Cosmetic ‘solutions’

If the President is serious in redeeming the family name, he must resist the temptation to latch on to cosmetic “solutions.” Kung pa-pogi lang, useless because nothing really gets better.

Take the P25/kilo rice sold in a few Kadiwa outlets. NFA paid more for that rice, so NFA (taxpayers) incurred a loss with that gimmick. Worse, it may have depleted NFA’s buffer stock, something NFA must always have for emergencies. Now they are suggesting NFA must import rice, something not allowed by the law.

But what if the private rice traders refuse to import rice because they will make more money with less rice in local bodegas? This is why the President should be steps ahead of these traders. The President should ask the conglomerates like San Miguel, RFM, URC and others with proper receiving and storage facilities to import the buffer stock. It is easier to monitor the conglomerates than the Divisoria rice traders.

Same thing with sugar. Decisions so far have only made things worse. The President’s alter ego at the Department of Agriculture disregarded the rules for importing sugar, awarded the right to import to three traders without benefit of a criteria for selection or a public bidding.

The bad part is, even after the sugar bought from Thailand at about P25/kilo arrived, the price of sugar in public markets and supermarkets went up to as much as P135/kilo. Kadiwa sold some confiscated sugar at P70/kilo, but the impact is limited by the small number of Kadiwa outlets.

The Kadiwa approach of responding to food inflation is a cosmetic “solution” that is not sustainable. It is good for a few photo opportunities with the President but does nothing to meet the needs of consumers.

As for the claim that Kadiwa helps the poor… there are about 300 Kadiwa centers and about 55 million Filipinos who call themselves poor, according to SWS surveys. So, 300 vs 55 million? It doesn’t move the needle.

It is the same thing with this national branding that was recently launched. It is not clear what the objective is. What was launched in London was a campaign that looks like it wants to promote OFWs.

There was this wrap-around ad on a London bus featuring a Pinay nurse holding up a syringe, with the accompanying text: “The nurse who gave the world’s first COVID 19 vaccine. A Filipina. We give the world our best. The Philippines.”

Nice. It will likely win an advertising award. The “kurot sa puso” will result in positive feelings all around.

But what is the objective? Are we marketing our most important export to the world: the OFW? We don’t have to market our nurses. There are more vacant slots in the UK and the US than we can fill. But what happens to our hospitals here?

If the objective is to earn forex quickly, marketing our OFWs is easier to do than trying to market our country to foreign direct investors to create jobs here. We have such a long “to-do” list to accomplish before we are ready to successfully compete with Vietnam in attracting FDI.

Our OFWs have a positive international reputation already, a positive branding, and it is easier to sell them to potential employers, specially in countries with fast declining birth rates and need workers badly.

But trying to create a national branding campaign now, whether for investors or for tourism may be premature. We have to make sure we have done enough to make that branding reflect the reality on the ground.

Someone in my Viber group of economists, posted ChatGPT’s response when asked about the wisdom of launching a country brand for the Philippines. Here is what the AI app said:

“Yes, it makes sense for the Philippines to develop a national brand. A strong national brand can help attract tourists, foreign investment, and promote the country’s culture and values. A well-crafted brand can also help differentiate the Philippines from other countries and create a positive image in the minds of consumers.

“However, there are also potential downsides to developing a national brand. One risk is that the brand may not accurately reflect the reality of the country or may be perceived as inauthentic. If the brand doesn’t resonate with consumers, it may fail to attract the desired audiences and could damage the country’s reputation.

“Another risk is that investing in a national brand can be expensive, and it may take time to see a return on investment. Additionally, if the brand is not well-executed or managed, it could be ineffective or even damaging.

“Regarding the statement that ‘nothing kills a bad product faster than aggressive advertising,’ while advertising can certainly create awareness for a product or a brand, it is not a substitute for creating a quality product or service.

“If the product or service fails to meet consumer expectations or is of poor quality, aggressive advertising may actually backfire and lead to negative reviews and damage to the brand’s reputation. It is essential to ensure that the product or service lives up to the promises made in the advertising.”

In other words, there is no getting away from doing our homework first in terms of preparing our country to accurately reflect the national brand image we desire to have. This includes things like political stability, peace and order, level playing field, a fair judicial system, consistency of policies and laws, among other things.

Alternatively, we can do what the Cebuanos did. Realizing how damaged the Philippine brand was, they launched the campaign, Cebu: an island in the Pacific. The late John Gokongwei named his airline Cebu Pacific. No mention of the Philippines. And it worked.

A television reporter interviewed tourists if they enjoyed their visit to the Philippines. The tourists were surprised. We did not go to the Philippines, they said, we went to Cebu. Told Cebu is in the Philippines, they insisted Cebu is an island in the Pacific.

As any serious leader should see, producing a few videos and posters for a national branding exercise is the easiest part. Cosmetic images and solutions can mislead a leader into thinking he is doing enough when he has barely taken the first step.

Boo Chanco’s email address is [email protected]. Follow him on Twitter @boochanco