Why We Remain Poor

I came across this photo illustration on Facebook, depicting the Top 10 Real Life Statistics why most of Pinoys (Pilipinos) are poor.

Source

The first thing that immediately came into my mind is an article I read which has been lying in my Yahoo Mail Inbox for the longest of time. In fact I had to go over my mail to look for it and I DID!! It was in my 2005 mail, dated July 17. It's a forwarded email from my good friend Sammy, from a certain Nathaniel von Einsiedel, a Filipino architect and town planner, entitled "Difference Between Poor Countries and Rich Countries." A very interesting article. You can check the link here. A similar link exists from a Dr. James R. Kanagwa but it is timelined June, 2015 so this link could not be the original one.

In summary, these are the findings of the author:

On analyzing the behavior of the people in the rich & developed countries, we find that the great majority follow the following principles in their lives:

1. Ethics, as a basic principle.
2. Integrity.
3. Responsibility.
4. Respect to the laws & rules.
5. Respect to the rights of other citizens.
6. Work loving.
7. Strive for Saving & Investment.
8. Will of super action.
9. Punctuality.

Von Einsiedel goes on to say that most people in poor and developing countries do not follow these principles.

In the case of the Philippines we do not lack for natural resources. In fact we are so blessed with so much resources in both land and sea compared to rich countries such as Japan, Switzerland and Singapore. Neither do we lack for intellectual capabilities compared to other developed countries. We have a distinct advantage over countries such as South Korea and Japan because we speak English and consider it to be our second language. We have a young and abundant source of manpower. But why do we remain a poor country?

The answer to this is - "ATTITUDE."

Let me illustrate. Going back to the Top 10 Real Life Statistics illustration above notice how numbers 4, 5, 6, 7 and 9 are all related to the 7th principle of Von Einsiedel, "Strive for Saving and Investment." The ideal model for saving is: Monthly Income - Savings = Expenses. In the Philippines, however, the equation that is commonly followed is: Monthly Income - Expenses = Savings. The problem with this is that Expenses tend to be more than Income resulting to a negative savings every month. A conscious and painful effort must be exerted to "save first then spend the rest", adjusting expenses and not savings. This is the attitude towards savings that must be encouraged and infused in us.

One may be tempted to point out the first item in the statistical illustration above - "74.7% belongs to the LOWER CLASS families earning below P328,000/year." This is interesting. P328,000/year earnings actually translates to a monthly family income of about P25,200 (including 13th month pay). Did you know that this income is twice that of the minimum wage rate in the National Capital Region which is about P12,000 per month? I did not realize that earning this much a month places someone in the Lower Class bracket.

But to get back to my topic of interest. Some of you may point out that if the Monthly Income is already small to begin with, how can a family save when most of the money earned goes to basic necessities? Valid point. I believe nothing much can be done about this situation. However, how many people who belong to this Lower Class do actually have expenses that are not basic and entirely unnecessary? I see a lot of people in this income stratum who smoke, drink and gamble in state sanctioned lottery like the lotto which if stopped can contribute to the family's savings. I see millenials from this income bracket who have the latest android cell phones with 24/7 data access. This clearly must change if we are to improve our lot as a country.

Item 10 in the statistical illustration - "P90 Billion Estimated amount Scammed Money . . ." Sadly, this is an indication of a flawed attitude about savings so common to Pilipinos. A lot of Pinoys fall for "get rich quick" or "double your money investment schemes" that they throw all caution to the wind and invest their life savings on these only to find out that these were all scams. There is a need to instill an attitude of prudence and patience in our savings efforts.

Three of the biggest problems in the Philippines are corruption, traffic and flood control. These are banes that have besieged us for years on end and have become "THE WAY OF LIFE." This is indicative of how true Von Einsiedel"s words are about the principles of "Integrity", "Responsibility", "Respect to the laws & rules and to the rights of other citizens" and, "Punctuality." We see these principles absent when we look at how Pinoys transact with government offices, how they drive in the streets (no quarters given), how they dispose of their garbage resulting in clogged waterways and esteros. Political will is important. The current president is doing his best to stamp out corruption, alleviate traffic and stop the floods. But we need to do our share. We need to change our ways and attitudes to be more honest and selfless and to be law abiding citizens.

Remember, it only takes one candle to light up a room full of candles. Be that candle and start lighting up your part of the country by inspiring others with your attitude and be the change that you want to be.

(All images courtesy of Pixabay unless otherwise indicated)