Learn from The Chinese and Indian Auto Industry Model

[dprox]

It will not happen if the government will not bridge the gap between the rich and the poor.

With the rich and the poor working together, and with the government leading the way, employment, income and true economic development will be realized by the country..

Hi jpdm. I agree with you 100%.

However, allow me to qualify what you mean by "government leading the way". In the constitutional democracy that our country is supposed to be, the engine of the economy and national life is not government, but private enterprise. The initiative does not and should not belong to government. If it does, then that is the fastest way for the citizenry to be enslaved by its own "leaders".

WE, THE PEOPLE, MUST TAKE THE INITATIVE. The role of Government is to facilitate and support our pursuit of happiness, in an environment of freedom and social responsibility.

I have ended up thinking that for any enterprise to succeed, it must psyche itself to operate with or without any help from government. Any help the government can give would however be most welcome.

Don't get me wrong. I am not anti-government. Without government there would be anarchy. But equally so with too much government (result: excessive legislation, oppressive enforcement, obstructive judiciary). The role of government is TO FACILITATE, COORDINATE, AND SUPPORT its own people's worthy initiatives.

The lamentable thing here is that our own government fails to even recognize our initiatives because it is blinded by corruption and mesmerized instead by foreign carrots-on-sticks.

And even as we allow visitors to set up their shacks in our yard, we have a right to and live peacefully and profitably in our own home, not having to move out of our property. The grand irony is that our visitors can be so much at home in the Philippines, while millions of Filipinos, economically evicted, are not.

Don't get me wrong. We're not pushing xenophobia here. All we want is an honest-to-goodness level playing field. But even without that, we will continue with what portion has been left to us. And take it from there.

[jpdm]

[quote=jpdm;1055191]It will not happen if the government will not bridge the gap between the rich and the poor./quote]


ERRATUM: It will happen if government will not bridge the gap between the rich and the poor.

With all due respect, classical economics of Adam Smith called "laissez faire" argued that the government must have a minimal presence in the market except perhaps in the area of giving licenses and providing regulations (investment procedures, formal property laws, consumer protection).

This type of system is pure capitalism (classical economic system or the modern versions-neoclassical, neo-liberal, globalism)

But the fact remains no single country today can claim that they follow the purest type of capitalism.

With the emergence of Sir Maynard Keynes and his economics of government intervention plus the concept of welfare states...government again assumed a pivotal role in economic development.

Thats why ,most countries now (even the US and UK) have mixed economies with government planning (socio-economic planning) that private enterprises uses as a guide when they decide on something. This plan is a socio-economic blueprint ( ex. medium term development plans, investment priorities, anti-trust laws) that the private sector must follow.

Whatever endeavor (private enterprise), we need the support of the government specially in terms of regulations (application, investment protection, trademarks) policies (tax perks, incentives, tariff protection, income tax holidays, subsidies).

The government must always lead the way to inspire its constituents to make initiatives. Say for instance, even if we have the best business plan but if the government does not provide a friendly business climate (no incentives, withdrawal of incentives, no investment protection, imposition of new government fees, taxes)paktay na...

Kailangan may assurance of a stable business climate.

Even CAMPI must beg for government incentives under IPP to push through with their new investments (notably Nissan's stamping plant in the Philippines, care of Universal Motors Corporation of Elizabeth Lee.

Tsikot Phuv Project should also ask the help of the government although indirectly through other agencies or GOCCs (DTI, Pagcor?).

Tsikot must seek protection from CDA or Laws on SMEs

[pitbullz]

sad to say,but that mentality is already here at matagal nang in grained hehehe...and thats what the trapo's are taking advantage of...the ignorance of the majority of the masses...as long as the kawawa mentality prevail...theres no where to go for us...

being born poor doesnt have to mean that you will be poor the rest of your life

being born poor doesnt give you the birth right to break and not follow rules and discipline

being born poor doesnt mean that you cant have dreams or ambitions

and

being born poor doesnt mean that you have to kiss the ass of the oligarchy and be brainwashed by the clergy

i hope that peace and love for fellow countrymen will prevail in this country. rather than selfish thoughts and the like. let the politicians be the ones to do it first,then the masses will follow...all we need is a righteous and charismatic leader with a vision and dream even long after the elections are through :D (f*** it! lets dump the elections anyways. it fails all the time naman,sayang lang pera) hehehe

[uls]

JPDM,

dun sa isang thread, u were saying puro import nalang ang bansa natin...

and yes i totally agree...

pati nga toothpick, suklay at tsinelas ini-import natin e...

from what i sense in this thread, u are pushing car manufacturing here

di ko talaga maalis sa isip ko ung pinaka basic na question na paulit ulit ko tinatanong pero wala sumasagot...

even if u got all the details planned out... even if u got all the determination in the world... even if u got together the most intelligent and talented and skilled people in one room and everyone has a laptop and broadband connection...

di parin nasasagot ang iisa kong tanong ---

the question is: Sino ang mamumuhunan?

[jpdm]

di parin nasasagot ang iisa kong tanong ---

the question is: Sino ang mamumuhunan?

Good. You agree. Puro import tayo.Hostage tayo ng sellers.

Sa mamumuhunan, ilang ulit ko ng na post, meron na.

Yung mga gumagawa ng local na auv, jeepney, owner-type jeep,tricycle,hummer look alike, wrangler look alike, revo-look alike, hihlander look alike, crv looking xlt, multicab, norkis vehicles, sarao, pick-up owner type jeep, big and mini-buses sa buong pinas.

Although di masyadong pansin dahil puro PUV lahat. Hindi puedeng pa-pogi points. Pero maraming locally-made na sasakyang kumakain sa maliit na auto market natin.

Kaya nagtataka CAMPI (toys for the big boys) bakit may discrepancy sa new LTO registration and actually sales of new vehicles in the Philippines. So may gray area. Dun pumapasok yung mga backyard made or vehicles made by local fabricators.


Yung mga SUVic (a.k.a. rolling coffins)o illegally imported na vehicle palaos na kasi sa museum at junkshop ng Japan, Korea, Germany at US lang makakakuha ng piyesa.

So kailangang magtanong ka muna sa curator o basurero ng spare parts pag nasira mga illegally imported na mga SUVs at vans na yun.

[dprox]

[quote=jpdm;1055532]

It will not happen if the government will not bridge the gap between the rich and the poor./quote]


ERRATUM: It will happen if government will not bridge the gap between the rich and the poor.

With all due respect, classical economics of Adam Smith called "laissez faire" argued that the government must have a minimal presence in the market except perhaps in the area of giving licenses and providing regulations (investment procedures, formal property laws, consumer protection).

This type of system is pure capitalism (classical economic system or the modern versions-neoclassical, neo-liberal, globalism)

But the fact remains no single country today can claim that they follow the purest type of capitalism.

With the emergence of Sir Maynard Keynes and his economics of government intervention plus the concept of welfare states...government again assumed a pivotal role in economic development.

Thats why ,most countries now (even the US and UK) have mixed economies with government planning (socio-economic planning) that private enterprises uses as a guide when they decide on something. This plan is a socio-economic blueprint ( ex. medium term development plans, investment priorities, anti-trust laws) that the private sector must follow.

Whatever endeavor (private enterprise), we need the support of the government specially in terms of regulations (application, investment protection, trademarks) policies (tax perks, incentives, tariff protection, income tax holidays, subsidies).

The government must always lead the way to inspire its constituents to make initiatives. Say for instance, even if we have the best business plan but if the government does not provide a friendly business climate (no incentives, withdrawal of incentives, no investment protection, imposition of new government fees, taxes)paktay na...

Kailangan may assurance of a stable business climate.

Even CAMPI must beg for government incentives under IPP to push through with their new investments (notably Nissan's stamping plant in the Philippines, care of Universal Motors Corporation of Elizabeth Lee.

Tsikot Phuv Project should also ask the help of the government although indirectly through other agencies or GOCCs (DTI, Pagcor?).

Tsikot must seek protection from CDA or Laws on SMEs

(1) There is no room for laissez-faire economics in the OPTIMAL government I was describing.
It's just that under the present circumstances, government neither encourages nor facilitates private enterprise, especially in the indigenous automotive sector. Net net, government stifles enterprise.

Back in 1996, the Constitutional Commission's Committee on National Economy precisely dumped the concept of FREE ENTERPRISE and introduced that of PRIVATE ENTERPRISE, as the former had a sad history of untrammeled, insensitive capitalism (premised on a so-called "right to unlimited wealth"). While the balance of government and private business sector is contemplated in a private enterprise economy, the economic engine/initiative lies not in the government.

I agree with what you said -- that the government is there to provide the occasion, the setting, and the enabling circumstances. It is not there to engage and compete with private business, but rather to guide and give everyone a fair shake and ensure that the fruits of industry cascade down to the populace. In this manner, government leadership is not characterized by dictation, but by SERVICE -- that the people may profit equitably. After all, isn't that why they are called PUBLIC SERVANTS in the first place? What we have in our fundamental law is in fact a refinement of Keynesian principles.

Unfortunately, government officials and unscrupulous businessmen have found a way of perpetuating irresponsible capitalism using private enterprise as a mere disguise. Ganu'n din.

(2) A welfare state is an indicator general economic breakdown ... and paradise for pogi-point hunting politicians and "kawawa-hunting" church workers. Don't you just get the feeling that they actually enjoy drawing energy from adulating and utterly grateful beneficiaries? By giving doleouts (and having their pictures taken), they actually promote the very poverty they appear to be alleviating. Masyado namang "feeling like God" sila. And after the people benefit from their "benevolence", they find themselves tied up with so many invisible strings attached they can hardly move even to pick their noses.

Even Cardinal Vidal very sharply traced the attitude problem as the abuse of "utang na loob" ...

“Utang na loob,” the Filipino version of having a sense of gratitude, is presumed not only by the official in relation to his wards, but also by the ordinary Filipino in relation to God. Thus, an official feels indebted to his patrons, and people feel indebted to their officials. The patrons expect something in return, just as the official feels a sense of entitlement in relation to his constituents. Every project he performs for them entitles him to a cut of the fund. And still, the people feel infinitely grateful for his generosity.

What is true in socio-political practice is also true in the exercise of the faith. “Patronage politics” translates into “patronage religion” and vice versa. We look up to God as Giver of good gifts, but our good behavior too holds Him in debt. It is as if we have elected God to be our padron, and therefore hold him accountable for all our needs.

... and the solution ...

We cannot go on like this. We cannot go on basing our social relationships on the values of generosity and gratitude alone. We must act in terms of duties and responsibilities as well. The performance of our duties must never engender in us a sense of entitlement. “We are only useless servants; we have done only what we ought to do” (Lk 17:10). And while we may be grateful to people who are conscientious in the performance of their duties, we must not feel so indebted to them to the point of neglecting our own obligations for the sake of repaying a debt of gratitude.

Government is expected to maintain a level playing field, and the long term facilitation for this lies in government's giving priority to the educational sector. Rather than giving them fish, why not teach them instead how to fish? ... on their own!

(3) What I am saying is we in Tsikot must continue our endeavors IN SPITE OF the present government's ineptness and shortcomings, precisely because the initiative here does not in principle belong to government. (And as we proceed, we must unbind ourselves of the usual strings attached. Let the government officials and functionaries just do their job, period!)

(4) At the bottom of economic growth is GOOD POLITICAL WILL. Simply put:
GOVERNMENT > political will to serve the citizenry
CITIZENRY > political will to engage in private enterprise

(5) Observe how the Malaysian auto industry model is inferior to the Korean and Japanese. In Malaysia, only Mahathir (representing government) had the warrior spirit, and with him gone, the industry has floundered. In Korea and Japan, the same attitudes imbue both government and private sector. There is also a discipline engrained in them, which has less tolerance for graft and corruption than in malay cultures. Kaya ba natin yun?

India and China are emerging as global automotive players, but I don't know if the Chinese industrial model is worth emulating - an "authoritarian capitalism"? Can you tell us how the Indians are doing it? Within the caste structure? How do you think we Pinoys should proceed?

[dprox]

di parin nasasagot ang iisa kong tanong ---

the question is: Sino ang mamumuhunan?

uls, let's suppose, for the sake of discussion, that there are investors. Given the cutthroat culture of the auto industry, do you think they would relish having their names posted here? I would think that prudence would be the better part of valor.

But you are on the ball. Investors are in fact needed.
But before that, we're having fun with product dev muna.

Yung gustong sumali, PM & EB muna dapat.

[webmiester]

Ironically the Philippines is actually learning from China...

Long time ago, everyone in China rode bicycles and rickshaws... today they have more buses and cars...

In the Philippines naman, long time ago we were riding mercedes benz taxis... today there are more pedicabs moving around, similar to China's bikes and rickshaws 30 years ago.

[webmiester]

[quote=jpdm;1055532]

It will not happen if the government will not bridge the gap between the rich and the poor./quote]


ERRATUM: It will happen if government will not bridge the gap between the rich and the poor.

Well, whether it will or will not happen due to the bridging of the gap, it definitely CANNOT happen if people in government keep making THE POOR against THE RICH and vice versa. This was very strong during Erap's time, and even today, the hakot system, among other things, really are pronouncements that the poor are simply being used for the political ends of a few.

[webmiester]

Here in Iloilo we already have several patented jeepney models and designs. We have two strong jeepney manufacturers here, Joroshely and Manuel Motors. Pero there are restrictions ata as to the selling of these types of jeepneys outside of our island (Panay). Jeeps here are far different than what you see in any other places in the RP.

Ang ganda ng jeepneys na ganito! I want one of these pa nga... so may restriction pala, that's why i dont see any outside the island. bakit naman may restriction? Can't I just bring their latero to my place and build one here?