMissionStatementof Tur Asuu Mnuacrn

THE I\SIA PACIFIC EndangeredSpaces By AmihanGorospe

A spelunker takes us to caves across the Philippines and reminds us why we have to save them

South Sea Adventure By Gertie Ampil Tirona, AIM

Know thy pearls: A journey through the life of rare and beautiful South Sea gems

The Filipino According to Nick By Nick loaquin

The National Artist for Literature talks about Philippine history's 12 GreatestEvents

City of Virtues and Vices By CharlsonOng

Chinatown is less a place than an aspect of Manila-but what a hauntins enciave

CASE-IN POINT New BOI on the Block By EmiI Bolongaita andBobbyM. Olarte,AIM

The Board of Investments re-imagines its role from that of a bureaucracy to that of a real public servant

CONFERENCENOTES WhenTWoGurusMeet ByMichelleLiwanag, AIM

What will managing in the 21"t century be like? Take it from Yale's Paul Kennedy and AIM's Gabino Mendoza

GEMS OF COMMUNICATION BureaucraticLingo By Prof. Maria Milagros T. Garcis,AIM

Discover how the workplace has appropriated languageto serveits own quirky purposes

IN MEMORIAM Sketchesof Tirn Ismail

TAM pays tribute to one AIM's longest-servinggovernors

Centennial Issue I lhe,AsianManaper

Prof. Emil Bolongaita and essayist, aswell as a formerjournalist, Joaquinhasbeen EmilBolongaita at the NationalUniver- writingforthelast50years,amongthemostmemorable Jr.is a Professor ofwhich sityof Singapore's Masterin PublicPolicyprogram.Beforethis, arethe novel Womanwith TwoNavels,the playPortraitof an he was the Directorof the Governance and CompetitlvenessArtistasFilipino,andtheshortstory"Summer Solstice." Joaquin Programof AIM's Washington SycipPolicyForumwherehe hasalwaysbeenthe life of the party-literaryor otherwisepioneered with Professor EduardoRoberto the conceptof Total and thesedayshe'sknown as the blographer of the rich and (TOG).He alsoservedas directorof the famous. OuaiityGovernance MindanaoCenterfor Government and Development andwas SeniorResearch Associate of theResearch instituteforMindanano Bobby M. Olarte Cultureat XavierUniversity, Cagayan de Oro City. He earned BobbyM. Olarteis an associate research consultant for his doctoratein Government and International Studiesat the AIM'sfuea of Excellence in Finance wherehe writescases on Universityof Notre Dame,USA,wherehe alsoreceivedhis stockvaluation,countryanalysis, andventurecapital.Before Mastersin International joiningAIM,hewasmanagement Studies. associate forCorporate Finance for VickersBallasSecurities and SunHungKai Securities.He receivedhis MBA degree(with Distinction)and Graduate Prof. Ma. Milagros T. Garcia Diplomain Corporate Management fromtheUniversity ofSydney, Ma. MilagrosT. Garciais a corefacultymemberof AIM's New SouthWa1es, Australa. Masterin Business pro$am. Beforejoiningthe Management institute,shewasthe MarketingCommunications Managerfor theASMGroupin HongKong.Shehasbeeninvolvedin various Gharlson Ong projects communications andadvertislng asanAccountExecu" Charlson Ongteaches Creative Writingat the University tive for J. WalterThompson andYoung& Rubicam, Ltd. Sheis of thePhilippines. place Themuitiawarded fictionist won second currentlyDirectorfor AtlantisProductionInc., a multi-media in theNationalCentennial Commission's literarycontestfor the company engaged in film,video,theater, andbookproduction in Filipinonovd.(AnEmbarrassment of RichesJ, for whichhe will the Philippines andCanada. be awardedin ceremonies in August.He is a memberof the PhilippineLiteraryArts Counciland the Poets,Essayists and Novelists fPENIInternatlonal. Amihan Gorospe AmihanGorospe, MBM '95,is a geologist anda member of theBatConservation International. SheworksastheCoordi- Viroj Phutrakul natorof theUNDP-PRIME Project onprivatesectormanagement. VirojPhutrakul is a Senator of Thailandandconcurrently Executive Chairman and/orDirectorof Boonward AsiaCo.,Ltd., the SiamCommercial Bank,CentralPattanaPCL,Sukasith Timiiarl Tha (iem .^.nmefCial Bank PCL, BangkOk General Michelle Mabel Liwanag MichelleLiwanagis currentlySpecialAssistant to the Hospitaland SahaUnion PCL,and Vice Chairmanof the Associate Deanfor International Relations of AIM and was Federation of ThaiIndustries. He continues to contribute to the Associate Editorof TheAsianManagerBeforejoiningAIM, she development of Asianmanagers asa memberof the Boardof wasthe AssistantEditorof PhilippineIT Updateandwriter for Governorsof AIM, the LamsamProfessor in Chulalongkorn the GreatPacificLifeAssurance Corporation.Shehasworked Universlfy's Facultyof Commerceand Accountancy, and the asa writer for Phillppinedailieslike the Manila Standardand Directorof SasinBusiness SchoolAdvisoryCouncil.Educated BuslnessWorld. in economics fiom Sheffield University[En$and)andreciplent o f a n h o n o r a r yd o c t o r a t ed e g r e ei n c o m m e r c ef r o m Chulalongkorn University[Thailand), hewaspastChairman and,/ Nick Joaquin or Directorof numerousotherbusiness corporations basedln NickJoaquin is aniconin Philippine AsiaincludingUnilever'sSoutheast artsandletters. Asiaboardand Heis Southeast bothNationalArtistandRamonMagsaysay Awardeefor Litera- EkkapatFinanceand Securities Ltd. and PastPresident of the turewho, according to anavowedJoaquinophile, Assoclation and the RotaryClub of bestcaptured ThailandManagement the spiritof Manilaamonghis peers.A phenomenal fictionist Bangkapi. 6 TheAsianManager I CentennialIssue

Y. Bhg. Tan Sri Dato Seri Ahmad Sarji Bin Abdul Hamid Y.Bhg.TanSriDatoAhmadSarjiBinAbdulHamid,AIM is the ChiefSecretary Governor, to the Government of Malaysiacontemporaneously Headof the Civil ServiceandSecretary to the Cabinet.He is alsothe Chairmanof the Standards and IndustrialResearch Instituteof Malaysia(SIRIM),VicePresi dentof the Commonwealth Association for PublicAdministra (CAPAM),and hasservedas Depufy tion and Management Director-General of thePublicService Department andtheEconomic Planningunit in the PrimeMinister'sDepartment.A productof variouseducational institutionssuchasthe University of Malaya,the Instituteof SocialStudies,the Haguein Netherlands,and the HarvardUniversity,Tan Sri Dato Seri AhmadSarjialsoholdsvariouskeypositionssuchasChairman of the Instituteof IslamicUnderstanding Malaysia,Boardof Directorof Permodalan NasionaiBerhadandVice Chairman of the Malaysian Business Council,andheadedFederalGovelnmentagencies suchasthe Farmer's Organization Authority Malaysia,umr (Councilof Trustfor the IndigenousPeople), the Ministryof Tradeand Industry,and the MalaysianIndustrial Development Authority. Besidesbeingawardedthe Eisenhower Fellowship in 1994,TanSriDatoSerjiAhmadSarii is alsoa recipientof numeroushonorarydegleesand royal awardsincludingthe PanglimaMangku Negara,DarjahSri MahkotaPahang, DarjaSeriSetiaSultanMahmuTerengganu, andthe SeriSultanSalahuddinltbdulAziz Shah,andothers.

Washington SyGip Washington SyCip,AIM Boardof Trustees andBoardof Governors Chairman,is alsooneof the foundlngfathersof the SyCip,Gorresand Velayomanagement group. consultancy Schooled in Columbia University in NewYork,SyCiphasheld importantpostsin variousinternationaloffices.He was the Chairman of theEuroAsiaCenffe,rNseeo fiom 1981-19BBand continues to beits honoraryChairman. Heconcurrently is advisorto futhur Andersen,Chairmanof the AsiaPacificAdvisoryCommittee of the New YorkStockExchange, a member of the International AdvisoryBoardof the Councilof Foreign Relations in NewYorkanda boardmemberof theU.S.-ASEAN Councilfor Business andTechnology inc.SyCiphasalsobeen givennumerous awards, amongthemthetitleOfficerFirstClass of the RoyalOrder of the PolarStateby H.M., the King of Swedenin 1997,andthe Stateof the Orderof Merit by the Republic of Austriain 1976.In 1991the Philippine governmentconferreduponhim thePhilippineLegionof Honor,with a Degree of Commander.ln 7992,hewasawarded theRamon

Magsaysay Awardfor International Understanding, Asia'sNobel Prizeequivalent.lnthe academe, SyCipis a fellow of the InternationalAcademyof Management andwasrecipientof numeroushonorarydegrees suchastheUniversityof Melbourne's Doctor of Lawsin 1993.

Gertie Ampil Tirona GenieAmpil Tironais AIM Directorfor PublicAffairsand Publications. Sheis a business historianwhosefocusis primarily on corporate biographies andpioneerentrepreneurs. Sheis also a Commissioner of the NationalCommission on the Role of FilipinoWomenandhasservedon the Government TaskForce on the comfortwomen issue.A formerprofessorof History PoliticalScience,and AsianStudiesat the Ateneode Manila University,Tironahandledcrosscultural courses,programsand projectsintegratingAsian,European, andPhilippinethrusts.

Prof. Akira Tsusaka AkiraTsusaka is a visitingprofessor at the AsianInstitute professorof InternationalFinanceat the Uniof Management, versityof Marketingand DisffibutionSciences in Kobe,Japan, and SeniorAdviserto the Centerfor FinancialEngineering in (CFED)in Washington, Development D.C.,U.S.A.He hasalso servedasExecutiveVicePresident of the AsianFinanceandInvestmentCorporation andDeputyDirectorfor Operations, Di rectorof DevelopmentPolicyOfficeand Directorof Industry and Development Banksat the AsianDevelopment Bank. ProfessorTsusaka received hisMBAfromNewYorkUniversity where he wasa FulbrightandSmith-MundtScholar.

Prof. Xiao-Lei Zuo Xiao-Lei Zuois a professor in AIM's Centerfor DeveiopmentManagement. Shespecializes in financialeconomics, inquantitative vestments, analysis, andeconometric modeling.She hasworked intensivelyon transitionaleconomieslike China, Cambodia, Laos,andMetnam,havingbeentheDeputyDirector of the Centerfor Studyof TransitionEconomiesof the National Universityof Singapore.BeforejoiningAIM, shewasan economeffic consultantin the computerscienceofficeof the Universityof Illinoisandguestlecturerof WuhanUniversityandBeijing University.

Centennial Issue I lfte.AsianManaper

OTOBALIZATION,

and oovtRNANct

MANAOTfYIE NTTDUCATION hile we are startingthe year of the tiger during thesedifficult times,it maybe moreappropriateif we think of the yearof the rooster.Thereis anAustraliansaying; "Rooster today, feather duster tomorrow." Thismayresuitin EastAsians being a bit more modestabout the progress remarkable duringthepast10or 15 years.As a backgroundof our discussionson the next millennium,may I alsoremindyouof thetestimony in 1879 (morethan a centuryago)of Sir William Preece, chiefengineer of the Britishpost office.In the Houseof Commons, he testified that the telephonehad little tuture in Britain."Thereare conditionsin Americawhich necessitate the use of suchinstruments morethan here.Here we havesuperabundance of messengers.AIM Board of Governors and Trustees Co-Chairman Washington SyCip with AIM The absence of servantshascompelled President Felipe Alfonsd: The age of experimentation Americato adoptcommunication sysSecond,this conference offersan op- with insightsfiom CEOsamidstthe turtems."Butwhatis reallysospecial about portunity perhaps moil gnawingat the region.My adviceto for a more open-minded, thisconference? even opened-minded, exchange of views you at the outsetis to usethis freedom First, at traditionallyimportantinterand action agenda. The way it is struc- and flexibilitywell. Let your reflection participants nationalmeetings,most are "unstructured",with its mirror in yourwork-practical solutions, tured-or moreseniormen.I knowbecause I have discussion-makes it a littleless innovativeoptions,andbravenew possibeenone of them,manytimes.At this roundtable predictable in its outcome. In theflrstseg- bilities. conference, I canseethatmostofyouare isnot anisoiated, Third,thisconference you ment, focus on changes in the workyear-oid in the 30-40 agebracket,and I Most take place one-shot event. conferences you and the workforce. In the fourth, aminformedtherewasan effortto target nlrnn in r A^r' ^h/.'l th?t'c i tL . Tr hr rpr rl r e rr L a u ponder r r l d U A y , A r r U L l l q L J r future the of management educaP r d L g thisgeneration. Thisconference is lmporplanned wlthout of followconsideration tion, in a world that sees the citizen as tant then, becauseit represents the is different.Folandthecustomer ascitizen.And up. But this conference youngergeneralion. It is you who havea customer next low-ups have been scheduled, you plunge finally, in the afternoon, into stakein the future,andI amgladthatyou B a n king m o n t h , t h e r e i s a n A s i a n pragmatic growth ways of sustainingAsian madethe effortto behere. 8

TheAsianManaser I Centennial Issue

Cnnorp<q in Anril

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roundtable andmoreproblemmanager's and briefingsare solvingroundtables l i n a d r r n d r r r i n o r..,h o *,inlversary rr year. discusCreativewaysof communicating from publica sionsare beingscheduled tions of booksto Websitefeaturesto infomercials. The infomercial on citizen ascustomer is scheduled formediaplacement in Apd1.A11theseindicatea new AiM experiment: to reinventthe AIM conference on Asiafiom management beinga singleepisodeto a continuing vehiclefor debate, discussion, andaction. Thus,morethanthetheme,it isyouand insights, that whatyoudowith theshared

makethlsconference important. Formanagingin Asiain thenextmillenniumwill be of no valuewithoutyouclaimingyour stakein thefuture. Pointsto Remember i do not wish to preemprrhe faculry and CEOswho will be sharingtheir researchandexperience in thisconference by impartingmy own thoughtson the theme.Instead, let mepreface theconferencewith a few questions. First,howdoesglobalization impacton management? It appears to me thatthere globalization proare two simultaneous presents cesses operating. Thefirstprocess

The dark side of the globalization of finance is that it seems to make banks fall like a pack of cards. lt has been described as the "race to the bottom", where there is a mad scramble to lower prices, the phenomenon of "deflation" in the United States, and the compromising of labor and product standards just to capture the

With AIM Board of Governors and Trustees Co-Chairman Jose Cuisia Jr: Shared insights

SyCip on globalization: "Are its processessomething we can control in the firm?"

market. to usthepositive interplay of itseconomic andpoliticaldimensions. With theendof thecoldwar,andtheblurringofwhatused to beflrst,second andthirdworldnations. Weseetheemergence of transition economieslikeVietnam,China,andtheformer SovietUnion,wherethe failuresof Central Economicplanninghasfinallyforced themto opentheirmarketsto theworld. promises prosperity-a Thisfirstprocess globalneighborhood of milk andhoney. Yet thereis a secondprocess that highlightsglobalization's countereffects.The of finance, darksideof the globalization for example,thatseemsto makebanksfall likea packof cards.It hasbeendescribed asthe "raceto the bottom",whetethere isa madscramble to lowerprices,thephenomenonof "deflation"ln the United States,the compromislng of laborand just to capturethe productstandards, market.Thereseems to bea nagging hesi WTO. tationto lowertariffbarriers, despite How will all thesechangethe functional aswe know them areasof management today?Howwill thefacesin theworKorce a n d t h e w o r k p l a c ec h a n g e ?D o e s globalization meandeveloping morecompetencies forgreater, toughercompetition or do we needto developnew skillsof negotiation and collaboration aswe rely moreandmoreon outsourcing, fianchising, networking,subcontracting-the Centennial Issue 1 lhe,4sianManaper

Is management as a science and as an art, ready for new mechanisms of governance?

private-business sectorto donateland andbuildingandprofessorial chairsand andthetwo leadlng schools rf$*ri scholarships, Ateneode Manilaand De La Salle-to g*li committheir facultyand intellectual s.!ilti qgll resources, wasunheard of.andunprece*f:i dented. In the 1950ssomeof usdreamt abouta world-class management school riq* in Manila,to be the nervecenterin the region. h cameto beingonlya decade gtgti Mit

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herthoughts with youbecause sheunderscored a valuethatwe tendto forget:generosity. Wetendto makedecisions on the basisof dreador geed.Theprinciple of self-interest, or self-determination. So muchrelianceon self,whenperhaps our interdelimescallfor us all to rediscover pendence. Ard lnterdependence assumes values, valueslikegenerosity. Somehistoriansevendescrlbe the innocuous begin 2ftpr thp drp:m cho crid hrrt it rnnrinningsof management to bewhenmanthe uesto beverymuchalive,threedecades hunterrca\izedhe couldnot surviveon l:tpr Rpr:rrsp oanprnqitrr frrpllpd rho hisown,andinventedsupportsystems in dream.Maybemoreof us cantakeheed hisfamily,hiscommunify, hisassociation, of thewarnlngof AndrewCarnegie, the passing on skills,sharingexperiences, 19'h-century steelbaron,who channeled mentoringfor the uncertaintyin the his millionsto worth-whilecauses.He hostiiejunglesin theyearsahead. Managwarned:"Hewho dlesrichdiesthusdis- ing in Asiain the nextmillennium may " I thankMs.Colayco graced. forherkind yet find bountyhuntersmoregenerous remembrance of thingspast.And I share thantheirforefathers. I

virtualvaiuechain?Are the processes of globallzation somethingwe can conilol within thefirm? Second,how doesgovemance impact on management? It is evenclearer, I believe,that governments cannotgovern alone.The riseof regionalism indicates commonproblems thatcut actoss national boundaries. GerryCorrigan, formerChairman of FederalReserve in New York,in hisanalysis of whatledto theoisisin Asia, sharesinsights,for example,aboutpoor creditdecisions by banksandpoorregulationby centralbank.Thlsshowstheinterlockingimpactofbusiness andgovernment actionandstrategy on regions, andargues for a rethinkingof mechanisms for economicgovernance. Shouldstabilitybe a policyobjective of bothbusiness andgovernment?Shouldwe eventhink of busi nessandgovernment astwo worldswith goals? irreconcilable Is management, asa science andasanart,readyfornewmechanismsof governance? Third,howdoesmanagement education impacton management? How dowe help preparemanagers to takegreaterresponsibilifyfot theirown learningon the job? fue our schools a lifelongtesource wlthin Areourschools theirreach? opento being enriched bytheirexperiences?lnto thenext globalization, governance millennium, and management educationwill be powerful forcesof change. Howreadyarewe?With the pearlsof wisdomwe haveacquired throughthe yearsandin the heartof the recentcrisis,how prepared canwe really be? To Dream and To Be Generous I understand the thoughtsof our co1league, Ma.Teresa Colayco, AIM'strustee, iastthanksgiving. Sheemphasized that it is an opportunityto thank LheMen behindAIM fot theirvisionandforesight, and their generosify to givewhat it takes to makeit rea1.Forin thosetimes,what SyCip on education: "Our times call for us to rediscover interdependence." we did to put up AIM, mobilizingthe 10

TheAsianManagerI Centennial Issue

The

Professor Tsusaka on privatization experiments: The wave of the future

^Future "'Meruffi

ffiffiruffi

inthePrivate and

ticipationin economicactivitieshasbecomemoreapparent in countries likeJapan,which seesa rapldlyagingpopulationin thenextmillennium.

PublicSectors

Too Fast,Too Soon The waveof deregulation, deconilol, liberalization, andprivatizationwasoverIn the end, efficiency hinges on predictability, whelmingand hasbecomethe guiding principlefor economic management. This transparency and accountability hasbeenrullngthe world for nearlya decadeand is mostlikelyto conlinueinto the next miliennium.Thegovernance ashen I joinedthe AslanDevelop- gaphicallyillustrated by thereductionof sociatedwith this approachis certainly mentBank(ADB)in early1969, poverfy.Whileeconomicgrowthandpov- essential for managers bothin thegovernone yearafter the establishment erfy alleviationconstitutethe two most ment andprivatesectors. In light of the of the AsianInstituteof Manase- importantgoalsof economic development, recentcrisisthathit thispartof theworld, ment(AIM),Robert McNamara placedon the two has somepeoplearguethattoomuchandtoo wasatthe relativeemphasis helmof the WorldBank.PovertyAllevia- changed fiom timeto time. fastanactiontowardliberalization wasuntion became thenumberonegoalfor deSinceMargaretThatcherbecameBrit- waranted and was to blamefor the revelopment financingunderhistenure,and ish PrimeMinisterin 1979and Ronaid centcuffencyturmoil.In pursuingliberis todaystillregarded asanimportantgoal Reagan USPresident in 1981,a new ap- alization,somesafeguards shouldbe in of economic development. An IMF press proachemphasizing the "freemarketsys- placeto pfotectthe weaksegmentof the releaserelatingto indonesiastatedthat tem" and "smallgovernment" gatheted populationand strengthenthe financial Indonesia's economicperformance over momentumand becamefamiliarhouse- sector.However,this wave cannotbe thepastseveral decades hasrankedamong holdwords.Thisapproach soonwashed stopped. Thisapproach will continueto thebestln thedevelopingworld, with real overthedeveloplng worldin Asiaaswell. guideour economic andsociallife in the GDPgrowth averagingaboutsevenper- Alongwith this, development enhance- next millenniumbut with better safecentannuallysince1970;the incidence mentof women'sstatusandgreateratten- guards, we hope,learned fiom thelessons ofpovertyhasbeenreduced fromover60 tion to environmental issueshavebeen of the currentcrisis. percentin thelate1960sto 11 percentby addedto the list of goalsfor economic The key drlversof success with this mid 1990s.Economic development is development.The needfor women'spar- approachare:accountability (efficiency Centennial Issue I lhe.AsianManager

ln straightforward privatization, accountability, attention paid to the entity's objective, whether private or public, will be the key guiding principle

for managers in the next millennium

TheAsianManagerI Centennial Issue

andadequate regardfor economic,/finan- atenessof the technologyemployedfor cialviabilify);ffansparency (disclosure of theplant. information, eliminationof corruptionand As you know, the Philippinesis often favoritism); (1egal andpredictabillty tuame- citedasthepioneerin the Build-Operateworks). Transfer/Build OperareOwn (BOTIBOO) " In 1983theADBbeganmakingdirect Operations {IFCnowcallsit PPI"-private lendingto, and equityinvestmentin, participation in infiastructure). A success privateenterprises for the first time in storywidelycitedby thetextbookon PPI its history.To commencedirectprivate ls theNavotas I PowerProject.Theproject sectoroperations,entirelynew ADB entifypurchased generating second-hand guidelines had to be preparedon the machines[21OMWoil-firedgasturbine profile,andwith ap- powerplant)fromtheUnitedStates basisof risk,/reward costpropriateemphasis on financialviability lng only $41 millionwhich would have within the basicprinciplesof the so- costat leastthreetimesasmuchif brand ca1ledlenderof lastresort(financingis newmachines wereprocured. Theproject powershortage, considered only when the alternative notonlyeased thesevere soulcesof financingat reasonable profitfor the terms it alsoyieldeda handsome are not available). We did not havea shareholders of theprojectentity.Thesucsufficientnumber of staff (engineers,/ cessof thisPPIprojectledthegovernment financialanalysts) who havehadprevious of the Philippines to embarkon morePPI private sectorexperience. Asa resull,we projects in powerandotherinfiastructure deployedsomeengineers and financial sectorsin the country. analystshandlingthe public sector operations within theBank.I wlshto share New Mentality an episodeto explainhow difficultit PPIconstitutes oneformofprivatization wasto changethe mentalityof managers and is in line with the wavementioned handlingprivate-sector operations. There earlier.In the caseof straightforward perception hasbeenanerroneous among privatizationprojects'accountability, certainBankstaffthat thosestaffwho attentionpaid to the entity'sobjective, processed largerprojectshad a better whetherprivateor publlc,will be the chancefor salaryinceaseor promotion. key guidingprinciplefor the managers An engineer deployed frompublicsector in the nextmillennium.Thementalityof operations wasassigned to handlea pri the privatizedentitiesshouldundergoa vatesectorcementproject.Heapparently completemetamorphosis to suit the recommended a iargerploject than privatesectors.Thechangeof ownership necessary and endorsedstateof the art alonedoesnot bringaboutits desired technology. Naturally, the project's finan- results. cial viabilitywas substantially reduced, I would evensuggest that in orderto and the projectcostincreased. Conse- facilitateinfiastructure development in the quently,he tecommended the Bankto nextmiilennium,thegovernment shouid makea largerloanwith reducedfinancial considertaking up lessprofitableor viability.Usually,publicsectormanagers unviablesegments of the project(e.9., project do not worry aboutthe costand dredging versuscontainer terminal,transresortto stateof the art machinesand missionlinesversusgeneration statlon), equipment aslongasit is technically and leavingthe moreattractiveandprofitable economicallyviableand is within the segments to the privatesector.Thisway, budgetlimitation.Accountability does the entryof the privatesectormaybe exgo not beyondcertainlimits.Thisis the peditedthroughretroactive costsharing tl?lcalattitudeof public-sector managers. arrangernents madefor the government With privatesectormanagers, however, undertaklngs andthecostto theconsumptofitabilityis perhapsthe numberone ers,/users proof theproductsandservices consideration. After the loan for the videdby PPIprojects will be reducedaccementprojectwas signedby the Bank cordingly. Needless to say,thispartnership (involvand the proiectpromoter,the loan had shouldbe basedon transparency to be cancelledat the requestof the ing no rent-seeking on thepartof managpredictability (clear bortowerdue to doubtsamongthe ersin thegovernment), membersof the promoter'sfamilyabout lega1fiamework),and accountability on theproject'sprofitabilifyandtheappropri" bothsides. T

The

TROUBLE

wi'hwM&wwww Thesorry depthsof managementincompetence helped drag down the Thai economy

wo criticalpointsstareat Asia,particularlyThailand, in theface.First: What has gonewrong as far as Thailandis concerned? Second: How canwe pick ourselves up andmove forwardconfidentlyandprofitablyagain? I comefiom theindustrysectorandnot fromthefinancialcircle;I amnot a banker. My approach, therefore,will be from the indusffialist,ratherthana financial,point of view,eventhoughthe crisisin the last six or sevenmonthshasbeena financial crisis.What I will saywill reflectmore whatis goingon in Thailandthanin other partsof Southeast Asia.

no new directinvestmenthascometo Thailand. Thisisoneunder$ingissuethat hasbeenrecognized but remainsunresolvedbecause of thelackof politicalwi1l. Eachtimeanindustrial poli unrestoccurs, ticiansset the minimumwage,thereby makingour industryveryunproductive. Third,directinvestments in our country andregionhavebeenon the decline, andhasmovedto otherpartso[theworld like indiaandAfrica.Unlikethreeor five yearsagowhen directinvestmentsfrom Japan,Europeand the Americashave cometo thefo1d. Fourth,in our region,particularlyin Thailand, cheapmoneyhasbeencreated ManagementIncompetence with the creationof the IBEwhich allows I believemanagement incompetence Thaiindustrialists to borrowUSdollarsat hasbeenoverlooked in our economyfor 6 or 7 percentwithout hedging.At the the last four or five years.The depthof time,theyreallywereprintingthemoney (orcom- ratherthandoingbasicthingsiike satisffour management incompetence petence) hasbeenoneof themajorprob- ing consumerneeds.Now, they have lemsthat has1edto the downfailof our learnedtheir lesson:cheapmoneyalso industriesand economy.By this I mean inducesmanypeopleto makeself-indulincompetence in the industrythe finan- gentinvestrnents. A bigretailerthinksthat cial and banklngsector,as well as the a golf courseis a very nice ventureand government.Had we had goodmanage- movesto acquirea few golf courses;a ment competence, had business schools ceramicmanufacturer thinksthat a hotel or universities to educateour people,I is a very interestingindustry.So, they believecertainsituationsmight not have moveinto areasin which they haveno occurred. competence in at all.Worse,theyspenda Second,low productivityand wage lot of moneyon personalindulgence: inflationhavebeenverypronounced that jets,airplanes, andsoon. Now thathard

timeshavecome,most of thesethings havebeenliquidated. Servesthem right ih

^hr'

llldrry

^^-^^

LdJgJ.

Sixth,Thailand,unlikethePhilippines, has a comparatively inefficientand unstablegovernment.Politicianscarefor politicalgainsratherthan the economic management of thecountry.Theyjustplay games their andenjoyplayingthemrather thanrecognizing andtryingto manage the problems fundamental theeconomyisfacing at U:ratpoint in lime. Anotherweakprocedure. nessis that of fair decisional Thirtyyearsago,Thailandwantedto build anairportcalled"NongUhaw."Today, the airporthasnot beencompleted anddeclsionshave beenmadeon and off on whetherto buildor not to buildit at all. If prowe havevery gooddecision-making cedures,not only in the governmentbut the privatesectoras well, manyhotels, offices,steelwork,andmanyotherthings shouldnot havebeenbuilt. Critical Impact Anotherpointthathasbeenrecognized in the regionis poor governance and insufficienttransparency. I think I canspeak of Thailandin particular, but what I sayin thisregardis applicable in almostall countriesin Asia.Last,we havenot realized the impactof globalization. On Jtly 2, when the Central Bank of Thailand Centennial lssue I TheAsianManaser 13

thoughtof the baht, they did not think that the impactwould be assofar-reaching andimmediateon AFTA(ASEANFree TradeArea)- the Philippines,Indonesia, HongKong- you nameit, it's all around the world very quickly.That impacthas At flrst,we neverbeenin the calculation. thoughtthatif we devaluedby 10percent or 20 percent,that was the end of the exerciselbut equally,it went aroundthe worldandhasbecome a bigmess.Forthe ordinaryconsumer, or peopie,thecrisisin thelastsixmonthsin ourpartof theworld hasbeenterriblyunfair to the people.A lot of ushavebeenworkingtheirgutsout forthelastthreedecades, andwith a stoke of a few people'spenswe havemanaged to makethe bulk of our peoplepoorerby 30 percentor 40 percent.Weevendevalin proviuedthewealththeyaccumulated dent tunds.By the time they pick their moneyup when theyare60, theremight not be enoughleft for them to go ahead.

try. Competitiveness must be all about Good government, whatwe mustdo now andsustainfor the no matter how next 10 or 30 years.And theleastof the competitiveness we mustdoisverysimple powertul like satisfyingconsumerneeds,satisfying the president thecustomer, usingyourplantto themaximum, makingsureyour costsare going of the country, low, and that you reallymaximizeyour is good to have. potential. A11thesearein the textbook,but unBut unlessour fortunately,seniormanagement has not companY focused on thesebecause seniormanagement hasenjoyedtoo much of the good is competitive, time and endedup borrowingcheap we can never win money,buyingafewyachts, andgoinginto the hotel business which they do not reoutside our own a1lyunderstand. CorporatecompetitivecountrY. nessis vitai.Youeitherdo thator you die. Youmaywin todaybutif youwant to win on a sustainable basis,competitiveness is notharder.Harderalonewill muchmoreimportantthan politicalcon- work smarter, nection.To surviveoutsidethe country, not win thewar,but smarterwith the use technology, competitiveness is absoluteandvital.The of InformationTechnology, third point I wish to makeis the impera- andnewcreativeinnovationwill certainly tiveof strategic alliances. Weneedto form help us moveforward.Lastand not the Three Choices is the AseanFree Noq being Thai and thus highly alliancesto savecosts,we needto form ieastof my contentions as Dr. Lin alliances to benefitsynergistic economies, TradeAgreementthatwasformedfive or flexibleand accommodating, to really six yearsago.I think it's now time for us said,Whereon earthdowe gofromhere? we needto do strategicalliances We havethreechoices:First,look at the havea scaleto competeif we bellevethat to picktheideaof AFTAbackon the tabie anda again.AFTAhasnow 10 countries, is the key. ceilinganddo nothing.By doingthat we liberalization population of 440millionpeople,andtheir will surelydie. Second,go andiump out currencyhasbeendevaluedmoreot less the window. By doingthat, we immedi- Working Smarter Al1 the big economies-the United in the samedirection.If our currencyhas atelydie. But thereis a third choice.The or 30percent, beenreduced by20 percent the worid has States,CanadaandEurope-wantus to li oisis is not a phenomenon not faced.It comesandwill ultimatelygo beralizethe economy,to openthe door, we cannot affordto buyfiom otherpeople if we havethe will to overcomethe ob- andcompetewith themon equalfooting. anywayd. stacle.Theflrstthingwe oughtto do is go It'sup to you to beiievewhat theysay.It's who hasbeenlocked Keep Going backto the basics:reallygo backto what likewhensomeone Finally,asa 1otofpeoplehavebeensaywe aregoodat, backto the corecompe- up behindheavydoorsfor a longtimeone tence.Whatis not our corecompetence, day heus a veteranin the industrysay, ing:Dowhatyouwi1l.OnethingyoucanhumanreCom- not stopdoingis developing we get rid of. That is goingon now in "Heycomeon. Let'srun together. Tobesure, forthenextgeneration. haveiden- pete".We cannotcompete.We cannot sources Thailand.Manyconglomerates with theWestin theenvironment we havebeenthroughquite a lot in the tified their cores-what they'vebeenre- compete forces.Someof you may last six ot sevenmonths.Many compafocusingon, of free-market ally attachedto, addressing, and makingit work. What is not, they think so, but certainlyin Thailand,we nieshavecertainlybeenthroughterrible auclion0ff.Therearenow 70,000motor- cannotcompetein that kind of openmar- times,butinnocentordinarypeopiewho'd carson the auclionblockeveryFtiday.If ket. But we haveto do that or IMF will hadnothingto do with these,faultycomhavebeenthtough you reallywant to buy cheapmotorca$, not allow us to havethe money.Liberal- paniesinvestments, you go to Thailand.Therule is, if it's not izationis a goodidea,but maybetimingis worse.And theymustbearthebruntsimcnrp fnropt it plybecause of ourcomtheyaremembers another,morekeyissue. many but as I The ways out are community. competitiveness is Another area, that we have been Second,corporate to stay. As such government, AFTA is here have said, ing through in Thailand is our oriental vital to reallysurvive.Good guys we must domipowerful presidept is for us to take. And AFTA of work ethic. We work harder. You no matterhow the the country,is goodto have.But, unless workeighthours,we work 10hours,you natethe AFTAregion-and on a sustainwe cannever work 10 hours,we work 16 hours.We ablebasis-bybeinglinked,beingaggresourcompanyis competitive, win outsideour own country.Theworid work harder.It's sheerChineseworking sive.And when thingsgetvery tough,as hasbecomefar too small;therefore,we habit.But if you reallywant to movefor- the AmericanMarinessay,the toughget I basis.we mustnow going,andthe weakgetburied. haveto competeoutsideout owll coun- wardon a sustainable 14

TheAsianManaser I Centennid Issue

Managing

PUBUC $XKVXCX rn Malaysia

AIM Governor Ahmad Sarji on the Malaysian experience: Toward " lectronic" governa e nce

The adm i nistrative th rust toward the year 2000 emphasizesaccuracy,ti meliness,and pertormance measurement

he one questionthat haspersisted in public administrations is: Why doesgovernmenthave greatdif: ficulty managingits policiesand programs?There have been wrongheadedcomparisons madebetweenthe efficiencyof privateorganizations, especially the profit-oriented kind, and the government.The government,through public service,facesunique challenges. Crime,toxicwaste,poverty,oumblinginfrasffucture,AIDS,areonly a few of the

criticalissuesthrownuponpublicmanag- the large-scale bureaucracy, which is ers.Also,the complexities of modern,in- overly formai and hierarchical,there is creasingly interdependent economies and over regulation.In the past,to be effecsocietiesdemandmore governance. tive, public managersworked around Hence,public managersnow face the theseconstraints to pfoduceresults;with problemnot onlyin managing anagency's TotaiOualityManagement(TOM), atinternaloperations but in communicating temptsare made to removethe conand beingcompetitivewith the outside straints.Cumently,the emphasis is to reworid aswell. think or reinventgovernment operations. The governmentoften hasproblems It is better to attackand eliminatean deliveringprogramsbecauseof the large outmodedprocess thanto wasteresources size ol public organizations. Besides workingaroundit. Centennial lssue I TheAsianManaser

Advances in telecommunication technologies have andtransportation intensecompetition engendered amongnationsand haveenabled 5 companies to focuson ateasof dis ! Thosecon $ tinctivecompetence. I cernedwith publicsectormanagementmustensurethat the government benefitsfrom the advantages t of theseimprovedtechnologies. 6 is in the $ Publicservicein Malaysia process of oeatingtheorganizational ! capacityto delivereffectiveandeffi-Q cientservices aspromised bythegov-f ernmentto thepeople.Publicorga-$ nizations operate in a fishbow1.Theo.i media,interestgroups, centralagen-P cies,the legislative bodiesandtheY * publicnow paymoreattendonto The Public ServicesDepartment Complex in Jalan Tun lsmail, Kuala Lumpur: Ensuring efficient wheretheirdollarsaregoing.The and disciplined public services. publiccanno longertolerate public to be marketlheseagencies who spendmuchof theirtime adoptedas an approachto mobilizeall galvanize managers resources to meet drivenandto institutionalize organizational a distinctcusinformation available accumulating and digesting requirements. Thissignals a ma- tomer-orientation in the deliveryof serforno urgentreason. As thegovernment customer fiom oneof merelygen- vices.In this context,the Charterintromovesintotheinformation ageandasthe jor reorientation complexprob eratingoutputsand servicesto that of ducedin 1993formstheapexof all these societyfacesincreasingly of thecustomer. effortsin inculcatlng andinternalizing the lemsand competition fiom othercoun- meetingtheexpectations the need The goalis to createan organizationalqualityethos.The Client'sCharteris a triesin tradeandinvestment, madeby all governfor innovativeand efficientleadersand culturein which qualityandproductivity writtencommitment pertaining ale seenas a way of life mentagencies ro the delivery in thepublicservice will flour improvements managers publicsectoris andindeed,a mindsetthatpermeates the of outputsor services to theirrespective lsh.A creative,adaptive It is an assurance by agencies customers. neededto respondto the rapidlychang wholeorganization. All publicsectoragencies arerequired thattheiroutputsor servlces will comply ing environment. qualitystandards. Thenrrhlicservice hasembarked The missions with the declared in to formulatetheir respective its journeytowarddeveloping a quality throughthe processof strategicquality Charterholdsthemomentof truthfor the civilservice in rharir nrovides a critical culture.In thls resardTOM hasbeen rn'l": "n"n" i' nbo' T h p n r i m : r v n h i p r ^ t i r r pi s t n pointof evaluation by itscustomer in his encounter with the civil servant.The customerhasspecificinof qual formationon the standards is ify to expectand,consequentiy, in a positionto evaluate the perforand manceof theservices rendered makecomparison between agencies thatprovidesrmilarfypesof service. experiences in such Thecustomers' momentsof truth conffibuteto the rn thecivilserbuildingof efficiency vice.A crlticalfactorin theeffectiveisltsabl1 nessof theClient'sCharter i t y t o p r o v i d es e r v i c er e c o v e r y in instances where mechanisms pledges in the respective contalned . charters cannotbe fulfilled. One-stop centershavebeenexpandedwith theintroduction of the The Public Works Department'sRoad Branch satlsfles the requirements of national Network,a faciliry PublicServices development. govemment agencies to thatenables 16

TheAsianManagerI CentennialIssue

The objective is

to prevent defects in quality and not attend to them

after the fact. offeronLineservices to the publicusing premise, andtradelicenses, therebyabolthecomputer andnetworkfacilities of the ishingthe systemof yearlyrenewal.Furpostoffice.Twotypesof services arecur- therdevelopment in thesystemof licensrentlyoffered,namely,therenewalof driv- ingandpermitspertaining to business and ing licenses andthe renewalof business investmentwill includethe following licenses. ThePublicServices Nemrork will measures: abolitionof unnecessary liin stages be expanded andmoreservices censes, extendingthe use of composite will beofferedfor theconvenience of cus- formsandlicenses, introducing the comtomers, whichincludetherenewal of road positebili extendingfurther the validity payment periodof licenses taxpayment, trafficcompounds, and establishing more profiles, one-stop of licenses, inquirieson business llcensing centers. inquirieson the statement of accounts of The new administrative paradigm theEmployees Provident Fund(EPF) con- that emphasizes accuracy, timeliness, tributors,andinquirieson changes of ad- performance measulement and strategic planningrequiretheuseof computers dresses of thecontributors. to One-stop investment centers werealso organize,channeland disseminate the createdto facilitateinvestorsin termsof pertinentinformation. Thepublicservice information andvariousapprovals for in- hasundertaken a majorofficeautomation proiects. vestment At thefedera11eve1, the programto replaceexistingmanualsysone-stop investment centerisfoundat the tems.Computeizedtext processing, inMalaysian IndustrialDevelopment Author- formationstorageand retrievalsystems ity (MIDA)whereapprovals arecentral- have beenintroducedto increaseeffiized for variousapplications of manufac- ciencyandenhanceproductivity.Theobturinglicenses, tax incentives andexpa- jectiveis ro movetowarda paperless triateposts.At the sametime,MIDA has bureauracy. set up the AdvisoryServiceCenter A majorinitiativein the areaof infor mannedbyofficers fiomvariousministries, mationtechnology is theestablishment of departments andutilitycompanies to pro- the Civil ServiceLink (CSL).The CSLis videapprovals for theirrespective areasof the forerunnerof a new culturein the jurisdiction. At thestatelevel,one-stop in- publicservicewhichstresses a moresysvestmentcentershavealsobeenestab- tematicinformationcollectionandmanlished. agement system. TheCSLis a centraldaIn 1990 effortswere undertakento tabase whichcontains informationonvari streamline andeliminateprocedures and ousaspects of thepublicservice of imporregulations deemedcumbersome by the tanceto theprivatesector. pdvatesector.Threenew strategic thrusts This supportiveenvironmentfor inwereiniliated.First,theuseof composite formationsharingbetweenthe public formsand the issuance of composite li- and privatesectorscan also be seen censes wasintroduced to replace themu1- throughthe implementation of the Elecpaperwork. titudeofrequired Second, the tronicDataInterchange IEDI).The EDI one-stop centersfor licenses were estab- is a directcomputer-to-computer applicaprocess, lished.Thesecenters receive, and tion usedfor the exchangeof standard decideon alinewapplications andrenew- business documents. The EDI replaces alsat a centralpoint,unlikethosedays the need for paperdocumentsand is whentheselicenses wereissuedseparately thus suitablefor sendingand receiving by differentdivisionsandbranches. Third, purchase orders,invoices,bills of lading extendingthe validifyperiodof licenses and othertradedocuments. Directbenfiom oneyearto threeyearsof business efitsof EDI includespeedof ilansaction,

'1998Advertising Media-PRDirectory In 116 pages,a comprehensive list of tri-media and allied organizations in t h e P h i l i p p i n e s ,i n c l u d i n g F i l i p i n o t r i media abroad. P 5 5 0 . 0 0 / c o p yi n t h e P h i t i p p i n e s : US$30 a copy for overseas orders, inclusive of mailing and handling.

lmmigration Passport Visa Manual In 212pages,a compilation of official visa informationfrom embassiesand consulatesof over 60 countries. P 5 5 0 . 0 0 / c o pi n y the Philippinesl US$30 a copy for overseas orders, i n c l u s i v eo f m a i l i n ga n d h a n d l i n g .

{ 998 Diplomatic and GonsularDirectory (Available March 1998) Comprehensive list of foreign embassies and consulates in Manila, Dept. of Foreign Affairs and Philippine embassies and consulates, etc.

Philippines Government Directory A comprehensive list of offices names, addresses, fax and phones of offices in the three branches of government. Released in 1997. P 5 5 0 . 0 0 / c o p yi n t h e P h i l i p p i n e s ; US$3O a copy for overseas orders, inclusive of mailing and handling.

The Diplomatic Post Monthly newspaper of news and features about different countries, including special directories. PhP300,00 annualsubscription in the Philippines; US$25.00 for overseas.

For overseasorders Payment should be remitted through telegraphictransfer to U.S. DollarAccount Number5294-0005-44, The DiplomaticPost PublishingCorp., BPIFamilyBank,EDSA,MalibayBranch, PasayCity,MetroManila1300Phils. Uponreceiptof remittance,copy/ies will be mailedwith officialreceiDt.

For.ordersin Philippines Pleaseadd PhP60.00lo cover pricefor mailing. Send lelter order and payment t h r o u g h d e m a n d d r a f l / m a n a g e r ' sc h e c k payableto The DiplomaticPost Publishing Corp., P.O. Box 4246 Makati CPO 1282, Philippines.Copiesavaihble in nnirr bookslores and hotel lobby shops in Metro Manih.

For inquiries Tels:(632)833-2818, 833-3858 Fax:(632)833-3858 E-mail: tdp@mozcom.com Centennial lssue I TheAsianManaper

smart reducederroranda reductionin costsas- andservicesand for improvingorgantza- world'sflrstnatlonalmultipurpose tionalperformance andcustomer satisfac- L^d^r -us. n^ J^1i1-1^Fr) 1^C P- rrd^ +L r fU^r -l i ^ . tw i l l h a v e t h e sociatedwith paperwork. is individual'sID and electronicsignature Perhapsthe most significantprogram tion.By theyear2000the government "electronic and accessto Government, banking, to improvethe publicserviceis the deci expectedto be a pioneerin transport andclubserto implementthe govelnment". Thiswill be a multimedia, credit,telephone, sionof the Government will alsohavea compreadministration vices.Malaysla ISO9000 Systemin the publicservicein networkedand paperless program forsmartschools, which capitalof henslve thatby theyear iinkingthe new administrative July1996.It is expected to tireInternet.Wotld and Putrajaya to government centersaround w111 be connected 2000,mostministries, departments to facilitate intergovernment col- classdlstancelearningfacilitieswill be of thegovernment will attainthe Malaysia agencies to govern- built. Malaysiawill be a regionalcenter ISO9000 certification-awritten setof laborationand citizenaccess I Malaysia will alsohavethe for telemedicine. standards that definethe basicelements mentservices. of thequalitysystemneededto ensurethat productsand./orserthe organization's needsand vicesmeetor exceedcustomer gives TheISO9000System expectations. greateremphasis management. onprocess First, It alsoembodies a fewkeyprinciples. ISOq000 is a standardfor a qualitysystem. It is not a productor servicestanof a j : r : the specifications dardthatdescribes lllri: productor a service.Second, it is based *&s ,tt$' .**t! andispremised on the on documentation l. , :t:'.,1 principle:"Documentwhat you do, Do | : .:t' whatyoudo,andProveit." It emphasizes prevention. Theobjectiveis to preventdefectsin qualityandnot attendto themaf ter the fact.ISO9000 is a universalstanout broadrequiredard,asit only spel1s In otherwords, mentsto theorganizaLion. thefocusof ISO9000is onwhatneedsto be doneand on how it mustbe carried out. :rilf*

Toward a "Smart Cafd" The Malaysian lnstitute of Islamic Understanding:Another Public Works landmark. Theimplementation of ISO9000will bring aboutvariousbenefitsthat include providingthe meansto enablethe right tasksto be identifiedand specifiedin a way that will yield the right results; the meansof documentingthe organizaLion's experiencein a structuredmanthat will providea basisfor education ner and training of staff and the systematic the means improvementof performance; problems resolve andpreto identifyand right the venttheirrecurrence; tasksdone (this first time is achievedthroughthe provisionof work instructions,effectlve controls,appropriateand adequateresources,training,motivationand a conprovidingobjective duciveenvironment); evidence thatcanbeusedto demonstrate products the qualityof the organization's to any and servicesand to demonstrate externaievaluators thatthevariousoperaLionsareundercontrol,andprovidingthe theper- lmproving the Family Health Program: Yearly reviews yield better linkages. datathatcanbeusedto determine process, ploducts formanceof operating 18

TheAsianManagerI Centennial Issue

Managing

aNatio"n

at the

TURN of the CENTURY Cavite's strategic location sef fhe stagefor its historicity as PresidentEmilio Aguinaldo walked the tightrope betweenwar and peace. he economicdevelopment ol Cavite and its concommitantpolitization wetetheinevitable consequences of lg'h centurywindsof change.They set the entirePhilippinearchipelago on coursetowaldnationalliberation. ln 1896its cropof youngrevolutionaryieader-managers successfu lly mobilized a province-wide upheavalagainstthe Spanish colonizers. Oneof its town may. ors who was barelyin his 30s-Em11io Aguinaldoof Kawit-eventually found himselfsimultaneously thrustinto a sea of controversy and a multiplicityof mis. sions.Hewasat thehelmof a revolutionarygovemment, in theforeftontof anex, pandedbattlegoundand besieged anew byAmerican imperialist machinations. Yet he was spurredon by that indomitable Filipinospirlt of 1898 to declarePhilippineindependence againstall odds. With a favoriteson taskedwith the enormousresponsibilityof nurturing a revolutionand thereaftermanaginga foundlingrepublic,syrnbiotically, Cavite assumed a newcharacter andsignificance asseedbed ofvaiorandnationalism. How-

ever,it wasa distinctionthatcouldnot be vaingloriously held by both leaderand land.Not evena centurytherafterwould theyenjoyunbegrudging recognition ButCavirewasa majorstakeholder in the independence struggle.More than Aguinaldo. irs humanand materialre. sources hadbeenseverely put to the test. War-tornandwar-wearyCavitesurvived to remaintie goodearth.ltwastheproven landfor the brave.

the countrysideand becameseif-proclaimeddefenders of the people.The reportedcasesof pettythieverypilferages or cattlerustlingusualiyinvolvedlandlords harvests andftiar naclendas or estates. And sinceit wasthe handiworkof the needymerelypickingoff the excessive bountiesof therich,it wasrationalized as justifiable. Observers sawin thesedaringactivi. tiestheinitialstiningsof a resistatcemovement. Thesebrandedtulrsaneswere Bounty and Bravery troubledandtroublesome peasants whose As a province,Cavitehadsufferedan sustenance sorelydepended on theapproimageproblemthatwasnot entirelyun- priatedlands.Theinsufferable abuses and founded.Reference was good.naturedly exploitationof thoserecruitedfor farm, madeby Caviteiosto themselves as infrastructure andtansportservices lent Cavitenofanlarron/rubacuarta/na cajon legitimacy to theirmodeof redress. With (CaviteRo a bully,robs moneyin the iti pro.poor posture,rufsantsmoS mission cashbox). Oftensharedin jest,thesewere wasinevitablysubsumed underthe revononetheless met with nervouslaughter l , , t i ^ n r n , m ^ v a m a h r Theybroughrbackmemories of the infaperceived ThusCavitewaspopularly as molts tulisanismobanditly phenomenon a veritaileno mans land.Timeandagain datingto earlySpanish times. it was referredIo as La Madrc de los A localizedactivityof dissatisfied and Ladrones(Mother of Bandits). Keytowns disodented elements shutout of friar-con- earneda dubiousreputation, oftena prodffolledlands,thesebandsof rogues roamed uct of wild imaginings, at timesborneout CentennialIssue I TheAsianManager

and politicalreof harshsocioeconomic alities:Imus Madriguerade Gente Den);Bacoor' the Maleante(Hoodfum's - a place of am' Binakayan NesrofThieves; bush;asectionof GenenlTias- SftioPaso LadronInieft Pass)- andof Naic- killthatSpan' ingfields.It cameasno surprise ish colonialauthodtiesput Caviteunder andclosersurits repressive stranglehold veillance. lailedto wreakhavoc Secuty concerns on Caviteiolives.It inducedbothin- and outmigrationthat provedstimulating. closeNature'sbountyandthe province's nessto theprimatecityofManilasustained a vibrant politicaleconomy.honically, environment. Cavitewasstilla hospitable of Thoughunpopular,the appropriation primelandby the zealouscolonizers reof a networkof sultedin thedevelopment productivesettlements. Verdantvalleys and fertile soil, pristineriversand rich aquaticpreserses couldprovidefor coastal a population. population in 1898stood Cavite,whose a t n o m o r e t h a n 1 0 0 , 0 0 0b e c a m ea It seNedas meltingpot of nationalities. point of the lucrative transshipment galleontrade for two Acapulco-Manila hundredyears.Guardingthe entrance to the bay areaof Manila,it witnessed the comingsand goingsof international watercraft.Its dockyardwas a beehive centerof serof activity,an exchange people ideas. Cavite's catalytic vices, and l i f e r o l ei n P h i l i p p i nnea t i o n a l w a si n determined. manywaysgeopolitically The First Asian Manager who rosefromtowrl EmilioAguinaldo, generalissimo andpresj. mayortobecome dent, precariouslymanagedinterfacing from revolutionLorepublic. transitions to thenext.Ar']extaorhomonecolonizer anyman,neitherwas dinaryfeatto assign prepared nor to be adequately it possible fained to be equalto the taskgiventhe exigencies of the times. Aguinaldowasafarcry fromthe swashbuckling,pistofpacking,rambunctious, t!?e that rnight and colorfulpersonality to emergein a provhavebeenenvisaged incelike Cavite.Norwashe to themanor born. Civen Lherosterof scionsfrom widelytaveled,andwellhighlyeducated, endowedFilipinofamilies,therecertainly was no lack of a better choicefor the honchoof a nationaborning. 20

TheAsianManager Centennial lssue

aswe hold in convetsaHowever,the late 19thcenturywasa and governance Uon-Emilio Aguinaldo-L're trod dangertime when the Philippines /?rslAsian eyewitness and ouslythe thin line betweenreformand managerof a republic, revolutionand,ultimately,benveenwar makerof history. andpeace.The needof the hourwasso geat forbothsociefy's cremede la creme T h e A s i a n M a n a g e r :A s a y u p p i e wefe you not biting a leader-manager, andrankandfile ro leadandmanage societyin transition. Happily, thesifuation rnore than you could chew by tackyieldeda colerieol naturalleaders from ling the Americanswhen the PhilipManilaandits environs,with a follow pines had barely recover€dfrom Spani n g t h a t s p r e a dt o t h e r e s t o f t h e ish maladministration? Americahad EmilioAguinaldo:lln 18981 archipelago. Schooled in realpolitikand firedwith n o c l e a r c u ti n t e r n a t i o n apl o l i c y .T o patriotism,a core groupfound them- u s F i l i p i n o si t, m a d es t u d i e d l vy a g u e selvescongegatingin Cavitewhile oth' verbaloffersof fiiendshipand aid and erswerebattlingtheSpaniards on several then fairiy drowned them with the andtherattleof Gatling fronts.Theywefereadyto shedtheirnon boomof cannons of governmental character asthe Katipunan guns.I was 29 and, as the President andGenerasecretsocietyandplottedinsteadthe or- the FirstPhilippineRepublic ganizationof a government.Not too lissimoof its forces,I was desperately ftomoccupyjng to keepAmerica learned. Nottooaffluent. Nottoopolished. fighting But it was a determinedand defiantlot my Motherland.We had just liberated who, as delegates to the March 1897 it from the tyrannyof benightedSpain TejerosConvention, anointeda Caviteno which had enslavedher for over three intervengovernment. centuries. But dueto America's headof the revolutionary PerforceAguinaldotook chargeof a tion, our triumphwas suddenlybecom chainof eventsthat proveddivisiveand ing our defeat.The situationwasone to discordant. For decades, evenlong after c o n f u s ee v e nt h e m o s t e x p e r i e n c e d hisdeath(at95 yearsin 1964)andto the statesman. v e r y c e n t e n a r yo f P h i l i p p i n ei n d e ' pendence Historian John Schumacher,SJ, which he so resolutelypro claimedin 1898-the insidestoryof the said you had bad press. For someproblematics of his transitiongovern' one who worked so hard for the country, why were you so tightment begsto be told andretold. TheAsianManagetis thuspriviieged lipped about the American perfidy and and chose to ftnally speak up only to revisitthepast,drawenlightehment learnlessons on stategicdecision-makingit 1957?

'rli'Y

/ t &s r

Gen. Emilio Aguinaldo's camp at Biak-na-Bato,December 1897by ManuelAtBs

profound caused stirring...Panicstricken, Binakayanand others,we scoredheartthe Spanishauthoritiesreactedstupidly. warmingbut costlyvictories...Our sucThey noisilyattackedand outlawedthe cesses soonconvinced the Spaniudsthat books...It sharpened all themorethecu- the main strengthof our revolutionwas riosity and will of the peopleto read in Cavite...and the GovernorGeneral them...copies werepassed fromhandto ...begana determined campaign against handuntiltheirpages werefrayedanddog- us. eared...To all it becamea commonnaggingandagitating know1edge... How did you wind up assumingfull ...[they]arrested him...exiled him to responsibility for the struggle plus a peopiehadbecomemore governmentto boot? Dapitan...the angered.It wasthenthatwe beganto orThecontrastbetweenBonifacio's defeat I havebeenpicturedas almostevery ganizeour resistance. Beforewe could and my victoriesinevitablyled to a genkind of bad man both to Americansand matureour plans,however,our plot was eraldemandamongour menfor a drastic Filipinos...as a cutthroat,a banditleader, exposed. Wehadno otherrecourse butto reorganization of ourpoliticalandmilitary a pirate,andotherfrightfulcharacters...an gointo action,halfimprovisingourmove- ieadership.Although acknowledging assassin, traitorandotherformsof infamy. ments. Bonifacio asanorganizing wonder...they But I havekept my peace.Aboveall, now believed him possessed of littleaptiuponswearingallegiance to the GovernFor a century the running debate tude for governmentand warfare.The mentof the UnitedStates, I consffued it revolved around the question of he- upshotof the new trend of thoughtwas my obligationno longerto quarrelwith roes. Who was the moving spirit be- the holdingof the so-called Tejeros ConAmerica...I hadneitherofficialposition hind the revolution-Jose Rizal, vention. nor a pressof my own.In additionto my Andres Bonifacio or yourself? disinclination to argueandquarrei,being Creditfor organizing the originalrevoWasit really a hometown decision? a manof few words,I hadno command lutionarygtoup,the Katipunan, primarily Riggedin your favor? of the new idiom of controversy-the belongsto AndresBonifacio...He man...1couldnotleavethefield...Bonifacio Englishlanguage.. . I rcaIizenevertheless agedto enlistthousandsof our country- andotherieaderswere,however, present. that at my advanced age. men secretlyunder the very sensitive After considerable discussion, the delI shouldno longerput off the impulse nosesof the Spaniards. Not only did he egates decided to dissolve the to tell my story. havean undeniablegeniusfor organiza- Katipunan...and to organize a Revolutiontionbut alsogreatcourageandpatriolism. aryGovernment. Proceedingwith theelecWere you a credentialed freedom Tobe caughtin the underground work in tionofnewofficers, theychosemeasPresi fighter? A propagandist?A profes- which he engaged meantcertaindeatl. dentandGeneralissimo. sional soldier? I was one of the first in my If you were not battle-ready,was Was this part of a long-term stratprovinceof Caviteto join the Katipunan. it not foolhardy to proceed? egyon your part to take over the leadAs the 25.-yearold capitanmunicipalor At the start of the hostility,we were ership of the Katipunan and wrest town mayor of Kawit, I organizedand morereadyspiritually thantechnologically. power from Andres Bonifacio? became theheadof thelocalchapter. Pa- Longsuffering,we had the will to fight. When a committeecame...to notify triots from the other townsjoinedus in But we had very few gunsand our men meof my unexpected election...I wasfar increasing numbersuntil the strengthof iackedtrainingandexperience. Our orga- frombeingreadyto comply.I hadno preour grouprivaledthat of othergtoupsin- nizationbeingsecret,we couldnot put viousinklingof the convention's decision cludingthosein Manilaitself.Ouitenatu- them throughthe usualmilitaryprepara- to elevateme to the highestofflcesand I rally,I wasrecognized by the majorityof tions of drills and maneuvers. Most of felt myselfunprepared for their responsiKatipuneros in our provinceasthe local themwereunshod,andfor weapons,had bilities. leader.When our leadersin Manilagave onlydaggers andbolos.At the beginning, the sigpalto fight the long-planned revo- theydid not evenhaveuniforms. How do you explain Andres lution, we in Cavitewere readywith a Bonifacio's violent reaction to the compactthough untrainedand i11Did you synchronize efforts with outcome of the convention and the equippedorganization of about20,000 other fighting units outside Cavite? innuendos about his inadequacy men. The firstbattleswere disastrous... In for the position of Secretary of the SanJuan del Monte, SanMateo and Interior? What motivated you to join the Morong,allin flatercalled]Rizalprovince It was probabiynaturalthat Bonifacio underground? next to Manila,and in the suburbsof shouldhavebeenkeenlydisappointed and In the early1890s,afterDr.JoseRizal Manilaitself,our forceswhich Bonifacio resentfuloverthe electionresults.As the hadpublished two patrioticnovels...De. personally ledwerebadlydefeated... For- Katipunanfounder,he perhapshad the pictingin awesomescenesthe Spanish tunatelywe faredbetterin my province. tight to believethat he shouldhavebeen terrorandFilipinodegadation, thebooks In strategictowns such as Noveleta, maintainedat the headof the Revolution Centennial lssue l TheAsianManaser 2l

regardless of the fortunesor misfortunes of out cause.I couidwell understand the his of his mind and the agony of soul $ief when,to staveoff the completecollapse of our war for freedom,the convention oustedhim asour leader

Confronted with such a dilemma your mettle as a leader and decision maker was challenged.In your own estimate,how did you fare? ...forces beyond my controlcameinto play.All my rankingsubordjnates, ledby Generals MarianoNorielandPiodelPilar, w e r ea g a i n m Whefe did he go wrong? s ryc o m m u r a d o n . . .lahnedy meto withdrawit. I resisted He went too far in nursinghis private pressed them grievance. Defying thedecision of theCon- at firsr...Buttheypointedout to me that vention. whjchhehadpresided he loverl, refusedto recognizethe Revolutionary andits dulyelectedofficers. Government Hisactionwasall the moregladng,since he washimsella high officialof the new Government... Why did it warrant such a drastic decision consideringhis organizational importance? More than refusingto give his alle' giance,he proceeded to organize hisown govefnment and his own sepasepatate rarearmy.He and his followersheld anotherelectionand,claimingto bethetrue govemment,beganto act not only inde' pendently of but evenwith a certainmea sureof hostilityagainst the Revolutionary Sincea divisionin our ranks Govemment. would have been fatal to our cause, Bonifacio andhisfollowerswerearrested A Court Maras counterrevolutionades. thetopleade$,including tialcondemned

Filipino revolutionary officers waiting b sign peace accotd with Ametican forces, Samat 1901.

Did you really have the luxury to delay your own decision, or worce, even alter it further? It hadbeenmy intentionto delaymy ownfinaldecision. . .untilmy subordinates had cooledoff. Duringand immediateiy afterthe tdal, theyhadbeenopenlyhosof theirdeep tile to him,not onlybecause resentment of his defianceof our authority but perhaps out ofloyaltyto me... The Spaniards were aboutto attackand he fearedthe possibilitv of their iiberaring Bonifacio andhismenor takingthemcapuves. Upholdingyour subordinatesdecision proved to be your undoing.Was it a caseof choosingthe lesserevil? ln the confusion andchaosof warfare. it wasquitedimcultto condemna fellow officer whohadusedhisbestjudgment... Wehadnot hadmaterialtimeto promulgaterulesand regulations to governour forcesandourcivilians, muchlesshadwe a bodyof precedents andpracdeveloped go ticesto by.Thetagedyof Bonifacio oc' cuned at a time of swift and disorderly transitionto which he had himselfcontributedby hisintransigence.

Under the chaotic circumstances what was your strategic priortty? WhileI deeplydeplored Bonifacio's loss, R^nif..i^ i^ darth I couldnotshowweakness. Thetimesand Bonifacio's of me firmness acrof defiance wasa mostse circumstances demanded Were the Spaniardsaware ofthese riousoffenseevenin peacetiine, that in and sternnesshoweverheavywas my wardmeir wasdoublycondemnable heart.Hisdeathhavingleft methe undis' developrnents- the shift in leader putedleaderof the Revolution, together ship and the divisive situation? prosecuted ...the Spaniards the war Did you doubtyour own charisma? with its tremendous responsibilities and againstus with geat aggressiveness, no Were you afraid of his pulling power? sacrifices, I couldnot affordto cure the doubttryingto takethe fullestadvantage On topoftheirlegalistic argument, they disunityBonifaciohad createdwith anof the split in our ranks.The trial of a d d e da p r a c r i c aclo n s i d e r a t i oTnh. e y otherdisunitywhichmighthaveresulted Bonifacioand his co-accused had been maintained thataslongasBonifacio iived, fromdifferences overhispunishment. startedin Naicwherewe hadestablished therewouldbe Filipinoswho wouldrally our Govemment, buthadto becontinued aroundhim andwith him derythe RevoYouseemto be a pragmaticperson, when Naicfell.Theen- lutionaryGovernment in Maragundong openlyor secretly. could this be why you retreated to emyfollowedus to the latterplace,stlik- I hadto )'leld;I withdrewmy commuta- Biak-na-Batoand eventually accepted ing soonafterthe courtmartialhadbeen tl0nordet the peace agreement proferred by rendered. Gen. Primo de Rivera? As we lought Your vacillation belied a most re...thewar see-sawed. Wereyou not too rash in your iudg- luctant arbiter.Would this not haveun- morebattles,we gainedmoreexperience d o r ea r m sa n da m m u n i ment? dermined your authority and ques- a n dc a p t u r em more With theSpaniards at our heels,I acted tioned your decisiveness? tion... Aswe won new skirmishes, Investigation brothersralliedaround f a s t . I i s s u e da n o r d e r c o m m u t i n g established the fact that of our oppressed had no Bonifacio's sentence to indeflniteexileto GeneralNorielhad...construed my with- us. But the Spanjshgovernment of losing Lherichest of iB remaina separate island.I decidedon thiscourse drawalofmy commutation orderasa con' inrentjon because I did not want to spillFilipino firmadonol the CourtMartials decision. ingcolonies. . . It soonshowedsignsof actOn thismatterhe wascertainlyhasty ing decisively. blooduselessly... 22

TheAsianManaget Centetnial Issue

But you had the edge in manpower-whydidyou decideto throw in the towel? ...ltheir]reinforcements numbered no lessthan26,000equipped with themost modernEuropean arms.With the Philippine garrisonand Filipinorecruitsand mercenaries, the Spanish armedforces were finallybuilt up to a formidablewar machine...To saveour forcesandat the sametime decimateltheirs]as much as we could,we gavewaygradually...

revolutionat the next opportune time.I How did you take this promise of a deposited the 400,000pesosin a Hong miracle cure? Kongbankandtherekeptit intactfor this I was dumbfounded. BeforeI could purpose, usingonlytheinterestit earned compose myseif,he continued: America for the fiugalmaintenance of our exiled will helpyou if you will helpAmerica. group. So were these exchangesfully It was reported that, while you documentedas you suggested?Did were in exile, American diplomatic you have formal negotiationsthereafemissarieshoundedyou... Why were ter? you so important to them? ...Asin HongKong,I submitted the ...in thenameofthefleetscommander, desirability of havingany understanding Commodore GeorgeDewey,the captain we mightreachin wdting.[Pratt] informed Were you buyrng time or perhaps of thePetrel...sought mefora conference me that he would conveymy wishesto sendingfeelers to signal a truce? fin HongKong].This1edto a seriesof se- Dewey.Youneed not haveany worry In a fewmonths, we hadretreated...in ctet conversati0ns startingin Marchand aboutAmerica.TheAmericanCongress a fairlyimpregnable cavecalledBiakna- runninginto April [1898]...[he] quire and Presidenthaveiust madea solemn Bato,we established ourheadquarters. We openlyurgedme to returnto the Philip- declaration disclaiming any desire to soonalsoreorganized our forcesand pinesto reassemble my armyand,with possessCubaand promisingto leave startedour own counter-attacks. At this Americanadviceandarmsto besupplied the countryto the Cubansafter having juncture,somewhatto our surprise,Gen- by Dewey,liberatemy counffyfiom the drivenawaythe Spaniardsand pacified eralde Riverasuedfor peace. Spaniards... the country.As in Cuba,so in the Philip pines.Evenmoreso, if possible.Cubais How palatablewas the peacepackWas there mutuality in this classic at our door while the Philippinesis age brokered by Pedro Paterno?Was case of friend in need is a friend in10,000milesaway. he more knowledgeable and sincere deed? in his assessmentof the situation or Youhave often been accusedofna[i didj ask what the United States was he a pro-Spanishloyalistcum spy? movewould be after the Spaniards had ivete. Did you not see through these pointedout lthat]we hadno beendefeatedand expelledfrom the empty promises?What did you stand [Paterno] meansof buildingup our strength.Man- Philippines...[he replied].. .The United to gain? powet,we had.But we couldneverhope States,my general, is a great and rich ' As i was myselfanxiousto return to armour menadequately. This,he did nation and neither needs nor desires to the Philippines,in view of the nothaveto tellus;oftentimes, we hadonly colonies...at thlsjunctureI suggested... fast-unfolding developments, I gavemy onerifle for everyten men in the line of so that we may havethefullest under- word to Prattto help the Americans.f battle...Hisappraisal...did not somuch standing, it will perhapsbe in order to you cansecurearms,I promiseyou that impressus. We had ourselves constantly put whatever we may agree upon in my peoplewill rise as one man against assessed the situation.The consideration writing. the Spaniards. he offereiton behallof de Riverawhlch mostinfluenced usto agreeto peace, howWhat was the quid pro quo? Was Were you truly awed by American evet,wasthespanishpromiseto inffoduce there consistency in their counter might? Purported generosity and liberalreformsin theadministration of our offer? senseof righteousness?Intrigued by country. ...[in Singapore] It pas evidentthat the Cuban formula? big Wildmen like Pratt premisedhis [ConsulGeneral]Pratthadsomething Is there truth to the allegationthat up his sleeves. He startedby inquiring predictionof future Philippine-American the cashsettlementof P800,000in ex- aboutour revolution...I repliedthat as relationson the American[hands-off changefor your abandoningthe Revo- longastheSpaniards didnotimprovetheir policyl declarationon Cubaof April 19 lution was frittered away and caused adminisuationof the country,the Filipi now known as the Tel1erAmendment. further dissensionamongyour men? nos,regardless of appeuance, will always Amongotherthings,he advised meto esThepeaceprovedto be only a breath- hatethemin theirhearts. government...that tablisha dictatorial it ing spell.TheSpaniards failedto comply That'sthe crux of the situation,gen- wasthe bestgovernment for carryingout w i t h t h e i r p a r t o f t h e b a r g a i n . eral,Prattdeclared with anoteof ffiumph. a wat After the wat you will do well They neither inauguratedthe promised As long as the Spaniardshavefailed to to take the American Governmentas improvements...nor gaveourpeople their fufill their bargain,you havethe right to your model. promised rights.Theyneitherexpelledthe resumethe revolution...AsoJthe other fiiars nor pald the balanceof the peace day,April 19, Spainand Americahave What about military aid-did they money.Soit wasthat we decidedto use beenat wat Now is the timefor you to offer you war toys-as a gesture of inwhat moneywe hadon handfor the pur- strike.Ally yourselveswith Americaand cipient friendship? Or was it strictly chaseof armswith which to resumeoul you will surelydefeatthe Spaniards. business? Centennial Issue I TheAslanManaper

wasalsobeingconThearmspurchase thanksto Wildmansenergy summated, I left 50,000peandvaluable contacts... soswith Wildmanfor the paymentand shipment of theseitemsto Manila...I arrangedto have67,000moreplacedto the of ancreditof Wildmanfor the purchase shipment of arms, an anangement other with alacrity...lndue to whichhe agreed first arms shipmentarrivedon time, the w an American arship. But the came. second...never

ingshad anybasis.[He] statedthat, ashe had alreadyindicated,the UnitedStates would un-questionably rccognizethe in dependence of the peopleof the Philippinesguaranteed asit wasby theword of honorof Americans which,wasmoreposi tive, more irrevocable,than a written agreement which mightnot be regarded asbinding...

powerfulnation.Wepurchased armsfrom additional armsfromthe abroad...received Americans... The peopleralliedperfervidlyaround us astheyhadneverdonebefore. manyof our In ourprevious revolutions, citizenshadshown wealthyandeducated no sympathyfor our cause,preferringto play safeby not antagonizing the Spaniards.Now...theyjoinedour rankswith There apparent sincerityandpatriotism. the equalof was unity amongourselves, whichhadneverbeenwitnessed before...

How far did this early manifestation of goodwill go? ...theAdmiral[even]suggested that I Was there not even an ounce of have a Philippineflag madewhich he would recognizeandprotectin the presWasthis strategicmove an attempt skepticism on your part? in the to pre-empt US takeover?Were you Our trip acrossthe ChinaSeawasun- enceof othernationsrepresented eventfulounvardly...itwasinwardlytu- variousnaval squadronsin Manila ready for a Republic? Almostimmediately we went into acmultuous.We spentmostof our waking Bay...[but]thatI shouldnot hoisttheflag power of tion.In two months,moreoI less,we had hoursin deepreflectionbut eachknew until we had destroyedthe completely on the run. In that virtually the samethoughtcoursed Spain...inorderthatit would,whenun- the Spaniards wefind our furled,catchthe eyesof the world at the anothermonth, we had capturedabout throughour minds...uzould peopleas readyto support us as before? momentof victory. 10,000of them,and thosewho had estheSpaniards hadtriedto make . . . [however]in thearchivesof thegov- capedhad takenrefugebehindthe walls Certainly, capitalof ourwillingnessto stoptherevo- ernmentin washingtonandin almostall of Manilaand in a few fortifledoutposts Naturally, we accompanied lution, acceptmoneyandgo abroad.But thehistorybooksonthePhilippine-Ameri- elsewhere... with politicalaction. our returnwith armsandAmericansup- canWar,it is of recordthat both Dewey, our militarysuccess portshoulddisabuse Scarcelya month after the Battle of themindsof all those Pratt and Wildmancompietelydenied who hadbeensofaithlessasto doubtour havingmadeeverypromisethat he had ManilaBay,we proclaimedthe independenceof the Philippines andunturledthe rule. madeto me. determinailonto liquidateSpanish first Filipinoflag...ata formalceremony Apparently you were undaunted by iil1my hometownthen known as Cavite Everyone knows that the Battle of Manila Baywas a sham and paved the Dewey's successftrldefeat of the Span- Wejo.. ..Wetollowedthiswith thepromulgationof a provisional which Constitution way for a new era of unequal rela- ish fleet-trhy? Dewey was a naval victor with-out declaredour purposeto strugglefor the tions. Wasthere something auspicious or suspicious about your encounter land troops...[he]waited impatiently liberationof the Philipptnesuntil all nawith Deweyon this first everjointUS- in Manila Bay for AmericanSoopsand tions, including Spain, shall have had only a precariousfingerholdon expresslyrecognizedit, and to prepare Philippine military maneuver? ...on May 19 when the Mcculloch Philippineterritory consistingof a re- the countryfor the establishmentof a I droppedanchorin ManilaBay...[Dewey] silictedperimeteraroundthe Cavitenavy Republic. our armiesand was effusive with hospitality and yard....We reassembled use of Aguinaldo's said...thatAmerica wasex- resumed our war against the [Authorb note: The crcative"inteNiew" cordiality...He the Nocess hadtheupperhandfrom autobiogaphyfacilitatedyears ceedingly well-offasregardsterritoryrev- Spaniards....We old. Thecoverageis whenDon Emilio was88 enueandresources, andneededno colo- the very beginningdue partlyto the un- limited to 18Q6-18Q8when the situationcalled at meflnallythattherewas enviablesituationof the Spaniuds.They tention to his managementskills,) nies.He assured no reasonfor me to entertainanydoubts hadiustlosttheirAsiaticfleet.. ..blockaded within andmenaced whateveraboutthe recognitionof the In- by theUnitedStates, of the Philippinesby the by a new Filipinorevoiulion.Their modependence Reterences: ralehadhurtleddown to the iow levelof Aguinaldo,Emilio with WcenteAlbanoPacis.A SecUnitedStates. despondency. ond LookatAmertca RobertSpellertr Sons,Publisherc,Inc. New YorlgNew Yorl<,1957. Did you reveal your apprehensions Medina, Iugani. CaviteBeforcthe Revolution What prompted you to p|claim at all? (1571 l9Aq. CSSPPublicationEUniversityof the ...1candidlyinformed[him that Hong PhiliPP;lns indePendence in June Phitippines,Diliman, QuezonCity 1994. the 1898 amidst seemhglyunstable con- Ocampo,Estebande tr AWdo Saulo. KongFilipinosl...hadfully discussed History of Cavite.Milrcse Printing Corporatton, possibilitythat after the Spaniards were ditiotu? .. .out moraiewasthehighestpossible. Parafiaque,I QQ0. defâ&#x201A;Źated,the American Government and Sauto,Alfredo.EmilioAguinaldo-Ceneralissimo and Neverbeforedid we havesuchan abun- Presidentof the First PhitipptneRepublicmig[t not recognizeourindependence anotherwar wouldfollow... I thenasked danceof arms,suchuniversalsupportfrom First Republicin Asia. PhoenlxPublishingHouse, misgiv- our peopieand the activebackingof a QuezonCiu 1Q83. the Admiralif my countrymen's 24

TheAsianManaperI CentennialIssue

CAIITECA.

r998

he precedent-settingsuccesses RepublicAct 7916-The SpecialEco. enjoyedby leadingAsianindustdal- nomicZoneAct of 1995.The law manizing counffieslike Taiwan,Singa- datesthe creationof 38 specialecozones pore,SouthKorea,and China,par- in all regionsto stimulateeconomic activticula.rlytheir export'drivengrowth,have ify in the countryside, boostexportsand servedto pushPhilippine initiatives in the genelateemployment. samedfection.However.to-date.RPexBut the dreamof a boomingcountry. port performance palesalongsidethe sidehasraisedissuesaboutthe needto recordofitsneighbors who haveaveraged assurea bloomingcountryside.Urban planners a 7 percentgowth annually. andenvtonmentalists havecauThe drive for export competitiveness ilonedon what studentiof European inhas triggeredan evenlarger demandfor dustrializationhavelearnedcenturiesagoi n c e n r i v e st h a t w i l l d r a w f o r e i g n unbridledand misguidedmodernization investo$into the Philippines. In the last leadsto urbanandnow,evenrual decay, thee yea$sinceits inauguration,the Phil- in the new "rutban"centers. ippineEconomicZoneAuthority(PEZA) The doublevisionof development is sDearheaded the oDerationalization of fastbecominga reality in the Philippines.

Problems suchasenvironmental degrada. tion, tlaffic congestion,pollution, not to mentioncriminality. havecalledattenuon to creativesustainable development modes Thesettingup ofecozones of intervention. wasa giantstddethat hasservedto rationalizethe distdbutionof indusffialand employmentopportunities. The second stddeis the cons[uctionof businessparl(s population thathasfurtherdispersed and, in a big way, contributedto the improvement of the qualityof life in certaincommunities.Landuseandlandvalueshave becomeback'to-back concemsthat ate perceivedas a consenow ambivalently quenceof counqsidedevelopment. But someplanningis betterthannone ls betterthan at all. Somedevelopment noneai all. Accordingly,expertsin urban planningand designand environmental activistshavebecomeimportantpartners of responsible corporatecitizensand enlightenedbueaucratsin mappingout a commonfuture.Thatplacewherepeople andbusinesses andindustdes canstill coexistpeacefully. As a whole,PEZAflndsthe success of govemfiEntkpilot initiativesin ecozone development underthe now defunctEx' port Processing ZoneAuthority {EPZA) creditworthy.What startedwith four governmentand 12 privatelyownedandoperatedzonesis a thriving 35, and now a promisingtotal of 83. Fromgarmentsto furniture to mlcrochipsto yachtsand more. No longersweatshop operations, thereis pridein the technicalskillsand CentennidIssueI meAsianManaser 25

themassive capitalexpenditures reguired to develop,maintainand sustainthese privatechnocities. In facr,theproposalto tize all state-runspecialeconomiczones haselectrifledthe country'smajortade organizations-the Philippine Chamber of I n d u s r r i aEl s t a t e as n d r h e P h i l i p p i n e Chamber of Commerce andIndustry-to supporttheclamorforthe privatesector's involvement in a bigway. But thereis morethan rneetsthe eye vastoasesof new opportunities in t.hese with their manicuredlawns,immaculate driveways,disciplinedworkforce,and high-powered machines. With an estimatedecozonedevelopment costof P1 billion,onehasto attractthe big players with the bestideasthat can magnetize locators topourin theirownmillions.Only then can the Philippines expectto be in leaguewith the majorexportingandindustrializing economies of Asia. Alongthemainthoroughfarcs of Cavite giantbillboards in the '90sareubiquitous with a boastfuldeciaration welcomingail andsundrytoa 'second revolution' backed by a provincialdevelopmentplan that promisesan integatedeconomic,infrastructure,administrative, and land'use schemefor the province.Thevisionis to turn the centuryasthe hub of all investments within the SouthernTagalog (Luzon)region.Keyto itsreallzation is the attractionof potentialinvestorsto setup operations in Caviteindustrialestates. In successful healthycompetition with provinces, CALABARZON Cavitehasreppatternand licatedthe competitiveness fanned outecozone development in various locationswithin the province,each with its own appealandpotential. Goingpastbillboards and plansare Cavite'srealities.Today'saspiration is to becomea modelworkingandplayingenvironmentwith a mixed habitatrhatjux. taposes agriculturallandsagainstindustrial gazingfieldsagainst golfcourses, estates, low costsubdivisions againsr shopping malls-today'shistoricailandmarksversus yesterday's shrines.This new image becomes Cavite,he e$while La Madrc de los Ladrones-Motherof Banditsand breedinggroundof patriots.It has becomemotherto capitalists-investors and entrepreneuts-andlabor'farmers, fishermen, factoryworkers-the productlve work-forcepopulatingthe Cavite hinterlands. I 26

me AsianManaget I Centennlal Issue

An exemplar ofthis "new look" is one industrialistwith Caviteio roots. He thinks big and builds bigger dreams not unlike his historic Caviteio predecessors.As the owner-developer-operator of Gateway BusinessPark {GBP},businessmanGeronimo de los Reyes Jr. cuts a prominent figuro among ecozonedevelopers.He is the working chairman of the Gateway Group composed of Gateway Property Holdings, Inc., Gateway ElectronicsCorporation,GatewayAir Liquids, Geronimo de los ReyssJr. Foundstion,and PacificPlazaInc.With an eye on building the bâ&#x201A;Źst industrial estate in the Philippines,the GBP fundamentals includea clean and environment-friendlycore of hi-techcompaniesthat pay Filipino workers well. The long-term goal is to build a community from an industrialbase,and not vice versa. Among the locatorsin GBPare 30 companieswith target revenues hitting US$2 billion. These include Gateway ElectronicsCorporation, Gateway Air Liquide IndustrialGas Company,lntel Corporation,Asahi OpticalCavitePhilippinesCorporation,Metrolab IndustriesInc.,Tokumi ElectronicsPhilippinesInc.,CaliforniaManufacturingCo., Inc.,International Pharmaceuticals,Inc., and FuiihiroCo. Ltd. Basicindustrialamenities are in place-power supply from the Manila ElectricCompany, a digital telephoneexchange,a centralizedwastewatertreatment plant, a hydrogenand nitrogengas undergrounddistributionsystem,and a scrap recycling operator. Park services cover a security force reinforced by the CALABARZONPoliceAssistanceGroup; four commercial banks-PClBank, Far East Bank,Bank of Pl, Land Bank;and a fire and ambulancecontingenr.

BestWorldlndustrialPark CaviteEconomicZone Cambridge Daichi IndustrialPark SpecialExport Processing FilinvestlndustrialPark Filoil Develooment&

BusinessPark ExportProcessing Zone Business Parkll Business Parklll PhilippineEastate (PEC) Corporation IndustrialPark TaioanGoldIndustrislPark

S i l an g

Trece Martires

Rosario

Gen.Trias Gen.Trias Gen.Trias Gen.Trias

0.6096 177

ENDANGERED SPACES A[/IHAN GOROSPE

Morethan22million yearsagoanancient seacovered whatisnowthemegalopolis ofManila.lt teemeo withcoralreefsandothermarine creatures thatleftbehind theirshellsandskeletons asathickdeposit of limestone.

tl ^..,* I

'.t-. :::

Deep inside ourselves: lt was a Good Friday in 1875wheD Katipuneros entercd the pamitinan cave

Tectonic forceslaterpushed upthislimestone, andsolutions Someof thecavesin northern Luzon. Bohollslands and slowlyenlarged cracksintherockintodarkanddampcaverns. One Sarangani inl\.4indanao areenkances intotheotherworld,whereour ofthesecaverns wasthePamitinan CaveinthehillsofMontalban in ancestors restinwooden caskets orearthenware iars.Thecaves in Rizalprovince. Sagada, Mountain Province, arewellknown foi theirmummified It wasa coodFriday in 1895at theheight of theFilipino corpses. Someofthepinewood cofilns therehangprecariously along revolution against Spainwhena bandof Katipuneros venturedthewallsofthecaverns. intothiscave.Theirleader, Andres Bonifacio, together withEmilio TheAyub burialcave inL4aitum, Sarangani isacurious one.The Jacinto initiated neophytes intotheKatipunan movement in the burialjars inthiscaveareshaped withcomplete setsof shoulders, isolation of Pamitinan. Later, thefighters wentdeepintothecave arms, breasts andhands, andhavejarslidsthatevenresemble huandBonifacio wrote,in Spanish, witha pieceof charcoal onthe manheads. Unfortunately, treasure hunters have ravaged this cave ancient wallsofthecave,"Long livethefreedom ofthephilippines.,' anditsrelics. Hiscompanjons signed theirnames andtheirtearyeyescould TheTabon cavecomplex inPalawan, ontheotherhand, brings nothidethegreatburden andsacrifice theyfeltin thequestfor ustotheearlier eviden ceofHonosapienhabitation inthePhilippines freedom. -30,000 years ago,which isjusta winkingeologic time. Caves arepartofourritualspace. Thereis a parficular geologic small Another winkto 14,000 8,C.,findsusat theCallao caveatthefootofMount province Banahaw inQuezon thatissaidto caves province. in Penablanca, Cagayan Thiscavecomplex is a bea caveofjudgment. onemustpassthrough thisverynarrow cave veritable archaeologist's heaven. Several dozencavesandrock. filledwithJutting rocksandemerge attheotheropening without any shelters pottery herecontain andjarsshreds, Chinese stoneware, trouble orfearSilence is required andonlycandlelight isallowed in cobble andflaketools,stonemortars, ironarrowheads, andteeth thisclaustrophobic test. people andbonefragments of animals andhumans. Ancient also Tobetterappreciale thePhllippine Centenfal,lhissection wassponsofed byJewelmetlnbr/|ational

on thewallsof severalPefrablanca drawings leftcharcoal caves. Whetheras ranging called speleothems, natural formations contain Caves pools, andterraced to smallodd columns draperies, frommajestic sacred spacesor as historic popcorn, ears, elephant anemones, forms thatresemble crystalline manyexbeauty attracts Thisnatural andevensodastraws. swords inner plorers-spelunkers whofindtheirouterlimitsinthemysterious ofcaves. world presefle our cayes. It takes oftheSagada intothecolddarkness haveplunged Spelunkers The thedeepest caveinthePhilippines. andhavediscovered caves toa vertical dishasbeenmapped Sagada, Crystal CaveinLokoong, place tornormal thisis nota hospitable tanceof 162m.Ofcourse waters are deep, thiscaveanditsunderground Besides being folks. mountains Cordillera cold,beingfoundin themidstof theCentral unlessyoudon't activity, nota veryconvenient Cavingis certainly masses, orthenasty surehunters limestone sites. archaeological mindthemudandthenicelyslippery upsomeimportant havemessed pitted cav- Casual because serious lt'sworthit,though, other rocksurface. and off stalactites sharp, have chopped visitors cave mini- speleothems elicita natural andwilltherefore ingrequhes Zeniikeattention, cavewallswithgrafiiti forsouvenirs andhaveriddled incaves. Bats people roosting satori. off the bats also killing are Some Thishasa aregentle A Philippine caveisSt.PaulinPalawan. ecosystems Thelongest valuable to our extremely and are creatures hasanundeF single Bats disperse extentofmorethan15km.Thiscavesystem in one hout horizontal mosquitoes eat 600 bat can brown in yourlittleboat, seedsintherainforests. ground awayhappily flowers liketheagave riverwhereyoucanpaddle Theyevenpollinate guide, boatsarenotal- plant,thesource of course.Motorized you have agaveplantawithanexperienced don't Of course oftequila. thecavewallsandthe tionsinthePhilippines willdestroy theexhaust lowedinsidebecause butthepointisthetequila. offthewildlife. likeswifts racket willscarce caves living in Philippine There areotherwildlife passageways in (lizards), undenvater haveexplored fish incâ&#x201A;Źve Afewintrepid divers pythons, and eels and shrimp insects, and frogs, havealso rivers. Palawan, inElNido, valley caves. Seacaves theCagayan beatis dangerous andshould we Cavediving cavedivers. lreasures, attracted ornatural spaces orashistoric Whether assacred you years lf are a serious, training. those with specialized preserve of only by tens of thousands tempted lttakesmany haveto ourcaves. andintheUnited toformonecave.Moreover, youcangetformaltraining cavedivinginAustralia ustomakeinnerexploeachcaveallows States. ourselves. rations anddiscover heriourcultural andnatural aredestroying vandals Unfortunately, whysomefolksareobsessed tTiltana,P,The FitstCryaf Philipplnelndependence, lt is hardto understand tageincavQs. Todetl 12Junel9Q6 trealoot. These War ll Japanese World [ssue, Manila flnding some obscure with

or nationaltreasures,we haveto

manytensof thousandsof Years toform onecave.

Honoring, not sqelunking: Histo ans and advocates honot the Philippine Centennial at the mouth of Cave Pamitinan wassponsored byJewernerlntenational thissection thePhilippine Cenlennial, Tobetterappreciate

SOUTH SEAADVENTURE GERTIE AMPIL TIRONA

Perliculture isnolonger solelynature's jointventure charge. Aunique French-Philippine founded in197g, Jewelmer International hassuccessfully combined kaditional methods withmodem technology. Today, its pearlfarmsofithecoastoftheislandprovince of Palawan enjoya competitive producer edge.A lead of quality pearls witha unique lusterandunparalleled Philippine Orient, it hasemerged a majorplayerinthe global export market. MeshingLegendand lim,Filipinos. Thearchipelagic Technology Suluans, theriverine MaguinThesoftiridescence of the danaos, thelakeside Maranaos, South Seapearlhaswoven legandthecoastal Palawenos, and endsworldwide. In thePhilipothersubsidiary ethniccommupines, people believe thatwhen nitieslikethe Samals, the anoyster swallows a raindrop, a lranuns, theYakans, andthe peadis born.Orthat,asa symBadjaos werelargelydrawntobolof purelove.lhesuitorwho wardseefaring andmigratory divesintothedeepest seasand economic activities. comes upwitha pearlwinsthe gypsies Forcenturies, these of beloved's heart. TotheChinese, thePhilippine seas,notably the pearlsgmwand glorvinthemoonBadjaos wholiveln offshore lightandisa metaphorforgenius. houses onstilts,haveenjoyed r+ IntheMiddle East,pearls arethe nownasthebestDearl diversof tearsofthegods. thePacific. Theyhavehoned theirancesThepartnership between thefamily of tralskillsandhavebraved theabysswith Manuel Cojuangco andJacques Branellec nothing morethanprimitive wooden jtsolvnlegend hascreated butpremised goggles, rope and their bare skin. Tradiswallowsa raindrop, ontheinbmational reoutation it hasbuilt tionalmethods of relaxation andhyperproducer peads: asa premier ofexquisite ventilation enable themtoremain undeta peafl is bom. 'natheSouth Seapearlasthe Philippines' waterfor minutes beyond thelimitsofnoF produced tionalgem," theonlyone bya livmalhuman endurance. ingoBanism. Muslim entreoreneurs intheoerson Asa business enterprise, Jewelmer d[aws ontheentreDreneurofaristocratic datuswerethetraditional leader-managers. TheycapL ialsphitofitsprincipals. TheCojuangcos arenotedpioneers produced inphilip- talized, pearlconsumer andmarketed demands inthere. pineagribusiness andbanking, andBranellac, a French national, gionevenatthattime.lt wasnotunusuallo report a haulofanywhere pioneered in blackpearlcultivation in Tahiti. Thisblending of from17to43crates piculs and/or ofpearlshell. expertise, resources andtechnology is replicated in thecompany Compensation andprofitsharing wereexpressed in terms process andproduct andsuftises theentirelifecycleof thepearl somewhat arbitrary bytoday's standards: thesultans anddatus itself.A unique, fullyintegrated operation, Jewelmer bringstogether claimed anypearlof value.Infact,a verylargepearlcouldfetch thenatualresources andthemarine biological andtechnical exper- a slavediverhisfreedom sincepearlharvesting wasalways tiseoftheeastincombination withthejewelry craftsmanship andde- rewarded. pearls Inpractice, under a penny weight belonged tothe signofthewest.Thus, pearlhasbecome everyJewelmer a South divers. Seaadventure, It wasestimated thatin the 1830s, some68,000 fisherfolk wereengaged in divingfor mother-of-pearl andothermarine Aquabusiness-aSouthemPhilippine productsby their respective Tradition chieftains. CertaindatusTheisland-maritime character ofthePhiliDDines hasdictated the Mulut,Muadarasa pearling andAdanan-were partners who formandsubstance oftheeconomic life,including thepeculiar mode oversaw production 800slaves witha reported annual oubutof300 of entrepreneurship, thatevolved among thesouthern, largelyMus- piculsof mother-otpearl and40 piculsol bechedemer.Recads

Whenan oyster

Tobetter appreciate lhePhilippine Cenlennial, thissection wassponsored bvJewerrner lntamatjonar

withmaiorinternatiorial relationship a privileged tradedpearlsin exchange it nowenjoys notethatoneDatuAnsurrudin further importers. the Wars inChina spawned opium businessthat alucrative foroDium, century. inthe1gtn A Matterof Breeding pearls sur aretheisland asthebeautiful Justasbreathtaking PearlFarming World-Class "Beautiful sanctuarunpolluted Underpopulated, they thrive. wherein of roundings motto mightwellbethecorporate andbountiful" andstresstranquil ina necessarily arelocated positioned inwhatisreportedly ies,thepearlfarms nowproperly International, Jewelmer production. quality for stock allows that Iree environment TheSouthSea dynamism. unprecedented experiencing anindustry thereisan guarded notwithstanding, statistics industry Carefully thathasprompted withsuchademand pearlisconsidered a"hot'item, production inthe centers number of in the recent increase pioneers their aoparent to rethink andhasforcedold theentryofnewplayers Around two{hirds Palawan. protected waters ot magnificent blue and production strategies. andmarketing intheareaweredeveF closetotwodozenpearlfarms have ofthereDorted years,Cojuangco andBranellec In a spanof eighteen years, with a number ofJapanese/Chinese few in the last only a still oped pearlfarmsinthreeoffshore sitesin Palawan, operationalized joint the lead. ventures taking lslandinthe Bugsuk pristine ofsand,seaandlushvegetatlon: stretch given con' thisunusual center asa pearl Palawan hassurfaced ('1992 and1993 lslands andCabilauan Capare coast(1979), southern most of is that pearl island, lt estimated on a single farms of centration shore, onthenorth respectively) venmalket as the Japanese production way into jewelry their outputfind the inpearlproduction, areengaged A totalof 550people oftheindustry's Thishasledtoagrossundervaluation specializing turedividends. subsidiary Afullyowned andretailsales, manufacturing andconeperformance. of suspected overproduction jewelry In spite hasa staff exporl crafting, stone andcolored diamond intraditional perliculturists confident remain jewelry saturation, tearsof market runs14Philippine-based show' sponding of30,Jewelmer complement products. for their patronworldwide demand ofthecontinued underthe a SouthSeaPearlMuseum roomsandmaintains Therightof production. keptarethetechniques Alsoclosely )ceanognphiqueMuseum. ageoftheMonaco of a nutrienlrich parent quality the assurance stock, of South site,the harvested itsfirstcropofsaleable In1982, thecompany sinequaro, thatmakeforcomthecondilion areamong produced naxinaandPinctada walerbed Pinctada bythemollusks Seapearls indusfacetious andtechnically ina highlycompetitive master craftsmen- panysurvival French Jewelmer's Since1983, nargaritifera. "aliving as has been described jewelry environment workshops to try Themosthospitable supervised andinstructors-have designers to berenewed whichmustcontinuously andplanKon intothe soupofbacteria Breaking models. andexclusive creations itsdistinct develop process of in the oysters" needed bytheindividual energy extend supply destinations ltsexport market camenaturally. international where growrn. Japan, Europe andAsia,primarily States, United throughoutthe

A ped fam employsmorc than 1,000diverseachseason' The canoesarc generaltymannedby threediversand two assistants. byJewsrttâ&#x201A;Źt lntqnlthnal thissectionwassponsored Centennial, thePhilippine Tobetterappreciate 30

Likehumans, theshellsmustbefreedfromskess. Theideal location forapearifarm istheprotected baysandwiched between two islands, allowing thusfora goodcurrent stream thathelpsoxygenate thewater. Ontheotherhand,loomuchcurrent is harmfulto thesubmerged cultivated oysters whose basket casings, towlinesand platforms undeMaler couldgetentangled andtraumatize theorganisms. Thustyphoon beltlocations area no-no intheindustry patience Professionalism, andDrice counta lot.Under normal breeding conditions, it takesmaster technicians, a heftysumandlots oftimeaswellasperseverance toseea production cycle through. lt takes atleastsixyears pearl: tobreed years a single three toprepare theoysterforthemoment pearlsandanother ofgrafting to produce priortoharvest twotothreeyearsofwaiting time.Holvever, dreaded inclement weather, fluctuation inwatertemperature, virus,andother unforeseen harmful deep-sea inhabitants couldwreakhavocevento themostprotected andselected sDecies. Thisnurturing throughout a pearl's sixto seven-year lifecycle startsfromtheverymoment the Badjaodeep-sea hunters picktheoysters discriminately tobesoldtoJewelmer farms.Despite careful handling, whichentails individualized brushing andthensorlingin baskets to beeventually re-submerged underwater, environmental changes between transport locations couldleadtoa 50percentreduction ofthenumbers fitforgrafting. Some30diversmonitor these oysters all-year-round. grafting Come time,theperfectly healthy oysters arehandled onlybyhighly-paid master technicians whothemselves The pearl is rcmoved area rare from the gonad and breed. Theirskillsandsuperiorcommand ofbiology, theirartistic senfrom the oyster sibility, theirdeftanddexterity, eventheirpersonality andpsychologicalpredisposition-are believed tohavea bearing onthequality of theend-product. Ona givenday,a master cangraft200-300 oysters, closeandcontinuous attention to protect theembryos in thebattle However, therearesupposedly only15mastergrafling technicians in against.hostile natural forces andbiological factors. Constant undertheworld. Jewelmer's Okamoto-san, forexample, washimself born walersurveillance andabove water security measures against dynapearlfarm,witha lifelong andraiseC ina Japanese learning experi- miteandcyanide fishingexpeditions raise the investment ante such encethathasendowed himliterally witha "master's touch." Ina typi- thatperliculture gameofonlythemostcomhasbecome thebusiness calgrafting technique, heTeels" anddoesnotseetheimplantationmitted anddiscriminating investors. process andmustwaitforthreeyearsfortheresultoftheopeation. Beaugwith Mystery-AReasonfor Being HowA Pearlis BornandNurtured . Toappreciale Jewelmer's enterprise, onemustscuba diveand Intothebodyofa mollusk, thePinctada llaxina-repuledtobe discover theextentof workdoneundenrvater andthenlingerin its pearlproducing thelargest pearls showrooms mollusk known toproduce thebiggest lo marvel attheexotic South Seapearls ofvaried luster andfoundalmost exclusively in theSuluSea-is inserted a andorient, mlors,sizes andshapes. perfectly round nucleus. Thiscomes fromanexpensive freshwater A harvest gives ofsuch natural beauty Manuel Cojuangco every shellfoundintheMississipi River. A livingtissuefromanother oyster reason toremain anindustry leader notwithstanding theodds: isgrafted ontothenucleus andwilleventually dissolve. Encased within "...wehavelo inveslseyenlntlhonsoverapenod fue thesac,insevendaysthefreelyfloating nucleus orembryo willseof tosix cretelayers ofaragonite crystals bound together byconcentric ckcles yearct0gelanylhing inrctum.Consilenng a//taclo6Jandassuning ofcalcium carbonite andwhich, intime,becomes thepearl. a//thhgsareworking togelher andprctuwell-theenvimnnent and Once thegrafting operation iscompleted, theoysters aregently olhervanebles suchaswaletUphoon, diseases-kis isaprelty/ong returned totheseato recuperate. UndeMater monitors regularly ro- waitButtlv nsksin lhtscasearcoulwe@hed bythealtnctueness tatetheircasings toensure theperlectroundshaping ofthegrowing andnysleryof theend-product of whalwearelryinglo crcale pearlnestled initsbosom. Afterseveral months, theoysters areex. desptte penbdofournveslnenlWewerealtracled thelonggeslation amined byradiograph andplaced underintensive care.Unproductiveandluredbythebeauuoflhefinalprcduc|..lhe allurcofthell shed " oysters aresetasideforregrafting. Thepearl-holding oysters receive producl.... Tobetterappreciate thePhilippine Cenlennial, thissection wassponsored byJewerrn er lnte'r,ationat

moment thatis ofthepearlisa suspenseful Indeed, theharvest oyslers lheyaresorare,pearl-bearing wellworththewait.Because withpainstakTheyareopened sacrificed atJewelmer arenotreadily Asurgical incision is performed toextract ingcareaswhengrafring. Asmuch endangering thelifeoftheoystersource. thepeadwithout onebyoneina ofallcolors andformsareextracted as500p€arls bamque, deemed a single day.At best,thiscouldyieldthecoveted giantal 35mm.x 25mm.Atworst,onecouldgetthelack-lustered pearls for afelierwould berelected whichaftersorting atthecompany judiciously grade value. TheFrench supervisors lad ofcommercial passjudgdiameter, color--€nd toquality-form, thehalestaccording that oftheSouthSeapearlstoensure mentoverthemacrocoating quality products in compared lo otherpearls areofsuperior Jewelmer theworldmarket. beauty---lusler, ofaSouth Seapearl's Butwhoisthefinalarbiter glow, glow-when nature's lawdictates radiance, inner outer orient, pearls Pale blue. Silkygrey. are ever alike? Gold. Silver thatnotwo Pink. White. Such is the mysttque sunounding Black. Champagne. atthebotlom ofthedeep enterprise. Suchisthemystery Jewelmer's bluesea.Fascinating. 'Edito/sNote:Manusl founder andp{esklent ofJswelmer Intemational Cojuangco, MBMClassof1973andwaslead SilverJubiladan b€longs bAlM'sPearlAnniversary 1998AIMManagomont Conlercn(E onAsia-ilanagivin of tle February sponsor AEbfutE lhtll/ lentun.

1 . To avoid scratches,havea separate

compartmentand do not mix with other jewelry. 2. Store in an atmosph€rowith some moisture.

3. Cleanregularlywith soft,dampcloth. 4. Do not steam or use ultrasoniccleaner; R

Apply cosmeticsbeforewearing.

6. Strandsshould be restrung annually if worn regularly;silk cord is preferrod; in-betweenknotting safeguardsagainst scratchingand lossin casethecord breaks, 7 . Do nbt wearwhile cleaning,swimmingor takinga shower.

wassponsored byJewelnetlntemalional thePhilippine Centennlal, thissection Tobetter apprecjate

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For inauidss, pl€as€ @ntacl cruise and Ho!61C€nl6r and Ho!.| Csntd Inc. (CHC) al 848 38l2/20orvisitus at th€ 20/F Tr€talgarPlaza,H.V. D€la Costa St. Sal€oo Villag6,MslaliC'ry Lm* fo. Czrin. or M..lvn

THEFILIPINO ACCORDING TONICK NICKJOAQUIN

TheChristian Filipino is,youmightsay,sounhappy because, sincethe16thcentury, hisenvironment has beeninupheaval, hasbeenperpetually changing. Andit isinupheaval, it iseverchanging, because of thecontinuous introduction of newtoolsandnewideas. Andeachnewtool,eachnewidei, hasbeena challenge demanding a response, Mostagonizing, ofcourse. Butit'sthischallenge-and-response that hasshaped theFilipino. Infact,whenyousayFilipino youarereferring toanepoch-andl'musingthe wordepoch initsbasic sense ofa newbeginning, a newcreation. TheFilipino is a product of a particular history thatbeganin Takethe introduction of corn,whichrescued the Visayan the16thcentury andouridentity asa Filipino waschiefly formed by fromage-old hungerandhasbeenhisprimestaplefor the last whatI consider thetwelvegreatest eventsin philippine history, fourcenturies. Wouldn't theVisayan readily agreethattheintroducgreatest because theyweretheepochal ones,theoneswhich, bvthe tionofcornisa greater eventthantheKawitproclamation of 1898? Or wayweresponded tothem,determined ourretaketheintroduction of camote, whichnow sponse to allsubsequent events. seems toussotypically Philippine andwhich HerearewhatI consider greatthetwelve hasbeendelivering fromfamine thoseparts estevents in Phillppine history: of ourcountryso regularly ravaged by tyTwelve great events . TheInkoduction oftheWheel phoons. Wouldn't thecamote-eaters ofSamar . TheIntroduction that transpired ofthePlow andBenguet andtheBatanes hailtheintro. TheIntroduction oftheRoadandBridge duction of camote as an event of morelastin thel6th century . TheIntroduction of NewCropslike ingvaluethantheMalolos Congress? Corn, Tobacco, first informed Camote, Coffee, Tea, 0f lasting value, oflasting importance: Cocoa, Beans, Achuete, Onion,Pothat's the basic to our history; andtheyare the identity tato,Guava, Papaya,Pineapple, Avothereasons I consider the16thand17thcencado,Squash, we now call Lettuce, Cucumber, turies themostcrucial inourhistory. Yetthere Cabbage, Sincamas, Sigadillas and arehistorians whodeclare thatwhatwashapFilipino Mani, etc. pening in thePhilippines thenwasn'teven . TheInhoduction of NewLivestock like Philippine history! Cornandcamote and theHorse, theCow,theTurkey, the guisado arenotPhilippine history?Apparenfly Goose, etc.,andof theCarabao asDraftAnimal not.WhatPhilippine history bookevendevotes a lineto theadvent . TheIntroduction of theFabrica, or Factory amongusofcornandcamote andtheguisado? Theyarevital,to put . TheIntroduction of PaperandPrinting it mildly, to thelifeof theFilipino-but, no,theyarenotphitippine . TheIntroduction oftheRoman Alohabet historythough Gunter Grass wouldundoubtedly rankthemashigher . TheInhoduction of Calendar andClock inimportance thantheevents towhichwedevote chapter afterchap. TheIntroduction oftheMapandtheCharting ofthephilippine terinourhistory books. Shaoe Bysnubbing thetrulyimportant to favorthelessimportant, we . TheIntroduction of theArtsandPainting andArchitecture havebeendeveloping in ourpeople thewarped viewof ourculture . TheIntroduction oftheGuisado andhistory. Before thewarwewerebeingtoldthatwe mademore Thesetwelveeventsarethegreatest in ourhistorybecause progress in fiftyyearsundertheAmericans thanin morethanthree theyhavebeenaffecting us sincethe 16thcenturyandwillcon- hundred yearsunderSpain;andthiscontention wasechoedin an tinueto affectthisnationas longasthereareFilipinos. Theyaffect articleI readin a Manila daily,wheretheauthordeclares thatmore notonlytheChristian majority butalsothehighlanders in thenorth important events occurred in thePhilippines duringthefirstdecades andtheMuslimin thesouth.Theyaffecttheartistin hisstudioas ofthe20thcentury thaninallthefourprevious centuries. AndI asked wellasthehousewife in herkitchen. Inshort,theireffectis universal myself:What events happened in the1900s thatcouldpossibly be andat thesametimedeeplyintimate, forthesearetheeventsthat regarded asmoreimportant thantheintroduction ofthewheelorthe firstinformed theidentitv calledFilioino. introduction of theplow?Ortheintroduction of roadandbridgeand Tobetterappreciate thePhilippine Centennial, thissection wassponsored by theRotaryClubof Makati.Dasnarinas

"The Filipino by any othet Victory Nick with Andy Cristobal Ctuz: name will still be a Filipino."

existed ProvethattheFilipino evenbeharmful. you prove need to that we don't before 152'1 and oronehead haveonenation, oronegovernment, theFilipino wasabletodevelop ofstate, since identity withoutanyof a national andmaintain notjust dissolve In which case, why thesethings. insystem of small andreturntoa theRepublic is what the Which, infact, kingdoms? dependent L4uslim secessionists aresaying. is notthe thename oftheprocess Happily, process itsnamebutthe itself.Youcanchange process Remove thename willstill bethesame. you the Filipino and do notin anywayremove process, itstime ordisprove ormakeit untrue, will byanyothername TheFilipino schedule. ofa specific thatis,theproduct stillbeFilipino; in this whichveered history, epoch, a particular particular direction onlyin the16th specific century by thissection wassponsored thePhilippine Centennial, Tobetterappreclate

0r the Ite RotaryClubol Makati.Dasnaiias ourideasof hurnanhabitation? masonry thatrevolutionized in us a senseof introduction of calendar andclockthatdeveloped andtheRoman alofpaper andprinting history? Ortheintroduction phabet book? Ortheintrothatresulted inthebirthof thePhilippine into thatsignified ourpassage andthemachine duction ofthefactory artifacts thatenaofallthose aninduskial culture? 0rtheinkoduction intocivilization? bledusto moveforward calabasa, asthecorn,camote, For,look, wecanreadourhistory greens grains, andbeans which, fasfgrowing andallthose cabbage SUASCR'AE NOWAND OBTAIN FREE fromfoodproduction, enabled by freeingsectorsof the population INFORMATION ON SCHOOLS c Bsho EuoF us^ic.ud.. I c K* ! These special non-aggie tasks inspecialized tasks. tr EuoFr themto engage I rAC L3s,t\ J b;n"civilization"-which . . ' : r r means culture to a shiftfromsubsistence meant : rqd{Bs ! Dcri,hB r\m. I(}LI : rcnrrdrcs fsdu! t O.hoq' thecityis all thoseartsandcraftsandsciences cityculture-since a.., i Prhn _ I r\q a c corM.L\odd possible number of people I Esc \rE! f Nh. onlywhena largeenough thalbecome Hri o D-de -e l lEUEF. D. fo, '.3^.possible forus Andthisbecomes ! C DP4 canbesparedfromfood-growing. : PJ' !t1trs and of newcropslikecornandcabbage, onlywiththeintroduction : sDABs&n ! s"uh".p". CK I c Ah.anrjri J lrroDrin Te.h ! R.n. E sra .r\ire andplow, likehorse newlivestock andcow,andnewtoolslikewheel \' E s'* lt wasthe16thand brush. adobe andthepainteas mapandmoney, E B mrsMm a Rdcdm I MII aBnnol I Nonisskn Worldwlde inourhistory thatmadepossible thelateremergence 17thcenturies E\! !! ! -ir 250 Pages E F-SADE E Hoq K-r anAmorsolo. Guerrero, a c,r a Rizal, a JuanLuna,a Manuel ofa Burgos, I f Pliiu. Pruri..rult 6'Iop 1OS.h@lt Dcrtoldd D Fsd.*m ! simi str, tr ouhrm EsE \dh'd tr a oae ! the thatmadepossible In fact,it wasthe16thand17thcenturies E i',l.EnP,$r tr Lrlmblth ",,,Th.l.llA Cn.r Guid.It Ert lnau! o - r Andto my rtul for 6rlu.dnt boi.a called thePhilippines. o c 6nN emergence of thisnation r AcsB s"tr/ eventuai $Mm c.ru tr rho.$ ed cr!.r pnni'" I E tr rfrP.i, D Hd!d, E tBrlEc. Bn, i history, I shouldadda eventsof Philippine listofthetwelvegreatest Ih. \llatuanS.haal L..rnh8 I E Vr'oM O hn Fr v4 CDlbftr alsM4R.dr3 usunevent:theIntroduction of theBell.For,bygathering thirteenth lllil,lil'I);li.{' thebeginnings of a national created derthesound ofthebell,Spain Butunder there wasonlya riotofidentities. before, communitywhere, PuHirh.deic. 4h Fr . stm.8 rd Frll :r C('dt Editid (spnns98): US$r950 a Ann!.| (Spring& hll tS): U!t3a.5O OlY6: U5t8'5O sucha strongsenseof unitythat thesoundofthebell,wedeveloped Add L,s$soop&.,rion postpr.k. ll\{Ak(dd l]M-'1521whatis nowthePhilipp.r.d',on (rJsgs.oo inFurcp€). irnlTLET UI that,evenbefore , we cannowdeclare drd icr EF rv drte S€nd checkbink dEi/.r€dit pines known asMaharlika. Onewonders existed asa nation already paFbl€@: US$ in '1521. lvadame Urduja? The l.|BA Cereer Guide whowasitspresident London 32-3,1 ArlirutonRoad, '152.1 thatstarted thisefforttolocatebefore something l,4oreover, NWI 7HU,UK Fu +,H(0)l7138l a94t efforttodayandcould onlyfrom1565on,is an irrelevant developing Tel+,1,1 {0)l713814,11 d€.com : reduit@oree.8u Emai

CITYOFVIRTUES ANDVICES BYCHARLSON ONG

A walkacross Chinatown isalways personaland a tripthrough collective time. TheyearI wasbornmyfolksmoved outofdowntown Manila andsettledinsuburban SanJuan.

Remembrance of things past: The Chinesepagoda also reminds us of what we have become

LittleBaguio wasthenstilltheboondocks andGreenhills stilla walks,entresue/os, noodleinnsandsweatyfacesof old Manila. gleamintheeyesoftheOrtigases, Wewereamong theearlyfamilies ln Chinatown todayka/esasbearinginfant{ooted amahsjosile thatmoved fromBinondo tootherenclaves across thecity.Theobject withluxury jewelry sedans, chestnuts roastoutside stores, HongKong ofourmigration wasXavier School-aninstitution forChinese-Filioino singerscroonoverPeop/e s Tonight, evenas adobeandwood boysfounded byJesuits expelled growth fromChina.The oftheXavier structures dating toHispanic daysgivewaytomodern high-rises funded School-Little Baguio-Greenhills perhaps community epitomizes the byTaiwanese money. Despite itschanging fagade Chinatown remains economic anddemographic movement of theFilipino-Chinese in an architectural archive of old Manilaas wellas a forerunner of Manila. futuretrends. Mychildhood wasoneof dwarfshidingbehindtallgrasses in Among thelandmarks of Chinatown's Ongpin is King's theater, hillsthatwerehometowartime ghosts, rather thanthebackalleysof whichhasfallenon decrepit times-acasualty of "Westernization" Ongpin. On weekends, however, ourparents wouldoftentakeus andthefloodof Taiwanese videocassettes thathaveluredaway doqntown tovisitfamily andfriends, toshop,dineatToHoRestaurant theoncereliable Mandarin feature filmmarket.As kidswewithstood onTomas Pinpin, orwatcha movie.Mymemories of Chinatown are its stiffhard-backed seatsandkittensroaming beneath ourfeetto admiftedly thoseofa visitorrather thana resident. marvelat WangYu as theone-armed swordsman cutvillains to smithereens of thefabledpast.Therewe , as wellas otherheroes Architectural Archive received ourfirstlessons inChinese history through thecelluloid tales Still,Chinatown remains largelyrecognizable to a visitorof of HongKongfilmmakers. EvenBruceLeehadhisfirstManila runat longagowhomayhavebeenawayfor a while.Onewonders if, King's. Whenbusiness dipped during thelate'60sandintothe'70s, likean ancient fresco,a tramof restorers cannotchipawayat King's staged anoccasionalgirlie showThetheater hassincebecome thelayersof dust,grime,andfreshpaintto revealthecobbled a shopping center. Tobetterappreciate thePhilippine Centennial, thissection wassponsored by theRotaryCtubof Makati-Dasmarinas

arestillverymucharound andFairmart outto evenas othershavebranched in and Makati. modern complexesCubao startedout as a HenrySy'sShoemart by in avoided modest shoeoutlet Carriedo who andthecost-conscious trendsetters preferred imports. Hess's forsturdier on thenorth is bounded Chinatown by ClaroM. RectoAvenue(formerly main Azcaraga). lt is amongManila's to Divisoria-the leading thoroughfares andmarketfor entrepot city'straditional g o o d sa n d c r o p sf r o ma l l o v e rt h e a r c h i p e l a g oB.i s e c t i n gR e c t o a r e haven Benavidez-an autosuppliers' wherecanbe foundMa Kongnoodle MaMon ofthefamous house, descendant M a g d a l e n S a t r e e tw , here L u k a n d "FriendshipArch": Celebratingtwo cultures in one home. The HaYuan,islocated. oldfavorite, another Here,nextto friendship archmarkstheendof Ongpin. Another of Mapua Street, theMisericordia is Tomas Intersecting Ongpin garbage of decades, long from the being dead the estero-which, venturing. I often ever against whichwekidswerewarned old,across now-the row of Hong life form by mutant incubating some must be within thosetermite+avaged whatunspeakable evilfestered wondered lured where fresh seafood Da Pai Dong, food stalls, Kong-style withrouged faces whoselowdoorssatfatwomen outside boxhouses or has worn thin passersby, Either the novelty closed. has since been Thesamewomen whowouldin lateryearsremindmeof Picasso. while being patrons much there were spending as realized they the acrossthestreet.Weall /oniin a panciteria whomightbe serving "goodmen"whowentmadafterbeing"dragged" in eating 0utdoor ofcushion andair-conditioning. thecomforts into denied knewof the can be excruciating of steam by clouds clime surrounded a tropical thosedoors. insummer. corner especially stood ata nearby RocoasJulioMadiaga In1975Bembol Street-stillrefenedto as Farther downis QuintinParedes (Hilda inthe Koronel) imprisoned Paraiso hislostloveLigaya espying to bethemetropolitan used habitues-which Chinatown Rosario by is actually a Ah Tek-themezzanine denof thenastyChinaman Many of thegiantinstitutions rise of Ayala. before the financial district wererevolted by Lino temple. Nota fewChinese Taoist smallish theirmainbranches have Equitable Bank still Banking and like China Butin factthemaster-slave Maynla.SaKukong Liwanag. Brocka's alleycrowded is Carvajal-an Nueva Street Rosario to here. Linking representative of washardly AhTekandLigaya relationship between relations in Chinatown, mostinterracial ofconveniencewhich areoftencouplings usinghisFilipina merchant theChinese " d u m m yf o " r h i sb u s i n e s s as spouse concerns. "Friendship"Arches A Ongpin endsat PlazaSantaCruz. "Filipino-Chinese Friendship Arch"marks yetChinese to Chinatown, theentrance atthis activity doesnotculminate economic point.Manyof thestoresin SantaCruz, Escolta andRizalAvenuedatingbackto pre-World Warll timesremainChinese F i l i p i n o - o w n eadn d o p e r a t e d . T h e area,whichusedto be the downtown districtcan maincommercial country's "greater a l m o s tb e c o n s i d e r etdh e '60s among Suchbywords Chinatown." 17mewarp: Hamilton Hickock's, as Syvel's, shoppers

Where the kalesa is still King of the Road alongside the ieepneY'

bytheRotaryCIubof Makati-Dasnarinas thissection wassponsored Centennial, thePhilippine Tobetterappreciate 36

i.iiii$il1;l1ii1r:illitita&! jt$dlj!1si:ilii.t9i

Chinatown has lost little of its allure. A visit to Chinatown is a return to the heart of Manilaof any city. The kingdom of drifrerc, migrants and fortune hunters bound by nothing saye the will to sutllive.

TheChinese ofcourse havelonghadtheirnames forthestreets. Habaneros wasknown as"soapstreet," wherethemerchandise was oncemanufactured. Therewasa "mestizo street" somewhere while SantoCristois stilldubbedsianhaki/i. Wholsesalers of glassware, textiles andcashcropsstillpopulate thesestreets, whichallculminate intheonebusymarket of Divisoria. Today, onefearswhether theoldcobbled walkscanholdthe moderncomplexes risingoverhundred-year-old stonehouses. Chinatown isbursting attheseams. Yetoneneednolonger visitChinatown goods toprocure Chinese andservices saveperhaps forherbs andrarecurios. Lychees, abalone, josssticks, preserves, acupuncturists, evenritualmoney-burned duringriteshonoring thedead-havefollowed thedispersal of the Chinese Filipino community alloverMetro Manila. Many ofthese items arenowmainstays ofsupermarkets. Banks andfinancing houses have appropriated Makati. ButChinatown haslostlittleofitsallure. A visittoChinatown isa returnto theheartof Manila-ofanycity.Thekingdom of drifters, migrants andfortune hunters bound bynothing savethewilltosurvive. Wheretraditional moresareoftencompromised by theethicsof necessity andprofit.Here,notonlygoodsandservices butoften relationships andloyalties arehaded aswell.Smallwonder Chinatown hasoftenbeenemployed as the metaphor for decadence and amorality-as inthetimesof Polanski andBrocka.

Codeof Ethics ButChinatown stillhasitsownstringent codeof ethics. There wasa timewhenbusinessmen andmoneylenders depended less on Brisk business: Strange comfort in a familiar place. thefinancial accountants thanonthe"goodnames" of partners and patrons to determine theircredit-worthiness. One'srelations and preserves, withfoodstuffs, fruitsandassorted merchandise. Theolder lifestyle were important as managerial as acumen. Young upstarts Chinese callit "umbrella alley." Chinatown lorehasit thatumbrellas hopingto benefit fromthecommunity's network of financial and usedto [e marketed hereduringprewar tlmeswhenmostof the mercantile creditavoided thegambling andpleasure densmeant merchandise wasstillimported fromtheUnited States. Butwhenthe mostly fortherich. Japanese makes began flooding themarket inthe'60s,manyofthe Themigrant Chinese, astheJews,havecometosymbolize the anti-Japanese Chinese merchants shifted toothertrades. cosmopolite-the citydweller finding shength andstrange comfort in Nuevaboasts grocery a smallChinese thathasbeenaround for density. Taipei, HongKongandSingapore areamong themostcrowded nearlyhalfa century-Gam Pao.Acrossthestoreis thebutcher's oities prices. onearth withsoaring realestate Landvalues inBinondo shop,wheremymother oftenshopped. Gandara Sheetusedto be canalsogoanywhere persqm-perhaps fromP40,000 to P70,000 knownforwholesale andretailin shoesandleather items.Todaya among themostexpensive inches of soilinthePhilippines. fewhardystoresstilldisplay agedleather bootsandstuff.Along As merchants andcraftsmen theChinese in thePhilippines Dasmarinas, nextto Escolta, canbefounddecades-old buildings of benefited fromthe colonial economy. Theywereintermediaries theoldrichYuchengcos andYutivos, among others. Around thecorner between thenatives andtheSpanish eliteas wellas between the Canada Cafe,longknown forserving American-style meals, is still domestic economy andthe restof thetrading world-especially cooled byhighceiling fans. between ChinaandSoutheast Asia.Manyof theprimecitiesacross theislands wereopened upbyChinese goods merchants trading from SoapStreetand Lychees Manila forhinterland crops. Infact,present-day Manila was,toa large AcrossBinondo Churchis JuanLuna,another majorstreet extent, shaped bytheeconomic activity oftheChinese. bisecting Divisoria. OvertheEstero deBinondo onerunsintoa network ln a sense,it is difficult to defineexactborders forChinatown, ofstreets whosenames andarchitecture betrayHispanic origins-El whichisl6ssa place thananaspect Manila. of lt isthecityofyouthful Cano, Jaboneros, Santo Cristo, Madrid, Asuncion, SanNicolas, and visions, ancient virtues andoriginal viceswe all shareandmust SanFernando. Yettheseweretheearliest Chinese enclaves andto occasionallv return to. thisdaymajortrading companies areheadquartered inthearea. Tobetter appreciate thePhilippine Centennial, thissection wassponsored bytheRotary Ctubof Makati-Dasnarinas

why WON He succeededbecause it seemedhe truly understoodthe needs of the impoverished.

ln a country with a poor majority, electionssele as a chanceto get out of the clutches of povertysomething the past administration failed to eliminate.

TheAsianManagerI Centennial Issue

E. Estrada n June30, 1998,Joseph wasswornin asthe 13'hPresident of the Republicof the Philippines. victoryreflect How doestheEstrada of Theadministration on its predecessor? FidelV. Ramossawa periodof rapiddein the past velopmentin the Philippines years. Prodof Gross Domestic flve Growth percentin 1992to from0.3 uctincreased income 5.7 percentin 1996.Per'capita to in 1992 hadalsoimprovedfrom$740 Southeast $1,000in 1996.Althoughthe AsianEconomiccrisiscasta shadowon the Philippineeconomy,the Philippines was the leastaffectedcountryin SoutheastAsia.Many economicexpertshad would thatthePhilippines evenpredicted be theflrstto recovetfromthe economic crisis. whY With suchsoundachievements, partyfa11to musterenough did Ramos's Weretheforeign supportfr6mthepeople? mediacorrectin sayingthat the election resultshad reflectedthe people'sblind Indeed,resultsof the 1998Philidolatry? ippinepresidentialelectionmakesone

The power of two: Erap and Action King Fernando Poe Jr. build a case for friendshiP

ponderthe keyfactorthatled to Estrada's victory. Supportfrom the Poor Estradaclaimedthat his victoryis also thevictoryof thepoor,addingthatthelack iedto theevenof supportfiom themasses politicalparty. tual defeatof Ramos's Estrada viewedhispoliticalagenda-JEEP, for Justice,Economy,Environment,and Peace-asthevehiclebywhichto achieve program of aneconomic thedevelopment for the poor.Priority,he said,would be givento enhancingagriculturaldevelopreagricultural-technical ment,expanding relief unemployment search,increasing funds,andprovidingtechnicaltraining.He theoeationof iobopportunities, stressed of livelihoodproiectsand development publichousingfor the poor.Theneeded wele to be colexplained, funds,Estrada lectedthroughthe strictimplementation andthereducon taxevaders of penalties graft and corruption. tion of With thesepromisesdeliveredto a peopledeprived oflife'ssimplenecessities,

Estrada wasall setto win thepoorpeople's hearts.He succeeded because it seemed he truly understoodthe needsof the im poverished. In a countrywith a poormajob creation as the most important jority,elections seffe as a chanceto get out of the clutches of poverty,something policy agenda. thepastadministration hadfailedto eliminate.Thusthe overwhelming supportfor Otherwise, comparative advantage Esftada. This was perhapsEstrada'smain with low labor cost cannot be manifested party,whichfirst, strengthagainstRamos's failedto address in the developing countries. incomedistribution de spiteachieving therapideconomic development.Data fiom Ihe Philippine Na tional StatisticsYearbook in 1997 show that36.4 percentof the totalnumberof tagewith low laborcostcannotbe mani- reforms.Accordingto a recentsurveyof households in 1986,35.8percent in 19BB, festedin the developing countries. More the Institutionof SocialSciences andBu37.8percent in 1991,and35.5percent important,highunemployment ratiohas reauof NationalStatistics, 25.1 percent in 19941ived belowthepovertyline.This 1edto thewidegapbefweenthepoorand of theworkersthink thattheirstandardof meantthatmorethanonethirdof Filipino the rich, iow savingrates,and unstable livinghasslightlydeteriorared, and 1l households hadnot felt an improvement socialandpolitical situation. percentthinkthatit hassubstantially de in theireconomic statusoverthe last10 teriorated. years. LessonsFor China The workersbelievethat while their It wasnot at all surprising thatthisphe Therecentdevelopments in Philippine stratumbenefitsleastfrom the reforms, nomenonhappened in the economic re- politlcshold someimportantlessons theywouldhaveto facethe threatof in" cessionof the Philippines in the 1980s. neededfor the development of the Chi- creasedunemployment. Now, civil serHowever, in the mid-1990s, when the neseeconomyaswel1.In the next three vantswill soonfacethe sameproblem.If countryexperienced a rapidgrowth,it is years,Chinawill implementthe reforms the next Chineseeconomicreformfails difficultto explainwhy thepoorremained of state-owned enterprises (SOEs) andre to payattentionto the creationof more poor.No wondertherewasa strongdis- structudng of government organizations.jobopportunities, thenthestandard of liv" satisfaction amongthe masses. In fact,in All of thesereformscouldinducea sevete ing of ordinarypeoplecoulddeclineconthe pastsix years,thoughthe average in- unemployment problem.Many factory siderably and the incomegapcouldfur comeroseby48 percentin thePhilippines, workershavealreadysufferedby the SOE ther widen.Sucha develooment would mostof which,however, belonged to the rich, so that the rich becamericher,and the poorbecamepoorer.The 1996 World DevelopmentRepoxof the World Bank showsthe Philippines havingthe most unequalincomedistribution in Asia.This lackof equalityamongthepopulation not oniyresultedin thepeople's angeranddissatisfaction, but alsodestabilized the country'ssocial,economic,and poiitical dimensions. In recentyears,for example, kidnappingand other notoriouscrimes witnessed an increase in the Philippines. Theresultsof the 1998Philippine elec lionsalsorevealed a bigmistakecommittedby theRamos administration-thefailureto generate sufficientjobsat pacewith growth.From1992to1996, theeconomic GDPincreased fiom 0.3 percentto 5.7 percent,butunemployment rateremained wilhin8.4percent to 8.9percent formany yearsandin 1996decreased to 7.4 percent.Anycountrymustalwaysincludejob creationas the most importantpolicy agenda.Otherwise,comparative advan- Back in the limelight: Erap on the provincial campaign trait with supporters

Any countrymust alwaysinclude

Centennial Issue TheAsianManaper

OnJune 25, 1998,the FidelV RamosResearchClnir in Poliq Studies was launched at the ACCEED Conference Centen The Clai4 through the Washington SyCip Policy Forum, will be awatded to a group with a vistY to prcpane strategic poliq directions or policy rccommendations in arcasaffecting Philippine competitiveness.These three areas are: inlrastructure poliq, agricultunl prcductivity and subregional economic affangements. Following ane excerpts from former President Ramos' speech at the launchittg:

Pop appeal: Erap says,"Tryme."

posea greater aswell riskto theeconomy In fact,Chinalearneda asto the society. inciSquare in theTiannanmen biglesson dentin 1989.Therootcauseof theupris in pricesthat ing wasthe tapidincrease of left the peoplewith a lowerstandard a hugegapexistedbeliving.Furthermore, tweentheordinarypeopleandtheweaithy which led to a deeperpsychological theincident. traumathattriggered The Time Is Now Today,when the Chinesegovernment promotes tlle high-endscienceandtechit shouldnot nologyandindustrialization, of capithe development overemphasize industryandne$ectto suptal-intensive port labor-intensive industries.We must notethat Chinais an economywith exChina'scomparative cessivemanpower. industries. llesin labor-intenslve advantage indushiescould labor-intensive Promotrng andhavea createlargeiob opportunities positiveimpacton incomedistribution. carries Estrada If andwhen President lnlabor-intensive of development out the policy on crethe and expands dustries iob ation,he shouldalsoinsiston the policy of opentradeand reformPursuedbY Ramos.Only then will formerPresident recoverfaster economy the Philippine financlal ffisis and get from the cuffent glowth. I tapid backto the trackof (Translatetlfrom the original Matrlarfu by Yi Wu)

TheAsianManagerI Centennial Issue

I saw Fil Alfonso at the GalingPook Awards the other week in Malacafiang and had taken the opportunity to tell me about the Fidel V. Ramos Chair in Poliry Studies, which we're launching this afternoon. I told him thanks for the chair, but what I really need right now is a bed. You see, I am eager to use a bed because I am confident that I can sleep easy, now that our country is no longer the sick man. I sure could use that bed to rest perhaps even to dteam, that our achievement in turning around the so-called basket case might have verywell becomea model for democracies this side of the world. While ourneighbors are being pummeled by IMF pnessures,the IMF has left us be in our self-reliance.In this distemper visidng Asia, I am not dreaming if I said that the Philippines has come out ahead-indeed the least ill' humored or tempestuousof the lot. And I am certalnly not dreaming when I saythatrigftnoq aswe have gloriously celebrated the centennial of our political heedom, we are in fact celebrating our polidcal and economic stability, a jubilant distinction no other Asian nation can laY claim to... ...Havingrectaimedthe regime of peace we have also built the infta-

structure for a multifaceted develop' ment that I can say with more than confidencebutwith pride is there for us to take full advantageof. We have created magnets of opportunity for business and investments for our ftiends abroad. In so doing we have generatedemployment for our People in the regions. Our active and articulate participation in the Asia-PaciffcEconomicConference cannot but propel us to play a more competitive role in seeking and creating economic linkages with other nations. Our special economic zones in Clark and Subic, among others, have made animpressive show in the volume of investments and revenue generation. The sameis true for our North Quad projects, which haveopenedupreal corridors for regional gowth and de' velopment in an international con' text... ...Yes,I am deeply gratâ&#x201A;Źful for the Chair. But this only means I will need that bed sooner,for I can now rest in genuine confidence that my administration's gainswill be carried through and pursutid not only bythe next government but also by this esteemed chair. The fact that the FVRChair will be awarded to a team rat$er than a singleperson cannot be more appropriate, for everything that we now en' Joy had been reatzed through sheer teamworkand concerted gouP effort

By Emil P.BolongaitaO BobbyM. Okrte

. -.Ew

New

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How the Board of Investments treats the citizen as customer he Boardof Investments |,BOI]is an Indeed,the BOI hasfaredwell in its reaucracy. It didn'thelpthatBOIwasalso interestingcaseof reinvention. 30yearexistence.Arecentsurveybythe a near-monopoly, andassuchdid nothave pacificEconomicRe- the customer-driven createdtn 1967aspartof theoffice Hong Kong"based atlitudeof a private of the President and taskedto pro- sourceconsultants rankedthe Bol 4thin enterprise. Customers viewedthe BOIas vide a "comprehensive thrust for the Asia,next to singapore, HongKongand the providerof crucialservices, andthus economy,"the BOI was eventuallyat- Malaysia. had to exert 1ittleor no effort to entice tachedto the Department of Tradeand customers. Theprofitmotivethat drives Industrywith theclearlydefinedmandate paradigm Shift private prodsit to innovateand business of "encouraging and facilitatinginvestButhow doessucha marketing organi- be costeffective; the nonprofitorganizaments."A Boardof Governots, the chair- zationreinventitselfin the areaof cus- lion, on the otherhand,doesnot put as manof whichwasthe DTI cabinetsecre tomerservice? Tomovefrombeinga regu- greatan emphasis on productivity andel tary managedthe BOi. latorof government policiesto ficiency. investment Therewerethreeoperating groupsin a promoterof investmmtandasadvocate What followsis the storyof how the theagency: Investments Promotion, Indus- for theinvestorrequireda re-imagining of BOImanaged a confluence of externalfactry Planning andrechnicalservices. The roies.For the longesttime the Bol was tors and internaltoolsand strategies to InvestmentsPromotionGroupwas in the major,if not the only,sourceof gov- satisfy its customers. chargeof generatinginvestmentsby ernmentservlces suchasclearances and providingassistance to investors andim- permits.But as an investment promoter LegislativeHelp provingthe Philippines' imageas an in- the Bol hadto shiftfrom ,,theonebeing Investment-fiiendly lawsprovidedthe vestment site.IndustryPlanning waspri- courtedto the suitor."Seenin another BOI an environmentthat encouraged an marilyresponsibie for the preparationof 1ight,it hadto actlessasa gatekeeper than entrepreneurial approach towardits goals. positionpapersandindustrystudiesonthe a welcomingparty.Also,asan advocate, Forexample, thelaw requiredtheagency priority investment areas.Technical it had to suppottinvestors throughtheir to act within 20 dayson any application providedlegal,policyanalysis, travailswithvariousgovernmentagencies. Services for investmentincentivesfiled with the informationmanagement andbudgeting, Tobesure,switchingfiom the bureau- office.Failureto meetthe deadlineautoaswell as financialandadministrative ser- craticto anentrepreneurial attitudewasn't maticallymeansthe approvalof the applivicesto the BOL easyfor BOI,which was steeped in bu- cation.Thisdefaultmechanism checked 'The Researchfor this casewas madepossiblewith support Citizen as Customer' Project of AIM nnd the National po.r, from

Arporoti*

Centennial Issue I lfte,4sianManaser

Buitding partnerships: The one true way toward

ThelawscreatingBOI delays. unnecessary alsogi ve it the mandatet0 act asa malaliowingit to evolve ketingorganizalion, fiom beingregulatoryto marketingoriented.The laws alsoensuredthat BOI would operatein a competitiveenvironinvestmentby allowingotherpromotions lo andinvestment-fiiendly mentagencies calitiesto run their own show. asanenterprise TheBOIthusoperated Unlike with similarenterprises. competing operatingas a monopoly mostagencies Commis(e.g.,the LandTransportation sion,the soleissuerof drivers'licenses), investmentthe BOI operatedalongside like the ClarkDeagencies enhancemeht SubicBayMetopoli AuthoriSr, velopment tan Authority,and the PhilippineEconomicZoneAuthority.As such,the BOI's wasconstantly andefficiency effectiveness with theothets,in a way beingcompared thattrackedthegrowthrateof theamount generated. The eachagency ofinvestments BOI was competingwith foreigninvestas we1l,suchas that in ment agencies Singapore.

"BOl lnc."

Toolsto bring aboutthis Improvement amongwhichwereasfoltransformation, lows: o TotalAuafttyManagement.TOM with analytithe BOIemployees equipped improvecal toolsto work continuous An empowering mentson theworkplace. TOM allowedtheemployees mechanism, to be morecreativeandeffectivein their This,in tandemwith the55 Ptoroutines. gramand GuthrieJensen's ServiceMileon the proper ageinstructedemployees "faceto face" wayto dealwith ciientsin a encounter. . ISO 9000.On top of thesequality improvementprograms,the BOI had declaredits goal as to be the first

government agencyto havean ISO9000 which is the nameof the certification, family of internationalstandardsthat definea OualityAssuranceSystem.It that a companydefineappromandates priatequalitystandards, documentits processes and provethat it consistently adheresto both. In this respect,the BOI clearlyhad a view to engendering the certification a cultureof excellence, being a highly covetedinternational standard. c Networking."The key word is managnetworking,"saidMelito Salazar, ing head."lf you lack manpowet,link If up with other governmentagencies. you lack resources, link up with the privatesector."AndthisBOIdid-which, perhaps,becamethe linchpin for its After all, the cteatlon transformation. of a healthyinvestmentclimateand of variouspermitsand the plocessing required neededby investors cleatances of other government the cooperation Theplivatesectoralsostoodto agencies. gain from this improvement-it could participatein the investment processas joint partnerswith foreign in investorsor as main ProPonents nrinritrr

nrnipatc

of networkingarethe BOI's Examples agenwith agreements othergovernment of Environthe Department ciessuchas and its arment and NaturalResources, government unitsto local with rangement promotional and a LGU maintainin each will attract that facllitativebureaucracy in thereeion. investments

ChangingCultures You'vegotto handit to the BOI'sperhad Oncetheagency sonnelmanagement. decidedto becomea marketingenterprise, is hiringandtrainingpoliciesreflectedthe shift.VisitinganyBOIofficealmostfeltlike beingin a bank or plivate investment house.To be sure,it employedOuality Researchfor this casewas made possiblewith support from

TheAsianManagerI Centennial Issue

'The

Citizen as Customer' Project of AIM and the National Power Corporation

The Marketing Side formulated appropriate promotions stratAs an TheInvestment Promotions andAssis- egiesfor thosecountries. Thedepartment tanceGroupsconsisted of the frontline alsolaunchedadvertising investment campaigns dedepartments thathaddirectcontactwith signedto proiecta positiveimagefor the promoter, BOI customers.Nowherewere the Phiiippines. organization's entrepreneurial skillsmore the BOI had to neededand moreevidentthan in these The SalesShowroom shift from "the one frontlineoperations. Theseskillsexhiblted Wheninvestors showed interest in the by "BOI Inc." arebestexaminedin the Philippines asaninvestment being courted to site,thefirst parlance of salesandmarketing. stopwas,quiteloglcally,the BOI, more the suitor" As in otherproducts,the ',selling"of specifically its One StopAction Center the Philippinesas an ideal investment (OSAC)-whichwas part of the Investsiterequiredeffective productpositioning mentAssistance Department. o Timelyinvestment Asin thecar adviceandfaandpromotion. Theappropriately named showroom,expertofficerswould walk cilitationregarding business transactions I n v e s t m e nM t a r k e t i n gD e p a r t m e n t both potentialand repeatinvestors r Joint-venture matchingseryices for organized, conductedand participated throughthe differentoptionsavailableto localand foreignentrepreneurs in investmentmissions,seminars,fairs them.In 1996 some2,000investors . Investment and adviceandfacilitatlon and exhibits.In coordinationwith the potentialinvestors visitedthe OSACev forsmall-andmedium-enterprises (SMEs) otherdepartments of the BOI, the de erymonthto availthemselves . Evaluation of its inteand supervision of inpartmentprovidedtechnicalassistance gratedservices.Withln its confines, the vestmentapplications (withincentives) and logisticalsupportto incomingmis- investorcouldgetall typesof information o Entrepreneurial assistance to Fiiisions.In 1996it sentat least11 outward regarding investment policiesandproce- pinooverseas contractworkers missions andreceived at least16 inward duresof the BOI and othergovernment Oncetheinvestor hasdecided to invest missions. It alsoconducted marketre- agencies. in the Philippines, he or shecouldfastsearch studieson thecomparative advanAmongthespecialized investment ser- trackthe initialstages of the investment tagesof the Philippinesvis-d-visother vicesgiventheOSACwerethefollowins: process by movingsomepapersrightthere countries. It monitoredinvestment-related o Information assistance to bothlo- at theosAC,whichhousedeightkeygodevelopments in differentcountriesand calandforeigninvestors vernmentagencies thatcouldacceptand

Thereare at leastfour reasonswhy governmentagenciesare in generalinsensitive, even indifferent,to citizenconcerns.*Firsr, the budget of government agenciesis not dependent on citizensatisfaction. Governmentagenciescto not receivetheir funds directlyfrom citizens,but from the legislativeassembly(Congress)and the treasury(the Departmentof Budgetand Management). when a businessdispleasescustomers,sales declineand profits plummet. when a governmentagency deliversservicesbadly. nothing bad happensto it. Governmentagenciesaim to please,not the customer, but the bureaucracyand its bosses.There is no incentiveto satisfythe citizenas customer.second,governmentagencies are monopolies.They have no competitionthat will prod them to be efficient,effectiveand innovative.Their employees,in turn. can afford to be arrogant,complacent,and disparagingof the public'Third, nationaland localgovernments(at leastthose which are democratic) are only replacedthrough elections.Forthe Philippinesand other presidentialdemocracies,the terms of office and the timing of electionsare fixed. Electedgovernment officialscannot be changed in betweenelections(savefor extraordinarycases).Thus, in betweenelections,there are no serious disincentivesfor officialsserve citizenswith excellenceand innovation.Fourth, the majority of citizenshave historicallybeen accustomedto the poor performanceof governmentsand have not developed a culture of complaintfor better service.The long lines in many government offices are accepted as a matter of fact, the arrogance and incompetenceof many government employeesare consideredpart of the process,and the sloppy and slipshod servicesare viewed as som6thingthat might as well be accepted.To be served effectively.many citizens know all too well that "pay-offs,, often do the trick. of these four conditions,the first three remain unchangedin the Philippines. Governmentagenciesdo not lose money when they perform poorly.they have no competitionfor their services,and the electoral rulesof the country still featurefixed terms ano regular elections'The fourth condition, however. has shown signs of change, part in owing to growing citizen dissatisfaction. Facedwith arrogantand incompetentgovernmentagencies,many citizensnow fume at the disserviceand clamor for change.This is happeningin severalcountriesand somewhat slowly in the philippines. *For in-depthinteresting and contrastinganalysesofwhythis happens.see prottas(1979)and Lipsky(19g0).

Researchforthiscasezuasmadepossiblewithsupportfrom,T}rcCitizeno'c Centennial Issue I lhe ,4sianManaper 43

andassuchfirmedup Authority,NationalPowerCorporation, the Ombudsman, accountabilandemployee & ExchangeCom- organizational and the Securities ity. It becameclearthat adminisilative mission. of wouldbe the consequence TheOSACservedasthecentralunit of sanctions performance. the IPU netwotk,whosememberscon- medlocre "If a BOIexecutive: oneapRemarked waYSto tinually met and discussed of hisprojectunprocessing services. pliesfor theregistration improveinvestment the PromotionP1an, of government der the Investment TheIPUwasalsoa system legalor procedural BOI is committedto takeactionwithin thataddressed hotlines failsto take And iust to show 20 workingdays.If theagency inquiriesof investors. period, the application the wlthin action everything, considered BOI had the that putthat can If we approved. is considered Investment an in-house also therewas agencies' government in other system Office (an of the extension Ombudsman of in whoseoffice therewill beno delayin theprocessing of the OmbudsmanJ government offipapers. of the delay The This service lodged. be could complaints After-SalesServices of graftand ofAgree- cialto deliverls thebeginning A n a l m o s te n t i r e l yn e w c u l t u r e wastheresultof aMemorandum I cottuption." of Office and the the BOI at mentberween reinvention ftomthiscreative emerged theBOLNot untilrecentlydid customers who had problemsin settingup their of "aftet-sales availthemselves investments The BOI had institutionahzed services." Unit (iPU) Promotions the Investment 24 related network,whlch connected "BOl Inc." therebyfacilitating government agencies, Reforming the culture. ltwas not easyto become I For transactions. investors'business Some employees resistedthe change, but they were instance,an investorwith difficulties eventuallywon over by the fact that the very top bossesof the clearance acquiringan environmental organizationwere taking the lead toward changes.Although couldvisit the OSAC,and an certificate g o v e r n m e n t e m p l o y e e sm i g h t e n j o y s e c u r i t y o f t e n u r e , his or her problem officerwoulddiscuss failure to adapt to the new standardsof behaviorwould risk in the counterpart with the appropriate losing incentiveslike productivitybonuses. andNatural of Environment Department whileat theOSAC, Of course, Resources. I Sustaining the programs. Some employees had been cynithe sameinvestorcould ask to discuss cal, consideringperhapsthe track record of former adminisother concernswith other government trations that initiatedsimilar programs only to shelve these agencies, later. The BOI surmounted this cynicism: despite top-level linked uP in the Amongthe agencies c h a n g e st h e c u s t o m e r - o r i e n t e dp r o g r a m s r e m a i n e d ,t h u s IPU network are the BangkoSentralng assuringcontinuity. Bureau Pilipinas,Boardof Investments, of Customs,Bureauof Food& Drugs, Funding the improvements. As anywhere, budgetary I , u r e a uo f B u r e a uo f I m m l g r a t i o nB c o n s t r a i n t sd e l a y e dt h e h i r i n g o f m o r e p e r s o n n e la n d t h e InternalRevenue,Departmentof Aga acquisitionof technology.Also, as any privatemarketermust of Agriculture' rian Reform,Department k n o w , l a u n c h i n g p r o m o t i o n a l o r a d v e r t i s i n gc a m p a i g n s of of Energy,Department Department r e q u i r e ss i z e a b l eo u t l a y s t h a t a r e n ' t r e a d i l y a c c e s s i b l et o and NaturalResources, Environment governmentagenciessuch as the BOl. But the latter worked Departmentof Finance,Departmentof around these squeezes-and managed. ForeignAffairs,Departmentof Interior Departmentof and LocalGovernment, t Developing linkages. This posed another crucial hurdle' of DePartment & Employment, Labor Governmentagenciesjealouslyguardedtheir turf, quite apart PublicWorks& Highways,Department from the fact that red tape was the rule ratherthan the of Department & Technology, of Sclence exception in these offices.The OSACtried to cut through the of Transportation Department Tourism, maze, although admittedly, it was far from the ideal. For Housing& Land & Communication, i n s t a n c e ,t h o u g h t h e O S A C c o u l d p r o c e s s t r a v e l t a x Board,NinoYAquino Use Regulatory exemptionsor duty-freeimportations,most other licensesstill Metropolitan Airport, International neededto be pursued at the concernedagencies;e.g', SEC Waterworks & SewerageSYstem, registrationrequireda visit to the SEC. National EconomicDeveloPment

on the spot.Among applications approve offeredat theOSAC services theone-stop arethe following: . Special multiplenonimmigrant entryvisa . lmportation p a p e r sf o r m o t o r for expatriates vehicles . Traveltax exemptlon . Tax & duty-freeimportatlonof goodsandpersonal household expaffiates' effects . Tax & duty free importationof uainingmaterials

n rtonn for this casewas made possiblewith support from

TheAsianManagerI Centennial Issue

'The

Citizen as Customer' Project of AIM and the National Power Corporation

By Michelle Liwanag

WhenTwo

ffiWWW Meet

Yale'sPaul Kennedy and AIM'I Gabino Mendoza draw up management scenario' in the 21st century Paul Kennedy (left) and Gabino Mendoza: Tackling a combination of forces

hat difference do recentglobal ticularcounfiy,theyhavebecomedefacto fasternow thananyothertimein history. trendsmakeon thechangeand standards. It doesn'tmatterhow the Theworldhadnotyetseenasmuchtrade, transformationof nations?And criteriawereformed:countriesarepres- financial activityandinterconnectedness. how shouldthosein themanase- suredto makethegade. A combinationof forcessustainthls mentofnationsandof multinational "First,we busiMakingthegraderequires anapprecia- modernization: havemoresciprepare? nesses Two management gurus, tionof $obaldevelopments ahdhow they entists, engineers andlaboratories, prof'esYaleProfessor PaulKennedy andAsianIn- figurein nationalpoliciesandpolities.By sorsand universitydepartments on oul stituteof ManagementProfessor Gabino globaldevelopments, Kennedyrefersto planetthaneverbefore. About85 percent Mendoza,sharedtheir insightsin the changes so broadthathardlyanysociety of all thescientists andtechnologists who recentManagement Forumco-sponsoredcan escapefrom them. parentheticaliy. haveeverlivedarelivingtoday. Second, by Makati BusinessClub,Businessweek Kennedy says,althoughoneor two nations we experience significant iiberalization in andAIM. - likgNorthKoreaand statecontrolsof the finance maytry to escape flowsacross In Kennedy's talk,a constant refrainis Myanmar, whosemeansof escape appear countryborders.Begunby Thatcherand the urgencywith which he underscored to be by a strategyof turning inwardimitatedby Reagan, all exchange conuols how worldwideperceptionis created theyreturn,unableto fullycut themselves had takenoff. Individuals, companies, throughglobalindices.Theiruse canbe off fiom the restof humanity. whoever,couidsendmoneywhereever controversial; globalcommunications and wheneverthey want to. Third, as revolution continues to createinstitutions Powerful Forces moreand moresectolsof an economy and associations that look at emerging K e n n e d yi d e n t i f i e st h r e e b r o a d becameexposed to international compemarketcountriesandgivethemrankings d e v e l o p m e n t tsh: e c o n t i n u i t ya n d tition thereis desireto havean , $eater basedon quantitativeand qualitative intensification of globaiization owing openplayingfield-- to reduceprotective sources. Thissystem is likethatof schools largelyto informationand technology tariffs,to shiftaroundassemblylines and wherestudentperformance andpotential communications revolution;continued workforces,givingriseto verysignificant are rankedaccording to certaincriteria. increasein globalpopulation,which is lnternationalization ofproduction. During Becausethe globalbusinesscommunity cenualto preparing for the2lst century; the industrialrevolution,it would take makesuse of such references with and the changingshapeand sizeof the aboutthirty to forty yearsbeforeone of increasing frequencyin evaluating the in- globalworkforce.Thesedevelopments thepioneersteam-driven factories canbe vestrnent advantage andpotentialof a par- takeplaceastheglobaleconomy changes, lmitatedin Germany. Nowadays, a Silicon Centennial Issue I l/ie,AsianManaper

ln Valleylnnovationcan be duplicated within six months. Osakaor Bangalore in communi Fourth,the breakthroughs fiberoptic cation-computersatellites, cables,television-arefelt beyondbusi andpubcultute,lmages nessintopolitics, lic views.Duringthe 1992MoscowcriClintonandPresident sis,bothPresrdent on in theirofYeltsinhadCNNtelevision ficesall the time to ensuethattheyhad in the latestnewsaboutdevelopments eachother'scountries." thesetrends? How shouldwe assess qualifies himself:"FromtheclasKennedy -faire isgood. view,allof these sicallaissez isthefieestandmosttationalthing Capital thereis. It flowsinto placeswhereyou canmakea profit andit flowsawayfiom whereyou can't.Sinceprotectivetariffs trade,gettingrid to restrain aredesigned andoverall trade enhance could them of new stimulates capitalism Global wealth. n ew p r o d u c t s a . n d n e w inventions. system. whole up a raising It is markets. Al1a countryhasro do to geton theglo is to pursuea fieemarket ba1bandwagon spending." policyandreducegovernment

natural culturallm- dardsof livingwithout destroying one-wayflow of newscasts, did it Philippines, the And for resources? fiom the messages ages,andcommercial it Does institutions? financial its develop Is this Western culture? dominantsecular imports? trade and grow its export to seek standardand leadingto marginalization or telecommuWhat to How aboutinfrastructure izaltonof all theworld cuitures? of living?fue the standard or nications, inof implications do with the long-term improving?" these creasingglobalproductivityand wealth on theglobalenvironment? Hesaldthewideninggapbetweenrich consumption How muchmorepollutioncanbepoured andpoorcouniliesls real.Therichest15 Evenif capitalism percentof the world hold 85 percentof into the atmosphere? couldraisethe standardof livingof the thewealthandthe85 percentof theworld populations of India,Chinaand eatonly 15percentof thecake.It maybe massive Brazilto the standardcurrentlyenioyed true that in Europeand NorthAmerica, wouldit 250 millionworkersenioyUS$85a day. andAmericans, by the Germans in the pro- The other 90 million workersin Hong not destroythe environment receive KoreaandSingapore cess?Canwe find waysof creatingsus- Kong,Japan, goods, produce pay the same but that couldraisestan- a lower tainablecapitalism

Excerptsf rom " rhe

;TffJ":T:'i:1;:"""-

" oetitiveness

Policy Forum

o In 1998 the Philippines ranked 32 in competitivoness from among 46 countries surveyed in the world competitiveness Yearbook. . This is a slight decrease from the 1996 and 1997 rank of 31-

Poorvs. Rich Then,hislitanyof Catch22 questions "Thetearerealissues thatariseout begins: damage social is the One of thisscenario. a relocates wroughtwhenanindustrialist to anpart world of the factoryfiom one other.For example,a factoryrelocates to PuertoRico. Connecticut fromSouthern because Ricans Thisisgoodfor thePuerto what about But it generates iobsforthem. you deal do How thetownin Connecticut? or Amertwith thefearsof Frenchfarmers cantextileworkerswhenthe new lowet themof deprives costof competition leve1 jobs? haveany soDoescapitalism their itsmoneyandjobs cialresponsibilitywhen moveatoundthe globe?" "Giventhe liberalization of all the who is moneyand currencyexchanges, where of rhe24-hourdaysystem in charge foreigncurrencyexrhereis a massive involvingasmuchas1 trillionUS change Howcan trading? dollarsin anaftetnoon's globalize wheninvestors poorercountries or the IMF andWB advisethemto keeP low so theycould govemment spending Who is going investin capitalformation? socialandeducato payfor thenecessary will sincethecapitalists tionaiinvestments of the not?What are the repercussions 46

TheAsianManager Centennial Issue

r The ASEAN countries (except Singapore), South Korea and Japan all dropped in rankingin 1998becauseof the regionaleconomiccrisis' . The Philippines dropped in rank from 31 to 34 in attractiveness to foreign direct investmentand trade. lt also dropped slightlyfrom 32 to 31 in aggresivenessin promoting exportsand investments' . The Philippines rankqd 23 in overall macroeconomic the lowest rankingin ASEAN.

performance,

. The Philippines was the only ASEAN country that improved its competitivenessin internationaltrade,attractingforeign investment a n d o v e r a l lt r a d e l i b e r a l i z a t i o n . r Philippine government policy ranked 19 in overall performanceThis is the country'shighest rankingin any categoryof competitiveness' . The Philippines's worst rankings are in infrastructure (44)' in the performanceof the financialsector (40)and in human resource(40). r The Philippines improved in competitiveness capabilitycomparedto the ASEAN countries.

in management

. The Philippines,s performance in science and technology worsened slightly,comparedto the slight improvementsin Malaysiaand Indonesia. o The results suggest that to improve competitiveness, t h e P h i l i p p i n es h o u l d : -lmprove infrastructure, financial aystems and bureaucraiic proceduras' -Diversify export markets. -lmprove public oducation. health care' R &D investment' -Maintain current pace of liberalization of trade and finance' -Maintain quality and accessibility of engineering and technical schools

partsandothers.Henotes:,,Un- around,andwith themideasandinnovacomputer lf an MBA only teaches pressure der fromtheEastAsianmiracles, lions.Pointsof viewwill changeandmake Europeans andAmericans havelostjobs the world moreattractiveaspeopleembusinessand not dueto globalization. Somescholars beiieve bracedifferentcultures. teach a person that realwagesof the North couldfa11 by By implication,for the philippines ro 50 percentas a resultof thesegloba1 join the nationswho arewell-positioned how to think, act, " pressures. for the 21stcenturythe countryshould interact and lead Mendoza's pointof departure was$o- asknot onlywhat thingsthe alreadysucbalpopulationincrease. Citingotherstud cessful nationshavein common,buttheir other people, it is "HowMany ies,amongthemJoelCohen's emerging cultures.Do theyhavea .manusomething that can People CantheEarthSupport," Mendoza facturing"culture,giventhenumbersof arguedthattheanswerto thequestion will their engineers be replaced by asagainstthelr lawyers? varydependlng onwho is askingthequesConcernsraisedin the open forum a book. tion. The answersrangedfrom 1 billion rangedfrom cultureclashto the usefulto 1,000billion.Thepresentpopulation nessof management education. standsat 5.7 billion,and increasing by Onwhetherthemeetingof therichand about90 millioneachyear,Whatdoesthis poor countriesin the contextof conimplyfor managers? tinued globalizationmight result in a First,at anygiventime,it makessense cultureclash,Kennedy repliedthatthere asindonesia, MalaysiaandTaiwanshould to thinkof a currentbut changing human areculturesthat rejoicein the varietyof especially improvetheir manufacturing, carryingcapacitydefinedby the current their differences while othersdespise it. research andexportsin electronics. On the stateof technology, cultureand environ- Many culturessuchas the Frenchand possibility of Japanand Chinabecoming ment. Canadians are worried aboutAmerica- thenextpowerfulnations,Kennedy's view Second, the recenthistorical recordof nizationof their societies. Mendoza is thatJapanhasthe maximumpotential super-exponentiai populationgrowth ac- underscored that while theremay be when it comesto technicalexpertise. It companied by an immense improvement ciashes in culture,the likelihoodof their hascontinuedto growfast. in average weli-beingcannotbeexplained happeningis low to nil becauseof the On whetherthe skillsneededmanaby logicalone. information revolution. Whathe foresees gingin the 21stCenturycanbe learned Third,to believethatnoceilingto popu aremoremarriages of cultures. in today'sMBA,Kennedysaidthateducalationsizeor carryingcapacityis in prostion is neededon differentlevelsandfor pect,youhaveto believethatnothingwill Room to Grow differentagegroups.Thegreatest assetin stopa sufflcientproportionof additional On thesustainabilify of Asia,Mendoza an educationalsystemis the trainingof peoplefromincreasing the Earth'scarry- notedthat the countrles that put money studentsto asktherightquestions andthe ing capacify by morethan,or at leastas in upgradingtheir productssuch as abilityto reactintelligently. The needto muchas,theyconsume. biotechnology andresearch wiii continue hayea flexiblemind anda willingnessto Mendoza's premonition is thattradein to grow.JapanandKoreaaredefinitelydo learnare the coreof education. On the the world will pressurepeopleto move ing this.However,the Philippines aswell other hand, Mendozastressedthat education shouldhavetwo goals:it should glve studentsroom to grow and make surethat theygrowwith a zestfor life. If anMBAonlyteaches business butdoesn't teacha personhow to think,act,interact andleadotherpeople, it is something that canbereplaced by a book.Thepurpose of an MBA is to deliverthinkingmanagers andleaders. On the actionstepsfor the Philippine governmentand private sectorsto preparethePhilippines for globalization bandwagoninto the next centuryKennedy saidit shouldbe ableto access moredata and information.Mendozaemphasized education,emphaticthat the privatesector hasa lot of hardwork to do in sofar as convincingthegovernment to improveits educalionalsystem.But, to be ableto do such,he said,the government must be Mendoza on global population increase: lt depends on who's asking the question run well first. I Centennial Issue I lhe ls ianManaser

By Maria Mikgros T Garcta

Bureaucratic

hen you were still a cateftee toddler,learningnew woldswas -often Perilousa dauntingusk rhatled to manyembarrassing Thenyouwentto schoolwhere scenarios. you to theyuppedthe ante,introducing longerandharderto wordsthat seemed astheyearswentby.Youlearnedas spe1l well thatcertalnwordsheldthepowerto the cajoleor confusethe enemy-whenyou TowerofBabel-whereGodpunished to tower a to build It was peoplewho attempted neededto makea quickgetaway. different with that,by the tlmeyou entered heavenby cursingthem no surprise each sotheycouldnotunderstand you werea masterat ob- tongues the workforce, lansame the other-peoplewho spoke andprevarication. fuscation just because probably guage stucktogether, for themto do so. it wasmoreconvenient BuildingBabel hasoftenbeen It is infinltelyeasierto work with, fight language Historically, who underusedto unlte.In the caseof the biblical with or live with someone

How language works -or how it doesn'tin the workPlace

M*ffi fuw

standseverywordyouaresaying[although to the therehavebeenmanyarguments contraryJ. hasalsosomeianguage On theflipside, timesbeenusedto divide.The people who don't soundquite like You are personanon sometlmesunconscious orworse' segregated, grata's, notincluded, it is difficuitto conostracized-because

red tape that the situation is almost

IT IS ]N PROCESS

So wrapped up hopeless.

WE WILLLOOKINTOIT

B y t h e t i m e t h e w h e e l m a k e sa f u l l t u r n , w e assumethat You will have forgottendbout it too.

A PROGRAM

Any assignmentthat cannot be completed b y o n e t e l e p h o n e call.

EXPEDITE

To confoundconfusionwith commotion.

CHANNELS

The trail left by interoffice memos.

COORDINATOR

The guy who has a desk betweentwo expeditors.

CONSULTANT

Any ordinary guy with a briefcasemore than 50 miles away from home.

TO ACTIVATE

To make carbonsand add more namet to ih" memo.

I M P L E M E NATP R O G R A M

Hire more peopleand expandthe office.

UNDERCONSIDERATION

We're looking in the files for it.

MEETING

A mass mulling by masterminds.

TheAsianManagerI Centennial Issue

versewith themunlesswith a translator lumberingdinosaur,not in synchwith yourcarneedsa ful1overhaul because the present, oftentimes a priceyandinconve- today'sfast-paced processes. Because of fuellnjectionisn'talignedwith yourdual nientrequirement. Fortheunluckyminor- this,linguisticacrobatics mayberesorted overheadcamshaftengine,maybeyou iry who don't fit in languagewise, it has to in orderto explaindelays, nondelivery shouldgeta second opinion. becomenecessary for them to adaptin of goods,iregularities,or simplyto preLingois usefulin timeswherean unorderto suryive.Thinkaboutthosegreat servethe perceivedauthorityof the orga- derstanding of the sameterminology respy films,where the dashingspy dons nization.Thishasultimatelygivenriseto sultsin quickerfeedback and problem manydisguises andspeaks a multitudeof bureaucratic 1ingo. solving.Thenusinglingo allowsfor clarlanguages, oftenenablinghim to escape Bureaucratic iingols prevalent in vari- ity anda greatercertaintyofbeingunderthedeviousenemyby dressing asthe en- ousprofessions andis usedto tie people stoodby theteam.Theneedfor clarificaemy and takingon his mannerisms and together. It may alsobe usedto oppress tion is low. Lingobecomesundesirable just one anothergroupof peoplewho maynot be whenit is usedto cover accent(amazingly, sometimes up thetruthor to word in the locallanguage will do).We famlliarwith the terminology.It can be cloudan issue.Sometimes lingois used ali marvelat how smoothlythe spygets takentoofar,asis thecasewith somepro- so oftenin this mannerthat lt becomes away,iustin timeto romanceanother1o- fessionals. secondnatureto theteam'smembers, and calbombshell with, again,his deftuseof Youmay notice,when you visit your problems areautomatically communicated language. doctorfor thoseannoyingchestpains,that thisway. he will tell you you havethe "symptoms One thing to remember, when using Lingo Loco of myocardial infarction." If he roldyou lingo,is that the appropriateness of the Bureaucracy is oftenpresentin so11d1ystraightout you were havinga heartat- situationshouldbemeasured andthehonstructured organizations thatunitea cer- tack,youmightprobably haveanotherone estyof the language carefullyexamined. tain groupof peopleinto one common right there.When your iawyertellsyou If the reasonone is usinglingo is to lie, cause.When phrasedthis way,bureau- not to worry anddlshesout someLatin cheator steal,then the organization that cracymaysoundgreat.But the realityis like he werethepope,you maynot real- hassuccumbed to it maybe in dangerof thatbureaucracy, because of theinherent ize that you're in dangerof losingyour goingthe way of the Towerof Babelchecksandbalances, is oftena slowand shirt.Thenext timeyour mechanic says whichI believeno longerstands. I

A CONFERENCE

A place where conversationis substitutedfor the drearinessof labor and the lonelinessof thought.

TO NEGOTIATE

To seeka meetingof minds without a knockingtogetherof heads

REORIENTATION

Gettingusedto workingagain.

RELIABLE SOURCE

Theguy you just met.

I N F O R M ESDO U R C E

Theguy who originallystartedthe rumors.

A CLARIFICATION

To fill in the backgroundwith so many detailsthat the foregroundgoes underground.

WE'REMAKINGA SURVEY

We need more time to think of an answer.

NOTEAND INITIAL

Let's spread the responsibilityfor this.

SEEME,OR LET'SDISCUSS

Come down to my office, l'm lonesome.

WEWILLADVISE YOU

lf we figure it out, we'll let you know.

LET'SGETTOGETHER ONTHIS

l'm assumingyou're as confusedas I am.

FORWARDED FORYOUR CONSIDERATION

You hold the bag for a while.

Centennial Issue I lhe,4sianManaper

TUN ISMAILMOHAMEDALI A TRIBUTETO AN AIM GOVERNOR (1918-1998) f the manyaccomplishments of theworldPoliti observers cal stageattributeto the late Tun IsmailMohamedAli, the mostdifficultis alsothe leastvisible whonow enioythe to thegenerations fruitsofhislabor.Tuniscredltedwith and putting nursing,sffengthening into mature,full-timeactlona MalaysianCentralBankthat, fiom the '60sonward,becamean institution to reckonwith in theregion.Histenure asgovernorof the nation'scofferssaw the growth and consolidafinancialinstrution of sophisticated mentsandmonetarypoliciesthat futhedeveloprnent eledandpropelled He wasthe economy. of Malaysia's man behindthemiracle. The Dream for AIM was TheAsianInstituteofManagement consteriing with the early on acquainted stancyof Tun'snature.He wasforemost of the purposethat the regionadvance economic thloughthe conscientious tesoutceful, efficient, by administration Tothisendhewas managers. andsensitive academe fiom whlch the convinced trhat ground of excellence be a theyarebred governor of AIM'sinAs anddistinction. yearsfive for twenty ternationalboard unwas one of the longestserving-he generous ex' with selfishwith his time, wisdom rare pertadvice, with andblessed on what directionsthe Instituteshould in the early,tryingdaysof take,especially ln theregion education AIM. Management centerof gravity' Tun'sacademic became asthebackdropof economicglobalization magnifiedin all areas becamelncreasingly 1ife. of nationalandregional Tundid not comein coldfromhistory. A key figurein the strugglefor national Tun YangArnatBerbahagia lndependence, IsmailBinMohamedAli wasbornin 191B to an officerof the courtsunder British ru1e,who instilledin theyoungTuna love for countryandfellowmenthatis firstand The service. in government bestexpressed 50

TheAsianManagerI Centenniallssue

Tun was the first Malay twenty-yeal-old Cambridge scholarto studyin England's University,a sustainedand profoundexposureto the mannerand matterof the West. From Britania to Malaya Strandedfor nine yearsin Englandby the secondworld war afterfinishinghis in EcoandMaster'sdegrees Bachelor's nomicsand Law,he returnedto Maiaya with a lastingadmirationfor the Btitish. Thesefond memodesof England,howby thecontradicever,wereaccompanied tionsof loyaltyto home,.then still under dominion,aswell as the EnglishOueen's theidealsof nationsfightingfor theirvery survival. "it was during the war that I learnttheviltuesof integlityandfaimess, of loyaltyandsewiceto one'scountrythe needfororder qualities of leadership...the efficient tesoufcefulness, and discipline, thflft andhud work andthe management, importanceof an informedpublic,"he wrote in Memoir of a MalaYStudent (1975).The first stirringsof a national with the ideals converged consciousness andthe education of a liberalCambridge terribleimagesof war. Together with in Britain,TunmobiMalayanexpaftiates lizedthe creationof Malayancitizenship

and MalayanUnion extendingfull to allMalaystates, Britishiurisdiction would a movethat,when realized, of a pohelplaythefirstfoundations 1itica11yunified PanMalaYan dreambecamereal in states.The independence 1955with Malaysia's from Britain. The Dream for Malaysia asa Public Tun'sfirst appearance Mafigureof a newlyindePendent wasin 1948,whenhebecame laysia of Selangor. StateSecretary Assistant At this earlystagein his careerasa publicservant,Tunbeganoutlining thefirstprinciplesthatwill guidehis Malaysia, vision of indusffializing now of theneedfor a viconvinced thatis guided sionof modernization with the valuesof a caringsociety,beginningwiththefamily,outwardto theworkthecountry.For piace,andencompassing he workedtirethe next threedecades to bringthisvisionto the forefront 1essly AsAspublicconsciousness. of Malaysian Economic sistantEconomicSecretary, of Malayan Ministerin the Federation and Executive in Washington, Embassy Directorof theWorldBank,and,ofcourse, as CentralBank governor,he lived and of integrity,propromoteda consciousness loyaify thrift,resourcefulness, fessionalism, governof the conduct in excellence and mentandcitizenshiP. The Wisdom of Tun "Malaysia's is economicachievement managin superior its being to testimony "Giventhe ing its own affairs,"Tunsaid. oppoltunityfor improvement,no lace or nationis inherentlysuperior(ot inferior) to any other."Tun, saysAIM Ptesident FelipeB.Alfonso,hadtheheartof a giver andthe soulof a leader. In the historyof modernMalaYsia hometo which he beandthe academic the queathshiswisdomandexperience, of the is one Ali lateTunIsmailMohamed be dght to the very few who hasearned judgedby the standards of his time. I

ACCEED ASIANINSTITUTE OFMANAGEMENT

" Just found out the big boss i s c o m i n gt o t h e P h i t i p p i n e s for our Asia-Pacific conference. He [ovesto bring h i s [ a p t o p a n d a t w a y sa s k s s p e c i f i cq u e s t i o n sa b o u t t h e b u s i n e s so . u r c u s t o m e r st,h e r e g i o n ,a n d w a n t s i n s t a n t response. How do we manage that?" "

Chief, we better have our c o r p o r a t ed a t a b a s eo n U n e i n t h e m e e t i n gv e n u e ! "

" Fine, but whot about his questions on topics outside our company?"

That is a big problem, Chief!"

-*ffi" ffi

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It won't be a problem if you hotd your meeting at ACCEEDConference Center at the Asian Institute of Management in Makati. You can avaiI of the information sources of AIM right next door. 0r during your meeting you can access global data base avaitabte in the internet, Dow Jones or Reuters.

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R E S E R V EN O W b e c a u s e m e e t i n g r o o m s a r e n o w b e i n g b o o k e d w a y i n a d v a n c e . C a t tA C C E EM Da r k e t j n ga t T e l .N o s . : 7 5 0 1 . 0 1 0/ 7 5 0 4 4 6 7 F a xN o s . : 7 5 1 7 1 6 0 / 7 5 0 4 4 5 9 E-mai[: acceed@aimonline.oro

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